2. Addressing Blight C I T Y OF P E T E R S B U R G, V I R G I N I A - C O M P R E H E N S I V E P L A N Tools for Addressing Blight:

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1 2. Addressing Blight "Blighted area" means any area that endangers the public health, safety or welfare; or any area that is detrimental to the public health, safety, or welfare because commercial, industrial, or residential structures or improvements are dilapidated, or deteriorated or because such structures or improvements violate minimum health and safety standards.-- Virginia Code 36-3 Definitions Tackling the obstacle of urban blight in Petersburg is paramount in revitalizing the city. The 2000 Comprehensive plan recommended neighborhood redevelopment through selective demolition, infill development and the use of financial incentives. The City is not alone in its determination of blight as a high priority. Strategic partners like the Cameron Foundation and Virginia LISC have brought expertise and capital to bear on revitalization efforts. In 2007, a Strategic Investment Plan was developed through partnership with Virginia LISC, funded by the Cameron Foundation and studied by Urban Design Associates (UDA). Public support for the UDA plan reflects a demand in the community for active redevelopment. The City must make full advantage of the community support for redevelopment. There are several ways that the City is uniquely empowered to address blight and revitalization in Petersburg. Tools for Addressing Blight: Spot Blight Abatement - The Code of Virginia allows for localities to identify blighted structures and take affirmative steps to bring them up to safe and sanitary standards. Spot Blight Abatement gives localities the ability to put the responsibility of maintaining property on the owner. The Petersburg Redevelopment and Housing Authority should be a key partner in this task. The following steps should be taken: A comprehensive determination of blight under Title 36 is done for the City. Property owners are given 30 days after notice of noncompliance to develop their own blight abatement plan which outlines the steps they will take. If compliance isn t reached in a predetermined timeframe, the City takes action using their own approved abatement plan. This plan can be accomplished through A. Repair: putting a lien on the property for the cost of repair B. Acquisition: acquiring land through i) donation, ii) purchase, or iii) eminent domain Blighted properties that lie within Historic Districts are also subject to review by the Architectural Review Board to assure that improvements on the property are in accordance with the architectural character of the district. If the property owner is unwilling to make the appropriate improvements on the structure, the City may acquire the property to make the improvements. The City may make the repairs on the structure or gift the land to a willing 83

2 recipient under the condition that the property will be rehabilitated to the appropriated standards. Redevelopment Title 36 of the Virginia Code gives localities the power to address blight and blighted areas through redevelopment. Redevelopment involves the designation of blighted areas in Petersburg and the formation of a plan to address blight that affects the health, safety and welfare of local citizens. Redevelopment, however, goes beyond developing plans. Under Title 36, The City of Petersburg is empowered to use eminent domain in order to purchase property for the purposes of removing, preventing or reducing blight. This allows the locality to take the purchased land and then make it available to nongovernmental parties. A recent Supreme Court decision in favor of a locality s redevelopment plan over private ownership interests has led many state legislatures, including Virginia, to a more strict definition of blight in issues of condemnation. Vacant parcels are not eligible for condemnation and structures must be proved to be legitimately blighted. These changes have perhaps narrowed the definition of blight, but they have not negated the use of eminent domain. Pursuant to Title 36 and the details outlined above, the City can utilize redevelopment as a tool to address areas of the city that have been adversely affected by years of neglect. And although the legitimate exercise of eminent domain is sometimes crucial in order for the City to proactively address blight, in many cases other means of working alongside of private interests are effectively used to target blight and spark revitalization. Virginia Removal or Rehabilitation of Derelict Structures Fund The Virginia Removal or Rehabilitation of Derelict Structures Fund is a state-funded program that provides a matching grant of up to $200,000 to localities in Virginia for the sake of removing blight from the neighborhoods in which derelict structures are located. This program is administered by the Board of Housing and Community Development. Enterprise Zones The location of two enterprise zones in the City of Petersburg creates incentives for industries and businesses to locate in the city. Specifically, the enterprise zone located in the Central Business District matches local tax breaks with state grants according to number of jobs created or per number of buildings constructed or rehabilitated. The Enterprise Zones have been created, now their effectiveness lies in the ability of the City to market them and work with prospective businesses. New Market Tax Credit Zones New Market Tax Credits are designed to allow local Community Development Entities (CDE s) to invest in local businesses as they see fit. The Treasury Department issues tax credits to CDE s, which then can sell them to investors for equity/investments. The CDE takes this equity and invests it into local businesses and not-for profits. As a forprofit entity, the CDE benefits by making smart investment decisions on behalf of local businesses in these Zones. 84

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4 zones. The following is a listing of CDE s within the region: NCP Community Development Credit Union, Norfolk Norfolk Redevelopment and Housing Authority, Norfolk Tidewater Community Development Company, Norfolk Richmond Economic Development Corp., Richmond Richmond New Markets Capital, LLC, Richmond Virginia Community Development Fund, Richmond A New Market Tax Credit Zone is any low-income community, defined as a census tract with 20% poverty rate or with a median household income at 80% or below of the State median. This qualifies all areas of the City north of I- 85 and east of I-95. City-Owned Property There are numerous city-owned parcels in the city that are either vacant or underutilized. The assembling and marketing of these parcels at rates of the City s choosing adds an additional layer of incentives that can be given to potential developers and redevelopers. Reinvestment Opportunities To accompany recommendations made in the Strategic Reinvestment Plan, the following are examples of how taxcredits, redevelopment and the marketing of city parcels can be utilized. Canal/High Street - A key for revitalizing the greater Battersea neighborhood is addressing gateways into the neighborhood. The intersection of Canal Street, High Street and N South Street has potential as an important central commercial and retail center for a) the Battersea Neighborhood, b) the revitalized High Street corridor, c) VA State students and d) the newly established Commerce Street Industrial Historic District. The High Street/Canal Street/N South Street intersection is also a key test site for future reinvestment efforts because many key factors are in place. A blue print for redevelopment efforts has already been given in the Strategic Reinvestment Plan. In addition, the City already owns the central piece of the puzzle, a 2.3 acre parcel that runs along Canal Street up to the intersection with High Street and N South Street. Halifax Street Triangle - This commercial district sits around the intersection of Harrison and Sycamore Streets at the southern gateway into the downtown. This commercial district has a unique history as an African American center of commerce and culture. It also sits around a unique triangle shaped street pattern as Halifax runs southwesterly out of the downtown and Harrison runs southerly. In 2006, a redevelopment plan for the Triangle targeted three concurrent efforts that were either in the planning stages or already underway. 1) The expansion of the Poplar Lawn Historic District. 2) The construction of the multimodal transit center at the corner of S Union Street and Washington Street. 3) The relocation of the Petersburg Redevelopment and Housing Authority to a new site in the area. Both the Poplar Lawn Historic District expansion and the Multi-Modal Transit Center have been pursued. The relocation of the Housing Authority Offices may help provide anchoring to the redevelopment area. Current reinvestment efforts around the Multi-Modal Transit Center will only be as effective as the removal of blight and reinvestment of the Halifax Triangle district 86

5 immediately to the south. Left alone, the current state of the Halifax Street Triangle will threaten the success of reinvestment in and immediately surrounding the Multi-Modal Transit Center. The City must continue forward on the completion and adoption of the Halifax Street Triangle redevelopment plan. A market study should be done to determine the highest and best use of the currently vacant commercial district and a financial assessment should be undertaken to accompany the market study. The assessment will identify the financial feasibility for redevelopment and help justify public and private investment. Blighted street and apartment building on Stainback St. Stainback Redevelopment Area - The Stainback/West Street Neighborhood is an example of a residential redevelopment. Like any other redevelopment area, it must be classified as blight according to Title 36. The Stainback/ West Street neighborhood is a good candidate for redevelopment because it has a) high concentration of blight, b) access to good public amenities like parks, schools and other public facilities and c) could provide a stimulus for further reinvestment in the surrounding residential area. Instead of being an area of blight that discourages investment to the surrounding neighborhood, the Stainback/ West Street area becomes an anchor for renewal and rehabilitation in the neighborhood. The Stainback/West Street Neighborhood is one example of a potential residential redevelopment area. The Ross Court Redevelopment is another example of concentrated redevelopment efforts that aim to improve particular area in the hopes that it will be a catalyst for reinvestment in the surrounding area. The Strategic Investment Plan outlines the Battersea, Rome Street, Westview and Birdville neighborhoods as other target areas. This blueprint of identifying concentrations of residential blight and implementing redevelopment areas is an effective tool for addressing distressed residential areas in the City. Possible funding sources for neighborhood redevelopment are Community Development Block Grants, which provide annual funds to Cities like Petersburg for the revitalizing of neighborhoods. Eligible activities include acquisition of real property; relocation and demolition; and rehabilitation of residential structures. 87

6 C I T Y O F P E T E R S B U R G, V I R G I N I A - C O M P R E H E N S I V E P L A N City-Owned City Owned City-owned parcel along Canal Street Linchpin development at center of revitalizing neighborhoods, VA State gateway and warehouse loft conversions. Enterprise Zone benefits for job creation and/or mixed-use NewMarket MarketTax Tax Credit Zone New Credits Historic Tax Credits Historic District Tax Credits High Street Gateway With local and state incentives, private investment is underway at the intersection of Canal and High Streets. Warehouse Conversion VA State market, proven success for conversions in area Enterprise Zone benefits for job creation, mixeduse development Rehabilitation tax credits New Market tax credits Canal St./High St. Reinvestment Area 88

7 C I T Y O F P E T E R S B U R G, V I R G I N I A - C O M P R E H E N S I V E P L A N Halifax Street Renewal The construction of the Multi-Modal Transit Center on the corners of Washington and S Union Streets can be a stimulus to new development in the area. Coupled with this investment, other steps should be taken to stabilize and renew this commercial hub. Vacant, City-owned parcels along Halifax Street could be packaged for infill development using a series of incentives, including New Market Tax Credits and Enterprise Zones benefits. A complete redevelopment plan should be created and the area outlined in green should be declared a redevelopment area. This would enable the City to purchase blighted properties, reverse the distressing effect of blight on the community and reposition the district for renewal using the aforementioned tax credits incentives Petersburg R.H.A. City Owned New Market Tax Credit Zone Historic District Tax Credits Proposed Halifax St. Redevelopment Area Incompatible Land Uses The mix of certain types of commercial, civic and residential uses is beneficial. However, incompatible land uses that threaten the safety, health and welfare of Petersburg s citizens should be reexamined. A strict separation of certain types of land uses should be encouraged in future development and re-zoning. A tree-lined buffer between these historic homes and this industrial use is a good start, but more should be done to protect the City s remaining cultural resources. Halifax Triangle Reinvestment Area 89