This partial road closure is required for roadwork needed to install pedestrian signals at the intersection of South Main Street and South Avenue as part of the Safe Routes to School Project for Keister Elementary School to make walking to school safer for children and their families. The City was awarded $455,000 from the Virginia Department of Transportation (VDOT) for pedestrian signals at South Avenue and South High Street (Route 42), and sidewalks on portions of South Avenue, Central Avenue, and Maryland Avenue.

The entire project is anticipated to be completed in May 2011. 

Photos by Holly Marcus for hburgnews.com

In addressing the issue of tax exemptions for certified solar energy equipment, Harrisonburg City Manager Kurt Hodgen presented two proposed ordinances from City staff, one for 20% and the other for 100% exemption. After extensive and byzantine debate, in which the City Manager expressed uncertainty about why the guiding law was passed by the Commonwealth Assembly, Council members batted around the length of exemption from life to 10 years and finally back up to 20 years (the term required by a local bank to provide further capital for the 2nd phase of Eastern Mennonite University’s solar project), and Councilmen agreed that if they passed the exemption it would be best for city residents not to apply for it, consensus seemed to grow in support of the 100% exemption.

Then Councilman Ted Byrd astutely raised the issue of fairness. If one business is allowed to apply for release from taxation, then all should be offered the same opportunity to come before the Council and request their machinery tax be exempted. However, Chenault argued that this exemption was not only for EMU and it’s partner, Staunton-based Secure Futures LLC, but for any business that invested in solar equipment. Degner expressed his belief that it is important for Harrisonburg to make a statement that the City encourages and supports alternative energy development.

Byrd was not convinced, and became the lone dissenting vote. The ordinance providing 100% exemption for 20 years passed its first of two required votes, 4-1. The ordinance reads, in part: “Effective on…July 1, 2010…certified solar equipment, facilities or devices…are hereby declared to be a separate class of property and shall be exempt from taxation at one hundred percent (100%) of its assessed value for the first twenty (20) years of its useful life.”

Today Jeff Mellott reported in the Daily News-Record on a City staff report related to the ordinance.

Council’s pending final approval of the ordinance would make Harrisonburg the 16th locality to offer the exemption. Of the 15 localities that now provide tax exemptions for solar energy development, 11 provide a 100 percent tax break for five years, according to a Harrisonburg staff report. Harrisonburg City Manager Kurt Hodgen said the city’s exemption would only be considered by request and does not apply to residences. The ordinance, as it reads, will put Harrisonburg in the forefront of state localities for support of solar development.

Northend Greenway

The proposed multi-use bike and pedestrian pathway, known now as the “Northend Greenway,” would wind its way from Eastern Mennonite University down through properties that line Blacks Run to the downtown area. The $1 million project is being proposed and funded by a small nonprofit that is new to the Harrisonburg area, New Community Project (NCP), which came out of the Brethren Church and focuses its mission on “creation care.” It is anticipated NCP will request that the City of Harrisonburg be responsible for long-term maintenance of the pathway. Tom Benevento, local coordinator for NCP, stated the pathway will create “connectivity among diverse neighborhoods, provide off-road safe transportation for children and families, and be a beautiful gift for the City.” Councilman Dave Wiens asked how it would be paid for.

Benevento responded “through major donors, grants, a public campaign, in-kind contributions, and institutions and government, but mostly community funded.” “That’s what I wanted to hear,” said Wiens. Councilman Kai Degner and Wiens both expressed strong support for the project. Council members noted the extraordinary work and coordination by NCP with city staff. Charlie Chenault touchingly expressed special praise for Thanh Dang and her “collegial style that moves projects forward.” Dang is the City’s Public Works Planner.

Council members Wiens and Degner. Photo by Holly Marcus.

In other business, the requests from Doug Kline and Velocity Property Group for special use permit and variance requests for the lot at the corner of Foley Road and Ridgeville Lane were narrowly approved, three to two.

The Chamber of Commerce presented its work on Vision2020: A Community Vision. “A community of unparalleled quality of life, where natural beauty, friendly interdependent relationship and diverse cultural, economic and educational opportunities exist.” Tom Mendez, former chair of the Chamber, said the vision was the work of 150 community leaders over a two year period, and he encouraged the City Council to officially vote in support for the vision, just as the Chamber is asking all area towns, counties and cities to provide unified support of the vision. Councilmen, some of whom had been involved with the process, praised the work of the Chamber for its focus on diversity and its contribution to the development of comprehensive plans for localities. Councilmen then referred the document to the City Planning Commission to review and consider it in the further development of the City’s comprehensive planning process, and expressed intent to vote soon in support of Vision 2020.

—

In an email to a local environmental list-serve, Harrisonburg attorney and solar advocate Tom Domonoske drew attention to an environmental issue on the City Council’s agenda for Tuesday night – a proposed solar tax ordinance.

Domonoske is concerned that the City may approve a tax related to the added property value of solar panels. He writes, “if someone puts $25,000 in redoing their bathroom or kitchen, then their real estate taxes do not go up….If someone though puts $25,000.00 into solar equipment, their taxes will go up $145.50 per year, every year.”

Workers install solar panels at EMU, 2010. Photo courtesy Erik Curren.

Domonoske is also concerned about low income residents of the City who have become homeowners through the Habitat for Humanity housing program. “For the past several years all these houses have been equipped with solar hot water heaters, and these homeowners are least able to afford a tax increase simply because they live in a more sustainable, energy efficient house.”

Cathy Stickler, Chair of the Climate Action Alliance of the Valley, said that after talking with a Harrisonburg City Council member, she wants people to know the situation is complicated. She said, “The Harrisonburg City Council says they are working on this ordinance in order to help people feel confident that they can place panels on their property and not be liable for additional taxes.”

Miriam Dickler, Public Information Officer of the City of Harrisonburg, confirmed that the Harrisonburg City Council requested staff look into comparable ordinances from other jurisdictions.

Harrisonburg Mayor Richard Baugh said the ordinance will not tax residential solar panels. “If you look at two houses side by side, one has panels and one does not, currently they are taxed the same.” He stated that the ordinance is necessary to assist Eastern Mennonite University, which came to Council seeking an exemption from liability on a new large solar array they recently installed. The ordinance, said Baugh, “allows a path for local government to reduce or eliminate a tax.” In this case, a current tax related to EMU.

But concerned residential owners want to know how much of an exemption the Harrisonburg City Council will pass for this ordinance. City staff returned to Council with a proposed ordinance that would tax such property additions as solar panels, but provide a 20% discount. Baugh and other council members are considering a 100% exemption. “I will certainly do what I can to provide an incentive for solar energy,” said Baugh.

Councilman Kai Degner, in an email on the same topic, assured City residents that no one is out to dis-incentivize solar. He encouraged people to come speak at the council meeting, particularly on “the unintended impact on personal property owners that would occur if an ordinance aimed at exempting some of a business’ solar tax is adopted at a rate of less than 100% of the tax for the lifetime of the equipment,” as well as “the importance of incentivizing solar.”

Domonoske is looking to citizens to turn out in support of the full exemption.

The Harrisonburg City Council will consider the “ordinance to permit Solar Tax Exemption as permitted under Virginia State Code § 58.1-3661: Certified solar energy equipment, facilities or devices and certified recycling equipment, facilities or devices” as item #12 on the March 8 agenda.

UPDATE: Here is more of Degner’s response to Domonoske’s email:

. . . The reason the ordinance is in front of us at all is to consider how much the city wants to incentivize solar projects like the one underway at EMU. In exploring a tax exemption for the EMU / Secure Futures solar project, our only tax exemption option NECESSARILY includes a tax exemption for solar installations on residential property. Currently, residential installations aren’t taxed because the Commissioner of Revenue doesn’t factor them into the property assessment (just like she wouldn’t consider what kind of water heater you have). We are PROHIBITIED from creating an ordinance with a different exemption for business or residential solar equipment. So, that means by drafting an ordinance which would RELIEVE a business from a portion of the cost of their normally required machinery and tools tax applied to solar equipment, we are forced to create a scenario where by in an effort to SUPPORT solar installations by businesses we introduce a NEW tax (even if reduced) to the personal property owner. This effect is being weighed carefully by council members, who don’t want to “punish” home owners by relieving a well-intentioned solar power manufacturing for-profit business of some of their required machinery and tools tax.

In Friday’s Daily News-Record, Doug Manners reported that Macado’s “will fill a vacancy left on Deyerle Avenue by The Pub.”

Demolition work began inside the former Pub location this month. When completed, the space will seat at least 225 patrons and could include an outdoor patio, [Kevin Clark, operations manager for Macado's] said.

Manners also reported that Roland “Spanky” Macher, who owned Spanky’s in downtown Harrisonburg until it closed in 2005, has no involvement with Macado’s. Richard Macher, owner of Macado’s, is Spanky’s brother.

In 2005 The Roanoke Times reported (in a detailed account of how Spanky’s went out of business) that “Spanky Macher has been long estranged from Richard Macher [...] his brother and former business associate.” Spanky’s and Macado’s split in 1992.

Preston Lake illustration from the Hine Group brochure.

I first wrote about Preston Lake in 2007, a few weeks after construction began. I ignorantly remarked that “this sort of real estate should sell like hotcakes” (although I added a dash of skepticism for good measure). A few weeks before the national mortgage crisis boiled over in 2008, developers and new residents gave the impression that Preston Lake was moving ahead as planned. On August 27, 2008, the DNR reported, “Preston Lake, the mixed-use development located at the intersection of U.S. 33 and Massanetta Springs Road, is getting its first residents. And its residents are getting exactly what they want.”

One of several planned neighborhoods at Preston Lake.

But now, with only about 20 percent of the master-planned community completed as of March, and following a public notice that 124.693 acres of the Preston Lake project will be auctioned Feb. 3, residents are not getting exactly what they want. Manners reports:

“Everybody is scared to death about what’s going to happen,” said Murray Mahool, who owns a row house. “The best thing to happen would be for the foreclosure to go through and have someone else buy it and try to turn it around.” [...]

Many homeowners chose Preston Lake for the community-type amenities promised, including a clubhouse, pool, parks and walking trails. Residents are still waiting for those features.

“We hope to see the development come to life,” said Debbie Huntley, who owns a detached house. “Most of us here, we love our homes and we love the community even though we’re disappointed we don’t have the amenities.”

Plans for Preston Lake’s commercial “Main Street” have yet to materialize. Clothing stores Talbots, Coldwater Creek and Joseph A. Bank were supposed to open in fall 2009, but no retail stores have located there.

But it’s still possible the foreclosure and auction might not happen. Harrisonburg Realtor Scott Rogers explained on his blog that the notice of auction “doesn’t necessarily mean that the foreclosure sale will take place, but this is a significant step in that direction.”

Rogers guessed at several different possibilities: That the auction won’t happen, and sales will continue at a snail’s pace; or another developer might buy it and continue with a similar plan; or Wachovia Bank might become the owner, and find another way to sell the subdivision, either as a whole, or in parts.

A current draft of the plan in PDF format can be downloaded from the project website. The 56-page document lays out a guideline for how the area north of the Harrisonburg city limits should be developed.

Conceptual zoning map of North Valley Pike corridor

Rockingham County Director of Planning Rhonda Cooper says that area was chosen in part because of its proximity to the Harrisonburg and Rockingham County technology and research parks.

The plan, initiated by a county planners, began in September, 2009 with a public “workshop,” followed by the formation of a citizens advisory committee. Planners and committee members have been operating under the projection that “Route 11 nears failing capacity by 2030, which would lead to the conclusion that under a status quo scenario widening will be necessary.” According to the PDF:

At the March 2010 CAC meeting working groups spent time going over a series of scenarios:

Scenario 1: Do nothing, live with congestion
Scenario 2: Route 11 as an improved four lane, divided commercial corridor
Scenario 3: Route 11 as two lane through parkway, new parallel road becomes a commercial street
Scenario 4: Route 11 as two lane “main street”, with a new parallel road serving through traffic.

The CAC members discussed each of the scenarios trade-offs and eventually identified Scenario 4 as a clear favorite . . .

The plan details “smart growth,” horizontal mixed use, and other modern urban planning concepts, as well as transportation trends such as bike lanes, behind-the-building parking, and roundabouts.

Here’s one conceptual “before-and-after” depiction of what the area might look like in 20-30 years, taken from the document.

Images from the North Valley Pike Corridor Strategic Plan

Cooper says the plan is meant as a general blueprint for the next 25 years, not a specific layout. “The plan focuses on form, mass, and streetscape rather than function.” She adds that any actual developments will require political will and public support. “We know this won’t happen overnight.”

Funding for improvements is anticipated to remain a challenge for the foreseeable future. “Paying for these sorts of road improvements wouldn’t all be the responsibility of the developer,” Cooper says, referring to possible proffers to help ease the burden of the county to pay for all improvements. “Creative ways of funding would still need to be sorted out.”

Comments on the plan are being accepted until Friday, July 2.

RMH invites the community to come see its new destination for health and wellness at the new hospital ribbon cutting and public open house 1-6 pm. Sunday June 6.

The new hospital and campus is located at the corner of Port Republic Road and Reservoir Street.

The ribbon cutting ceremony with special music will take place from 1-1:30 p.m. Boy Scout Troop 40 of Harrisonburg will present the colors and raise the U.S. and state flags in front of the new hospital for the first time. Special music will be provided by the Shenandoah Valley Children’s Choir and the U.S. Army Blues Band. American Sign Language interpretation will be provided for the ribbon-cutting.

An open house with self-guided tours will follow, from 1:30-6 p.m. Hispanic (bilingual) tour hosts will be available.

“Over the past four years, the community has watched with curiosity and excitement as the new Rockingham Memorial Hospital has taken shape at the corner of Port Republic Road and Reservoir Street,” said President and CEO Jim Krauss. “Now only a few short weeks remain until the new hospital opens June 22. The time has passed quickly, and we are almost ready to present this gift to the community.”

To reduce traffic congestion, easy and convenient parking will be available at JMU CISAT campus lots C10, C11, and C12, off of Carrier Drive near the JMU Festival and Conference Center. City buses will transport guests the short drive to and from the site beginning at noon. Buses will run continuously from 11:30 a.m.-6:30 p.m.

Those with physical limitations (and who have a handicap parking permit) are invited to park on the new hospital site. Please enter the campus at the Port Republic Road entrance and proceed to the security attendant. RMH Protection Services will assist with parking and any special needs.

Guests are advised to wear comfortable shoes for the walking tour, which may take 45-60 minutes. Light refreshments will be provided. No pets are permitted.

For more information, call HealthSource at (540) 433-4580.

View Larger Map

In 2006, before the development was being called “student housing” in the news, the DNR reported that developer Bill Neff had planned “to break ground on Southbury Station — a development to include 466 homes on 60 acres at Boxwood Court and South Main Street.” In 2009, Southbury was mentioned again in a story about several new student housing developments that had been rezoned R5 (mixed use).

According to Doug Manners’ report in today’s Daily News-Record, “the city’s planning staff has consistently recommended that a residential development not be built on the 60-plus-acre property, citing transportation and land-use concerns in the industrial and business area,” but now they’ve warmed up to the idea. Sort of.

On WHSV, city planner Adam Fletcher called the developer’s proposed changes (to the already approved plan) “the lesser of two evils.”

“Even though we’ve always looked at it as a negative thing for the city, it’s kind of the lesser of two evils. Do we go with the approved plan or, do we go with the proposed plan? Which as we see it is better for the city,” says Fletcher.

City Council is expected to vote on the proposed changes June 8.

UPDATE: Robert Babcock, the developer, says that Bill Neff is “not associated with the actual project development.” Babcock writes:

Once completed we estimate approximately 1,500 residents or beds, not 1,800 as specified in the DNR article. Our construction timeline has not been finalized. I can say, the initial phase most likely will not be completed until fall enrollment occupancy 2012. The DNR article states 144 units by fall 2011 . . .

Babcock adds that the updated plans include bike lanes (within the property) and “substantially more open space” than comparably-zoned developments.

So it sounds like the availability of space within the city limits may be the main attraction for developers here. According to the 2006 DNR article:

The price of land on the south side of Harrisonburg is considerably lower than property in the Valley Mall area of the city, said Bill Neff, president of Neff Enterprises.

“There’s practically none available along the [U.S. 33] corridor,” Neff said. “But if you could find it, the price would be close to double what the land along South Main Street sells for.”

But now, despite a depressed commercial real estate market, City Council and HRHA are trying to sell it again. There’s a request for proposal announcement on the city’s website.

The sale is considered a “high priority,” but it’s clear that they’re not going to simply sell the 26,000 square foot property to the highest bidder. The RFP [PDF] comes with quite a few special requirements:

Unlike a traditional sale of City-owned property, this RFP approach will provide the Proposer(s) an opportunity to present plans for the use(s) and redevelopment of the property . . .

Through the [competitive market analysis] the Proposer(s) is/are being asked to demonstrate to the City and HRHA that
the proposed uses of the property can be economically viable within the Harrisonburg market . . . The proposal will need to identify how the use(s) of the building and renovations/alterations to the building will complement and enhance the existing downtown area.

Those interested in responding to this RFP must have a sound understanding of the goals of this solicitation, the skills and financial resources necessary to satisfactorily complete the work and a demonstrated track record of having successfully completed similar development/redevelopment projects.

The winning proposal must be approved by City Council.

Considering the commercial real estate market is in the tank — and expected to get worse before it gets better — it’s hard to imagine the city would expect new bids to exceed offers that were previously rejected for being too low. In 2008, the city turned down an $801,500 bid on the grounds that it “[did] not cover the city’s more than $1.4 million investment.”

Two years later, this RFP sends the message; “use is more important than sale price.”

Any realtors, economists, or insiders have a different take?

(Thanks, John, for drawing this to our attention)