2007 State of the City
Norfolk Virginia
February 1, 2007

 

Good afternoon.

             It is once again an honor to have the opportunity to spend time with our community’s leadership talking about a place we all share a passion for – and that is, of course, our city . . . Norfolk.

             But before doing that, I’d like to thank the folks who’ve worked so hard to help make this event possible.

 While I can’t mention everyone, I do want to recognize major sponsors Bill Foster from Towne Bank and Ron Dennis from Farm Fresh, John Maloney, chair of the Norfolk Division of the Hampton Roads Chamber of Commerce, Grigs Scifres, chair of the Hampton Roads Chamber of Commerce and, of course, the Chamber’s CEO Jack Hornbeck.

 Let me also thank Admiral Sir Mark Stanhope from NATO, Rear Admiral Rick Ruehe, Commander of Navy Region Mid-Atlantic, and Rear Admiral Stephen Rochon, Commander, Maintenance and Logistics Command Atlantic for the Coast Guard for being here.

 On behalf of a grateful community, I want to thank you - and all the men and women in uniform - for the sacrifices you are making to keep us safe in increasingly difficult times.

            The pageantry of today’s opening ceremony reminds us that this year thousand of visitors – including Queen Elizabeth – will travel to Hampton Roads to take part in the many celebrations planned for the 400th anniversary of our nation’s founding at Jamestown.

             Sail Virginia – our signature event for the Jamestown celebration -– will take place on the downtown waterfront in early June.

             Brought to us by our friends at Festevents and their sponsors, Sail Virginia will feature tall ships from around the world along with top rated entertainment and a spectacular fireworks show.

            2007 also marks Norfolk’s 325th anniversary, and I hope you enjoyed the images that were displayed documenting our history.

             During those three centuries our seaport town endured trials that threatened its very existence.  It was totally devastated during the Revolutionary War, the 1855 Yellow Fever epidemic nearly killed all of us, and of course in the 60’s and 70’s suburban development caused a hemorrhage of residents and businesses.

             But those who make their living by and on the seas are tough, resilient people.

             Led by citizens who willingly devoted their time, their talent and their resources to the task, each challenge was met and overcome, and each time Norfolk emerged a stronger and better community

             Dr. Mason C. Andrews was one of those citizens, and with his passing last fall Norfolk lost one of its most passionate champions.

             Longtime council member, mayor, physician, a founder of Eastern Virginia Medical School and The Jones Institute, architect of the downtown revitalization, patron of the Norfolk campus of Tidewater Community College and more, for decades his steady hand and clear vision helped guide and shape nearly every major development in the city.

             The Virginia Port Authority’s Bobby Bray is another public servant who has enjoyed a remarkable and highly successful career.

             After nearly 40 years with the Port Authority – the last 28 as executive director - Bobby has decided to retire.

 Under his leadership, port operations were transformed from three small, independently operated facilities into the Port of Virginia, one of the largest and busiest ports on the East Coast and a major force in the State’s economy.

             In recognition of its global reputation for excellence, Containerisation International – a leading international shipping and port industry publication – named the Virginia Port Authority as the 2006 Port Authority of the Year, and in November, Bobby was presented with the Darden Award by the Civic Leadership Institute in recognition of his contributions to the region.

             There’s no better way to go out than on top, so Bobby, let me ask you to stand so we can thank you for everything you’ve done for Norfolk, Hampton Roads and the Commonwealth.

             Also with us today is our good friend David Goode who retired from Norfolk Southern after a remarkable career.   He served for 14 years as chairman, president and CEO of our flagship corporate citizen.  No one has been more committed to the prosperity of Norfolk and Hampton Roads.  We are very pleased to know that Susan and he will continue to call Norfolk home.  So David, many thanks for being here.

             Excellence in our public school system received national recognition once again when the National School Board Association and the Council of Urban Boards of Education presented the Norfolk School Board with the 2006 Award for Urban School Board Excellence.

             Key to its selection was the school system’s history of stability and its commitment to eliminating the achievement gap, so please join me in acknowledging Norfolk Public Schools for this achievement.

             Of all the resources needed to keep the city running none is more important than our human resources – and each year for the past 53 years, the Civitan Club of Norfolk has recognized outstanding performance by a city employee with its Employee of the Year Award.

             Last year, the award went to someone with an amazing association with the city.

             Robert Curran began his career at Scope in 1971.

             He retired in 1989, then began working part-time with our parking division, which he continues to do on weekends.

             For the past four years he’s been volunteering three days a week in the council’s office.

             Robert Curran, the Norfolk City Employee of the Year, is a World War II Navy veteran, he’s 81 years old, he’s still going strong and I’d ask him to stand so we can recognize his inspiring loyalty to the city.

             Let me also say what an honor it was to have received such strong support across the city in last May’s election - an election that for the first time in 90 years gave Norfolk voters a chance to select the mayor.

             One of my first acts on taking office was to announce a series of six town hall meetings one for each ward as well as in downtown.

             The council and I were anxious to learn what was on citizen’s minds – what they like about the city and what they are concerned about.

             Over 700 people turned out to participate representing an excellent cross-section of the city.

             What we found was that people like the sense of community that exists in Norfolk, its big city attributes and small city charm.

             They appreciate the city’s diversity, the wide variety and high quality of its cultural attractions, along with the full range of educational opportunities.

             And they are proud of the way downtown has developed.

             We also learned that affordable housing, infrastructure needs, youth recreation, public transportation, public safety and real estate taxes are priorities they feel the council needs to address.

             This is valuable information that will be used by the council and the administration to help prepare the budget and shape policy development.

             Sound management, a strong local economy and the robust real estate market all make it possible for me to say the state of the city is sound with the promise of an even better tomorrow.

             Residential construction boosted the average value of new single family homes to $350,000 and doubled the resale value of existing homes from $100,000 to $200,000.

             The market’s continued strength was reflected by assessment increases averaging 9.5% for commercial property and 30% for residential property, resulting in a total increase in value of $2.5 billion dollars.

             The sustained rate of growth for residential property is unprecedented, and it is posing a challenge for more and more homeowners – particularly seniors and those on fixed incomes.

              In response, the council has reduced the tax rate two years in a row – last year by 8 cents – we also implemented a tax deferral program and expanded tax relief eligibility for the elderly and disabled.

             Both our General Assembly delegation and the Governor have introduced legislation to create a Homestead provision that, if enacted and approved as a constitutional amendment, will provide another powerful tool for granting tax relief.

           But we know more needs to be done now – so I am confident that the Norfolk City Council will enact a significant reduction in the real estate tax rate for 2008.

            I would also note that this year’s estimate for residential real estate is for a more moderate increase of 15% and the year after could return to the single digit range.

           Our population is showing steady growth and Norfolk continues to be the region’s center of employment.

           At last count there were nearly 228,000 jobs in the city - that’s a job for almost every man, woman and child in Norfolk - a claim few cities can make.

 This employment base brings in over 100,000 commuters a day to Norfolk.

 And there are more of our residents moving into the workforce.

             In 2004 our unemployment rate stood at 5.3%.   In 2005 it had declined to 4.6%, and today it stands at 3.9%, an achievement that has moved nearly 1200 more Norfolk residents into the workforce.

 Per capita personal income has also been rising – exceeding the region, state and nation in growth according to the latest information available.

 The poverty rate has declined by 11% - falling from 19.4% of our population to 17.7% in 2005.

 And more people are coming to Norfolk to shop.

 Last year retail sales grew 6.5% to nearly $3 billion dollars led by strong performances along the Military Highway Corridor and 21st Street and by MacArthur Center, and building on an 8 year trend that has seen overall sales increase by 58%.

 In short, our population is growing, more people are employed, per capita income is up, the poverty rate is down, and our tax base is growing – all signs of a community moving in the right direction.

             And our visitor attractions are drawing more people to Norfolk for recreation.

 The Botanical Garden and the Virginia Zoo – two of our most popular family destinations – continue to add new attractions.

 Last September the Botanical Garden cut the ribbon on its $6.2 million dollar World of Wonder Children’s Garden, a 3-acre interactive exhibit with a global theme, and the Zoo is moving forward on its master plan with six new exhibits set to open this June, including for the first time a camel – I can’t wait.

           Last year’s lead story from the business front was Ford Motor Company’s surprise announcement that it was closing its top-ranked, top-performing Norfolk Assembly Plant.

 After 80 years as one of our most important and familiar corporate citizens, its production line will shut down for the last time later this year.

             We worked diligently and hard with Ford officials to have this decision reconsidered, only to be informed it is final and irreversible.

            Our thoughts are with the employees and their families – and the employees and families of the local businesses that have supported the plant’s operations – and we have been working with Governor Kaine to assist as many employees as possible with this painful transition.

             While Ford has yet to make a decision on the future of its 103 acre property in Campostella, plans are underway to identify the highest and best use for this valuable waterfront land when it is made available for redevelopment.

             Norfolk is a city of plans.

            And while the Ford plant closure was not in our plans, there is abundant evidence that the Norfolk formula is working, and working city-wide.

             A quick snapshot of business activity from the past two years shows $1 billion dollars of investments in projects complete, under development or announced.

             Included in this are Dominion Enterprise’s $60 million dollar corporate headquarters, Air Wisconsin’s $31 million dollar maintenance and flight crew headquarters, Sentara’s $100 million dollar heart hospital and U. S. Gypsum’s $132 million dollar expansion.

            The Norfolk Southern Corporation turned in another solid performance last year, besting its record breaking year in 2005, and congratulations go to its new CEO and board chairman Wick Moorman for a great first year.

 Downtown remains the economic engine powering the city’s growth.

             Consider this, the assessed value of downtown real estate has increased 158% in the last 10 years.

            Let me repeat that, in the last 10 years downtown real estate assessments have increased 158% - growing from $343 million to $1.3 billion dollars.

             Helping us achieve that growth is Dominion Enterprises, which last month began occupying its new 20-story corporate headquarters at 150 Granby Street.

             The former Trader Publishing Company is reinventing itself as we watch in awe, making them the most exciting and creative new business in town in decades and we are all along for the ride.

             By mid-April, according to Dominion president and CEO Conrad Hall, 900 new employees will have moved into the building for a total of 1100 in downtown.

           By year’s end that number will have grown to 1350, and eventually will reach 1650.

 And by the end of March, 300 Cox AutoTrader workers will occupy the former Trader Publisher building, along with their corporate headquarters, a wonderful turn of events for us.  When built out, Dominion Enterprises and Cox Auto will bring nearly 2,000 new workers to downtown.

 We appreciate the confidence Mr. Hall and his partners at Landmark have in the city and Conrad, let me ask you to stand so we can congratulate you on Dominion Enterprises’ new corporate headquarters.

 Thanks also go to our great friends at Cox for their continued faith in us.

 More great news!  Last month Norfolk-based S. L. Nusbaum Realty – one of the Southeast’s largest full-service commercial real estate firms - announced plans to develop Wachovia Center, a 22-story, $150 million dollar mixed-use project that will contain 250,000 square feet of Class A office space, 50,000 square feet of retail space, 175 apartments and two parking garages.

 This project assures that Norfolk will maintain its position as the preeminent business center of the region.

 Anchored by Wachovia Bank’s Eastern Virginia regional headquarters, the tower is 53% pre-leased and will be the corporate headquarters for S. L. Nusbaum and Goodman and Company, the state’s largest independent certified public accounting firm, and, its 175 apartments will help meet the growing and unmet demand for rental housing in the downtown area.

 Planned along the new light rail corridor, this is one of the city’s most significant developments.

 Construction starts next year, and when completed in June 2010 it will give Monticello Avenue new life and a new look, and I would ask the Wachovia Center team from S. L. Nusbaum, Jeff Dyckman, Regional President of Wachovia Bank, and Joel Flax, Partner in Charge of Goodman and Company, to stand as we recognize their strong commitment to the City of Norfolk.

 I’m also pleased to report the state-of-the-art Half Moon Cruise and Celebration Center is scheduled to open on April 28th, and will position Virginia as an East Coast gateway to Bermuda, the Bahamas, the Caribbean, New England and Canada.

 With Carnival Cruise Lines and Royal Caribbean International calling our new facility home, passenger volume will grow to 92,000 this year.

 Much has been written and said about the hotel and conference center development planned for West Main Street and after long and careful negotiations a groundbreaking is scheduled to take place this summer.

 This development will give us a 235 room, 16 story hotel, 50,000 square foot executive conference facility and a 600 car parking garage for a total investment of $115 million dollars.  A more formal announcement will be made in the near future.

 It will also give the Convention and Visitors Bureau a much-needed asset, enabling them to attract larger and more affluent conferences to the city.

And let me just say that Tony DiFilipo, Trisha Rawls and the Convention Bureau’s board are doing a great job selling the city and bringing in visitors.

           City-wide hotel revenues last year were the best ever, and this hotel – the Marriott – had its most profitable year since its opening.  In fact, increases in our occupancy rate times the room rate outpaced both the state and the region.

            For this and other reasons, the Convention Bureau won the 2006 Visitors Bureau Award of Excellence from Corporate and Incentive Travel magazine and the 2006 Pinnacle Award from Successful Meetings magazine.

 Already 2007 looks to be the best ever for the hospitality industry.       

             The Granby District – downtown’s center for entertainment, dining and theatre - continues to be revitalized into an urban mix of office, residential and retail space.

             Since 1999, sales in the district have grown from $10 million dollars a year to more than $40 million dollars for a whopping 910% increase.

             The downtown landscape will continue to change over the next several years.

            More cranes will fill the sky as Wachovia Center, Granby Tower, the hotel/conference center, the new courts building and Fort Norfolk Plaza get underway.

             The advent of light rail is now all but certain, so we want to encourage more mixed use and transit oriented development such as Harbor Heights, Wachovia Center and the Kotarides apartment development at Brambleton and Duke Streets.

             More evidence that the Norfolk formula is working across the city can be seen in our business parks.

 Lake Wright Executive Center and Commerce Park are built out and have brought many new businesses and thousands of jobs to the city.

             At Central Business Park, adjacent to the new Wal-Mart SuperCenter at Tidewater Drive and Little Creek Road, business is great. This 33 acre development now has seven buildings open or under construction, offering over 200,000 square feet of space.

             Of particular note was the recent announcement by Northrop Grumman that they will be leasing over 14,500 square feet at the Taylor Executive Center. This year three more buildings will begin development, and we are holding three acres for additional minority investment there.

            Business parks have been so successful that we need more space, and today I am pleased to tell you that the city is completing a master plan for Lake Wright East – a 20 acre parcel of land between USAA’s regional headquarters and I-64.

             Strategically located, we believe it will sell out quickly, and generate over $2 million in taxes annually for the city.

            With nearly 2900 existing housing units and another 1000 in some stage of development, our goal of creating a thriving residential community in the downtown is being achieved.

             A good barometer of this success is that downtown now has its own civic league.

 

I am also pleased to say construction on the 31-story, 302 unit, $180 million dollar Granby Tower condominium project is set to begin later this month.  It will be more than an icon for us. 

 It’s true the city has agreed to incentivize this unique project. We live in a competitive world, one that is becoming even more competitive regionally.  Our sister cities are also incentivizing large scale residential projects.  The truth is, we are getting a tremendous return on our performance grant as a result of the revenue it will generate.  All the risk is being born by the developer of Granby Towers, and none by the city.

 Granby Tower and Wachovia Center are also strategically positioned to stretch the boundaries of downtown and facilitate the connectedness and development of the St. Paul’s Quadrant, the Fort Norfolk and North Granby areas and everything in between.

 In the Fort Norfolk section of downtown, Harbor’s Edge – the city’s first retirement community – opened in September.

 It was a sold-out development long before the first residents moved in, and its founder, Neil Volder, tells us conceptual plans have been completed for a second phase with marketing to begin later this year.

 Fort Norfolk Plaza – Dr. Keith Newby’s project in Fort Norfolk – continues to move forward as its scope and design are now defined to include a 155,000 square foot medical office tower, a 125 room extended stay hotel and 16,000 square feet of retail.

             A few weeks ago, the council approved plans for River’s Edge at Berkley, a three-building, 310 unit development to be located on 10 acres along the Elizabeth River across from downtown.

 It is a major residential development for Berkley and sends a clear signal of the downtown waterfront’s desirability as a place to live so please join me in congratulating Sunsations Realty and its principles Ronnie Sibony and Eyel Kadem for bringing this project to us.

             Just weeks ago Council adopted ordinances that gave the go ahead for the 201-Twenty-one, a $41 million dollar development consisting of 212 apartments and over 18,000 square feet of retail space on the site of the Old Farm Fresh on 21st Street in Ghent.

             In the East Beach neighborhood of Ocean View, just under half of the 419 available building sites have been sold with the remainder of the development on track for a 2010 build out.

            To the west, results of a study conducted on the Willoughby Corridor were recently released by the Housing Authority.

 Construction also has started on The Spectrum at Willoughby Point.

 With quite possibly the most spectacular water views in the city, the first 98 units of this 312 unit $125 million dollar condominium development is scheduled for a spring 2008 move in.

 And the new $10.5 million dollar Pretlow Anchor Branch Library in Ocean View - the first of four new anchor branches -  is on its way to completion this fall.

 Every great city deserves a great library system.

 This project - along with the $250,000 in this year’s budget to plan for the relocation of Kirn Library and development of a new central library - is the leading edge of a significant commitment to our library system. 

 It is noteworthy that Norfolk is second only to Virginia Beach among all of the major cities in Hampton Roads in municipal per capita spending for libraries.

             A neighborhood that we don’t hear enough from but that’s been undergoing a remarkable turnaround is Park Place, which is on its way to becoming a community of choice for moderate-income homebuyers seeking quality housing.

             As an example, last summer renovations were completed on the Touraine Condominiums  - a project that enabled 18 families to own a new home – and the first of five condominium conversions planned in Park Place with all units priced in an affordable range.

             The Housing Authority has also developed 21 new and renovated single family homes in Park Place East at Broadway, with 19 more homes planned or under construction.

 This is a real success story for this proud, turn-of-the-century neighborhood, and one that will continue to unfold in the months ahead.

 Let me also mention that last year our homebuyer assistance programs placed 87 low-to-moderate income families into home ownership – including 10 public housing residents.

             One year after Homearama, the Broad Creek development is making significant strides as the region’s first mixed-income, mixed-use community. 

            With prices in the $145,000 to $565,000 range the first phase of market-rate homes have sold briskly, and 300 multi-family rental units were recently completed.

             Development of the final phase of 200 housing units, a neighborhood retail area and a community square begins later this year.

             We are very proud of the way Broad Creek has come together, and I’m pleased to say its design excellence was recognized with awards as a national model for public/private partnerships.

             So thanks to NRHA for bringing these communities to us.

             In addition to what’s going on in Broad Creek, the city is implementing plans for Wards Corner, the Southside and for Fairmont Park and Lafayette Boulevard.

             With more than $51 million dollars already invested in these neighborhoods, this is quite possibly the most ambitious work schedule we’ve ever embarked on and that, when finished, will have recreated these strategic parts of the city.

                        But there’s another initiative that may be as important as anything we’ve done.

             Two years ago, I announced a goal of ending homelessness in Norfolk in 10 years.  

             Since announcing our plan, I am delighted to report that we have achieved a 65% increase in permanent supportive housing for the homeless.

             Just two weeks ago we opened the doors to the nation’s first regional housing project of its kind – the Gosnold Apartments – which will end homelessness for 60 people.

             Gosnold Apartments is the result of a great partnership among the city, Virginia Supportive Housing, The Planning Council, The Norfolk Homeless Consortium, and the Norfolk Foundation, and I want to thank everyone involved for making this dream come true including the cities of Portsmouth and Virginia Beach.

             And true to our commitment to develop regional solutions, another 60 unit apartment project is being planned in and by Virginia Beach with a site selected and a rezoning underway.

             Additionally, in partnership with the Community Services Board and Sentara Healthcare Foundation, we’ve taken 12 chronically homeless people with serious mental illness off the street, and successfully housed them in apartments.

             These investments in proven strategies to end homelessness are beginning to pay dividends.

             Preliminary data from the annual point in time count conducted just last week shows a 16.5% decline in homelessness in Norfolk in the past year.  That’s 110 fewer homeless people in Norfolk.  One year doesn’t make a trend, but that’s very encouraging news.

             And still more initiatives are underway.  Last month we launched a Central Intake for Homeless Families that will end the frustration of shelter shopping.            

            This allows us to keep another promise - - - we promise that no child need ever again sleep on the streets in Norfolk.  This is our commitment!

             The City has recently budgeted $500,000 to establish an Affordable Housing Trust Fund to be used to develop and preserve affordable housing for citizens in need.  We plan on seeking additional funds from the Commonwealth, foundations and private sources.

             A subject never far from our minds is public safety – one of government’s fundamental responsibilities.

             Public safety is a noble career - and a career with considerable risk.  This was once again evidenced by the tragic accidental killing in the line of duty of Norfolk Police Officer Seneca Darden on May 21, 2006. 

            I know I speak for all of us when I say that we deeply appreciate the great work the men and women of the Norfolk Police Department do on a daily basis as well as the outstanding service provided by our fire fighters and paramedical rescue professionals.

 Together, they are making Norfolk a safer city.

             Led by a dramatic drop in the homicide rate from 61 in 2005 to 28 last year – a 35 year low – I am pleased to report that 2006 continued a 15 year downward trend in crime.

             Overall violent crime was down modestly while property crime declined nearly 9.5%.

             To improve response times and better manage resources and information flow, Chief Marquis established a Third Patrol Division.

             This realignment has produced numerous arrests in targeted areas and more and better information exchange with citizens.

             Last year the department also graduated 88 new officers from the Academy, opened a state-of-the-art training center and created a Homeland Security Division consisting of a Special Operations team, the Harbor Patrol and a newly certified Bomb Squad.

             Let me also commend the 120 Norfolk residents who have been trained in Community Emergency Response – they are a great example of citizens helping their community.

             Trained to assist their neighborhoods until professional first responders arrive, they are a first line of defense in the event of disaster.

             Our goal is to have 300 citizens trained – one for each neighborhood – prior to the start of the 2007 hurricane season, and we are on track to meet that goal.

           The department of fire rescue is the second pillar of our public safety network and continues its record of having one of the fastest response times in the nation.

 Along with its fire fighting and paramedical rescue service duties, the department also includes significant homeland security responsibilities, and last year received an $800,000 homeland security grant for new equipment.

             Another key to making our community a safer place is lowering the number of repeat offenders.

             Two programs – both targeting non-violent offenders – have been working at this quietly but effectively: Second Chances and Drug Court.

             In November, Second Chances opened Harbor House - the state’s first permanent supportive housing project for non-violent felons that provides shelter and a support network to 16 clients who were either homeless or struggling to find housing.

             Drug Court, presided over by Judge J. P. Fulton, has adjudicated over 300 clients since 1998 and only 2% - that’s about 6 people – have been rearrested for a substance abuse-related offense.

             That number is well below the national average, and led National Drug Control Policy director John Walters to proclaim the Norfolk Drug Court a national model.

             These programs are not only making Norfolk a safer city, they are also helping former offenders reclaim their lives as productive members of society.

            Later this year America will celebrate the 400th anniversary of the day in 1607 when three sailing ships on an economic development venture of the Virginia Company landed at Jamestown Island with 108 settlers and established the first permanent English outpost in the New World.

             To speed the shipment of tobacco and other products from the Virginia colony to Europe, Norfolk was established as a port town 75 years later in 1682.

             It is no exaggeration to say Norfolk owes it existence to global trade and maritime commerce. 

 Today - three centuries later – we are witnessing a reordering of the world’s economy unprecedented in history . . . its repercussions will affect all of us.

             For Norfolk’s future – for the region’s future – I believe our goals must include becoming a global city – and a global region - in the global economy.

 This is a very competitive field - and the stakes for us could not be higher.

             Fortunately, we have an inventory of assets that have positioned us to succeed -.assets that prompted China, Inc. author Ted Fishman to comment at a recent Norfolk Forum that Hampton Roads gets the global economy.

 Chief among those assets is the port – but global activity is happening all around us - in business and the arts, in education, and in government and non-government organizations.

 Each is making important contributions to our visibility in the global economy.

 But our gateway to the world is the port.

 75 international shipping lines now call on the Port of Virginia.

 Their cargo sends six direct-service trains every day to 28 major U.S. cities, and supports more than 50 trucking companies.

 The Port generates 165,000 jobs, for a total payroll of $4.8 billion dollars and over $600 million dollars in taxes.

 It is vital to our economy, and it is on a growth curve to double in size over the next 25 to 30 years.

 Last year alone, the port experienced a 5.5% increase in the number of ship calls, a 7.6% increase in cargo and a 6.7% increase in rail volume.

 But there’s another edge to this sword - the port’s growth is straining our roadways.

 Recently, in a spirit of cooperation with our friends at the port, we have begun to study ways to reduce the volume of port related traffic on our secondary streets – particularly Hampton Boulevard and Brambleton Avenue – we hope to demonstrate progress in this regard shortly.

 With 14 consular offices and 162 firms representing 27 countries, global business activity is extensive in Norfolk and the region.

 Canon, CMA-CGM, Maersk, Mitsubishi, Norfolk Southern, Stihl and Zim, are just a few of our global corporate citizens.

             And global investment in our community is seen in Japanese financing that helped build this hotel, and German financing that helped build the MacArthur Center.

             For over 50 years we have been honored to be the only North American headquarters for NATO and now home to the Supreme Allied Command Transformation with a growing presence of international staff.

 Our cultural and performing arts are also centers of global activity.

 Last year the Chrysler Museum loaned a record 50 works of art to exhibitions at the National Gallery in London, the Louvre in Paris and to museums in Copenhagen, Dublin, Beijing and Shanghai.

 The Virginia Arts Festival – now in its 11th year – has brought performing artists to Norfolk and the region from countries in Africa, Asia, Central and South America, Europe and the South Pacific.

 The Virginia Opera and Virginia Symphony regularly feature international artists in their performances as does the Virginia Stage Company.

 In education we see encouraging evidence of greater attention being given to global competition.

 Norfolk Public Schools has instituted an International Baccalaureate program that has graduated 112 students and has nearly 200 students presently enrolled.

 Old Dominion University offers undergraduate, graduate and doctoral degrees in international business, and Norfolk State University’s Center for Global Education and Center for Strategic and Global Studies include multiple international programs.

 Virginia Wesleyan has an international studies major with course work in international business, cultural studies and politics, while Tidewater Community College offers international business classes.

 As the world gets flatter and economies become more interdependent, these programs will need to keep growing to prepare our young people for the world job market.

 Jobs of the future will go to those with strong minds, to those who are the most creative and the most innovative.

 And here again we look to our colleges and universities to lead the way.

 ODU’s modeling and simulation center and new generation Internet Lambda Rail project are vital to our ability to create high value jobs for the global economy.

 This is cutting edge stuff and one of the most important initiatives underway in Hampton Roads.

 Norfolk State’s RISE Center will accelerate its ability to educate students and provide workforce training for jobs needed in the global economy.

 As further evidence of how important high technology research and development are becoming to our economy, all the space in the first of 5 buildings planned for ODU’s Innovation Research Park is fully committed ahead of schedule and a second building is now being planned.

 At Eastern Virginia Medical School, scientific research is making contributions in the fields of bioelectrics, cold plasma technology and reproductive medicine – contributions that are helping the world while making it possible for the region to have medical care that is among the best in the nation.

 At the government level, the Virginia Port Authority and NATO are our most visible global leaders.

 And non-government organizations like Operation Smile, Physicians for Peace, the World Affairs Council and the Norfolk Sister City Association are excellent ambassadors for us.

 These are impressive assets for becoming a global city in a global economy, but by themselves they are not enough.

 Future economic growth will be jeopardized – and is being jeopardized - by traffic that strangles the interstates and clogs the tunnels, slowing the flow of goods in and out of the city to a trickle. 

 Unless significant investments are made – and made soon – our transportation system will leave us vulnerable to our competition not only from other regions in the country but also other regions of the world.

 Modern, global businesses are mobile; they will not wait on the General Assembly to enact a realistic transportation funding package; they will simply take their business elsewhere.

 Our education system also requires work – and not just at the secondary and higher education levels.  We need universal Pre-K and early childhood programs to give our children the best chance to succeed.

 Workers of the future will need high levels of preparation in reading, writing, speaking, mathematics, and science.   

 In the future – even today – employers will be looking for the most competent, the most creative and the most innovative people, and not just for top professionals and managers, but also for nearly the entire workforce.

 Together, it is time to recognize our standing as an emerging global leader, to identify strengths that can be built on and the areas we need to work harder on.

 Our geography and our history have blessed us with an impressive – even superior – set of assets for success in the global economy.

 It is up to us to make the most of them.

 Another asset that has positioned us to succeed in the global economy is our diversity.

 Norfolk is a diverse city, and it is becoming more diverse all the time.

 This is seen not only in our existing demographics, but also in monthly naturalization ceremonies at the federal courthouse where hundreds of people from countries around the world become United States citizens, and in the growing number of international students attending our universities.

 When we take our diversity, all those varied backgrounds, and bridge the differences with understanding, diversity can and should be a source of strength - a source of power.

 The overwhelming majority of Norfolk citizens are compassionate, tolerant people who embrace equality and justice for all.

 They seek racial and ethnic harmony; they are proud of our city’s diversity.  Together we are a stronger and more noble culture.

 These are core values that let the world know we are a community that welcomes what other cultures can contribute to that political ideal called democracy.

             It is essential to our continuing success that we reaffirm our commitment to be a city that engages and embraces one another.

             In one of his few references to Jamestown, Dr. Martin Luther King, Jr. said, “We may have come here in different ships, but we are all in the same boat now.”

             It has never been more clear that we need to pull together.

            I speak for the City Council and all of our residents when I say we must - and gladly will - place renewed energy in our civic mission to ensure every Norfolk resident is a beneficiary of our collective success, that everyone has the opportunity to live out his or her dreams.

             One hundred years ago - in 1907 – Norfolk welcomed the world to the Jamestown Exposition, a national celebration of the 300th anniversary of our nation’s founding.

             With a population of roughly 46,500 people, we were a modest community by any measure.

 There was no naval base.

 There was barely any electricity.

 There were no shopping centers or traffic jams - the horse was the primary means of transportation - and a significant portion of our population was denied the legal rights of full citizenship.

 Who, then, could have foreseen the sweeping changes the 20th century would bring to Norfolk?

 Today, we are the region’s business, educational, medical and cultural center with a growing global presence.

 Our civic and business communities are fully engaged.

 Norfolk has never looked better.

 But there is much left to do.

             There are schools, libraries, recreation centers and a court house to build, neighborhoods to revitalize and communities to develop.

            Transportation remains a formidable challenge.

 Our downtown will always be a work in progress.

             But looking back at how far we have come should only inspire us to look ahead to the future with confidence - for together, we have recreated our city . . . and we are moving it forward in a direction that has broad and deep agreement.

 Your enthusiasm for the new Norfolk, your wholehearted support and contributions to its progress, makes it a high honor to serve with my friends and fellow members of city council.

 Thank you for being here today and for all you are doing to build a brighter future for ourselves and our children.

 God bless you and God bless the City of Norfolk.

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