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good afternoon. each year itã­s an honor tohave this opportunity to review the cityã­s progress and the work that lies aheadas together, we build a better norfolk, so thank you for being here.for 15 years, this event has been held under the watchful eye of chamberpresident and ceo, jack hornbeck. as many of you know, jack will retire in septemberafter nearly 25 years of service. in that



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American Eagle Outfitters Credit Card, time heã­s made important contributions tothe region, and will leave the chamber a strongerorganization than he found it. jack, i canã­t think of a better time than today to thankyou for your service and to wish you all the bestfor the future.


we are also joined today by congressman bobbyscott and john broderick, president of old dominion university and ourfriends in the military. thank you for being here.norfolk and the commonwealth lost a true champion with the passing of statesenator yvonne miller last july. elementary school teacher, college professor and thefirst african american woman elected to the general assembly, senator miller was acivil rights champion, an outspoken advocate for the poor and an imposing force inrichmond. she represented norfolk for 28 years, and we already miss her passionatedevotion to the city and to virginia. iã­m pleased to say the past year was oneof steady progress. major civic and


economic development projects moved forward.. . significant improvements were made to our transportation system and others setto begin . . . our partnership with active dutymilitary and veterans was strengthened by new initiatives and our quality of lifecontinued to improve. but for sheer excitement, nothing could matchthe extraordinary year for sports in norfolk. norfolk state university menã­s basketballteam clinched the meac championship and made its first appearancein the ncaa tournament where they upset the number 2 seed missouri tigers. this wasonly the fifth time in tournament history a15th seeded team had unseated a 2nd seeded


team so congratulations spartans. athleticdirector marty miller is here representing norfolk state.highlighted by a record setting 28 game win streak, the norfolk admiralsdemonstrated they were the finest team in the 76 year history of the american hockeyleague and the best minor league hockey team ever assembled. their 55-18 and 3season included a sweep of the toronto marlies to win the caulder cup and theamerican hockey league championship. on december 8, the lake taylor titans defeatedthe stone bridge bulldogs from loudoun county - 20 to 14 - to win the groupaaa division 5 state football championship. the titans compiled an undefeated15-0 season and became the first


norfolk public high school team since 1966to win a state football championship. we are very proud of them. head coach hank sawyeris here today along several team members so coach, why donã­t you all standso we can congratulate you. the still young old dominion university footballteam had another amazing season, advancing to the third round of thefcs championship and whose quarterback, taylor heineke, broke ncaa records on hisway to becoming the first player in fcs history to throw for more than 5000 yards.taylor was the recipient of the dudley award as the best offensive player in the state,the touchdown clubã­s football championship subdivision player of the year and the walterpayton award winner, the fcs equivalent


of the heisman trophy. taylor is here today.also here is head coach bobby wilder who was named the fcs football coachof the year, and all american offensive lineman jack lowney. i would ask them tostand as we congratulate them. we are honored to have both of you with us.but, maybe the most recognized personality to come out of odu recently is theinternational star of tv, internet and university pizza - charles the monarch. charles isfresh off his appearance on good morning america and just managed to squeeze us intoday. next month, the city welcomes the return ofthe mid-eastern athletic conference


basketball tournament to scope. meac is headquarteredin norfolk and commissioner dennis thomas and his staff have worked closelywith us on arrangements. weã­re looking forward to a great tournament.last year was the 20th anniversary of harbor park, home of the norfolk tides.this has been a win/win relationship that we want to continue. ken young and the tidesorganization have been great partners. the city and the tides are working closely tofinalize a new lease that will hopefully keep triple a baseball in norfolk for at leastanother 15 years. norfolk is the regionã­s center for business,finance, education, culture, health care, foreign commerce and national defense.we have successfully weathered the worst


recession since the great depression, balancingthe budget in the face of steep state funding reductions without raising the taxrate, while increasing funding for the school system. we are replenishing our reserves andhave exceeded our 5% reserve policy for two years running. we saved $52 million ininterest through smart bond refinancings, and conservative financial management hasallowed us to finish each of the last two yearswith a surplus and to maintain our excellent bond rating.continuing what is now a 10-year trend, violent crime fell 3% last year andproperty crime by fell 8%. for the 10-year period 2002 to 2012, violent crime has fallen15.5% and property crime over 27%. total crime


is down nearly 26.5%. each year weare becoming a safer city due in large measure to a vigilant and engaged citizenry and awell-led, committed police department. this past june, mike goldsmith, a longtimeveteran of the norfolk police department, was elevated to police chief. mike joinedthe department in 1989 and worked his way throughthe ranks. no one knows the streets of norfolk better. he has our full support. mikeis here today, please welcome chief goldsmith.as the economic recovery gains momentum our own tax revenues continue torecover. total sales in the city grew 5.5%. retail sales are up 4.5%, and macarthurcenter reports it had a strong finish with


holiday sales increases of 4.5 to 5%. manystores saw 5 to 10% increases. city-wide, hotel occupancy increased more than 6% androom revenue was up 4.2%. downtown hotel occupancy increased nearly 12% whileroom revenue was up over 6.5%. u. s. census returns reported that norfolkhad grown in population by 8400 people between 2000 and 2010 ã± a growth rateof 3.6% - a rate faster than virginia beach. two weeks ago, the state reported thatby july 2012, norfolkã­s population had grown another 3000 to 245,803. this is a positivesign, and i think we can now safely say that a pattern of population growth iswell established. in another indication of an improving economy,norfolk international airport


recorded a 5% increase in passenger trafficsince july. delta has added 4 daily flights tonew york and 2 to boston. further evidence of its faith in the norfolk market,southwest has added 3 daily flights to atlanta. the airport has also begun $17 million inimprovements to the departure terminal and general aviation facility.the port of virginia reported 2012 was the second best year in its history withvolume up nearly 10% from the year before. the port is a huge economic engine forvirginia. it is responsible for 343,000 jobs. it generates $41 billion dollars in revenue.and for the past 25 years it has been skillfully led by joe dorto, president and ceo ofvirginia international terminals. after 34


years with the port, joe will retire at theend of march. joe is here today, and i ask youto join me in thanking him for all he has donefor norfolk, for the region and for the commonwealth. joe will be succeeded by joe ruddy as presidentand ceo of vit. please welcome him.with over one billion dollars in public and private development nearly completed,underway or planned in 2013, our city is growing and attracting new businesses and newresidents. three downtown projects representing a combinedinvestment of nearly $200 million dollars are the slover memorial library,the consolidated courts complex and the


macarthur memorialã­s new visitor center.along with the virginia maritime associationã­s handsomely remodeled headquarters,the visitorã­s center makes an attractive addition to the macarthur stationcrossroads. for the past 18 years the macarthur memorial has been led by col. billdavis. bill recently announced he will retire in march. we will miss him. pleasejoin me in thanking him for his service. after breaking ground in april, constructionof the slover library - our new, state-of-the-art main library - is on trackfor a winter 2014 opening. frank and jane battenã­s extraordinary gifts totaling $42million dollars and a fundraising effort of nearly$6 million dollars, allowed us to accelerate


construction by at least a decade - probablymore - and on behalf of the city i want to once again thank the batten family for allthey have done and continue to do for the citizensof norfolk. the library will be a source of great civic pride and a destination all byitself. a year after breaking ground and now dominatingthe intersection of st. paulã­s boulevard and city hall avenue, constructionof phase 1 of the courts complex is moving swiftly towards a scheduled completionone year from now. work begins on phase 2 next year with an early 2015 completion.when finished, our justice system will have 315,000 square feet of new, secure andtechnologically advanced space.


downtown also welcomed urban outfitters togranby street and sales are doing well. urban outfitters could have gone toany city in the region but chose downtown norfolk for its central location and for itsconcentration of business, educational and cultural assets. its opening was a major stepforward in efforts to bring retail back to granby street where the creative energy ofnew high tech companies, the arts, retail andnew fusion cuisine combine to offer a wide variety of activities for all ages. to celebratethe granby street experience, the city together with granby street businesses and thearts community hosted meet, greet and imagine on granby street. this outdoor eventwas hugely successful and achieved its goal


of promoting granby street. look for morethis year. following a rigorous rfp process, the cityselected the cordish companies of baltimore for the job of revitalizing waterside.cordish will invest $28 million dollars in transforming the facility into waterside live,a venue featuring restaurants, a market area and performance space. waterside live! ishoped to bring upwards of 1000 new jobs and generate an estimated $93 million in directrevenue to the city over 30 years. in accordance with input received from the public,it will be a family oriented facility and, as the illustrations clearly show, most ofthe original structure will be preserved. construction is expected to take 18 months,meaning that we can expect a new waterside


to be open before the end of 2014. weã­repleased to have michael stoltz, leader of thecordish norfolk team, here today. an rfp to modernize the waterside marina will beissued shortly. after some difficult years, the real estatemarket is showing signs of recovery. the number of distressed sales fell more than30%. year-over-year home sales increased 4.2%, and the median price for homes increased5.1%. $170 million worth of new residential projects completed, underway orannounced will add nearly 1000 new housing units. this includes the 81 unit riverviewlofts in fort norfolk that is now leasing, the187 unit promenade point under construction


at roland park, last monthã­s approval ofthe 164 unit elements on ghent and a 136 unit development at east beach that getsunderway next month. it also includes four projects downtown: therenovation of the historic wainwright building into 126 apartments; a new 65 unitproject at 401 granby street and a 71 unit project at 416 boush street. along with u.s. developmentã­s planned renovation of the former union mission into the 122 unit rockefellerapartments these projects, when occupied, will push the number of downtownresidents over 4500. in ocean view, homearama returned to eastbeach for an unprecedented third time, lot and home sales climbed to theirhighest level since 2006, and plans are being


submitted for the developmentã­s final phase.at harbor walk, 157 new condominiums valued at $25 million dollars are under constructionand scheduled for completion this july.in a recent positive development, the city council has committed to purchase thetravelers inn which sits on bay front property at the intersection of ocean view avenueand chesapeake boulevard. this is an $800,000 dollar acquisition that will provide thefirst expansion in decades to the public beach and park.additional evidence of a strengthening economy was the councilã­s approval of aproject that will redevelop 3.5 acres on 21st street between hampton boulevard andcolley avenue with a fresh market gourmet


grocer and a two-story medical officebuilding to be occupied by bon secours. this $17.5 million development is expected togenerate more than $200,000 annually in revenue over the next 10 years and create about130 new well-paying jobs in ghent. anchored by a high-end harris teeter store,the new $18 million dollar, 70,000 square foot suburban shopping center is underconstruction at wards corner, and developer chris perry reports that all butone space has been leased or spoken for. this isa tremendous vote of confidence by the private sector in the future of wards corner.across little creek road, the $1.2 million dollar remodeling of the midtownshopping center is complete, as is an $8 million


dollar remodeling of southern shoppingcenter. work begins this summer on a $4.8 million dollar project to renovate thetidewater drive - little creek road intersection. in denby park, 68 apartment units were acquiredand demolished last year, and the council has voted to acquire 37 more unitsthis year for $1.4 million dollars. and itã­s worth noting how proud we are of norfolk collegiateã­s$8.5 million dollar center for the arts built on its granby street campus andscheduled to open next month. all of this hasbeen well received by the wards corner civic and business community.construction of the ray and joan kroc community center in broad creek is ontrack for a late spring opening. including


the endowment, this is a $96 million dollarinvestment, and i want to say to the salvation army board how much we appreciate itssupport for the project. special thanks go to josh darden who was almost entirelyresponsible for the $28 million dollar local fundraising. thanks also to frank batten,jr. and our other partners who participated inthe private fundraising. the magnitude of thisproject will serve to stimulate further revitalization in this area of the city.even now the housing authority is planning for the next phase of theredevelopment project ã± broad creek station ã± a mixed-use development on the southside of virginia beach boulevard. an anchor


branch library is also being planned as wellas a new elementary school. today, i want to recognize two long-time norfolkmanufacturers who are successfully competing in the global economy.first is paramount sleep, a third generation family-owned mattress manufacturerlocated in norfolk industrial park that celebrates its 80th anniversary this year.in a bold move to expand its market overseas, onjuly 4th paramount closed a deal to begin selling their products in china. just daysago, shipment was made to a second chinese distributorwith 60 stores. this is a remarkable achievement for any u.s. small business. imagine.mattresses built in norfolk, shipped


to and sold in china. what a market! arthurdiamonstein, paramount president and ceo, is here today. please join me in congratulatinghim and paramount.next is a company that has been operating in norfolk quietly but with worldwideimpact since 1976 . . . bauer compressors. bauer employs 185 people at its u. s.headquarters, also in norfolk industrial park. it is the worldã­s leading manufacturer ofhigh pressure compressors, and more than half of its products are exported, most throughthe port of virginia. last november, bauer announced a major $15 million dollarexpansion that will grow their facility by 31,000 square feet ã± nearly doubling it ã±while


adding up to 130 new employees. joe starkand chris traugh from bauer compressors are here today. please help me thank themfor their confidence in norfolk. iã­m also pleased to recognize our newestcorporate citizen ã± amerigroup/wellpoint. amerigroup is a fortune500 company, and one of the nationã­s leading managers of publicly funded healthprograms. amerigroup is expanding to the lake wright executive center where it willoccupy all of usaaã­s former headquarters. 500 employees have already moved into thebuilding, and that number will approach 1200 over the next year or so. this is a $20million dollar investment and the largest business relocation to norfolk in decades.kevin riordan, vice president of government


relations with amerigroup is here. pleasejoin me in welcoming him and amerigroup to norfolk.in other developments, wr systems ã± a global provider of technical solutions tothe maritime, health and government sectors ã± recently secured orders from china, japanand korea for its emissions monitoring system. eos surfaces ã± a manufacturer of solidsurfaces ã± will cut the ribbon on its innovative new line of anti-microbial hard surfacethat will be installed in sentaraã­s new leigh hospital in what is believed to be the largestclinical trial in the world. and tidewater fleet supply and nash finch are expandingoperations in norfolk industrial park. these companies and others are helping diversifythe cityã­s economy and reduce


dependence on defense spending which, at $21billion dollars, comprises more than 45% of the regionã­s economy. over time weã­veworked hard to diversify our economy, but we need to work even harder. congressã­s failureto adopt a budget has already caused the navy to order expenditure reductions.the potential calamity from sequestration threatens more, deeper and damaging reductionsin defense spending and national security. this is unimaginable. everyone hereshould take time to contact our congressional delegation and demand they opposethese deep defense cuts. one area with potential to help repositionthe cityã­s economy is technology. with our location midway between the washingtonmetro area and the research triangle, with


norfolk state universityã­s rise center andold dominion universityã­s innovation research park and modeling and simulationcenter, along with the medical schoolã­s expanded research facilities, our improvedtransportation system, a dynamic and diverse downtown and a solid core of high tech businessesto build on, all the right assets are in place.anchored by dominion enterpriseã­s headquarters, the granby street corridor hasbecome a magnet for technology companies like xtuple ã± an open source softwarecompany used by businesses worldwide. founded in 2007 by norfolk native ned lilly,xtuple grew by 35% in 2011. it grew by nearly the same amount last year, increased itsstaff by 40% and is adding 3,500 square feet


of additional space.other digital technology firms on granby street include grow interactive, cinivaweb agency, artsmith media and sway creative labs.last june, hatch ã± a mentor-based accelerator program for technology and designentrepreneursã± accepted five new start-ups to its inaugural class. the winter class of5 additional start-ups got underway last month.our improving climate for entrepreneurship was highlighted by the naming offour local companies - including arcdna and zack miller of hatch by virginiaã­s centerfor innovative technology to the top 50 list of next generation entrepreneurs.iã­ve noted on previous occasions that norfolk


has more jobs ã± nearly 210,000 -than adult residents. we continue to lead the region in total average compensation perjob, and our unemployment rate has fallen from 8.1% a year ago to 7.2%. that is better,but still too high, and our poverty rate is too high. a large segment of our workforcelives outside of norfolk. we must do more to connect norfolk residents with norfolkjobs. to address this persistent problem, later this month the council will appointa blueribbon task force that over the next year will examinethe nature of poverty in the city and recommend actions that will result in increasededucational attainment, job training and employment among individuals and familiesliving in poverty.


led by sentara health system ã± the cityã­slargest private employer - the health care industry employs more than 22,000 peoplein norfolk. with an aging population and the new affordable care act, it is alsoa growth industry. sentara is presently building a new $126 million dollar leigh hospitalon kempsville road. bon secours has broken ground on its $22 milliondollar medical plaza building at depaul medical center and is moving forwardon plans to replace the main hospital ã± all of which will improve health care in thecity and boost the wards corner economy. and this fall, lake taylor transitional carehospital will complete $25 million dollars inimprovements that include a new wing and renovation


of the entire facility. i canã­t thinkof a better way for the lake taylor hospital authority to celebrate its 25th anniversary.the heart of the regionã­s health care system is eastern virginia medical school,and this year it celebrates its 40th anniversary. it is a priceless asset that provides highquality health care for our citizens and performs cutting edge research. one of its mostvaluable contributions is that 23% of the regionã­s physicians are evms graduates. animportant benefit of the schoolã­s new education and research building is it allows for 30extra md students per year. this year, md enrollment is 530, up from 470 in 2010 withincreases in faculty and staff. for the past eight years the medical schoolhas been ably led by harry lester. his


leadership, vision and relationship-buildingskills have produced such achievements as securing state funding for the schoolã­s neweducation and research building, a highly successful capital campaign, the renovationof nearly all campus facilities ã± including therecently completed $5 million dollar renovation of the strelitz diabetes center ã± andrecruitment of nationally known researchers. perhaps of greatest significance, themedical school is now included in the state budget for annual funding on par withvirginiaã­s other medical schools. last month, harry announced his intention to stepaway as president of the medical school. while he could not be here today, i want toextend thanks and appreciation on behalf of


the city for the outstanding job he has done.he will be ably succeeded by the medical schoolã­s provost and dean, dr. rick homan.dr. homan is here today so please join me in welcoming him to his new role.norfolk is the military capital of the world, and we are proud of the historic roleweã­ve been privileged to play in defending our nation. we are home to the worldã­slargest naval base . . . the north american headquarters of nato . . . headquarters offleet forces command and to several coast guard commands including maintenanceand logistics. with us today are u. s. fleet forces commanderadmiral william gortney, natoã­s deputy supreme allied commander transformationgeneral mieczyslaw


bieniek and coast guard force readiness commanderrear admiral stephen mehling. gentlemen, thank you for being here. the menand women stationed here are important members of the norfolk family, and we appreciateall they are doing to keep us safe at home by their service abroad.with the war in afghanistan winding down and troop withdrawals from iraqcompleted, we will welcome home growing numbers of veterans. to assist them intransition to civilian life, the city has established a workforce development andveterans services initiative within the department of economic development.we have set a goal for norfolk to be the best city in the country for the military todo business and the best city for veterans


to live and work. additional actions takenlast year are helping us achieve that goal. thecouncil established a military economic development advisory committee for strengtheningthe cityã­s relations with all military and federal entities. it also establishedan advisory commission on veterans affairs toinform us on issues that are important to veterans.nauticus just had one of its best years, but a little known fact is that since itsdocking in downtown 13 years ago, the battleship wisconsin has hosted more than 5200military events, more than 400 a year on average welcoming over 187,000 active dutymilitary and their families to the ship.


we are proud to be the first municipalityto participate in the virginia values veterans program. sponsored by the commonwealth,the v-3 initiative is designed to encourage virginia companies to hire and retainveterans for at least one year. participating employers have committed tohiring over 1700 veterans this year. the city of norfolk has attained a bronze level ã¬vetstrongã® certification. in attaining this certification, the city underwent an assessmentof its readiness to hire veterans and committed to hiring 105 veterans this year.norfolk has also agreed to serve as a municipal model for the v3 program and hasdesigned a veteran hiring and retention training and implementation program.join me in expressing our deep appreciation


for the service and sacrifices of allour veterans, active duty personnel and first responders.for our public school system, the past year was one of achievement and seriouschallenge. based on overall performance, our students continue to succeed academicallyas seen in the selection of micah lemelle and drema johnson as gates millenniumscholars. it is seen in norview high schoolã­s selection by the metlife foundationnational association of secondary school principalsã­ as one of 10 breakthrough schoolsin the country for outstanding efforts at improving student achievement. and iã­m proudto say that our student drop out rate improved dramatically last year.still, our school system faces challenges


that must be addressed fully andforthrightly, beginning with improving test scores and increasing the number of fullyaccredited schools. after his arrival last july, superintendent dr. samuel king movedswiftly to implement system-wide changes to improve student performance. dr. king ishere today so please welcome him. the nature and scope of the challenges havebeen identified and corrective measures are being applied. the council expectsacademic performance to improve, and is committed to doing its part to help. abig part of that commitment is money. it is important to note that norfolk did not retreatfrom its financial commitment to the school system during the recession. from fiscal year2007 to 2013, city support increased 9.8%


or nearly $10 million dollars for operatingexpenses. while the city was stepping up the state was cutting funding for norfolk publicschools 10.2% or nearly $20.5 million dollars over the same period.as part of our commitment to build five new schools over a six-year period, a $31million dollar crossroads k-8 school was dedicated in september. $39 million dollars isin next yearã­s budget for the construction of two new schools. thatã­s great, but weneed to do more. i intend to engage the communityin a discussion this spring about the need to raise additional revenue for technologyupgrades, school maintenance, and for the construction of two schools to replace onesbuilt in 1929 and 1939. our children deserve


better. they deserve our best. having fourschools under construction at the same time would be unprecedented in the cityã­s history.but i know we are up to the task. investing in the arts enhances our qualityof life and is good for economic development. another reason to invest in thearts is for their proven ability to change peopleã­s lives, especially our young people.a wonderful example of this is the rise! program at the historic crispus attucks theatre.rise! offers young people significant exposure to the arts as a way to develop positivevalues, healthy habits and skills they need to be effective at home, at school andat work. last fall, rise! was one of 12 programs selected to receive the 2012 nationalarts and humanities youth program


award, the highest honor awarded to such programsin the united states. the award was presented by first lady michelle obama torise! director gail easley and rise! student tiffani prigrom. gail is here todayand i would ask you to help me congratulate the rise! program on this national recognition.three hundred and fifty-five young aspiring high school artists from across theregion who attend the governorã­s school for the arts will soon report for class at onelocation instead of six thanks to a renovation of the historic monroe building on granbystreet. this $9.5 million dollar regionally funded project is scheduled for completionby the next school year. not only will we savethis historic building, the collective energy


ofall these young artists in downtown will be good for our spirit and our economy.last year, the virginia arts festival brought nearly 58,000 patrons to norfolk andthe region from 42 states and seven countries. this generated an economic impact of$9.2 million dollars locally and $17.4 million statewide. the festival is helping us createa performance economy, and for its 17th season will feature performances by britainã­sbirmingham royal ballet, garrison keillorã­s a prairie home companion, broadwaylegend audra mcdonald and its signature event ã± the virginia international tattoo with850 performers. a different kind of festival shone an internationalspotlight on norfolk when


festevents was awarded the prestigious grandpinnacle award by the international festivals and events association for opsail2012 virginia. opsail was an amazing event that brought hundreds of thousands ofvisitors to the downtown waterfront for the commonwealthã­s signature event commemoratingthe bicentennial of the war of 1812. festevents competed with such events as thekentucky derby and the national cherry blossom festival. this is the highest honorin the event industry, so please join me in recognizing karen scherberger and all thefolks at festevents for bringing us a worldclass event.while the chrysler museumã­s doors are temporarily closed for construction of its$24 million dollar expansion, the glass studio


remains open. in the space of just oneyear, the glass studio has made norfolk a ã¬hotã® new and internationally recognizedcenter not just for the study and display of glass art, but also for its creation. ithas enabled the museum to bring the worldã­s greatestglassmakers to town as visiting artists, and sparked educational partnerships withthe governorã­s school, old dominion university and virginia wesleyan. the glassstudio has created an extraordinary buzz, it has attracted new and untraditional visitorsto the museum and is well positioned to be an anchor for the proposed new arts district.this year, norfolk botanical garden celebrates its 75th anniversary. approvedunder president franklin roosevelt, the garden


was built by more than 200 africanamerican women and 20 men. today, it is a 155 acre oasis of open space with more than40 themed gardens. our virginia zoo is now drawing 500,000 visitorsa year and continues to improve the quality of its exhibits. thisyear a $4.25 million dollar animal hospital andwellness center will open. improvements and additions to our recreationalfacilities include an expanded therapeutic recreation center, a $7.7milliondollar aquatics center on the southside that will open this summer, a new recreationcenter at crossroads school and a new $1.9 million dollar gym for the ingleside communityand children that opened last month.


park place residents will soon be able toenjoy a ymca family center. this $8 million dollar facility was made possiblethrough a partnership between the y, the hampton roads community foundation, the landmarkfoundation and the city, and meets a longstanding need for the community.work is also underway on a design for bay oaks park in ocean view and onsignificant upgrades to barraud park which will include a new boxing center for ouryouth. the boxing program instills character and citizenship in its young boxers and isled by coach gloria peek, the first woman to coach boxing at the olympic level.presently the program has a waiting list of nearly 200 kids. they deserve a new facility.coach peek is here. please congratulate and


thank her.norfolk was fortunate to have escaped the devastating impact hurricane sandyhad on the northeast last october. even so, it underscored our vulnerability to stormsurge and tidal flooding, and gave greater urgency to work occurring on several frontsto reduce flooding.in the past two years $14 million dollars has been spent on storm water andflooding projects across the city, and we continue to pursue federal funding throughthe army corps of engineers for major flood reductionprojects including the hague and pretty lake. one encouraging signal came lastsummer when the united states senate


authorized the army corps of engineers toproceed with a feasibility and environmental impact study of storm surge and tidal floodingin the city. we have already been to the white house where we met with officials ofthe office of management and budget to advise them we will be seeking flood mitigationfunding no later than the 2015 federal budget, probably in the amount of $1 billion.the cost of these projects together with the long lead time for federal funding approval,makes this a multi-year process. these and other actions have led norfolk tobe recognized as a national leader in flood prevention and planning by the new yorktimes, public tv, national public radio and the washington post.in our efforts to end homelessness we have


found permanent supportive housingto be a highly effective way to help homeless individuals return to being productivemembers of the community. decemberã­s opening of the 60-unit heronã­s landing inchesapeake brought the regionã­s total number of units to 324. when you consider thatjust 6 years ago no supportive housing existed, this is an amazing achievement. alongwith virginia supportive housing, we are now planning a second mixed use workforceapartment development in norfolk. these and other efforts by the city to endhomelessness were recently recognized by the 100,000 homes campaign for meetingthe national goal of housing the chronically homeless. this places us among an elite groupof 17 cities nationwide to receive this


designation.transportation is destiny, and our destiny has improved with the substantialprogress to our transportation and transit systems made this year and with moreimprovements on the way. last august the the tide celebrated its firstanniversary, and the commonwealthã­s first light rail system hasexceeded every expectation. with passenger counts averaging more than 5400 riders eachweekday, it is well on its way to doubling the number riders initially estimated by thefederal transit administration . . . not bad forthe smallest city in the nation to build a light rail system. the tideã­s success ledthe


norfolk city council to ask hrt to initiatea study for extending light rail to the naval base. it also gave citizens in virginia beachthe comfort they needed to support a referendum to continue current studies forextending the tide east from newtown road, and for their city council to agree to pursuefinancing and development options. these are welcome decisions and help move us closerto a regional light rail system. on 12/12/12 we all cheered when intercitypassenger rail returned to norfolk at harbor park - not just on time, but almostone year ahead of schedule thanks to some outstanding teamwork by the governor, thegeneral assembly, the department of rail and public transportation, amtrak, norfolksouthern and csx. representing that


team here today is thelma drake, directorof rail and public transportation. please joinme in recognizing their great work. (lead applause) almost 6500 passengers rode thetrain in december ã± double what amtrak projected. we are hopeful the success ofpassenger rail will lead to additional train service in the near future.all this happened faster than expected or hoped for, and faster than we couldbuild a passenger station. this $3 million dollar building is now under constructionand scheduled to open in october.this is a good moment to say how proud we are to be home to the norfolksouthern corporation, the nationã­s premier


transportation company. formed by themerger of the southern railway and the norfolk and western, the ns is one of the bestrun, best managed fortune 500 companies in the nation. it is vital to the port and vitalto the local and state economies. last june norfolksouthern celebrated its 30th anniversary, so please join me in congratulatingceo wick moorman and everyone at norfolk southern on this milestone.to support the emerging shift to a more balanced regional transportation system,the city recently committed to build a $4 million dollar modern bus transfer centeralong st. paulã­s boulevard near wood street. locatedwithin walking distance of light rail and


the downtown business district, the transfercenter will enhance passenger comfort and safety and better integrate bus, light railand passenger rail systems in the area. on january 10, ground was formally brokenon the long-awaited second midtown tunnel. this $2.1 billion dollar regionalimprovement has been decades in the making. when complete in 2016, it will reduce trafficcongestion and improve access and the flow of goods into and out of the region. it willalso create jobs. all of this will strengthen our economy.two additional road projects ã± the hampton boulevard underpass and the i-564intermodal connector - will improve access to the port and to the navy base whileeasing traffic congestion on the west side


of the city. when finished next fall, thenew $38 million dollar hampton boulevard underpasswill eliminate significant delays caused by trains coming from the port. with helpfrom the navy, the interstate 564 intermodal high-speed connector can be advertised inabout six weeks with construction beginning early next year. when complete, this $169million dollar project will give trucks direct interstate access to and from the port andshould reduce truck traffic on hampton boulevard. it will provide direct access tothe navy base and is also the first phase of theall-important patriots crossing. the patriots crossing diverts traffic from,and thereby reduces congestion at the


hampton roads bridge tunnel. it creates newstrategic economic growth opportunities, supports naval and military readiness andlinks port facilities. with a transit component, it supports a multimodal option with the peninsula.it does all of this at less expense and without the devastating environmental damagethe recently released environmental impact statement documents concerning thewidening of the hrbt. let me be clear. for these and other importantreasons, the city of norfolk supports the construction of the patriotscrossing. further, the city of norfolk opposes any widening of the hampton roads bridge tunnel.of course, even if the commonwealth agreed to move forward with anothercrossing of the harbor, there are no funds


available to do so. in fact, the state isexpected to run out of construction funds before 2017.almost everyone agrees the state needs at least $1 billion dollars per year in new revenuefor transportation. of the many ways being proposed during thisgeneral assembly session to raise revenue for transportation, they all fallshort of the need demonstrated to build and maintain the transportation system our economydemands. we must urge our general assembly members to do better.there are several options for closing the revenue gap, but one of them should notbe diverting money from the stateã­s general fund. as i said earlier, state funding fornorfolk public schools has declined by approximately


$20 million dollars. the city hasback-filled that decline up to $10 million dollars in additional local money, just aswe have back-filled cuts to public safety, tohealth and human services and more. it is well-documented that the state investsless in education today than it did in 2008. our need for a 21st century transportationsystem does not trump our need for a 21st century education system for our children,and they should not compete in the budget process. the transportation system we needand deserve demands its own dedicated, reliable and sufficient source of money. again,we must urge our state leaders to do better.when you step back and look at the short and


long term trends, you realize thatour economy has come through some very rough times in pretty good shape. our fiscalhealth is seen in a doubling of the cityã­s assessed real estate values between 2002 and2012 from $8.6 billion to $17.4 billion dollars. it is seen in the fact that our job basecontinues to expand with more jobs than adult residents.our downtown is growing and so is our economy. the budget is well-managed.we have an excellent bond rating. local revenues are showing positive year-over-yeargrowth with sales up 5.5% over last year. we continue to lead the region in total averagecompensation per job. the unemployment rate is improving and our population isshowing healthy growth. we are focused on


economic diversity. outside of the military,no single employment sector accounts for more than 17% of total employment.our colleges and universities are making investments that contribute to the cityã­seconomy and add to its reputation as a center for higher education, for medicine, fortechnological innovation and entrepreneurship. we are a safer city.our quality of life continues to improve. with the addition of passenger rail serviceand start up of the midtown tunnel and i-564 connector, major improvements arebeing made to our transportation system. together, this is compelling evidence of theunderlying strength of the cityã­s economy, of the cityã­s sound financial stewardshipand of the private sectorã­s confidence


in the cityã­s direction.with help from each of you here today, we are making steady progress in buildinga better norfolk. the future is brighter, and it is my honor to serve alongside my citycouncil colleagues as together, we work with you to make norfolk the best it can be.this is why i can say with confidence that the state of this old seaport city is sound.thank you for your commitment and for all you do to make norfolk a betterhome for our families, for our children and for our grandchildren. god bless you andgod bless the city of norfolk.


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