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good afternoon.it's always an honor to have this opportunity to report on the good work being accomplishedthat is making our city a better place to live, work and raise a family.so thank you for braving the bitter winter weather to be here. thanks, also, to bryan stephens and the hampton roads chamberof commerce for organizing and hosting this annual event. thanks are also in order for city crews, publicsafety and vdot personnel, who worked through this week's snow storm. they did an outstanding job.

we are pleased to have some special guestswith us. our good friend, general jean-paul palomã©ros, natos supreme allied commander,is here. also here is admiral philip davidson, commander,u.s. fleet forces command; who assumed command this past december and is joining us for thefirst time. welcome admiral. norfolk, more than most cities, understandsthe sacrifices made by the men and women in uniform who are keeping us safe in a dangerousworld, and by their families. we are deeply grateful for their service. we also appreciate the many veterans who chooseto live here, and we are committed to being

the most military and veteran friendly cityin the country. something we are very proud of is that norfolkwas the first municipality in the state certified as a virginia values veterans employer – meaningwe met our pledge to hire and retain veterans –and last year, we were the first to receive gold level certification. the opening of slover library and the newnorfolk courthouse in january made this new year one of the best. over 13,000 people visited slover libraryon opening weekend - and they loved it. from architecture to special features likea children's library and unique public spaces,

the slover is a masterpiece that artfullycombines modern and classical design. inside is the most technologically advancedlibrary in the country with a giant high definition media wall, 21 interactive touch tables, andmore. an expanded sargent memorial room showcaseslocal history. slover is run by an energized staff of 109new workers downtown. none of this would have been possible withoutthe generous support of the late frank batten and his wife, jane, so please join me in thankingthe batten family. after decades of planning and three yearsof construction, the city's new courthouse opened on january 24th.

funded over 9 separate budgets, it's the largestinvestment ever made by norfolk in a public building.it's a magnificent facility that brings the circuit and general district courts underone roof and includes modern security measures and the first paperless court clerk's recordroom in the commonwealth. phase ii begins this spring on the juvenileand domestic relations court and the law library. it also includes rebuilding the civic centerplaza and bringing main street across st. paul's boulevard. the total project comes in at 315,000 squarefeet, making it the biggest building ever built by the city.

residents come to court to conduct business,obtain marriage licenses, register wills, record deeds – the comings and goings ofthe city. here justice is also dispensed. where thisoccurs says much about the community's commitment to the quality of justice…….this buildingspeaks well of our commitment. construction is well underway on the main– a 22-story hilton hotel – and on the exchange – a state-of-the-art 105,000 squarefoot conference center. amenities to this landmark development includedramatic contemporary architecture, interior themes reflecting our maritime heritage, threeupscale restaurants and a rooftop lounge. when it opens less than two years from now,the main will move norfolk into a top-tier

choice for business and leisure travelers,and enable us to attract a wide variety of conferences. it will also add 400 new jobs downtown. reservations are going very well and willdrive visitors into other downtown hotels. we are glad to have the developer, bruce thompsonwith us today . bruce, thank you. for nearly 75 years, norfolk redevelopmentand housing authority has played a leading role in every major redevelopment project. its contributions are seen downtown,in ghentand in huntersville, in berkley and broad creek, in park place and ocean view and inthe growth and development of norfolk state

and old dominion universities. since 2004, nrha has been ably led by shurlmontgomery, who before becoming executive director was an assistant city manager. his steady hand and solid leadership helpedguide the authority through major changes over the last 10 years. after a public service career spanning morethan 35 years, shurl retires at the end of march. please help me thank him for all he has donefor us. on october 31st, the city handed the cordishcompany the keys to waterside.

this spring, cordish begins work on $40 milliondollars in improvements that will transform the complex into “waterside live,”a premierregional dining, entertainment and retail destination. scheduled for a summer 2016 opening, watersidelive will create hundreds of new jobs, it will bring more energy downtown and will generatemillions of dollars of revenue to the city over the next 30 years. last fall, the half moone cruise and celebrationcenter had one of its busiest seasons on record. with carnival cruise lines' announcement thatthe carnival splendor – a modern 3,000 passengers ship– will be sailing from norfolk thisspring and fall, this season will be even

better. we expect 19 ship calls bringing over 75,000crew and passengers, for a total economic impact of $7.8 million. i would also note the dickens christmas towneat nauticus smashed attendance projections, attracting more than 23,000 people and givingnauticus its best november and december ever - and a spectacular 20th anniversary. downtown is the region's center for business,finance, retail and culture. it is also a neighborhood and as witnessedby the level of construction, it has become one of the most desirable places to live.

with eight projects either completed or underway,buddy gaddams is helping drive this trend while restoring historic buildings and improvingthe street-scape. many of these projects were announced lastyear, but it's worth highlighting how quickly units are renting. the 126-unit wainwright apartments are fullyleased. the 137-unit metro on granby – which opened in october –is 95% rented. the just completed 79-unit james apartments is also 95% rented. the 135-unit law building on plume streethas barely opened and it is already 25% leased. coming on-line later this year are 32 unitsand two retail spaces in the virginia building

– at the corner of granby and plume. opening less than three months from now – inthe former union mission – is the 86-unit rockefeller apartments. phase two - with 60 units will commence followingcompletion of phase one. buddy's latest effort is the 450 boush apartments – a $30 million,156-unit development. construction begins this spring with completionnext year. together, these developments will add about850 units of housing and an estimated 1100 new residents, bringing downtown populationto approximately 5,500. adding to this bustling mix of downtown residentsand workers is the tidewater community college's

14,000 students.tcc plays a vital role, not only in education, but it also stimulates our local economy andcontributes to our workforce development efforts. macarthur center – the region's retail heart– continues to be over 95% occupied. sales remain robust and are up over 3% from theprevious year. today, i'm pleased to announce three new companiesare relocating downtown, bringing 95 jobs with them: the us headquarters of nexusdirect – a womanand minority-owned direct marketing agency; bazon-cox –a disabled veteran's it installationcompany; and the regional headquarters of burgess +niple, an international engineeringand architecture firm.

our flagship corporate citizen, norfolk southernhad another outstanding year. the thoroughbred of transportation's profitwas a record $2 billion, up 5% from 2013, and chairman and ceo wick moorman said heexpects 2015 to be another solid year as the economy continues to expand. across brambleton avenue, the arts districtis thriving, with 90% of the properties in the better blockarea now leased, purchased or being developed. local artists and business people are openingrestaurants, galleries, and entertainment venues.the historic texaco building will soonreopen as work/release – an arts venue for exhibitions and events with community meetingspace and artists residences.

just across the brambleton bridge is the fortnorfolk area an extension of downtown and the western terminus of the tide. fort norfolk's waterfront views, light railaccess and convenience to downtown, ghent, and the medical complex make it a naturalcandidate for additional mixed use development. already there are plans underway by rockvilledevelopment to renovate a 4-story building into the front street apartments. and i'm very pleased to report that soon asecond tower will be added to harbor's edge in a $100 million dollar development thatwill bring 118 new independent units, multiple dining venues, physician offices, and a wellnessand fitness center.

it's a gorgeous building that will add dramaticallyto our skyline and our economy. all of this energy is partly the result ofwhat is called placemaking – an approach to planning that creates a mix of events andamenities that bring people together. place making is food trucks at macarthur square,the holidays in the city parade, festevents and waterfront festivals, a farmers marketat st. paul's church, baseball at harbor park, the symphony at chrysler hall, the virginiaopera, the virginia stage, and first fridays, which – by the way – drew over 2,000 peopleper event. and not to be overlooked is the hugely successfulinaugural blue moon harbor lights 5k and marathon that attracted more than 6,000 runners from36 states.

norfolk has earned the title of cultural capitalof the commonwealth. and the soul of our many richly diverse culturalassets is the chrysler museum. following a $24 million renovation and expansion,the new chrysler reopened in may to wide critical acclaim. nearly upstaging it, though, was the duck– a larger-than-life exhibit that attracted over 150,000 delighted visitors. the virginia arts festival continues to bringthe finest artists in the world to hampton roads for all to enjoy.the 2015 season features the international tattoo, acclaimed opera diva renee fleming,and over 50 regional performances of dance,

jazz, baroque music and more. the city is proud of its long record of soundfinancial management. two years ago, this disciplined approach topublic finance led to the first upgrade of our bond rating in 50 years. it also gave us a budget smaller this yearthan it was five years ago, yet still provides more funding for priorities like the schoolsystem. active pursuit of innovative debt financing is being rewarded with millionsof dollars in savings. i'm pleased to report the city's economy continuedon a positive growth trajectory in 2014 – as did our population.

year-to-date collections from major sourcesof local revenue are above last year's level. the unemployment rate dropped to 5.9%, thelowest rate since 2008. more residential building permits were processedthan at any time in anyone's memory. the real estate market gained momentum withresidential assessments on track to grow - however modestly - for the third consecutive year. our real estate tax rate remains very competitive. also, the crime rate continued a decade-longdownward trend, falling another 3% last year. i just want to add that police chief mikegoldsmith is doing a great job with law enforcement as well as community engagement.

from involvement in youth sports to tutoringin the classroom, the police department is finding creative ways to build upon communityrelations with programs designed to develop, mentor, and educate our youth. the chief is also fully engaged in improvingpolice conduct and the officers' interactions with our minority community. the complicated issues of race and law enforcementmust be a frank and constant portion of our civic dialogue. chief goldsmith is leading the way in thiseffort. please thank the chief and the npd for all that they continue to do for our city.

the port of virginia is a major business thatcontributes significantly to the local and state economy. a little over one year after john reinhart'sarrival as executive director and ceo, the port has returned to profitability. since the start of the fiscal year, the porthas posted a $6.2 million dollar profit and record breaking volumes. according to a recent report, total port spendingin hampton roads amounts to almost $17.5 billion dollars. nearly $4 billion of that was compensationfor more than 92,000 workers at the port or in port-related businesses.

i wish i could tell you this tide is liftingall boats, but i cannot. our poverty rate remains one of the highestin the state. its effects are felt in our schools, our neighborhoods, our health andour crime rate. it is one of our most difficult challenges. but as a compassionate community,it's a challengewe cannot ignore. the mayor's commission on poverty reductionspent a year examining ways to reduce poverty. last july, the commission – co-chaired byvice mayor angelia williams and councilman andy protogyrou – submitted a report identifyingfour critical areas of focus: early childhood education; youth career pathways; adult workforcedevelopment;

and neighborhood revitalization. this report is one of the finest producedby a study group, and i would ask all commission members present to stand so we can thank youfor your commitment to improving the lives of the less fortunate. in september, the council approved an initialallocation of a half million dollars to begin implementing the commission's recommendations. more is needed. much work lies ahead. homelessness is one of the most devastatingresults of poverty and we remain committed to our pledge to eliminate chronic homelessness.

in the past year, we've helped hundreds ofhomeless residents find shelter. we were the first hampton roads city to buildpermanent supportive housing for the homeless, and by this time next year, we anticipateour second development - church street station - to be under construction. its 40 units will bring the region's numberof single room occupancy units to 320 – an impressive achievement considering none existednine years ago. we are also committed to helping our homelessveterans, and since 2007 have reduced their numbers by 58%. since the housing our heroes initiative began,our partnership has obtained or maintained

housing for 200 veteran households. and inthe last 100-day challenge, the region found housing resources for 137 veterans – andover 40 were from norfolk. still, we can do more. that's why last september,we joined the white house's mayor's challenge to end veterans homelessness by the end ofthis year. and with help from our partners, we expectto achieve this goal well before the national deadline. supporting veterans is not just about thenumbers, it's personal as well. after serving our country for 11 ⽠years,frank mccattry found himself unemployed and struggling to keep a good home.

while working with va and nrha case workers,frank took employment counseling, enrolled in tcc, found a job, built up his savingsand credit, and worked with the homenet homeownership center. when he closed on a new home in december,he became the first veteran in virginia to use a veterans housing voucher to buy a houseand become a proud norfolk homeowner. frank is here today with his two beautifulchildren, lizzie and elisha. please wish them the best of success. nearly everywhere you look, norfolk's neighborhoodsare changing and improving.

when you think of park place, the first thingthat comes to mind is a residential neighborhood. yet this eclectic, up-and-coming area is alsoa thriving center for business. park place is home to nearly 300 businesses– and the variety is amazing. established firms like old dominion peanutcompany – the nation's largest producer of peanut brittle,which recently celebrated its 100th anniversary – are being joined by ventures ranging fromstart-ups like the handsome biscuit to growing companies like o'conner brewing, which lastsummer celebrated the opening of its expanded production facility on w. 24th street.we are glad to have kevin o'connor from o'connor brewing and john porter from handsome biscuithere.

other growing businesses include cozypure– an organic bedding manufacturer that relocated to park place to expand operations. soon to join their ranks on 35th street isthe award-winning richmond restaurant, croaker's spot. work is now underway on this $6 million dollardevelopment that includes 52 apartments in addition to the restaurant, which will employa staff of 50. the project is being built by hanson developmentout of richmond, and is the result of a relentless campaign by vernon fareed, president of thepark place business association who wouldn't take no for an answer. vernon is with us.please join me in congratulating him on a

development that will immediately inject newenergy into the historic heart of park place. nearby, off hampton boulevard, a number ofnew developments are emerging including bold mariner the city's newest craft brewery, whichis owned by michael stacks, an active duty serviceman.it is located in lambert's point and will open in late april. in addition, teagle & little printing acquiredamericom and will add 40 employees and become known as “centric.” and i'm pleased to say a new mixed-use projecton the west side of hampton boulevard above 21st street, is in the pipeline.

it's called, “westside place.” this $50-plus million dollar project is ona 13 acre site, featuring 250 apartments and over 100,000 square feet of retail that willlift and transform this area. we are pleased to be joined by the developersdave clark and jim carr from vistacor; tony nero from amada hoffler, and bonaventure,the residential partner. the best results are often achieved when themarket is allowed to work on its own. that's certainly true for the predominantly industrialand commercial area known as chelsea. early pioneers like the fit company, new leafflorist, and tortilla west were among the first to recognize its potential.

they were soon followed by other entrepreneursattracted by its gritty, blue-collar feel. with the opening of the birch, smartmouthbrewery, otzi tattoo, acclaimed events and the bakehouse – and soon to be joined bythe torch bistro – chelsea has, on its own, become one of the trendiest areas in hamptonroads. we are pleased that porter hardy of smartmouthbrewery and malia paasch [mah-lee-yuh pash], head of chelsea business association couldjoin us. last year's promise that the fresh marketat ghent station would open in time to buy your thanksgiving turkey was delivered withthe store's october ribbon cutting. in early april, bon secours will open itsnew medical office building to complete this

$17.5 million dollar development onw. 21st street, bringing with it a professional workforce. we've also seen new residential housing developin ghent such as the element – a $25 million investment which opened in december with 164units. and for more good news, the donut dinetteis coming back under new ownership and with a planned march reopening. in broad creek, the salvation army's $80 milliondollar, 92,000 square foot kroc community center openedin april. this facility, which is being well used, featuresan aquatics center, a fitness center, a theatre

and classrooms. thanks to all who worked so hard to bringthis great asset to norfolk. also new to broad creek is a walmart neighborhoodmarket that opened in december at princess anne and ingleside roads. this is a $10 million investment offeringa full-service grocery store to a large and previously underserved area of the city. it also created 100 new jobs with 95% of thoseheld by norfolk residents. more housing will soon be on the way for thehistoric huntersville neighborhood when construction begins this spring on maplewood plaza, a three-storymixed use building of 13 residential units

and 7400 square feet of commercial space. the opening of the $18 million dollar k&ksquare shopping center and the remodeled midtown shopping center has given the wards cornerbusiness district a fresh new look and a much improved ecomony.soon, wards corner will serve as the home base for 500 employees of top guard security– the region's largest woman-owned business. the city continued to acquire distressed propertiesin denby park, purchasing 88 more apartment units to bring the total number to 200 – a$6.8 million dollar investment in that neighborhood's future. in december, bon secours cut the ribbon ondepaul medical office plaza, a $25 million

dollar investment in the city's health caresystem. in addition to specialists and primary carephysicians, it includes the cancer institute featuring state-of-the-art treatment technologyand advanced radiation therapy. one of norfolk's most valuable resources isocean view's seven-and-a-half miles of beaches. for nearly 20 years, the city has been workingwith the army corps of engineers on a long term solution for shoreline protection. today, i'm pleased to report the city hasentered into a historic agreement with the army corps to widen the beach by 60 feet inwilloughby and east ocean view. the majority of this $18.4 million dollarproject is federally funded.

the city's estimated cost share is $5.5 million.the project will start in november and be completed by spring of 2016. colonel paul olsen, commander, norfolk districtus army corps of engineers is with us today. colonel olsen has helped champion this effort. please help me thank him and the army corpsfor their commitment to norfolk. an impressive amount of residential constructionhas occurred in ocean view. last fall, work began on the final phase ofeast beach that will bring a mix of 85 single-family homes, townhomes and carriage houses alongwith retail and commercial space to this award-winning neighborhood.

the east beach marina apartments also opensthis spring with 136 units. and 80 additional homes are under construction at harbor walk. last month, the housing authority issued rfpsfor the construction of single-family homes on 7.2 acres of land fronting 5th through7th bay streets. funding for the initial phase of bay oakspark on the adjoining 11 acres has also been budgeted. work continues with the simon property groupon developing a portion of the lake wright golf course into a premium outlet center. this is a $75 million dollar project thatwill bring 120 upscale shops to the city,

create 300 construction jobs, 800 permanentjobs and return an estimated $4.2 million dollars annually in tax revenue. simon's decision to bring the next generationof designer shopping here demonstrates the private sector's recognition of norfolk asthe crossroads of hampton roads. this is the most important retail developmentsince macarthur center opened, and will induce additional development in the northamptonboulevard corridor, which has been a priority for norfolk for many years. construction is expected to commence thisspring with a summer 2016 opening. a key component of this development will preservemuch of the golf course – including the

lake as public open space. 98% of job growth comes from existing businessesand start-ups. bauer compressors is a great example of anexisting business creating job growth. bauer is an international company that manufactureshigh pressure compressors, and has been operating out of norfolk industrial park for nearly40 years. in october, bauer completed a major expansionthat added 18,000 square feet to its manufacturing area and a 2-story, 13,000 square foot officebuilding. the project has created 150 jobs in norfolk...95 of the positions have, in fact, already been filled and are precisely the kind ofhigh quality work that help diversify our

economy and grow our middle class. bauer is a model corporate citizen, we areproud to have them headquartered in norfolk. with us today are vice presidents joe starkand leslie rhue [roo]– please join me in congratulating them. the schaubach companies of virginia got itsstart in the mid-1970s when dwight schaubach bought a truck and 100 containers and starteda company named bay disposal. today, the schaubach companies is comprisedof bay disposal, bay disposal medical waste division, johns brothers heating and johnsbrothers security. it employs more than 265 people, and has nearlycompleted consolidating its operations on

22 acres at the virginia renaissance center– site of the former ford plant. it's another example of a how existing businessesbuild the jobs base. dwight schaubach is here today – dwight,will you please stand. last year at this time, we announced the expansionof portfolio recovery associates. now an additional $2 million dollar investmenthas allowed pra to move approximately 100 it employees into the former fbi building. the company has over 1,100 employees in norfolkand 3,900 worldwide. pra group prides itself in its community outreach by encouraging employeevolunteerism and providing support to over 15 norfolk headquartered charities.

pra's ceo steve frederickson is here... pleasestand steve. start-up businesses are the second enginefor job growth, and the addition of the strome entrepreneurial center at odu promises toinject more energy into our vibrant entrepreneurial climate. there, a new generation of entrepreneurs willbe guided through the entire entrepreneurial life cycle – from planning and analysisto startup and operation. the center was made possible through odu alumnusmark strome's generous $11 million dollar gift to the college of business. odu adds $2.1 billion dollars to the regionalgdp. in just the past 5 years, it has completed

capital projects valued at more than $325million dollars that include the award-winning engineering systems building and barry artcenter. buildings under construction or planned includea new education building, a dining hall, and the james hixon art studio. president john broderick is here today. thank you john for joining us and for allyou do. norfolk state university is also preparingour students for the 21st century economy. in january, vice president biden announcedthat nsu will be the lead institution in a $25 million effort to train students for thecybersecurity workforce.

the university is also building for the future– its new library was recently cited as a contributor to virginia ranking 4th nationallyfor “green” and sustainable buildings. we are pleased to have interim president eddiemoore with us today. in june, virginia wesleyan college presidentdr. billy greer, will retire after 23 years of service. under his tutelage, virginia wesleyan wasselected multiple times by the princeton review as one of the nation's best colleges. it was also named a best college for militaryveterans. please help me thank dr. greer for all he has done.

also with us today is dr. richard homan, presidentand provost of eastern virginia medical school. thank you for joining us. the role evms plays in the region's healthcarenetwork and economy– with its community focus – is so important that priceless isnot too strong a word to describe it. with a february 6 groundbreaking for a newcampostella school, work began on the most ambitious school construction program in thecity's history. on march 3, we will break ground on the newrichard bowling elementary school in broad creek. altogether, this a $106 million dollar financialcommitment.

by september 2017, four new schools will beopen replacing outdated facilities in campostella, broad creek, larchmont andocean view. and another, at camp allen, is slated forconstruction. too often lost in the discussion of test scoresand accreditation is the fact that norfolk has schools that are rated among the nation'sbest. according to u. s. news and world report'sbest high schools report, maury and norview ranked 26th and 48th in virginia and achievedsilver ranking nationally. among south hampton roads school districts,only one other city had a high school to make the rankings.

since the 2007-2008 school year, norfolk hasbeen increasing its share of school funding and now leads the region in total per pupilspending. in that same period, state funding has fallen$780 per student. for the second year in a row, the virginiaboard of education named willoughby and sewells point as title i distinguished elementaryschools. additionally, last year granby high graduatednorfolk's second presidential scholar since the program began in 1964... norview high graduated a gates millenium scholar. to address the issue of school accreditation,superintendent dr. samuel king is engaged

in a multi-year effort to raise achievementscores by implementing innovative programs and adding math and reading specialists toschools in need of such assistance. among those innovations is an open campusschool –the first of its kind in virginia – with 125 students who either dropped outor are enrolled but off-track for graduation. of the estimated 1.5 million job openingsin the commonwealth in the next decade, 50-60% will not require a four year degree. but, they will require advanced training intechnical skills. to capture that opportunity for our children,in collaboration with the school administration and the business community, we strongly supportbuilding a career and technical education

high school that includes rigorous academics,alongside high technical training. a true game-changer, its establishment isan expensive proposition and will require a strong partnership among the city, the schoolsystem, the business and philanthropic community, as well as the state. in short, it will demand - and is worth - everyone'ssupport. early education is crucial for preparing childrento succeed. with the february 2 opening of the new e3school in park place, we now have a first-of-its-kind facility that will educate 104 students fromages 1-5 using a curriculum designed to produce kindergarten readiness to preschoolers fromall economic backgrounds.

the school was made possible by the generoussupport of donors and the hampton roads community foundation. the disproportionate number of children livingin poverty is unacceptable, and we must do more to loosen its grip on our students. this includes more support for children facingchallenges during the summer and after school hours. in response, united for children - a public/privatepartnership of the united way - operates a summer school program at p.b young and tidewaterpark elementaries. and the academic results have been remarkable.

this year, united for children adds threemore schools on the way to supporting booker t. washington high school and its feeder schools- helping nearly 5,000 children. it's a wonderful program. speaking of support, there are multiple waysfor you to support education and one is by volunteering with nonprofit organizations,such as the life enrichment center. last year, the lec operated in five titlei elementary schools where they established high-tech labs and matched volunteers – suchas norfolk police officers and business men and women – to tutor students once a weekfor a full academic year. as lec expands to five more low-income elementaryschools this year, it will need more tutors,

so i encourage you to contact executive director,kevin turpin, to get involved. our schools and universities have been succeedingat every level in the sports arena. we have a number of special guests with ustoday including, odu running back and conference usa freshman of the year ray lawry along withhead coach bobby wilder. in their first season in the conference usa,at the football bowl subdivision level, odu finished with a very impressive 6-6 record. thank you for being here. we're also pleased to welcome norfolk stateuniversity's new head football coach, latrell scott.

coach, we look forward to great things fromthe spartans next season. i'm glad to note that odu and nsu will playeach other again this september at foreman field. it's a great rivalry, good for both schoolsand norfolk. we hope it happens on a regular basis. in december, the lake taylor titans won thedivision 4a state football championship – their second in the last three years – under coachhank sawyer. and the lake taylor girls' basketball teamwon its second consecutive state championship under coach saundra sawyer.

mr. and mrs. coach sawyer are here today...please join me in congratulating lake taylor on their championship seasons. also with us is maury's head basketball coach,jack baker. jack has been at maury for 39 years, and last month achieved a milestonewith his 700th career victory. please congratulate him on that accomplishment. i understand that's up to 713 now, jack. after much planning and discussion, the councilhopes to open a new athletic facility called the harbor park boxing center by the summerof 2016. with 13,000 square feet and two boxing rings,it will have a variety of activities, including

a junior olympic boxing training program withadult mentoring. we also hope to provide fitness classes foradults. our strong partner in efforts to improve thetransportation network in hampton roads and norfolk has been our good friend, the secretaryof transportation, aubrey layne. on behalf of governor mcauliffe, the secretaryhas made it a personal priority to unlock this region's economic potential on our roadways,over rail, and at the port. the secretary is with us today, please joinme in thanking aubrey for his service on our behalf. prospects for real and sustained progresson regional transportation projects are much

improved following last july's establishmentof the hampton roads transportation accountability commission – hrtac for short. comprised of the region's head elected officialsfrom 14 jurisdictions and 5 general assembly members, hrtac is empowered to finance andbuild projects using revenues from regional sales and fuel taxes that are now generatingabout $14 million dollars monthly. to date, hrtac has identified nine regionaltransportation projects totaling approximately $8.6 billion dollars – among them wideningof i-64 on the peninsula, preliminary work to replace the high-rise bridge, rebuildingthe i-64/i-264 interchange and funding to update an environmental study for constructionof patriots crossing, one half of the third

crossing project.since 1997, the third crossing has been the region's unanimously agreed upon priorityfor congestion relief at harbor crossing chokepoints, and has been endorsed by everyone from the hampton roads chamber of commerce to thenorfolk federation of civic leagues. multiple studies have demonstrated that patriotscrossing will provide the greatest congestion relief of any single regional project, anddo the most to support regional economic growth, all while exerting minimal impact on the environmentand existing development on both sides of the water in comparison to other crossingalternatives. it will also do the most to ease congestionon norfolk city streets.

a design/build contract is advancing for thefirst leg of the crossing – the i-564 intermodal connector. it is scheduled for a summer 2017 completionand is essential to both navy operations and forhandling the ever increasing volume of port-related container traffic. we must – and we will – find the meansto construct the next phase...the harbor crossing. anything less is not acceptable. some of us can still remember when hamptonroads, once called tidewater, was sometimes referred to as tollwater.

tolls were very much a part of our past. they are a part of our present.and they will certainly be a part of our future. as egregious as the ppta contract was forthe construction of the midtown tunnel with associated improvements, the project couldnot be built without tolls. hopefully, when all the work is finished inless than three years, the traffic relief at the midtown, downtown, and other watercrossings will ease some anger over the poor deal. the economy and our quality of life will improve. tolls, reasonable tolls, will also be necessaryto construct additional capacity at other

water crossings. over 152,000 passengers traveled on amtrak'snorfolk inner-city service last fiscal year, up by 24,000 passengers, or 19% from the previousyear. to improve ridership and passenger convenience– we have been in discussions with the state to secure a later weekday departure time from5 am to 6 am – and we hope to have a favorable response in the near future. two additional train slots are also planned. as we look forward to the coming year andbeyond, there is much to be thankful for. our economy is diversifying and improving.

the budget is well-managed and structurallybalanced. rating agencies have reaffirmed our excellent bond rating. local revenues continue to grow. we finishedthe fiscal year with a $4 million dollar surplus. the crime rate fell again, continuing a 10-plusyear trend. our unemployment rate is lower as more peopleare working, and we are committed to improving the lives of our fellow citizens living inpoverty. our population continues to grow as more peopleare attracted to the lifestyle of real city living and the many amenities that it offersin terms of entertainment, arts and culture, higher education, quality of life and theconvenience of living in the heart of the

region. norfolk is an amazing place, a vibrant andhistoric port city where culturally diverse citizens, the military, and businesses arecreating the most dynamic and authentic urban waterfront community in america. i'm proud to say that the state of this oldseaport city is strong and the future looks bright. it is my honor to serve alongside my citycouncil colleagues as we work with you to build a better home for ourselves and forour children. god bless you and god bless the city of norfolk.