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The port of Virginia.
Competing bids sought on port offer
Published Saturday, March 28, 2009
A proposal from an Illinois-based development firm to partner with the Virginia Port Authority for the operation of its ports has passed the quality control stage of the state’s approval process.
CenterPoint Properties Trust submitted the proposal on March 12 to Virginia’s secretary of transportation. On Friday, the Virginia Port Authority made the proposal available for public viewing, which initiated a 120-day period during which other parties can offer competing bids.
Under the proposal, which CenterPoint estimates is worth about $3.5 billion in today’s dollars, the company would contribute its capital, development and logistics expertise, and Virginia logistics assets, such as its planned intermodal transfer station in Suffolk. Fisher said that inflation would make the agreement worth $9 billion over the course of its 60-year lifespan.
In addition, it would acquire Virginia International Terminals as a subsidiary, and VIT would continue its management of the port facilities in Newport News, Norfolk, Portsmouth and Front Royal. The Virginia Port Authority would continue to advance the interest of the ports.
If CenterPoint’s proposal is accepted, the company would provide an up-front payment of $500 million to the port authority, which company President Paul Fisher said Friday would come from CenterPoint’s current capital. The proposal also includes annual payments to the port authority of $219 million, and annual payments to host communities of $128 million. The state also would participate in a profit-sharing program, which CenterPoint estimates could provide between $60 million and $191 million.
Fisher said the company’s planned investment in Suffolk made a partnership with the ports particularly attractive. The shipping center would occupy 900 acres along U.S. Route 58.
“We are significantly invested in Suffolk,” Fisher said. “This will enhance the attractiveness of Hampton Roads for port users.”
He also noted that Hampton Roads is connected via a Norfolk Southern rail line to CenterPoint’s hometown of Chicago, Ill., where CenterPoint owns several more distribution centers capable of handling cargo from the Virginia ports.
“With the freight connectivity to Chicago, (the ports) will end up with more freight,” Fisher noted. “More boxes mean more jobs, more economic activity.”
The proposal is an opportunity for CenterPoint and the ports to exercise their expertise for the good of the state, said CenterPoint Vice President Neil Doyle.
“Where they excel on the water, we excel inland,” he said.
The entire conceptual proposal is available for public viewing at www.centerpoint-prop.com, along with information on CenterPoint. The VPA posting of the proposal can be found at: www.portofvirginia.com/ppta/proposals.aspx.
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Posted by mdvgarcia (anonymous) on March 29, 2009 at 7:49 a.m. (Suggest removal)
This progress all sounds like great economic news. Readers of the Suffolk Herald have viewed numerous stories on potential economic growth for Suffolk. We like the sound of jobs coming to the Hampton Roads Area.
I’d like to know what kind of tax income from these economic potentials we can expect to see for Suffolk. Also, how do we plan to re-invest potential tax income for Suffolk? More schools, increase teachers, police and fireman pay, improved roads?
Besides job growth, what’s in it for Suffolkian tax payers?
My fellow Suffolk Herald anonymous readers please no whining. I want to hear constructive ideas.
V/r
R. Garcia
Sleep Hole Burrough
Posted by OD (anonymous) on March 29, 2009 at 5:15 p.m. (Suggest removal)
Question: What is the tax rate that has been structured for this project? What is the duration of the tax "breaks" given to attract this project? Will the Centerpoint group offer more money for the construction work for 58? What is the time table for the first proposed construction? What is the proposed number of jobs that will be created for construction? What is the proposed number of jobs that will be there be for people who will work there after the first phase of construction?.2nd?3rd and even completition? How many days per week with the facility be open? What will be hours of the operation? Will it be union or non union?What is the pay scale as per job description?Will trucks be subject to a scale fees and what are those fees? Will the city share in those fees as to help off set road wear and tear? What is the proposed consturction plan for 58? When will the mayor stand alongside the Centerpoint group and have a news confrence where she and the council can be addresed including questioned as they stand side by side as parnters?Who are ALL of the partners in this venture including "blind trusts"? Will 58 construction be completed first? Will the facility and its property be completed before the highway upgrade. What will be the speed limit on 58 be during this construction of the facility and or the highway it self? What percent of the construction will be awarded to local companies? Will each bidder be made public and their offer?Will the companies bidding on all of the work will those companies and their owners/investors be made public?Will we hear nothing but crickets chirping? Remember ever since the Centerpoint group went public withtheir intent to purchase the ports, The mayor has shown no outrage or comments as to how the city and or and its citizens are being screwed where the monies are being offered for the road construction. If the Centerpont group has that kind of money surely that can come up with more than the 3 million they offered to the city.....Last but least where and who are the finacial backers to Centerpoint?? Domestic investors? Are they from overseas? Who are the power brokers that sought this deal? this is a great time for the mayor to start to becoming open and transparent.Or will the crickets be chirping in the dark?
Posted by mdvgarcia (anonymous) on March 29, 2009 at 8:24 p.m. (Suggest removal)
Great Questions OD.
Can you give me ideas on where to start looking?
R. Garcia
Posted by OD (anonymous) on March 29, 2009 at 11:48 p.m. (Suggest removal)
Lets see where what and how the mayor responds if she does at all. If she so chooses not to respond, first go the route of the FOIA of the city. if they fail to respond, time to step up to the state and then the federal route. Pressure must be kept on the city to respond. Maybe enough pressure can be brought down on the city, that the CM might be called out at night and it will help in justifying that 950 a month car expense...Maybe Andy Damani could use his cable program to ask these questions. However the city allows his program and they would silence him in a quinstant and shut him down and we must remember he is a business man himself.
Posted by OD (anonymous) on March 31, 2009 at 9:44 a.m. (Suggest removal)
Dont confuse the Centerpoint terminal scheduled for construction in Suffolk and the Centerpoint offer to RUN in a partnership with the VAPA...the ports..Bids to run the ports are open until July 27,2009
The VPA is an agency of the Commonwealth of Va. who own 4 general cargo terminals on behalf of the state. NIT PMT NNMT Norfolk, Portsmouth and New Port News termials are operated by Va. International Terminals a non stock non profit operating company. The VPA through terminal earnings generated by the VIT is operationally self sufficient. The VPA and correalting maritime industry is responsible for 343000 jobs and 41 BILLION for the state.Its of my opinion the state doesnt need a partner, looks like they have done a good job on their own..The VPA didnt solicit the offer..This deal/offer should be deeped 6 as was the Dubai Ports Deal in which the Union members would never agreed to.That deal was brokered by no other than Bill Clinton acting as a agent for the UAE royal family. Dont forget that Clinton was going to give China COSCO China Ocean Shipping Company rights to use a portion of the NAVY YARD AT LONG BEACH, thank god the repugs still had control of the congress when that came up...
Posted by mdvgarcia (anonymous) on April 2, 2009 at 9:11 p.m. (Suggest removal)
OD:
Great stuff OD!
Will VAPA grow capacity to create more jobs in the future? Also, if VAPA were to partner with Centerpoint what immediate and long term impact would this action have on the Hampton Roads economy?
R/
R. Garcia
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