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Return to Virginia Business - May 2003

Regional report

Sprouting Suffolk
This once-sleepy city is the growth champ of Hampton Roads

by Peter Galuszka
Virginia Business
May 2003

Since its founding in 1742, what is now known as the City of Suffolk coasted for years as a languid place where watermen pulled oysters from the Nansemond River and an Italian immigrant named Amedeo Obici had the marketing vision to found Planters Peanuts. Then in 1974 the city merged with Nansemond County, giving the municipality a huge land expanse and a shot at a new identity. At the time, the land supported mostly farms, small stores and pleasant Tidewater estates on the fringe of a bustling Hampton Roads metropolis.

But when researchers at the University of Virginia pored over recent census data, they confirmed some hunches that had been around for a decade or more. In Hampton Roads, the fastest-growing area is now the once-sleepy city of Suffolk. By contrast, growth in Virginia Beach — the state’s most populous city and for decades an emblem of Sunbelt sprawl — had slowed to a crawl.

While Virginia Beach grew less than 1 percent in the past two years, Suffolk had grown by 8.7 percent. The next-fastest-growing area in the region was James City County at 7.7 percent. Inner cities such as Norfolk and Portsmouth lost population. “My view is only impressionistic,” says Julia A. Martin of U. Va.’s Weldon Cooper Center for Public Serv-ice, “but as a suburb like Vir-ginia Beach gets older, it increasingly urbanizes. While it used to be quite rural, its housing costs have gone up and transportation is another factor.”

Suffolk, by contrast, seems to be in the position that Virginia Beach enjoyed back in the 1970s. Land is relatively cheap and plentiful. Roads are generally unclogged and not subject to the tunnel tie-ups endured by residents of other nearby cities. And, says Cynthia S. Taylor, Suffolk’s assistant planning director, “We already have a downtown and that’s something that Chesapeake and Virginia Beach lack.”

What really put Suffolk’s growth accelerator to the floor, city officials say, was the completion in the mid-1990s of Interstate 664 and the Monitor-Merrimac Bridge linking Newport News with northern Suffolk. Suddenly, remote Suffolk was a 30-minute drive from most of Hampton Roads. Avoiding the usually crammed Hampton Roads Bridge Tunnel on Interstate 64, along with the tunnels underneath the Elizabeth River between Portsmouth and Norfolk, Suffolk residents could suddenly commute to many more job sites than before.

For the rest of Hampton Roads, though, the congestion isn’t going to get better anytime soon because of the failure last fall of a referendum to increase sales taxes and build more highways and bridges. “There’s just no serious money out there,” says Harry Lester, an official of Commonwealth Transportation who campaigned for the referendum’s passage.

As efforts to address road congestion seem stymied elsewhere, current dynamics seem to favor Suffolk’s continued growth. Employment is expected to increase at a 91.3 percent growth rate by 2020, while the population will grow by 45 percent. That’s the fastest in Hampton Roads, albeit from a smaller population base of about 64,000 people. At the moment, the city is concentrating growth in two specific areas — one in the northeastern part of the city near Interstate 664 and another around the downtown area.

In former soybean and cotton fields off state Route 627, for example, houses in the $150,000 to $300,000 range are sprouting up — prices generally cheaper than in Virginia Beach and Chesapeake for similar sized houses. Real estate assessments for residences are rising faster than any other city in the region — about 9 percent. In this northern growth area, about 10,000 more units can be added with no changes in zoning, says Thomas A. O’Grady, director of Suffolk’s Department of Economic Development. Virginia Beach, by contrast, used to build 6,000 new houses each year but now adds only about 1,500 new units a year.

Downtown, construction workers are busy renovating older buildings. On Main Street, the gray Professional Building is being gutted for offices of the city school system in a $4 million investment that will include a restaurant. Just north of downtown on brackish Nansemond River, a new, 150-room Hilton Garden Inn and Conference Center will soon take shape. The $22 million project will include slips for 36 boats, a 7,500-square-foot conference center and a 30-acre nature preserve next door. And, in a field heavy with historical attractions, Suffolk is actively promoting tourism, says Lynette W. Brugeman, Suffolk’s director of tourism. The Great Dismal Swamp National Wildlife Refuge nearby shelters diverse plant and animal life that have drawn more than 50,000 eco-tourists in the past decade.

Ample land has made Suffolk a preferred locus for retail chain distribution centers, whose growth in Virginia in the past decade has changed the dynamics of the port of Hampton Roads (see story, page 24). In June, Target will open a 1.5 million-square-foot, $65 million warehouse center near U.S. 58 that will supply all of its stores east of the Mississippi River with imported consumer goods. Cysco Food Service will open a 320,000-square-foot center that will service restaurants and institutions from the Outer Banks to Richmond.

One big question for Suffolk is that while it seems to be a budding Virginia Beach, could it end up with the same problems as that sprawling city? O’Grady says no. “We’re positioning ourselves as a smart-growth area by identifying areas for growth and ones where growth will be deterred,” he says. For now, its location on the fringe and its small-town feel are big draws. “They should be very proud of what they’ve got in Suffolk,” says Thomas C. Pauls, Virginia Beach’s comprehensive planning coordinator. There’s a lot more there these days than just peanuts.

Return to Virginia Business - May 2003


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