Hampton Roads Pulse

Norfolk School Board approves rezoning, closures and faces budget debates; Military Circle demolition moves forward; state budget negotiations; VB development updates

Norfolk School Board approves rezoning, closures and faces budget debates; Military Circle demolition moves forward; state budget negotiations; VB development updates

Key Questions

What is Norfolk's projected budget shortfall for FY27?

Norfolk faces a $46M shortfall in its FY27 budget. This has sparked debates over school rezoning, closures, and overall spending priorities.

Is the Military Circle demolition proceeding?

Yes, demolition is moving forward despite a veto, with the city opening bids for partial work. The project continues amid ongoing discussions.

What new tax has Virginia imposed on data centers?

Virginia has enacted its first data center tax, expected to generate around $600M per year. The levy comes amid debates over subsidies and environmental protections in areas like Virginia Beach.

What caused the sinkhole in Norfolk and what is the city's response?

A sinkhole swallowed a car in downtown Norfolk, blamed on a water main break and sea level rise. The mayor is seeking federal resiliency funding to address such issues.

How are Virginia Beach water rates changing?

Virginia Beach water bills will rise July 1 to $6.54 per 1,000 gallons. Additional city fees are also increasing for residents.

Norfolk FY27 $46M shortfall; Military Circle demolition moving ahead despite veto; city opened bidding for partial demolition. DroneUp collapsed after losing Walmart contract; state and city pulled incentives. State budget negotiations with potential data center tax subsidies; revenue forecast up $1.5B but Spanberger warns of federal cuts. Beignets & Brew opens new Norfolk shop. ODU economic forecast: 4.5% inflation, $5 gas, housing crunch. First Friday resumed in VB Vibe District. Virginia Beach real estate market sees 17.3% price jump, 26-day sales pace. Elizabeth River Trail gap closure design with pedestrian bridge; NEON District streetscape project underway (businesses report foot traffic drop); Lafayette Park hours reduced to 7pm with resident pushback. Norfolk considers overlay to block new vacation rentals in Willoughby (deferred to August). Norfolk Council backs $69M in SMART SCALE road projects. Virginia Beach school board adopts less restrictive Chromebook policy; JCOC opens $16M facility to combat homelessness; air curtain proposed at The Dome. June budget deadline may decide whether Virginia gets a budget. Virginia Beach Planning Commission votes to move forward with Marlin Bay Condos. Mayor Alexander takes interim president role at Richard Bland College. Spanberger seeks public input for 2026 Energy Plan. City auctioning vacant lots to spur development. Portsmouth economic development team announces three developer finalists for Crawford Bay redevelopment (Cape Fear, Gold Key PHR, Hines) – major waterfront project. Chesapeake City Council votes 5-4 to give themselves a raise. Norfolk International Airport to welcome two local restaurants (The Stockpot, Ghost Kitchen). Norfolk City Council votes to exclude single-family homes from special assessments in Downtown BID. Virginia Beach to turn Ramada Plaza on Atlantic Avenue into Hotel Indigo (gap financing, no direct taxpayer money). Nearly 660 housing units, 8 redesigned holes proposed for VB National Golf Course (Dragas, green line debate, 120% AMI housing). State Sen. Lucas holds data center listening session in VB amid stalled budget talks; environmental protections and subsidy cost ballooned to $2B/year. Several VB Council Members push to ban data centers, signaling major policy shift. Virginia Beach approves Hotel Indigo project with $5M tourism financing plan. Cooling centers open across Hampton Roads during heat wave. Norfolk sinkhole swallows car, driver rescued; city blames water main break, sea level rise; mayor seeking federal resiliency funding. Profile on Barbara Henley, VB's longest-serving council member, fighting to preserve rural Pungo against development pressure – signals ongoing Green Line debate. Virginia's first data center tax imposed – $600M/yr levy, relevant to VB debate. JCOC builds 38 new affordable apartments near VB Oceanfront. VB water bills rising July 1 to $6.54/1,000 gallons.

Sources (7)
Updated Jun 29, 2026
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