OCTOBER 11, 1994 MINUTES
it ).I- N7it-" ii 'Ii,
"WORLD'S LARGEST RESORT CITY"
CITY COUNCIL AGENDA
IIRI;Illl ... .....
f"ll
OCTOBER 11, 1994
INFORMAL SESSION - Council Chamber - 12:30 PM
A. CALL TO ORDER - Mayor Meyera E. Oberndorf
B. ROLL CALL OF CITY COUNCIL
C. CITY COUNCIL CONCERNS
D. RECESS TO EXECUTIVE SESSION
FORMAL SESSION - Council Chamber - 2:00 PM
A. CALL TO ORDER - Mayor Meyera E. Oberndorf
B. INVOCATION: Reverend Stephen E. Bradley, Jr.
Resurrection United Methodist Church
C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA
D. ELECTRONIC ROLL CALL OF CITY COUNCIL
E. CERTIFICATION OF EXECUTIVE SESSION
F. MINUTES
1 . INFORMAL & FORMAL SESSIONS October 4, 1994
G. PUSUC HEARING
1. 25th STREET PARKING LOT - $1,375,000 Contractual Obligation
H. RESOLUTION/ORDINANCES
cing Agreement between the City oi Virginia Beach and
1 Resolution to execute a Finan I re financing the acquisition and construction of the 25th
Nationsi3ank of virginia, N.A-
Street Parking Lot.
2. Ordinance re Harbour Polnt Road E)ctended (LYNNHAVEN BOROUGH):
a. AMEND APPROPRIATIONS by reducing $705,000 trom sale of street closure.
b. TRANSFER $504,840 trom Southeastern Expressway Acquisition ProiW #2-089
to Harbour Point Road Extended Project #2-218 to reflect changes in scope and
funding.
3. Ordinance re indoor air improvements and restoration ot Capital improvement Proj@
resources for Virginia Beach Schools:
a. ACCEPT and APPROPRIATE $3,ooo,ooo additional Federal Impact Aid funds to
Renovations and Replacements.
b. APPROPRIATE $1,700,000 to the School Division FY 1994-1995 OPerating
Budget for abatement of indoor air problems.
C. APPROPRIATE $234,093 in FY 1993-1994 School Reversion Funds for
abatement of indoor air problems.
d. TRANSFER $400,000 from Ocean Lakes High School CIP to Renovations and
Replacements CIP.
4. Ordinance to APPROPRIATE $90,000 from Storm Water Utility Retained Eamings to
Pine Ridge Drainage Project #2-i79 re funding increased costs for construction
(PRINCESS ANNE BOROUGH).
5. Ordinance to APPROPRIATE $90,000 from Storm Water Utility Retained Eamings to
Laurel Manor Drainage (interim) Project #2-190 re funding increased costs for
construction (LYNNHAVEN BOROUGH).
1. CONSENT AGENDA
All matters listed under the Consent Agenda are considered in the ordinary course of business
by City Council and will be enacted by one motion in the form listed. If an item is removed from
the Consent Agenda, it will be discussed and voted upon separately.
1 . Resolution to refer to the Planning Commission an amendment to Section 1409 of the
Wetlands Zoning Ordinance of the City of Virginia Beach, Virginia, re parmfts.
2. Ordinance to AMEND and REORDAIN Sections 16-12 and 16-12.1 of the Code of the
City of Virginia Beach, Virginia, re Certificates of Compliance.
3. Ordinance to authorize the City Manager to apply for the Virginia Housing Partnership
Fund Urban Rehabilitation Loan Program.
4. Ordinance to TRANSFER $148,000 from Shore Drive Intersections Project #2-133 to
Community Development Site Acquisition Proled #2-217 re funding increased costs
for right-of-way acquisition and related legal and appraisal services.
5. Ordinance to declare EXCESS PROPERTY of the City of Virginia Beach, located at 4601
N. Greenwell Road in the petition of JAMES ORSINI and MARTHA M. ORSINI; and,
authorizing the City Manager to dispose of same (BAYSIDE BOROUGH).
J. PUBUC HEARING
1. PLANNING
a. Application of VIRGINIA BEACH ORTHOPAEDIC ASSOCIATES and CHARLES
S. FRIEDMAN for a of Zonina District Classif'cation from R-
5D Residential Duplex District to on the West side of
Kempsville Road, South of Canterford Lane (1445 Kempsville Road), containing
34,848 square feet more or less (KEMPSVILLE BOROUGH).
Deferred: September 13, 1994
Deferred: September 27, 1994
Recommendation: APPROVAL
b. Applir-ation of TEA CELLULAR NETWORK SERVICES fbr a
Permit for a 150-foot communication tower 2750 feet more or less West of
General Booth Boulevard, 2640 feet more or less North of London Bridge Road
(2385 London Bridge Road), containing 20 acres (PRINCESS ANNE BOROUGH).
Deferred: May 10, 1994
Deterred Indefinitely: May 24, 1994
Recommendation: APPROVAL
K. APPOINTMENTS
BOARD OF BUILDING CODE APPEALS
COMMUNITY DEVELOPMENT CITIZEN ADVISORY COMMITTEE (CAC)
HISTORICAL REVIEW BOARD
PUBLIC LIBRARY BOARD
REVIEW AND ALLOCATION COMMITTEE (COIG)
TRANSPORTATION SAFETY COMMISSION
L. UNFINISHED BUSINESS
1. Reapportionment - Council Discussion
2. Legislative Package - Council Discussion
M. NEW BUSINESS
N. ADJOURNMENT
PUBLIC HEARING - CITY COUNCIL CHAMBER
OCTOBER 25,1994 - 6:00 PM
RE: SANDBRIDGE SPECIAL SERVICE DISTRICT
If you are physically disabled or visually impaired
and need assistance at this meeting,
Please call the CITY CLERK'S OFFICE at 427-4303
Hearing impaired, r-all: TDD only 427-4305
(TDD - Telephonic Device for the Deaf)
10/6/94bap
AGENDA\l 0-1 1-94.PLN
M I N U T E S
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virgi,i,
October 11, 1994
MaYor Meyera E. Oberndorf called to order the INFORAL4L SESSION of the VIRGINL4 BF,4CH CITY
COUNCIL in the Council Chambel, City liall Building, or, Tu(-.Vday, ()ctober 11, 1994, at 12:30 P.M.
Council Members Present:
John A. Baum, Robert K Dean, William W. flarrisoii, Jr., Barbara M.
Henley, Louis R. Jones, Mayor Meyera E. Obe"idarf, Nancy K Parker,
Vice Mayor William I). 5essoms and Louisa M. @trayhort,
Council Members Absent:
Linwood 0. Brarich, III [OU7'OF CI7YI
John D. Movs [0111' OF COUNTRY]
V,ce Mayor Sesso-, being a C(@rporate Officer of Central Fidelity Bank, disclosed there were no matters
- the agenda in which he has a ')?ersonal interest", as defined iii the Act, either individually or in his
capacity as an officer of Central Fidelity Bank. ne Pice Mayor regularly makes this Disclosure as he
maY Or may not know of the Bank's interest in atiy application that may c(yme before City CounciL rice
Mayor Sessoms' letter of September 27, 1994, is hereby made a fart of the record
- 2 -
CITY COUNCIL CONCERNS
12:30 P.M.
'TEM # 38456
Council Lady Parker referenced the memorandu?n of October 5, 1994, relative the Pa@ng Managment
Program, Council Lady Parkr pressed co ce-, as the holi ys were appr chig.
e ax n du oa
@e City Manager advised the contract,for the parking enforcement runs through the end of October;
anc4 therefore will not be a problem during the Holiday SeaV,,,. Parking enforcement will be on a
COMPlaint basis only ie.; if a vehicle is blocking a fire hydra,,, or sidewalk. The Parking Management
Program was specifically desigried as a pilot to be evaluated after being in place for a couple of months.
The CitY Staff will be meeting with the Civic orgatlizations withii the area. A survey will be drafted to
all the residents in the area ft)r feedback relative this pogr,,m. Ihere are no seasonal limits on the
parking permit program. This is being evaluated as to whether the parking permits should be similar to
the Municipal Parking Lots with a season of April thru @epiember. 7he City Manager advised after
evaluation, adjustments can be madt,.
Mayor Oberndorf suggested better education of the public regarding this program. Ihe assessments
relative parking in the Beach B(@rough should also iti(@lude th(, concerns of the residents throughout the
city.
ITEM # 38457
Council Lady Parker referenced the correspondence of Septeinber 9, 1994, from Michael J. BarreU,
relative the Soccer issue. Couticil Lady Parker requested the (i(v Clerk furnish Verbatims relative the
Soccer Complex.
The City Manager advised fiirther corre@)ndence is beitig forward(@d from Mr. Barrett. A Briefing will
be provided to City Council in Nov,-mber.
October 11, 1994
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CITY COUNCIL CONC'ERNS
ITEM # 38458
Council Lady Henley referenced the VDOT Resolutions DEFERPED for thirty days to be SCHEDULED
for the City Council Session of October 25, 1994:
Resolutions to program the Virginia Department of Transportation
(VDOT) for urbaii system highway projects; alid, that the City pay its
share of the total ct@,vis:
Improvemeiii of Laskin Road from Birdne(7k Road to Pacific
Avenue (Laskin Road, Phase II, CIP #2-165), a distance of
approximately 1.0 miles.
Improvement (@f Laskin Road from Route 44 to First Colonial
Road (Laskin Road, Phase III, CIP #2-264), a &stant@e of
approximat(!Iv 1. 4 miles.
Improvemeiit (,f I,errell Parkway from Landvtown Road to North
Courthouse Lo()p (Ferrell Parkway, Phase II, CIP #2-305), a
distai7ce of ap[)roximately 2.2 mil(@s.
Improvemeitt of Ferrell Parkway from Princess Anne Road to
C,eneral Booth Boulevard (Ferrell Parkway, Phase V, CIP #2-
096), a distan(e of appraximately 2.7 miles
Council Lady Henley advised the coricerns of the Linlier Community related to the front row of houses
bordering on a 6-lane highway. The residents anticipate these houses will be less desirable for
residential, and there will be pressure for converting those houses t() some other use. 7he character of
the neighborhood will be entirely different. Council Lady Henley e-xpressed concern relative the City's
habit of rmking extremely wide 6 to 8-lane highways. Council Lady Ifenley believed that this was not
always desirable. 7hese highwa),s (annot be crossed on foot or I)y bicycle. Iti many places, after the turn
lanes are installed, these lanes arc- well (Yver ten lanes wide. Ilazardous highway situations are being
created, particularly at ititersc(--ii()iis, where pedestriaiis cannot cross.
Councilman Harrison refereiiced the scheduling of the various phases of improvements to Laskin Road
i.e, the transition of Iaskin Road at (;reat Neck to the T,'irst Colonial corridor, which is highly
commercialized, transitions back t(, residential and then to th(, Occanfront. Councilman Harrison has
been contacted by a number of businesses iii the phase betwe@i Great Neck and First Colonial Roady
inquiring as to the reasott for tljis phase being scheduled behitid the other phases. These businesses desire
to eliminate the feeder road sititatiott, which has beeit the cau.@e of numerous traffic accidents.
Councilman Baum reitlrated (,@,)uiicil Lady IIenley's coricertis relative the extremely wide highways.
Mayor Oberndorf advised there was great c()rtcern, not just in the Laskin Roadl(@,eneral Booth area, but
throughout the City. Mayor Oberndorf fiirther referenced the death of a (@hild in the vicinity of the
neighborhoods that abut the Pembroke Area.
Councilman Dean advised a year tigo, the members of the Virginia Beach Mayor's CommiUee for the
Disabled were going to attempt i(@ illustrate to the City's Traffic Engineers the difficulty for disabled
citizens to cross eight lanes of traffic, After lutich at @zza Ilut, they were g()ing to cross Lynnhaven
Parkway to see a movie. 7he (,otnntilice subvcquently (le(@ided agai;tst this example, as same was deemed
foo dangerous.
October 11, 1994
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CITY COUNCIL CONCERNS
ITEM # 38459
Mayor Oberndorf referenced the correspondence of Vice Mayor Sessoms. rice Mayor Sessoms enclosed
a proposed resolution to invite the Institute in Basic Life Principles to consider the establishment of an
Advanced Training Insfitute for troubled youths and their families in the City or elsewhere in the
Hampton Roads area. ne Vice Mayor also enclosed numerous materials regarding the nature of the
Institute's program and its success iri other localities. Mayor Oberndorf requested the City Staff, as well
as the Juvenile Court Judges and those itivolved in Probation review same. Council Lady Strayhorn visited
the Indianapolis site of this program oii July 24 aiid 25, 1994, and prepared a report, which was
distributed to Members of City (.outicil and iv hereby made a lart of the record.
Council Lady Parker requested itif()rmati()n relative fundiiig and possible locations of the Institute.
October 11, 1994
5
ITEAf # 38460
A@f7ayor Af;ypera .6"
SSIO r, Ober,,dor e""r'."'d a ),notion to Perinit (,'ity Co,,,,,il
'o S",@
2 1-344 , Code of -duct i
rzrglnia, ,,, ,,n f ts EXECUT@
I ded or the following
PurPose:
consideratio, ,for interviews
appointment,
r-ignation
tc) @ction
To r't: @Ppont--".' Boards and CO-missions.
Board of Bilding Code
,n , y Appeals-
C('- u ' D -IOPn,nt Cili@,!n Adviso
HistOrical Review BO,2rd 'Y COmniUee
I'ublic Libray Board
8-iew and Allocatio), COtnmittee
7@ansportation Saf,,ty commlvvi(,,,
-i(In ot consideration of the
erty for public purpose, or f
of plans for the future of an
erly owried or desirable for
,Sectiopi 2.1-344(A)(3).
TO-Wit: Acquisition ()f Ilublic Property - Pri,,cCys Anne Iforough
Dispo,vitioii )f 1roperty - Lyniihaven B(,rough
UpOn motion by Vice Mayor Sessoms, seconded by Council LadyStrayhorn, City Council voted to proceed
into EXECUTIVE SESSION.
Voting: 8-0
Council Members Votirig Aye:
John A. Baum, Rob(-ri K Dean, William W. fiarrisoti, Jr., Barbara M.
Henley, Mayor Meycra E Oberndorf Nan(,y K Parker, Vice Mayor
Williain D. Sesvoms, Jr. and Louisa M. @trayhort,
Council Members Voting Nay:
None
Council Members Absent:
LinwOOd 0. Branch, III, Louis R. Joncv and Johii D. Movs
October 11, 1994
FORMAL SESION
VIRGINL4 PPArl] city couNcL
October 11, 1994
2:00 P.M.
MaYor Meyera E. Oberndorf called to order the FORUAL SESSION of the 1'7RGINL4 BF-4CH CITY
COUNCIL in the Council chamber, CitY Hall Building, on 7ue@vday, october 11, 1994, at 2:00 P.M.
Council Members Preset:
John A. Baum, R()bert K Dean, William w. Ilarrison, jr., Barbara M.
Henley, L-i, R. Jones, MaYor Mey,ra E. oblrndof Nancy K Parker,
rice Mayor William D. @essoms, Jr. and @)uiva M. Strayhorn
Council Members 4bsent:
Lin-od 0. firaitch, III and Joh,, D. Mo.,s
INVOCATION Reverend,,;tephen E. Bradley, j,.
Resurrectic@n Uiiied Methodist ch,,rh
-E
CERTIFICATION OF
EXECUTI" SESSION ITEM # 38462
city council CEQTIFIED
c' .1 L@dYTSt"Y'or"4 RECESS-
e Mayor Sesso-, sec"nded by COU"E THE OTION TO
Upon motion bY rlc SESSION To BE IN ACCORL)ANC
THE EXECUTWE om open Meeti.n!
,xempied fr
only p,blic busine,@s inatters lawfullyss @ec,tive Se@SIO"
bv Vir,iria law were di cus ed ill
req,irements
which this cerfificalion resolution appiies,
ANI), ters as ver,, ide,,tified in th, motion
h public busines@' mat rd, discusse, 0, considered bY
Only suc were nea
convening the Exec,tive Session
lrtrginia Rea,,h Cily Council.
Voting: 7-0
Council Members Voting Aye,
@'ll'a- W lia-z-von, Jr, Barbara m Ilenley, Louis R Jones, Mayor
Meyera E Oberrd(,rf, Na,,cy K Parker, rice ifa-v(@r w@illam D. Sessoms,
ir. and Louiva M. ;trayhorii
COuncil Members Voting Nqv
None
- 7 -
@ I I
I I
I Alli
-E 1.
CERTIFICATION oF
EXECUTRT SESSION
ITEM 38462
Upon motion by Vice May()r @essoms, seconded by Council Lady Strayhorn, City Council CERTIFIED
THE EXECUT@ SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS
Only public busi;iess iiiatterv lawfully exem[@ted from Open Meeting
requirements by Virgitiia law were discusse,l iti laecutive @ession to
which this ccrtificati()tl resolutiort aj)plies,-
ANI),
Only such public business matters as were identified in the motion
convening the Executive Session were heard, discussed or considered by
Virginia Reach City (,@ounciL
Voting: 7-0
Council Members Voting Aye.
William W. Harrison, Jr., Barbara M. Iienley, Louis R. Jones, Mayor
Meyera E. Oberndorf, Nancy K Parker, Kice May()r William I). @essoms,
Jr. and Louisa M. Strayhorn
Council Members Voting Nay:
None
Council Members Absent:
John A. Baum, Lirtwood 0. Branch, III. Robert K. Deaii and John D.
moss
October 11, 199,4
CERTIFICATION OF EXECUTIVE SESSION
VIRGINIA BEACH CITY (70UNCIL
WHEREAS: The VirgiDia Beach City Council convened into EXECUTIVE SESSION,
pursuant to the affinnative vote rccorded in ITEM # 38461, Page No. 5, and in accordance with
the provisions of The Virginia Freedom of Information Act; and,
WHEREAS: Section 2.1-344. of the Code of Viiginia requircs a certification by the
goveming body that such Executive Session was conducted in confomiity with Virginia law.
NOW, THEREFORE, BE ]rF RESOLVED: Tbat the Virginia Bcach City Council
hereby certifies that, to the best of each member's knowledge, (a) only public business mattcrs
lawfully exempted from Open Meeting requirements by Virginia law were discussed in Executive
Session to which this certification resolution applies; and, (b) only such public business matters
as were identified in the motioil convening this Execut@,e Session were heard, discussed or
considered by Virginia Beach City Council.
R h Hdgr, Sith, CMCI@E
City Clerk October 11, 1994
8
Item II-EL.
MINUTES ITEM # 38463
Upon motion by Vice Mayor Sessotm, seconded by Council Lady Strayhorn, City Council APPROVED
the Minutes of the INFORMAL AND FORMAL SESSIONS t)f October 4, 1994.
Voting: 7-0
Council Members Voting Aye:
William W. Ilarrison, Jr., Barbara M. Henley, Louis R. Jones, Mayor
Meyera E. Oberridorf, Nancy K. Parker, rice Mayor William D. Sessoms,
Jr. and Louisa M. @trayhorn
Council Members Voting Nay:
Non e
Council Members Absent:
John A. Baum, Liitwood 0, Braiich, Ill. Robert K Dean and John D.
Moss
October 11, 1994
- 9 -
em I -G
PUBLIC HEARING ITEM # 38464
MaY- Oberndorf DECLAPED A PUBLIC HEARRNG:
25th STREET PARKFNG LOT - $1,375,000 Cont,,,t,,l obligation.
There being no speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING.
October 11, 1994
10 -
RESOLUTIONIORDINANCES ITEM # 38465
Upon motion by Vice Mayor ;essoms, seconded by Councilmati J()nes, City Council AD40PTED:
Resolution to execute a Financing Agreement betweett the City of Ilirginia
Beach and NationsBank of Virginia, N,4., re firtancing the acquisition
and constructioii of the 25th Street Parking Lot.
Voting: 8-0
Council Members Voting Aye:
John A. Baum, Robert K Dean, Barbara M. llcnley, Louis R. Jones,
Mayor Meyera P,. Oberndorf Nancy K Parker, Vice Mayor William D.
Sessoms, Jr. and Louisa M. Strayhorti
Council Members Voting Nay:
None
Council Members Abstaining:
William W. IIarris(@ii, Jr.,
Council Members Absent:
Linwood 0. Branch, III and John D. Mosv
Councilman Harrison ABSTAINED pursuant to 5ection 21-639.14(P,) ()f the Code of Virginia.
Councilman Harrison is a partner in the law firm of Willcox & @vage earning an annual income in
excess o@ $10,000. Willcox & Savage represents NationsBank with respect to the matter before City
Council,- however, he personally does not provide representational service to NationsBank with respect
to the matter before Council. Councilman Harrison's letter of October 11, 1994, is hereby made a part
of the record.
October 11, 1994
At a regular meeting of the City Council of the city of
Virginia Beach, Virginia, held on the 1:Lth day of October, 1994, at
the time and place established by the city Council for Such
meetings, and at which the following members were present and
absent:
PRESENT:
John A. Baum Vice Mayor William D. Sessoms, Jr.
Robert K. Dean Louisa M. Strayhorn
William W. Harrison, Jr.
Barbara M. Henley
Louis R. Jones
Mayor Meyera E. Oberndorf
Nancy K. Parker
ABSzNT:
Linwood 0. Branch, III
John D. Moss
the following resolution, having been the subject of a public
hearing held on October 11, 1994, in accordance with Section 15.1-
227.8 of the Code of Virginia oi 1950, as amended, was adopted by
the affirmative roll call vote of a.raajority of all members of the
City Council, the ayes and nays being recorded in the minut,s of
such meeting as shown below:
VOTE
John A. Baum Aye
Robert K. Dean Aye
William W. Harrison, Jr. Abstain
Barbara M. Henley Aye
Louis R. Jones Aye
Mayor Meyera E. Oberndorf Aye
Nancy K. Parker Aye
Vice Mayor William D. Sessoms, Jr. Aye
Louisa M. Strayhorn Aye
RESOLUTION APPROVING A FINANCING AGREEMENT
BETWEEN THE CITY OF VIROINIA BRACB, VIRGINIA,
AND NATIONSBANK OF VIRr,]:NIA, N.A., PROVIDIXG
FOR FINANCING OF THE ACQUISITIO]M OP A PARXINR.
FACILITY AND AUTHORIZING THE EXECUTION THEREOF
WHEREAS, the Finance Department of the City of Virginia Beach,
Virginia (the "City") , acting pursuant to directions of the City
Council, has submitted to various banks and financial institutions
a request for proposals for tax-exempt borrowing to finance the
acquiSition of a site for a parking faci-lity located in the City on
the southwest corner of 25th Street and Pacific Avenue (the
"Parking Facility"), and the Finance Department has received four
proposals in response to such request; and
WHEREAS, Government Finance Associates, Inc., and Government
Finance Group, inc., the City's financial advisors, and the City's
administration have advised the City Council that the proposal of
NationsBank of Virginia, N.A. (the "Bank") , a copy of which is
attached to this resolution (the "Proposaill) , offers to provide a
tax-exempt variable rate or fixed rate financing to the City and
have recommended its acceptance as the best proposal received; and
WHEREAS, there has been presented to this meeting a draft of
a financing agreement between the City and the Bank (the "Financing
Agreement") to implement such financing;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA:
1. The City Council determines that it is in the best
interest of the City to accept the Proposal and enter into the
Financing Agreement.
2. The Financing Agreement shall provide for a loan by the
Bank to the City in an aggregate principal amount of $1,375,000,
shall provide for final payment on the loan to be made no later
than April 1, 2004, and shall provide that the loan shall bear
interest at a variable or fixed rate calculated pursuant to the
provisions of Section 2 of the Financing Agreement, but in no event
to exceed 15% per year. The City shall use such amount solely t,
reimburse itseif for expenditures made in connection with acquisi-
tion of a site for the Parking Faciiity.
3. The City Manager is authorized a,d directed to execute
the Financing Agreement, which shall be in substantially the form
presented to this meeting, which is approved, with such comple-
tions, omissions, insertions and changes not inconsistent with this
Resolution as may be approved by the city Manager, whose execution
thereof shall constitute conclusive evidence of his approval of any
such completions, omissions, insertions and changes. The city
Manager is further authorized and directed to execute the Proposal
as modified by the terms of this Resolutic'n and the Financing
Agreement.
4. The officers of the City are authorized and directed to
execute and deliver all certificates and instruments and to take
all actions necessary or desirable in connection with the execution
and delivery of the Financing Agreement and the completion of the
financing.
5. The obligations of the city under the Financing Agreemer,t
shall be limited obligations payable solely from funds t, )e
appropriated by the City Council f,r such purpose and shall not
constitute a debt of the City within the meaning of any cons+--itu-
tional or statutory limitation or a pledge of the faith and credit
or the taxing power of the City beyond any fiscal year fer which
the City has appropriated.
6. The City believes that funds sufficient to make payment
of all amounts payable under the Financing Agreement can be
obtained. While recognizing that it is not empowered to make any
binding commitment to make such Payments beyond the current fiscal
year, the City Council hereby states its intent to make annual
2
make all e
appropriations for future f scal years in amounts suffici nt to
such payments and hereby recommends that future councils
do likewise during the term of the Financing Agreement. The City
Council directs the Cit-Y Manager, or such other officer as may be
charged with the responsibility for preparing the City,, annual
budget, to include in the budget for -each fiscal Year during the
term of the Financing Agre ent an amount suffici-ent to make the
Payment of all amounts payab e under the Financing Agreement. The
City Manager is authorized and directed to deliver to the Bank
within ten days after the adoption of the budget for each fiscal
year, but not later than ten days after the beginning of the fiscal
year, a certificate stating whether an amount equal to the
estimated amounts payable under the Financing Agreement during such
fiscal year has been appropriated by the City Council in any such
budget.
7. (a) The City covenants that it will not take or omit to
take any action the taking or omission of which will cause the
Financing Agreement to be an "arbitrage bond" within the meaning of
Section 148 of the Internal Revenue Code of 1986, as amended, and
regulations issued pursuant thereto, or otherwise cause interest
due under the Financing Agreement to be includable in the gross
income of the registered owner thereof under existina statutes.
Without limiting the generality of the foregoing, the-City shall
comply with any provision of law that may require the City at any
time to rebate to the United States any part of the earnings
derived from the investraent of the funds received under the
Financing Agreement, unless the City receives an opinion of
nationally recognized bond counsel that such compliance is not
required to prevent interest due under the Financing Agreement from
being includable in the gross incoine for federal income tax
purposes of the holder thereof under existing law.
(b) The City covenants that during the term of the
Financing Agreement it will not use or permit the use of the
Parking Facility other than for the purpose of performing one or
more governmental or proprietary functions of the City consistent
with the scope of the City's authcrity and will not use or permit
the use of the Parking Facility in a trade or business of any
person or entity other than the City. Notwithstanding the
foregoing sentence, the City may enter into a management contract
with any person or entity for the operation and management of the
Parking Facility, provided that the city receives an opinion of
nationally recognized bond counsel that such management contract
will not cause interest due under the Financing Agreement to be
includable in the gross income for federal incoine tax purposes of
the Bank under existing law.
8. Such officers of the City as may be requested are
authorized and directed to execute an appropriate certificate
setting forth the expected use and investment of the funds received
under the Financing Agreement, and any elections such officers deem
desirable regarding rebate of earnings to the United States, for
purposes of complying with Section 148 of the Code. Such certifi-
3
cate and elections shall be in such form as may be requested by
bond counsel for the City.
9. All other actions of officers of the City and the City
Council in conformity with the purposes and intent of this Resolu-
tion and in furtherance of the financing are hereby ratified,
approved and confirmed.
10. All resolutions or parts of resolutions in conflict
herewith are repealed.
ii. This Resolution shall take effect immediately.
The undersigned Clerk of the City of Virginia Beach, Virginia,
certifies that the foregoing constitutes a true and correct extract
from the minutes of a regular meeting of the City Council of the
City of Virginia Beach, held on the llth day of October, 1994, and
of the whole thereof so far as applicable to the matters referred
to in such extract.
WITNESS my signature and the seal of the (.ity of Virginia
Beach, Virginia, this day of October, 1994.
Clerk, City of Virginia Beach,
Virginia
(SEAL)
lu
DEPARTMENT
APPROVED AS TO FORFO,
C"'
4
TERMS AND CONDITIONS
SeL)tember 8th, 1994
The following are the general terms and conditions of the proposed credit facility
required by the City of Virginia Beach (Borrower). These terms and conditions are not
meant to be exhaustive, but are meant to give the Borrower a general reference from
which a loan agreement will be constructed.
Borrower: City of Virginia Beach
Amount: $1,375,000@00
Type: Tax exempt financing provided through NationsBank's (Bank)
ptit el - ------
Purpose: Acquisition cost of a parking lot on the
Southwest corner of 25th Street and Pacific Ave , Virginia Beach, Virginia.
Mattirity: 10 years from closing (within 60 days of acceptance).
Payment Schedtile: Interest shall be paid semi-annually, payable on April I and
October I of each year. Principal will be payable on April I according to the following
schedule:
1995 - $ 90,000 2000 - $140,000
1996 - 115,000 2001 - 150,000
1997 - 120,000 2002 - 155,000
1998 - 130,000 2003 - 165,000
1999 - 135,000 2004 - 175,000
Interest Rate: If the bond or note is a "qualified tax-exempt obligation', as defined
in Section 265 (b) of the Internal Revenue Code, the interest rate shall be at Borrower's
option either
(A) Variable rate:
A floating rate equal*t@k@ fqllgwing schedule is available to the City. The
City may convert from one contract time period to another with written notice ten
business days prior to the expiring contract.
It is understood that this debt is not a General Obligation of the City of Virginia Beach,
but subject to annual appropriation by the City Council. The Bank is effectively reliant
on the good faith of the City of Virginia Beach to honor its obligation to make
payments on the debt. This good faith would take the form of a moral obligation from
the City pursuant to documentation satisfactory to the Bank. The moral obligation
would apply to both the unsecured or secured option.
Closing Costs and Expenses: NationsBank will cap its counsel fees and expenses at
$2,500. This cap is based on the Borrowers compliance with the Commitment letter
(this does not include the City's attorney fees for preparation, opinions or any other like
costs) and due to the relatively standard nature of this transaction assumes minimal
negotiation and document drafting. Any other costs incurred by the Borrower will be
at the Borrowers expense, such as title insurance if secured by a Deed of Trust.
Additional Condition to Closing: Prior to the making by the Bank of the first
advance to the Borrower, the following conditions precedent shall have occurred-
1. The Bank shall have received an unqualified opinion from the Borrowees
Bond Counsel, regarding the validity of the Note(s) and the exemption of the interest
thereon from Federal and Virginia income @ation.
2. The Bank shall have received, duly executed, all loan
agreements, borrowing resolutions, and other documents necessary or advisable in
connection with the loan, all of which shall be in form and substance satisfactory to the
Bank.
3. The Borrower shall certify compliance with Federal arbitrage rebate rules, or
certify that it is exempt from arbitrage rebate requirement.
Reporting Requirement: So long as the Borrower is indebted to the Bank, the
Borrower shall submit to the Bank the following:
Within one hundred and eighty (I 80) days following the end of the Borrower's fiscal
year end, a balance sheet and income statement prepared in accordance with generafly
accepted accounting principles on an Audited basis by an independent c-ertified public
accountant including all normal and reasonable financial notes.
Covenants: The Borrower shall, so long as this commitment remains outstanding
or its indebtedness to the Bank remains unpaid@
@ Utilize its best efforts to
I .A Maintain a long term general obligation rating by the Nationally recognized
rating agency of "Aa/AA" or better.
2. Comply with all statutes and governmental regulations.
3. From time to time provide the Bank with such other information as the Bank
may reasonable expect
Custom*er
Libor* Rate
4.875 30 day Libor minus 49 4.38
4.9375 60 day Libor minus 5 1 4.42
5.00 90 day Libor minus 54 4.46
5.3 125 180 day Libor minus 64 4.67
5 8125 1 year Libor minus 82 4.99
*Libor as of 9/8/94, this rate will vary overtime
(B) Fixed rate
A fixed rate option shall be the yield of the Ten Year Treasury Note as
quoted in the Wall Street Journal (the day pfior to closing) minus 67 basis points which
on September 8, 1994 is 6.84%.
(C) If the variable rate option is chosen, the Borrower may make a one
time conversion to a fixed interest rate The rate to be negotiable at the time of
conversion.
Commitment Fee: There will be no commitment fee.
Prepayment: (A) Under a variable rate option no prepayment penalty would be
applied.
(B) Under a fixed rate option:
In the event all or any portion of this loan is prepaid by Boffower, whether
voluntarily or by reason of default, acceleration or otherwise, the Borrower shall within
fifteen (I 5) days of any request by Lender, pay to Bank any loss or expense which
Bank may incur or sustain as a result of any such prepayment. A statement as to the
amount of such loss or expense, prepared in good faith and in reasonable detail by
Bank and submitted by Bank to the Borrower shall be conclusive and binding absent
manifest error in computation. Calculation of all amounts payable to Bank under this
paragraph shall be made as though Bank shall have actually funded or committed to
fund the loan through the purchase of an underlying deposit in an amount equal to the
amount of the loan and having a maturity comparable to the loan; provided,
however, that Bank may fund any loan in any manner it sees fit and the foregoing
assumption shall be utilized only for the purpose of calculation of amounts payable
under this paragraph
Security: This facility will be unsecured,
Other: The Borrower agrees that it will pay such additional interest, penalties and
amounts as may be assessed on and finally adjudged to be owing by the Bank as a
result of a determination that interest on the (Bond or Note) is subject tg grgm income
for Federal income tax purposes or as a result of a matefial change in applicable@ tax
laws.
Please acknowledge acceptance of this commitment by having this letter signed by the
properly authorized Official(s) and returned to the Bank. Acceptance must occur by
October 14, 1994 for this commitment to remain valid,
The undersigned hereby accepts the foregoing commitment and the terms and
conditions herein set forth and agrees to be bound thereby:
City of Virginia Beach
By: Date:
Title:--
RI-PF\t:\VAB\25th\FinAgmt.006
10/05/94 - 5:45p.m.
FINANCING AGREEMENT
THIS FINANCING AGREEMENT dated as of [November _], 1994 (the
"Agreement"), by and between the CITY OF VIRGINIA BEACH, VIRGINIA,
a political subdivision of the Commonwealth of Virginia (the
"City"), and NATIONSBANX OF VIRGINIA, N.A., a national banking
association organized under the laws of the United States of
America (the "Bank"), provides:
WHEREAS, the City has solicited proposals for a tax-exe-mpt
borrowing to finance the acquisition of a site for a parking
facility located in the City on the southwest corner of 25th Street
and Pacific Avenue (the "Parking Facility"), and has selected the
proposal of the Bank as in the best interests of the City; and
WHEREAS, the City and the Bank desire to enter into this
Agreement to implement the Bank's proposal;
NOW, THEREFORE, for and in consideration of the mutual
covenants hereinafter contained and other valuable consideration,
the parties agree as follows:
1. Loan by Bank. The Bank agrees to lend the City, upon the
terms and conditions set forth herein, a principal amount equal to
$1,375,000. The City shall use such amount solely to reimburse
itself for expenditures made in connection with acquiring the site
for the Parking Facility.
2. Interest. The principal amount loaned under this
Agreement shall bear interest on the unpaid principal from
(November _], 1994, calculated in accordance with one of the
interest rate periods set forth below (individually, the "Interest
Rate Period") and, when calculated, such rate shall be in effect
for the duration of such Interest Rate Period. Interest shall be
due and payable beginning April 1, 1995, and continuing
semiannually on each April 1 and October 1 thereafter. The
interest rate shall be calculated by the Bank on the business day
preceding the first day of any Interest Rate Period based on the
London Interbank Offered Rate ("LIBOR") (as expressed on page LIBO
on Reuters Money Rate Service on that same date) corresponding to
such Interest Rate Period, less the number of basis points set
forth below:
Interest Rate
Period Rate Calculation
30 day 30-day LIBOR Rate less 49 basis points
60 day 60-day LIBOR Rate less 51 basis points
90 day 90-day LIBOR Rate less 54 basis points
180 day 180-day LIBOR Rate less 64 basis points
1 year 1-year LIBOR Rate less 82 basis points
The initial Interest Rate Period shall be days] Cone year) and
such period shall continue until the date,-if any, on which the
Interest Rate Period is converted to a different period as
described in this section. The City shall have the right to
convert any Interest Rate Period to any other Interest Rate Period
by having the Director of Finance give notice to the Bank (in
substantially the form attached as Exhibit A) at least ten (10)
business days prior to the expiration date of the then current
Interest Rate Period. The City shall also have the right at any
time to convert the calculation of interest due under this
Agreement from a variable rate under any Interest Rate Period to a
fixed rate, such fixed rate and prepayment penalty provisions, if
any, to be negotiated at the time of such conversion.
Notwithstanding anything herein to the contrary, at no time shall
the interest due under this Agreement exceed the rate of 15% per
annum.
3. Principal. The principal amount loaned under this
Agreement shall be payable in annual installments on April 1 in
years and amounts as follows:
Year Amount Year Amount
1995 $ 90,000 2000 $140,000
1996 115,000 2001 150,000
1997 120,000 2002 155,000
1998 130,000 2003 165,000
1999 135,000 2004 175,000
4. Prepayment. The City may prepay the principal amount
loaned under this Agreement at its option, as a whole or in part,
at any time upon five (5) days' notice and payment of all or any
portion of the principal in multiples of $1,000 plus interest
accrued on the amount prepaid to the date of prepayment. Any
prepayment in part shall be applied first to interest accrued on
the amount prepaid and then to installments of principal in inverse
chronological order but shall not postpone the due date of any
subsequent payment, or change the amount of such installment,
unless the City and the Bank agree otherwise in writing.
S. Limited obligation. The obligations of the City under
this Agreement shall be limited obligations payable solely from
funds to be appropriated by the Council of the City (the "City
Council") for such purpose. This Agreement shall not be deemed to
constitute a debt or a pledge of the faith and credit of the City
within the meaning of any constitutional or statutory limitation,
and neither the faith and credit nor the taxing power of the City
is pledged to the payment of amounts payable under this Agreement
or other costs incident thereto.
6. Security. The City does not grant a security interest
in, or a lien on, the Parking Facility.
-2-
7. Declaration of Essentiality. The City Council has
determined that, based on the necessity for additional parking in
the 25th Street area and based on the economic benefits to be
derived from making a prime commercial and resort area more
accessible to the public, the acquisition of the Bite for the
Parking Facility and the financing of the same under this Agreement
are essential to the proper and efficient operation of the City.
The City Council anticipates that the financing of the Parking
Facility will continue to be essential to the proper and efficient
operation of the City through the fiscal year ending June 30, 2004.
S. Appropriations. The City reasonably believes that funds
sufficient to make payment of all amounts payable under this
Agreement can be obtained. The City Council has appropriated in
its budget for the fiscal year ending June 30, 1995, an amount
sufficient to make the payments of principal of and estimated
interest due under this Agreement that will be payable in such
fiscal year. While recognizing that it is not empowered to make
any binding commitment to make payments due under this Agreement
beyond the current fiscal year, the City Council, in authorizing
the execution of this Agreement, has stated its intent to make
annual appropriations sufficient to make the estimated payments of
principal of and interest due under this Agreement and has
recommended that its successors continue to do so during the term
of this Agreement. The City Council has directed the City Manager
or other officer charged with the responsibility for preparing the
City's annual budget to include in the budget for each fiscal year
during the term of this Agreement an amount sufficient to make the
estimated payments of principal of and interest due under this
Agreement. The Bank acknowledges and agrees that notwithstanding
the inclusion of such amount in any budget the City Council is
under no legal obligation to include such amount in the budget as
adopted. The City Council has directed the City Manager to deliver
to the Bank within ten (10) days after the adoption of the budget
for each fiscal year, but not later than ten (10) days after the
beginning of the fiscal year, a certificate stating whether an
amount equal to the estimated payments of principal of and interest
due under this Agreement during such fiscal year has been
appropriated by the City Council in any such budget.
9. Annual Financial Statements. The City shall furnish to
the Bank within one hundred eighty (180) days after the end of each
fiscal year of the City a copy of the annual audit, prepared by an
independent certified public accountant, of the financial
conditions of the City for the preceding fiscal year.
10. Termination. If by June 15 of any year the City Council
has failed to appropriate an amount sufficient to make the
estimated payments dus under this Agreement during the following
fiscal year, the City Manager shall give notice to the Bank of such
failure to appropriate within five (5) business days thereafter.
If no such appropriation has been made by August 1 of such year,
the City and the Bank each shall have the right to terminate this
-3-
Agreement by giving notice to the other party. In addition, if the
City shall fail to make any payment of principal of or interest due
under this Agreement and such failure shall continue for seven (7)
days, the Bank shall have the right to terminate this Agreement by
giving notice to the City. Upon termination, the entire unpaid
principal of and interest due under this Agreement shall
immediately become due and payable, subject, however, to the
appropriation of sufficient funds by the City Council for such
purpose.
11. Tax Covenants. (a) The City covenants that it will not
take or omit to take any action the taking or omission of which
would cause the loan made under this Agreement to be an "arbitrage
bond" within the meaning of Section 148 of the Internal Revenue
Code of 1986, as amended, and regulations issued pursuant thereto,
or otherwise cause interest due under this Agreement to be
includable in the gross income of the Bank under existing law.
Without limiting the generality of the foregoing, the City shall
comply with any provision of law that may require the City at any
time to rebate to the United States any part of the earnings
derived from the investment of the gross proceeds of the loan,
unless the City receives an opinion of nationally recognized bond
counsel that such compliance is not required to prevent interest
due under this Agreement from being includable in the gross income
for federal income tax purposes of the Bank under existing law.
(b) The City covenants that during the term of this Agreement
it will not use or permit the use of the Parking Facility other
than for the purpose of performing one or more governmental or
proprietary functions of the City consistent with the scope of the
City's authority and will not use or permit the use of the Parking
Facility in a trade or business of any person or entity other than
the City. Notwithstanding the foregoing sentence, the City may
enter into a management contract with any person or entity for the
operation and management of the Parking Facility, provided that the
City receives an opinion of nationally recognized bond counsel that
such management contract will not cause interest due under this
Agreement to be includable in the gross income for federal income
tax purposes of the Bank under existing law.
(c) (1) In the event that at any time whether before or
after payment of this loan or all or any part of any payment of
interest due under this Agreement, any interest paid or accrued by
the Bank by reason of the Bank's owning this loan or receiving
interest on this loan is determined by the commissioner or any
District Director of the Internal Revenue Service or any court of
competent jurisdiction not to be excluded from gross income under
Section 103 of the Internal Revenue Code of 1986, as amended (the
"Codelf) as in effect on the date hereof, then the City shall pay to
the Bank, as supplemental interest, in legally available funds
appropriated for such purpose at the time or times specified herein
an amount which, after giving effect to all taxes attributable to
the inclusion of such amount in the gross income of the Bank under
-4-
the laws of any Federal, state or local governmental or other
taxing authority (such taxes to be calculated at the maximum
statutory tax rate applicable to the Bank, after taking into
account deductions attributable to imposition of state and local
taxes), shall be equal to the amount of the tax attributable to
this loan multiplied by the rate of the preference or similar tax.
(2) If the City becomes obligated to make payments to
the Bank pursuant to subparagraph (1), the amount of the income or
similar item or of the nondeductible item in respect of any
quarterly period ending within or after the first taxable year of
the Bank during which such payments first become payable shall be
calculated on the basis of the data in the most recent quarterly
period of the Bank prepared prior to the date interest on this loan
was or is due and payable, as if (i) the income or similar tax were
imposed, or the amount of the nondeductible item were computed, on
a quarterly basis, and (ii) the quarterly period ended on the date
interest on this loan was or is due and payable.
The amount of the income or similar item or of the
nondeductible item in respect of any other period shall be computed
on the basis of the Federal income tax return of the Bank. The
computation of any amount payable under this paragraph 2 shall be
made in good faith by the Bank, but absent manifest error shall be
conclusive as to the amount thereof. Every reference to the Bank
shall include the entity filing tax returns in which the Bank as
holder of this loan reports it income.
(3) The intent of the foregoing provisions is to fix for
the Bank a yield on this loan equal at all times to the yield
receivable under tax law, regulations and interpretations existing
as of the date of the execution of this Agreement, which yield has
been used in determining the tax exempt interest rate, and to
impose on the city the obligation to pay supplemental interest in
an amount necessary to compensate the Bank if the interest on the
loan is not excluded from gross income. Notwithstanding the
foregoing, at no time shall the interest rate under this Agreement
exceed the rate of 15% per annum. The foregoing provisions should
be construed accordingly.
12. Affirmative Covenants. The City covenants that for the
term of this Agreement, it shall (a) use its best efforts to
maintain a long-term general obligation rating by a nationally
recognized rating agency of "Aall, "AAII, or any other designation
constituting the second highest rating category maintained by a
nationally recognized rating agency; (b) comply with all applicable
federal and state statutes and regulations applicable to the
Parking Facility and this financing; and (c) provide to the Bank
from time to time such other information as the Bank may reasonably
request. If the city's long-term general obligation rating falls
below the rating set forth in (a) of the preceding sentence, but
does not fall below a rating of "All or any other designation
constituting the third highest rating category maintained by a
-5-
nationally recognized rating agency, then the Bank may adjust the
interest rate on the obligation under this Financing Agreement to
a rate that is not in excess of the Bank' s tax-exempt lending rates
to local governments with such a rating. If the City's long-term
general obligation rating falls below the rating of "A" or any
other designation constituting the third highest rating category
maintained by a nationally recognized rating agency, then the Bank
shall have the right to renegotiate the terms of the City's
obligation under this Financing Agreement, including, without
limitation, the payment provisions and security for such
obligation. If the City and the Bank are unable to agree on such
revised terms, then the Bank may declare that the loan is payable
in full at such time; provided, however, the City's obligation to
pay the loan will be subject to legally available funds
appropriated for such purpose.
13. Expenses. The City shall pay all fees, expenses and
other amounts incurred by the Bank in connection with entering into
this Agreement, including the Bank's legal fees, in a total amount
not to exceed $2,500.
14. Notices. All notices, requests and other communications
under this Agreement shall be in writing or by telephone, to be
promptly confirmed in writing, and shall be given to the City at
Finance Department, City Hall Building, Room 220, Virginia Beach,
Virginia 23456 (Attention: Director of Finance), telephone 804-
427-4681, and to the Bank at One Commercial Place, Norfolk, VA
23501 (Attention: Ms. Ellen 0. Keeter), telephone 804-441-4000, or
at such other address or telephone number or to the attention of
such other person as may be given to the other party in writing.
15. Amendments and Waivers. Any provision of this Agreement
may be amended or waived if, but only if, such amendment or waiver
is in writing and is signed by the City and the Bank.
16. Successors and Assigns. The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.
17. Virginia Law. This Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of
Virginia.
18. Severability. If any clause, provision or section of
this Agreement shall be held illegal or invalid by any court, the
illegality or invalidity of such clause, provision or section shall
not affect the remainder of this Agreement which shall be construed
and enforced as if such illegal or invalid clause, provision or
section had not been contained in this Agreement. If any agreement
or obligation construed in this Agreement is held to be in
violation of law, then such agreement or obligation shall be deemed
to be the agreement or obligation of the City and the Bank, as the
case may be, only to the extent permitted by law.
-6-
19. Term of Agreement. This Agreement shall be effective
upon its execution and delivery. Except as otherwise specified,
the City's obligations under this Agreement shall expire upon
payment in full of the principal and interest due under this
Agreement and all other amounts payable by the City under this
Agreement.
20. Counterparts. This Agreement maY be executed in any
number of counterparts, each of which shall be an original and all
of which together shall constitute but one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their respective authorized officers.
CITY OF VIRGINIA BEACH, VIRGINIA
By
C ty Manager
NATIONSBANK OF VIRGINIA, N.A.
By
Its
-7-
EXHIBIT A
FORM OF CONVERSION NOTICE TO BANK
(Letterhead of Director of Finance]
NationsBank of Virginia, N.A.
Commercial Banking Department
One Commercial Place
Norfolk, VA 23501
(Attention:
Financing of 25th Street Parking Facility
Dear
Pursuant to the provisions of Section 2 of the Financing
Agreement dated (the "Financinq Agreement") , between the
City of Virginia Beach, Virginia (the "City"), and NationsBank of
Virginia, N.A., the undersigned hereby notifies the Bank that the
City will exercise effective , its option to convert its
interest rate calculation method to the applicable LIBOR rate for
the (30 day/60 day/90 day/180 day/l year period] minus basis
points, calculated in compliance with the schedule referenced in
such Section 2.
Should the Bank have any questions concerning this conversion,
please do not hesitate to contact me.
Sincerely,
Director of Finance, City of
Virginia Beach, Virginia
Policy Report
25TH STREET PARKING LOT FINANCING
Prepared by
Patricia A. Phillips, Director of Finance
Richard N. Dunford, Finance Department
BACKGROUND
In creating Tle Tourism Growth Investment Fund (TGIF), City Council established
and authorized a number of capital projects to receive support Erom the fund. One such
project was Project 2-215 Resort Area Parking Improvements. This project was to provide
needed public parking in the resort area to compliinent the tourist development effort in
that area.
As a means of financing the total project costs, the most recent Capital bnprovement
Program (CIP) identified several funding sources. TGIF pay-as-you-go funds and 1991
Charter Bonds provided funding for the design and construction phases of the parking lot
and for site acquisition costs of $1,375,000 the CIP identffied lease/purchase financing.
In early 1994 the City acquired a site on the southwest corner of 25th Street and
Pacific Avenue for the development of a surface parking lot that met the criteria for this
project. Improvements to the lot were completed in the summer of 1994 and the patking
lot is presently in operation. Tle City's current financing need is to reimburse itseff for its
prior expenditure for site acquisition.
As preparation began to obtain permanent financing for the parking ]or site, the
Department of Finance broadened the range of financing options to include, in addition to
lease purchase financing, other forms of tax-"empt borrowings. Tlis broad approach is in
keeping with the City's debt management poficies to strive to minimize debt interest costs,
to preserve the City's credit rating, and to assess new and innovative approaches to issuing
debt. The City's Bond Counsel and Financial Advisors have participated in the review
process.
POLICY REPORT
25th Street Parking Lot Financing
October 4, 1994
Page 2
CON IDERATIONS
LeLyal Constraints an ons
In evaluating alternative financing mechanisms for this borrowing there are
two major parameters the City must consider as it does for any debt issuance:
(1) Legal authority based on limits imposed by the State Constitution and the
City Charter and (2) the City's economic abitity to support such debt.
City Council, through the CIP, has provided direction that the project be
financed with non-charter debt. To this end Bond Counsel has proposed a
structure based on a contractual obfigation that would avoid the hmitations
set forth in Section 6.05:1 of the City's Charter. T'he Constitutional
limitations can easily be avoided since the City has considerable debt capacity
(over $1 billion) under its Constitutional Iiinits. Furthermore while the debt
will not be seff-supporting, this issuance, based on its size, wiff not infringe on
the City's economic ability to support the debt nor have an influence on the
City's debt ratios based on a total city indebtedness of over $616 mihion at
June 30, 1994.
Structure
The purpose of this borrowing certainly qualifies for tax-exempt financing.
T'he project is for a public purpose and not private use. Ilerefore, tax-
"empt securities could be used. However, the project is not self-supporting;
so, revenue bonds are not a consideration. The City is neither pledging its
full faith and credit nor its taxing power in repayment of the loan, so the
borrowing does not constitute general obegation debt. Tberefore, the most
appropriate structure for the City to pursue is the use of moral obegation and
annual appropriation securities. These types of securities include Certificates
of Participation (COPs), Lease/Purchase financing, and other annual
appropriation-backed securities.
Size of Financin nd Issuance Costs and Participants
In relation to the City's overafl debt program, this financing at $l,j75,000 is
quite small. The economies of scale enjoyed in a conventional bond issue
would not be realized with this financing. Underwriting commissions and
other bond issuance costs would be disproportionate, even prohibitive, to
attempt a conventional sale. In fact, several underwtiting firms indicated no
interest in participating in this transaction. However, many of the local banks
did indicate an interest in assisting the City with this financing as
demonstrated by their responses to a Request for Proposal (RFP) process.
POLICY REPORT
25th Street Parking Lot Financing
October 4, 1994
Page 3
ALTERNATtVES
In a letter previously provided to City Council, Bond Counsel outlined three options
for financing the 25th Street Parking Lot. These options are based on the
considerations previously discussed in this report. None of the three alternatives
include conventional general obegation bonds since that alternative had been
reserved by City Council for other purposes. An underwritten sale of debt was also
not considered since the issuance costs associated with an underwriting would have
been excessive given the small size of this financing. Consequently three "bank
borrowing" structures were considered:
9-.
Under this option, the City would enter into a third-party lease purchase financing
with a bank. Ile City would lease the parking lot to a third party, then lease it back.
The City would make annual lease payments to the bank, subject to annual
appropriation by the City Council. Annual payments would reflect the amortization
of the principal and interest costs of the boffowing. In the event of non-
appropriation, the City would forfeit use of the parking lot, typically for a period
sufficient for the bank to recoup its invesbnent.
dvanta es.
Avoids the City's Charter limitations and voter approval.
Typical financing structure frequently used in Virginia.
Potentially the lowest interest costs. (6.7%)
tsadvanta es.
Tbe most complicated structure of the three proposed alternatives requiring
a 3rd party Lessor to implement the transaction.
Similar to an underwriting with associated issuance costs, the volume and cost
of documentation is the highest of the three financing options. Extremely
high issuance costs for the size of the financing. I
City would have to address the State Constitutional prohibition of leasing
public property for longer than five years without a public bid. (Would need
to advertise the bid for four weeks).
May require a debt service reserve fund.
POLICY REPORT
25th Street Parking Ut Financing
October 4, 1994
Page 4
Option 2 - Ap@riation-based Contract Secured by a Deed of Trust.
Under this option, the City would finance the parktg lot Sitebyenteling into A
contractual obfigation with a bank and
security. Tbe City Council wo ]d make a proadtg a deed of ftugi On Ae silie as
u nnual appropriations to repay the contract
payments, and in the event that funds were "Ot appropriated, .the bank could
foreclose on the deed of trust.
nta es.
Avoids the City Charter @itations and voter approval.
A less coniplicated le2al structure than lease Purchase financi g ( 0 third
party lessor). n n
Lower costs associated with docunient Preparation than Option 1.
No requirement for Public bidding Of I l,ase, since this alternative does not
include a lease.
Potentially loer interest costs than Option 3 due to Ihe secrity of a deed
Of trust.
A legally niore compl" tructur
s e than Option 3, therefore higher costs
associated with document Preparation than option
t that the financing
fail to appropriate
to t k is effectiely POssessiOn of the
on o i ai payments on 90( faith of the City
ob] e (i.e, the City's mo,@l
nta es.
OP lorfuni' for 4
low tisi
Avoids the City's Charter limitations and voter approval.
Is the least comphcated legal structure of the three options.
POLICY REPORT
25th Street Parking Lot Financing
October 4, 1994
Page 3
ALTERNATIVES
In a letter previously provided to City CounciL Bond Counsel outlined three options
for financing the 25th Street Parking Lot. These options are based on the
considerations previously discussed in this report. None of the three alternatives
include conventional general obligation bonds since that alternative had been
reserved by City Council for other purposes. An underwritten sale of debt was also
not considered since the issuance costs associated with an underwtiting would have
been excessive given the smafl size of this financing. Consequently three "bank
borrowing" structures were considered:
O@n I - Lease Purchase FinanciM.
Under this option, the City would enter into a third-party lease purchase financing
with a bank. Tlie City would lease the parking lot to a third party, then lease it back.
T'he City would make annual lease payments to the bank, subject to annual
appropriation by the City Council. Annual payments would Teflect the amortization
of the principal and interest costs of the borrowing. In the event of non-
appropriation, the City wouid forfeit use of the parking lot, typicaliy for a period
sufficient for the bank to recoup its investment.
Advantaees:
Avoids the City's Charter hmitations and voter approval.
Typical financing structure frequently used in Virginia.
Potentiafly the lowest interest costs. (6.7%)
Disadyantages:
The most compficated structure of the three proposed alternatives requiring
a 3rd party Lessor to implement the transaction.
Similar to an underwriting with associated issuance costs, the volume and cost
of documentation is the highest of the three financing options. Extremely
high issuance costs for the size of the financing. I
City would have to address the State Constitutional prohibition of leasing
public property for longer than five years without a public bid. (Would need
to advertise the bid for four weeks).
May require a debt service reserve fund.
POLICY REPORT
25th Street Parking LDt Financing
October 4, 1994
Page 4
Option 2 - Appropriation-based Contract Secured by a ed o Trust.
Under this option, the City would finance the parking lot site by entering into a
contractual obligation with a bank and providing a deed of trust on the site as
security. Ile City Council would make annual appropriations to repay the contract
payments, and in the event that funds were not appropriated, the bank could
foreclose on the deed of trust.
Advantaces:
Avoids the City Charter Iiinitations and voter approval.
A less complicated legal structure than lease purchase financing (no third
party lessor).
Lower costs associated with document preparation than Option 1.
No requirement for public bidding of a lease, since this alternative does not
include a lease.
Potentiafly lower interest costs than Option 3 due to the security of a deed
of trust.
Disadvantaees:
A legally more complex structure than Option 3, therefore higher costs
associated with document preparation than Option 3.
O@n 3 - ApproDiiation-based Contract without Security
Tlis alternative is identical to option 2 in every respect except that the financing
would not be secured by a deed of trust. If the City were to fail to appropriate
contract payments, the bank would not be able to foreclose or take possession of the
site. Under this option, the bank is effectively reiiant on the good faith of the City
to honor its obfigation to make payments on the borrowing (i.e., the City's moral
obhgation pledge).
Advantazes.'
Unique opportunity for a structure new to Virginia Beach, yet low risk on
small principal.
Avoids the City's Charter limitations and voter approval.
Is the least complicated legal structure of the three options.
POLICY REPORT
25th Street Parking Lot Flnancing
October 5, 1994
Page 5
It carries the lowest costs associated with document preparations (i.e., no
security documents).
As in Option 2 above, in the absence of a lease, the Constitutional
requirement limiting the borrowing term is non-applicable.
lsadvanta es.
PotentiaUy higher interest costs than Options I and 2 due to the absence of
a leaseholder interest in the property or deed of trust
A. Legal Structure Most complex with 3rd Requires security Least coinplex
party lessor. doctimentl stmcture with no
@ty documents.
B. Interest Costs Potentially lowest Potenti&4 lower Lower interest in the
interest costs. (6.7%) interest costs than short run; can be
Option 3. converted to fixed
rate.
C. Other Financing Most expensive because Lower costs than lie lowest costs
costs of structure and Option 1. associated with
documentation. (Estimated oc)sts of docttment preparation.
(Estimated costs of $30,000-$35,000) Bank fees capped at
$40,000-$50,000) $2,500. @ted
costs of $20,000-
$25,000)
D. Constraints or Constitutional Deed of TrusL More fl@bility.
Considerations requirements (5-year
boffowing). Debt
Service Reserve Fund.
RECOMMENDATIONS
Based on the alternatives provided in the previous section, the Department of
Finance prepared a Request for Proposal (RFP) for a tax-exempt boffowing by the City in
the amount of $1,375,000 to finance the site acquisition cost for the 25th Street Parldng Lot.
The proposal was sent to five banks that had expressed interest in serving the City on this
transaction. The proposal abowed the banks to respond to the request for securing the
financing by using either Options 2 or 3 in the previous section of this report. After
discussions with the banks Option I was not included in the proposals because it was
considered to be an expensive option for the size of the financing and was much too
cumbersome in structure and documentation.
POLICY REPORT
25th Street Parking L4Dt Financing
October 4, 1994
Page 6
An Evaluation Committee consisting of Boud CounseL Financial Advisors, and staff
from the Finance Department reviewed the proposals. 'ne criteria upon which the
proposals were evaluated included interest rates, security, prepayment penalties, required
documentation and covenants, and estimated expenses. Wbile afl of the proposals were
exceBen@ the committee felt that the proposal from NationsBank to provide the financing
for this project under Option 3 was the most fleiable and cost effective approach.
NationsBank was the only offeror to propose an unsecured loan with no interest rate
penalty for the absence of a Deed of Trust. Tle proposal offered attractive variable rate
pricing options with a conversion to fixed rate if @e City desired. NationsBank placed a
cap on its closing costs and expenses to ensure low costs for document preparation. Tbe
Evaluation Committee felt that the NationsBank proposal simplffied in many ways the loan
process and provided the least expensive financing transaction for this project. (A Summary
of Terms and Conditions as proposed by NationsBank is enclosed as Appendix A and a
Comparison of Interest Costs is included as Appendix B.)
T'berefore, it is recommended that the City Manager be authorized to execute a
commitment letter with NationsBank under the terms and conditions as submitted by
NationsBank in tbeir proposal of September 8, 1994. Furthermore, it is recommended that
City Council approve the accompanying resolution authorizing the "ecution of a contract
with NationsBank providing for the City to repay the loan subject to annual appropriation.
Submitted by: Approved by:
Director of Finance
Date
SUMMARY OF CERTAIN TERMS AND CONDITIONS
as Proposed by NationsBank
Borrower City of Virginia Beach
Issue Type
& Amount: $1,375,000 tax-exempt borrowing
Purpose: Acquisition cost of a parking lot on the Southwest oorner of 25th Street and Pacific Avenue.
Payment
Schedule: Interest wiH be payable -mi-annually on April I and October 1 of each year. Principal will
be Payable on April I according to the fonowing schedule:
1995 - s 90,000 2000 - $140,000
1996 - 115,000 2001 - 150,000
199'7 - 120,000 2002 - 155,000
1998 - 130,000 2003 - 165,000
1999 - 135,000 2004 - 175,000
Interest Rate: A floating rate (variable) equal to the fohowing schedule:
libor' B-ch ate
30 day Libor minus 49 bp. 4.875% 4.38%
60 day IJ7"r minus 51 bp. 4.9375 4.42%
90 day Libor rainus 54 bp. 5.00 4.46
180 day Libor minus 64 bp. 53125 4.67
1 year Libor lwnus 82 bp. 5.8125 4.99
* As of September 8, 1994
T'he City may convert from one contract time period to another with written notice te,
business days prior to the expiring contract.
Security: The obligation to repay the loan wfll be contractual obligation of the City. payments wiU be
subject to annual appropriation by the City CDuncil. Since neither the City's full faith and
credit nor t@g power are pledged, this obfiption will not constitute general obffption debt
of the City.
In the event the CitY fails to appropriate payments on the loan, th, Bank will not be able to
foreclose or take possession of the projecl Ile Bank is effectively reliant on the good faith
of the City to honor its obliption to make payments on the debt This good faith will take
the form of a moral obliption Erom the aty pursuant to documentation satisfactory to the
Bank.
Other Tllere will be no commitment fees or prepayment penalties. Tlie Bank wiH cap its dosing
costs and expenses at $2,500. If not acrepted, this commitment shall expire on @ober 14,
1994.
APPENDIX B
COMPARISON OF FIXED RATE OPTIONS
AND VARL4BLE RATE OPTIONS
Total Variable Rate
bterest Rate latemst Costs Savlnzc
Fixed Rate Proposal
(lowest proposal) 6.70% $506,017.50 -0-
Variable Rate Proposals:
3 month IA*bor (adjusted) 4A6% 336,841.50 169,176.00
6 month Libor (adjusted) 4.67% 352,890.56 153,126.94
1 year I-lbor (adjusted) 4.99% 377,058.56 128,958.94
Savings are based on a constant variable rate. See Appendix B-1.
APPENDIX B-1
TiM
Tetd
4/1~$ 90,000.00 6.TO~ 46,0~J0 136,062.~)
10/!/9:S 4%047J0 43,047.S0
4~ 115,000.00 6.TO~ 43,047J0
10/1/~ 39,19~.00
4/1/97 120,000.00 6.TO~ 39,195.00 15~,195.00
10/1/~ 3S,17S.~0
4/l~M IM,O00.O0 6.TO~ 3S,175.00 !~,175.00
1o/1/~ 30,S20.G0
4/1/09 I$$~00.00 6.TO~ 30,120.00
4,'1/00 140,000.00 6.'AB4 26~07.S0
1~1/oo 21,soT jo 21,6o~.so
4/1/01 1~0,000.00 6.TO~ 21,~I)7.S0 171,60T. M
4/1/03 l~._n~_ ..00 ~.'/0~ l~,.~3J0
IG/IA~ 11,3~0,~0
4/IAM -- 175t000.00
IJ81~17.~-
Item II-H.2.
PESOLUTIONIORDINANCES ITEM 38466
Upon motion by Council Lady ';Irayhorn, seconded by rice Mayor Sessoms, City Council ADOPTED:
Ordinance re Harbour Point Road Extended (1,YNNIL411EN
BOROUCII):
1. AMEND APPROPRL4TIONS by reducing $705,000 from sale
of street closure.
2. TRANSFER $504,840 from Southeastern Expressway
Acquisitioii Iroject #2-089 to Ilarbour Point Road Extended
Project #2 -218 to reflect changes iri scope and funding.
Voting: 9-0
Council Members Voting Aye:
John A. Baum, Robert K Dean, William W. Ilarrison, Jr., Barbara M.
Henley, Louis R. J()nes, Mayor Meyera E. Obcr?ldorf, Nancy K Parker,
Vice Mayor William D. @essoms, Jr. and Louiva M Strayhorn
Council Members Voting Na-v.
None
Council Members Absent:
Linwood 0. Branch, III, and John D. Mosv
October 11, 1994
I AN ORDINANCE TO AMEND APPROPRIATIONS TO HARBOUR
2 POINT ROAD EXTENDED PROJECT 02-218 At4D TO TRANSFER
3 S504,840 FROM SOUTHEASTERN EXPRESSWAY ACQUISMON PROJECT
4 #2-099 TO HARBOUR POINT ROAD EXTENDED PROJECT #2-218 IN ORDER
5 TO REFLECT CHANGES IN SCOPE AND FUNDING OF THE PROJECT
6 WHEREAS, a portion of the appropriations to the Harbour Point Road Extended Project
7 #2-218 were @ed to be provided from the sale of excess property resulting from a street closure
8 in the amount of $705,000;
9 WHEREAS, delays in the process for the sale of excess property has resulted in the need
I 0 to amend appropriations , and reduce the project by $705,000, to a total of $1, 1 18,160;
1 1 WHEREAS, changes in the scope of Harbour Point Road Extended Project #2-218 result
1 2 in a revised project cost estimate of $1,623,000, requiring an additional $504,840;
1 3 WHEREAS, $504,840 is available for transfer from Southeastem Expressway Acquisition
14 Project #2-089.
15 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCEL OF THE CITY OF
16 VIRGINIA BEACH, VERGINIA, that appropriations to Harbour Point Road Project #2-218 be
17 amended by reducing the amount of $705,000 from sale of street closure;
18 BE IT FURTEIER ORDAINED that flmds in the amount of $504,840 be transferred from
1 9 Southeastem Expressway Acquisition Project #2-089 to Harbour Point Road Extended Project #2-
20 218 in order to reflect changes in scope and funding of the project.
2 1 This ordinance shall be in effect from the date of its adoption.
22 Adopted the 1 1 day of October , 1994, by the Council of the City of Virginia Beach,
23 Virginia.
APPROVED AS TO CONTENT
Department of Management and Budget
F:ISWJ@ d
AS TO
LE@ SUFFICIEN-,Y
- 12 -
I- 3.
RESOLUTIONIORDINANCES ITEM # 38467
Upon motion by rice Mayor @5essomv, seconded by Council Lady .5trayhorn, City Council ADOPTED.-
Ordinance re indoor air iniprovements and restoradon of Capital
Improvement Project resources for Virginia Beach Schools:
1. ACCEPT and APPROPRLI TE $3, 000, 000 additional Federal
Impact Aid funds to Renovations and Replacements.
2. APPROPRL4TE $1,700,000 to the @ch(X)l Division P-Y 1994-
1995 Operatirig Budget for abatei?tent of itidoor air problems.
3. APPROPRIATE $234,()93 in P-Y 1993-1994.@chool I?eversion
Funds for abatentetit of itidoor air problel?IN.
4. TRANSFER $40(), 000 from Ocean Lakes High School CIP to
Renovatiotis and Replacements (@IP.
Voting: 9-0
Council Members Voting Aye:
John A. Bawn, Robert K Dean, William W. Harrison, Jr., Barbara M
Henley, Louis R. Jones, Mayor Meyera E. Oberndorf Nancy K Parker,
Vice Mayor William I). Sessoms, Jr. and Louiva M. 5trayhorn
Council Members Voting Nay:
None
Council Members Absent:
Linwood 0. Brailch, III, aiid Johri D. Mogv
October 11, 1994
I AN ORDINANCE TO APPROPRIATE $ 3,000,000 IN ADDITIONAL
2 FEDERAL IMPACT AID AND $234,093 IN FY 1993-94 SCHOOL REVERSION FUNDS
3 TO SCHOOLS FOR INDOOR AIR IMPROVEMENTS AND RF-STORATTON OF
4 CAPITAL PROGRAMS RESOURCES, AND TO
5 TRANSFER $400,000 WITMN THE SCHOOLS CAPITAL PROGRAM
6 W-HEREAS, the School Division has detennined that proposals currently before Congress to
7 amend the method of calculating federal aid to local schools will result in an estimated
8 $3,000,000 in additional funds for the Virginia Beach Public Schools for FY 1994-95;
9 WHEREAS, reversion funds available for use by the Schools from the FY 1993-94
to Operating Budget are $234,093;
1 1 W-HERF-AS, excellent prices for technology procurement resulted in a $400,000
12 unencumbered balance in the Ocean Lakes High School Capital Project;
1 3 WHEREAS, the School Division had requested transfer of ftinds in the amount of
1 4$1,700,000 from the "Renovations and Replacements" capital project in order to complete
15 acquisition of fumishings and equipment necessary to open Larkspur Middle School and Ocean
1 6Lakes High School, and had committed to restoiing the transferred funds when additional
1 7resources became avaflable; and
1 8 NM S, the School Division has identified schools which have indoor air problems and
1 9has developed a plan to resolve these problems expeditiously,
20 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
2 1OF VIRGINIA BEACH, VIRGINIA that funds in the arnount of $1,300,000 be appropfiated to
22 capital project 1-058 "Renovations and Replacements", and that ftinds in the amount of
23 $1,700,000 be appropriated to the FY 1994-95 School Division Operating Budget for abatement
24 of various schools' indoor air problems, and that estimated revenues from the federal
25 govemment for Schools be increased by $3,000,000.
I BE IT FURTHER ORDAINED that funds in the amount of $234,093 be appropriated from
2 FY 1993-94 General Fund year end balance funds to the FY 1994-95 School Operating
3 Budget for abatement of Indoor Air Quality problems, and that $400,000 be transfeffed from
4 capital project 1-010 "Ocean Lakes High School" to capital project 1-058 "Renovations and
-5 Replacements",
6 This ordinance shall be effective on the date of its adoption.
7 Adopted by the Council of the City of Virginia Beach, Virginia on the I 1day of
8 October 11994.
9 Approved as to Content
10
11 Walter C. Kraemer,@.
12 Management and Budget
- 13 -
Item II-H.4.15.
RESOLUTIONIORDINANCES ITEM # 38468
Upon motion by Councilman Dt!an, veconded by rice Mayor ,;Cssoms, City Council ADOPTED:
Ordinance to APPROPRL4TE $90,000 from Storm Water Utility
Retained Earnings to Pine Ridge Drainage Project #2-179 refunding
increased costs for construction (PRINCE,5,@ ANNI,, BOROUCH).
AND,
Ordinance to APPROPRL4TE $90,000 from Storm Water Utility
Retained Earnings to Laurel Manor Drainage (Interim) 1roject #2 -190
re funding increased co@vts for construction (1,YNNIL4 VFN BOROUGH).
Voting: 9-0
Council Members Voting Aye:
John A. Baum, Robert K Dean, William W. liarrison, Jr., Barbara M.
Henley, Louis R. Jones, Mayor Meyera P,. Oberndorf Nancy K Parker,
Vzce Mayor Williatn D. ';essoms, Jr. and Louisa M. ';trayhorn
Council Members Voting Nay.
None
Council Members Absent:
Linwood 0. Branch, iii, and John D. M(@,vv
October 11, 1994
I AN ORDINANCE TO APPROPRIATE $90,000 FROM STORM
2 WATER UTILITY RETAINED EARNINGS TO PINE RIDGE
3 DRAINAGE PROJECT #2-179 IN ORDER TO FUND
4 THE INCREASED COSTS FOR CONSTRUCTION
5 WHEP-EAS, the Pine Ridge Drainage Projert #2-179 i. for the construction of improvements
6 to the existing storrn water drainage system to relieve ftequent flooding on Windy Pines Bend in the
7 Pine Ridge subdivision,
8 WHEREAS, the original bid for construction exceeded the estimated construction cost,
9 resulting in a modification to the project and subsequent re-bid,
I 0 WHEREAS, the re-bid for construction also exceeded the estimated construction cost,
I I WHEREAS, the original total cost estimate for the project was $640,000, and the revised
1 2 total cost estimate for the project is $730,000, resulting in an estimated need for an additional
1 3$90,000 in order to complete the project,
1 4 WHEREAS, $90,000 is available for appropriation from Storm Water Utility Retained
1 5Eamings.
1 6 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
1 7VIIRGMM BEACILI, VIRGINIA, that funds in the amount of $90,000 be appropriated from Storm
1 8Water Utihty Retained Eam'mgs to Pine Ridge Drainage Project 42-179 in order to fund the increased
1 9costs for construction.
20 This ordinance shall be in effect from the date of its adoption.
2 1 Adopted the I I day of -October , 1994, by the Council of the City of Virginia Beach,
22 Virginia.
APPROVED AS TO CONTENT
Walter C. Kraem @r
Department of Management and Budget
F:/SWJ/pi.@,idg..@d
A43 70
I AN ORDINANCE TO APPROPRIATE $90,000 FROM STORM
2 WATER UTILITY RETAINED EARNINGS TO LAUREL MANOR
3 DRAINAGE (INTER]IM) PROJECT #2-190 IN ORDER TO
4 FUND THE INCREASED COSTS FOR CONSTRUCTION
5 WHEREAS, the Laurel Manor Drainage (Interim ) Project #2-190 is for the construction of
6 a storm water drainage system in the Laurel Manor subdivision,
7 WHEREAS, the project is being accelerated and constructed in conjunction with the Laurel
8 Manor/Dogwood Acres Sanitary Sewer Improvements Project #6-944 at the request of the Laurel
9 Manor Civic League,
10 WHEREAS, the original cost estimate of the project was $230,000, and the current revised
I I cost estimate is $320,000, resulting in an estimated need for an additional $90,000;
1 2
1 3 WHEREAS, $90,000 is available for appropriation from Storm Water Utility Retained
1 4 Earnings.
1 5 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF TIHE CITY OF
16 VIRGINIA BEACH, VIRGINIA, that funds in the amount of $90,000 be appropriated from Storm
1 7Water Ufibty Retained Eamings to Laurel Manor Drainage (Interim) Project #2-190 in order to fund
1 8the increased costs for construction.
1 9 This ordinance shall be in effect from the date of its adoption.
20 Adopted the I I day of October , 1994, by the Council of the City of Virginia Beach,
21 Virginia.
APPROVED AS TO CONTENT
Walter C. Kra e@r, Jr
Department of Management and Budget
F:/SWJ/la.r.l..,d
14 -
te
coNSENT AGENDA ITEM # 38469
Upon motion by Vice Mayor Sessoms, seconded by Councilman Jones, City Council APPROVED in ONE
MoTIoN, items 1, 2, 3, 4 and 5 of the CONSENT AGENDA
Voting: 8-0
Council Members Voting Aye.
Robert K Dean, William W. Harrison, Jr., Barbara M. Henley, Louis R.
Jones, Mayor Meyera E. Oberndorf Nanc v K Parker, Vice Mayor
William D. Sessoms, Jr. and Louisa M, @trayhorn
Council Members Voting Ntq:
None
Council Members Absent:
John A. Baum, Linw()od 0. Branch, III, a@id Johpt D. Voss
October 11, 1994
CONSENT AGENDA ITEM 38470
Upon motion by Vice Mayor 5essoms, seconded by Councilinan Jones, City Council ADOPTED:
Resolution to refer to the Planning Commission an amendnent to Sectio,
1409 of the Wetlands Zoning Ordinance of th(, City of Virginia Beach,
Virginia, re permity.
Voting: 8-0
Council Members Voting Aye:
Robert K Dean, William W. Harrison, Jr., Barbara M. Henley, Louis R.
Jones, Mayor Meyera E. Oberndorf, Nancy K. Parker, Vice Mayor
William D. S:essoms, Jr. and Louisa M. Strayhor,t
Council Members Voting Nay:
None
Council Members Absent:
John A. Baum, Liriw()od 0. Branch, III, atid John D. Moss
October 11, 1994
1 A RESOLUTION REFERRING TO THE
2 PLANNING COMMISSION AN AMENDMENT TO
3 SECTION 1409 OF THE WETLANDS ZONING
4 ORDINANCE OF THE CITY OF VIRGINIA
5 BEACH, VIRGINIA, PERTAINING TO
6 PERMITS
7 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
8 VIRGINIA BEACH, VIRGINIA:
9 That the attached proposed amendment to Section 1409 of the
10 wetlands Zoning Ordinance of the City of Virginia Beach, Virginia,
11 is hereby referred to the Planning Commission for its consideration
12 and recommendation.
13 The Planning Commission is hereby requested to make its
14 recommendation to the City Council within sixty (60) days of the
15 date of this resolution.
16 Adopted by the Council of the City of Virginia Beach,
17 Virginia, on this 11 _ day of Octo@ 1994.
is CA-5736
19 ORDIN\NONCODE\WETLANDS.RES
20 R-1 APPITOVED AS TO CONTENTS
21 PREPARED: 09/28/94
51 A@TU@,
MENT
APPROVE[) AS TO LEGAL
SUFFICIENCY AND FORM
1 AN ORDINANCE TO AMEND AND REORDAIN
2 SECTION 1409 OF THE WETLANDS ZONING
3 ORDINANCE OF THE CITY OF VIRGINIA
4 BEACH, VIRGINIA, PERTAINING TO
5 PERMITS
6 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
7 BEACH, VIRGINIA:
8 That Section 1409 of the Wetlands Zoning Ordinance of the City
9 of Virginia Beach, Virginia, is hereby amended and reordained to
10 read as follows:
11 See. 1409. Permits to be in writing, signed, and notarized.
12
13 The permit shall be in writing, signed by the chairperson of
14 the Board or an authorized representative and notarized. The Board
15 shall transmit a copy of the permit to the commissioner.
16
17 Adopted by the Council of the City of virginia Beach, virginia
18 on the day of 1994.
19 CA-5713
20 R2
21 SEPTEMBER 12, 1994
22 ORDIN\DATA\NONCODE\1409.ORD
Arrr,uvtU @ )U CONTENTS
SIGNATURE
l-u -q4
DEPATMENT
APPROVED AS TO LEGAL:
SUFFICIENCY AN@RM
CITY ATTOI IY
16 -
tem
CONSENT AGENDA ITEM # 38471
Upon motion by Vice Mayor sessoms, seconded by Councilman Jones, City Council ADOPTED:
Ordinance to AMEND and REORDAIN Secti()ns 16-12 and 16-12.1
of the Code of the (-'ity of Virgi,,ia Ileach. Vi@ginia, re Certificat- of
Compliance.
Voting: 8-0
Council Members Voting Aye.
Robert K Dean, william W Harrison, Jr., Barbara M@ Henley, IOuis R.
Jones, Mayor Meyera E. Obernd,,rf, Na,,,y K Parker, Vice Mayor
William D. Sessoms, Jr. and Louisa M. ';trayhorn
Council Membe- Voti,,g Nav:
None
Council Members Absent:
John A. Baum, Linwood 0. Branch, III, atid John D. Movs
October 11, 1994
1 AN ORDINANCE TO AMEND AND REORDAIN
2 SECTIONS 16-12, AND 16-12.1 OF THE
3 CODE OF THE CITY OF VIRGINIA BEACH,
4 VIRGINIA, PERTAINING TO CERTIFICATES
5 OF COMPLIANCE
6 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA
7 BEACH, VIRGINIA:
8 That Sections 16-12 and 16-12. 1 of the Code of the City of
9 virginia Beach, Virginia, is hereby amended and reordained to read
10 as follows:
11 Sec. 16-12. Certificates of essupaney compliance; inspections
12 of certain dwellings and dwelling units.
13
14 (a)(1) No owner of any dwelling or dwelling unit located in an
15 area designated by the city manager as a "special emphasis area,,
16 pursuant to subsection (b) hereof shall permit any person to occupy
17 such property as a tenant or otherwise for valuable consideration,
18 except pursuant to the sale or exchange thereof, unless a
19 certificate of oeeupaney autherising t-he eeeupaney ef the
20 compliance with current building requlations for existing
21 residential buildings on such property has been issued by the
22 director of housing and neighborhood preservation. once issued, a
23 certificate of eeeapaney compliance shall not thereafter be
24 required for a period of one (1) year or until the property is to
25 be occupied exclusively by persons other than those in occupancy on
26 the date such certificate was issued, whichever period is the
27 greater. In the case of dwellings and dwelling units for which a
28 certificate of eeeupaney compliance has been issued by the zoning
29 administrator pursuant to section 103 of the city zoning ordinance,
30 the provisions of section 16-12.1(c) shall apply.
31 (2) No certificate of asetipaney comrliance shall be required
32 for any property occupied as of the date the area in which it is
33 located is designated as a special emphasis area until such
34 property becomes occupied exclusively by persons other than those
35 in occupancy on such date.
36 (3) No electric power company shall commence electrical
37 service to a property subject to this section or continue service
38 to any such property upon a change of occupancy thereof unless a
39 valid certificate of or temporary certificate
40 Of lance has been issued for such property. The
41 director shall promptly notify the electrical power company of the
42 issuance of a certificate of or temporary
43 certificate Of has been issued for such
44 property. The director shall promptly notify the electrical power
45 company of the issuance of a certificate of or
46 temporary certificate Of
47 (b) The city manager shall designate as "special emphasis
48 areas" those areas within the city to which the provisions of this
49 section shall apply. Such areas shall be designated upon the basis
50 of the following criteria:
51 (1) Number and percentage of dwellings and dwelling units
52 occupied exclusively by persons other than the owner thereof;
53 (2) Physical condition of dwellings and dwelling units, as
54 determined by exterior housing condition surveys and code
55 enforcement statistics; and
56 (3) Eligibility for federal and state housing assistance
57 programs.
58 In designating special emphasis areas, the city manager shall
59 give due regard to each of the criteria set forth hereinabo,e as
60 indicators of areas most likely to be benefitted from the
61 provisions of this section. He shall set forth, in writing, his
62 findings and reasons for designating a special emphasis area.
63 (c) The designation of an area as a special emphasis area by the
64 city manager shall be reviewed by him on an annual basis. When it
65 appears that the application of the aforesaid criteria no longer
66 warrants the designation of a certain area of the city as a special
67 eraphasis area, he shall rescind his desiqnation of such area as a
68 special emphasis area.
69 (d) It shall be the responsibility of the owner of property
70 subject to the requirements of this section to notify the director
2
71
72
73
74
75
76
77
78
79
8O
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
.00
O2
O3
O4
05
of any pending change of occupancy of such property and to request
an inspection thereof. Such inspection shall be performed within
two (2) working days of the receipt of the request for inspection.
There shall be no fee for an initial inspection, but a fee of
twenty-five dollars ($25.00) shall be charged in the event repairs
or corrections are required and have not been completed by the time
of reinspection of the property. The owner of such property shall
also be responsible for requesting a reinspection if required. No
certificate of e~ ~ shall be issued unless all
required fees have been paid.
(e) The director shall issue a certificate of
~ if the property complies with all applicable laws,
ordinances, regulations and standards set forth in, or adopted or
incorporated by, the Code of the City of Virginia Beach ~
to the condition of housin9' In the event the property is not in
compliance with any one or more of such laws, ordinances,
regulations and standards, no certificate of
shall be issued. A certificate of ~ ~ may be
issued immediately upon the conclusion of the initial inspection of
the property, so long as all requirements for the issuance thereof
have been met.
(f) (1) Notwithstanding the provisions of subsection (e), the
director shall, in the circumstances set forth in subdivision (2)
hereof, issue a temporary certificate of e~ ~. A
temporary certificate of e~ ~ shall authorize the
occupancy of the property for such period of time as is reasonably
necessary to remedy or correct all defects or violations by reason
of which the certificate of eee~k~%~f_ ~ was refused, but
not in excess of sixty (60) days. Every such certificate shall set
forth the period of time for which temporary occupancy is
authorized. It shall be a condition of the issuance of every
temporary certificate of ~ ~ that the property
shall be brought into complete compliance with applicable laws,
ordinances, regulations and standards within the period of time
specified therein, and the willful failure to bring the property
3
106 into Buch COMPliance shall be a violatio,, Of this section. 'rhe
107 director may eltend a temporary certificate of
108 for an additional Period Of not more than ixty (60) days if the
109 owner has diligently and in good faith attempted to bring the
110 property "'tO cOmPliance.
(2) A tenporary certificate of
112 be i-ued in the event: i ce shall
113 (i) Property for which a certificate of
114 ia ce was refused may reasonably be brought into compliance
115 Within sixty (60) days from the date of issuance of the temporary
116 certificate of ; and
117 (ii) All necessary repairs or corrections may be
118 performed safely and without undue inconvenience to the Occupants
119 of the property; and
120 (iii) The condition of the property does not
121 constitute a hazard to the health or safety of the occupants
122 thereof.
123 (3) A temporary certificate of may be
124 issued immediately upon the conclusion of the initial in,pection of
25 the property, so long as all requirements for the issuance thereof
26 have been met.
27 (g) Any person aggrieved of any determination or decision of
28 the director made Pursuant to this section shall have the right to
29 appeal such deterinination or decision within twenty-one (21) days
30 to the board of building code appeals. Notice of such appeal shall
Ibe in writing, shall specify the grounds of appeal, and shall be
2mailed or delivered to the director. All Proceedings before the
3board shall be in accordance with the provisions of the Virginia
4Uniform Statewide Building Code.
5(h) Nothing in this section shall be construed to limit,
6impair, alter or extend the rights and remedies of persons in the
7relationship of landlord and tenant as such rights and remedies
exist under applicable law.
(i) Retrofitting of property subject to the provisions of this
section shall be required only if necessary to remedy a serious and
4
141 dangerous hazard to life or health. In all other cases, dwellings
142 and dwelling units shall be subject to the requirements of la. in
143 effect at the time of their construction.
144 (i) Nothing in this section shall be construed to relieve or
145 exempt any person from otherwise complying with all applicable
146 laws, ordinances, standards and regulations pertaining to the
147 condition of buildings and other structures.
148 (k) As used in this section:
149 (1) The term "property" shall be limited to dwellings and
150 dwelling units, and grounds thereof, within special emphasis areas
151 so designated by the city manager pursuant to subsection (b)
152 hereof.
153 (2) The term ,owner" shall mean, the owner or owners of the
154 freehold of the premises or lesser estate therein, a mortgage or
155 vendee in possession, assignee of rents, receiver, executor,
156 trustee or lessee in control of a building.
157 (3) The term "director's shall mean the director of housing
158 and neighborhood preservation and such employees of the department
159 of housing and neighborhood preservation as the director may
160 designate to administer and enforce this section.
161 (4) The term "person-' shall mean any individual, group of
162 individuals, corporation, partnership, business trust, association
163 or other legal entity, or any combination thereof.
164 (1) The provisions of this section are intended to be
165 severable, and if any such provision be deemed or adjudged to be
166 invalid or unenforceable, the remaining portions of this section
167 shall remain in full force and effect and their validity
168 unimpaired.
169 (m) A violation of this section shall be punishable as
70 provided in sectioin 16-11 of this chapter.
71 Boo. 16-12.1. Certificates of exemption.
72 (a) The director of housing and neighborhood preservat:ion
73 shall issue a certificate of exemption in the circumstances set
74 forth in subsections (b) and (c). The effect of the issuance of a
75 certificate of exemption Bhall be to exempt any dwelling unit for
5
176 which such certificate of exemption has been issued frotft the
177 requirements of section 16-12 of this Code. It shall not exempt any
178 such dwelling unit from compliance with applicable ordinances,
179 regulations and standards pertaining to the condition of housing.
180 (b) A certificate of exeraption shall be issued if, and only
181 if, all of the following criteria have been met:
182 (1) The dwelling units to which the certificate of exemption
183 applies are contained in a unified multiple-family dwelling
184 development having no less than twenty (20) units, in which
185 development a property manager or property management entity
186 performs, or causes to be performed, regular maintenance of the
187 property;
188 (2) Written application for a certificate of exemption has
189 been made to the director of housing and neighborhood preservation
190 by the management or owner of such development;
191 (3) The management or owner has allowed the inspection by
192 city housing inspectors of not less than fifty (50) percent of the
193 vacant dwelling units, with a minimum of one (1) and a maximum of
194 ten (lo) units, contained in such development; if no units are
195 vacant, such inspection shall be performed upon a unit chosen by
196 the inspector, but shall be subject to the consent of the occupant
197 thereof; and
198 (4) No material and substantial violations of any applicable
199 ordinance, regulation or standard pertaining to the condition of
200 housing exist within any of the units so inspected or the interioof
201 the development.
202 (c) Notwithstanding the provisions of subsection (b) hereof,
203 a certificate of exemption shall be issued for any dwelling or
204 dwelling unit located in a special emphasis area at such time as a
205 certificate of c for such dwelling or dwelling
206 unit is issued by the zoning administrator pursuant to section 103
207 of the city zoning ordinance.
208 (d) A certificate of exemption shall be valid for a period of
209 two (2) years from the date of issuance; provided, however, that if
210 any one or more material and substantial violations of applicable
6
211 ordinances, regulations or standards pertaining to the condition of
2 12 housing is found within that period, within a dwelling unit or
2 13 otherwise, the director of housing and neighborhood preservation
214 may revoke the certificate of exemption. A certificate of exetftption
215 shall not be renewable except upon new application and compliance
216 with the requirements of subsection (b) hereof.
217 (e) Nothing in this section shall be construed to limit the
218 authority of the city to perform housing inspections in accordance
219 with applicable law.
22 0 (f) The refusal to grant, or the revocation of, a certificate
221 of exemption shall be appealable to the board of building code
222 appeals in the manner specified in section 16-12 of this Code.
223 Adopted by the Council of the city of Virginia Beach, Virginia
224 on the llth day of October 1994.
225 CA-5712
226 R4 V@D
227 SEPTEMBER 28, 1994
-12.ORD
228 ORDIN\DATA\PROPOSED\16
APPROVED AS T',) LEGAL
@FIC.IENCY A@FORM
7
17 -
te
CONSENT AGENDA ITEM # 38472
Upon motion by Vice Mayor Sevvoms, seconded by Councilman Jones, City Council ADOPTED:
Ordinance to authorize the City Manager to apply for the Virginia
Housing Partnership Fund Urban Rehabilitation Loan Program.
Voting: 8-0
Council Members Voting Aye:
Robert K Dean, Wzlliam W. Harrison, Jr., Barbara M. Henley, Louis P,
Jones, Mayor Meyera E. Oberndorf, Nancy K. Parker, Vice Mayor
William D. Sesvoms, Jr. and Louisa M. @trayh(,r@i
Council Members Voting Nay:
Non e
Council Members Absent:
John A. Baum, I.inw()()d 0. Branch, III, and John 1). MosY
October 11, 1994
1 ORDINANCE TO AUTHORIZE THE CITY MANAGER
2 TO APPLY FOR THE VIRGINIA HOUSING PARTNERSHIP FUND URBAN
3 REHABILITATION LOAN PROGRAM
4 WHEREAS the State has established the urban rehabilitation loan
5 program; and
6 WHEREAS the City has determined that the use of such funds would be
7 beneficial to neighborhood revitalization efforts; and
8 WHEREAS HOME Program funds are available to provide required
9 matching funds for this program.
10 NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
I 1 VIRGINIA BEACH that the City Manager is authorized to apply for the urban
12 rehabilitation loan program.
13 Adopted by Council of the City of Virginia Beach on the Eleventh
14 @ay of October 1994.
15 Approved as to Content: Approved as to Legal Form
16
17 Ain4r'e--w M- Frie@main, Direct r @ity At7torney
18 Department of Housing & Neighborhood Preservation
- 18 -
tem I-I 4
CONSENT AGENDA ITEM # 384"
Upon motion by vice May- @essoms, seconded by Councilman Jo,,es, City Council ADOPTED:
ordinance to TR4NSFER $148,000 from Shore Drive Inter'Sections
project #2-133 t() Community Development Site Acquisition Project
#2-217 re funding increased costs f()r right-lof-way acquisition and
related legal and appraisal servicey.
Voting: 8-0
council Members Voting Aye:
Robert K. I)ea@i, William W. Ha-ison, Jr., Barbara M. lienley, Louis R.
iones, Mayor Meyera E. Oberndorf, Nan,,,y K Parker, Vice Mayor
William D. @essoms, Jr. and Louisa M. Stravhorti
Council Members Voting Nay:
Non e
Council Members Absent.
John A. Baum, Liilwood 0. Bratich, 111, and J()hn D. moss
October 11, 1994
I AN ORDINANCE TO TRANSFER $148,000 FROM SHORE DRTVE
2 INTERSECTTONS PROJECT #2-133 TO COMMUNITY DEVELOPMENT
3 SITE ACQUISITION PROJECT #2-217 IN ORDER TO FUND THE
4 TNCREASED COSTS FOR RIGHT-OF-WAV ACQUISITION AND
5 RELATED LEGAL AND APPRAISAL SERVICES
6 WHEREAS, the City began a program to improve the infrastructure of streets and
7 drainage in certain target neighborhoods over fifteen ( 1 5) years ago;
8 WHEREAS, the acquisition of title to land and/or easements needed for the rights-of-way
9 necessary for the improvements have been lengthy and difficult to estimate in cost;
10 WHEREAS, in order to complete the necessary acquisition of sites and right-of-way
I I easements and related legal and appraisal services, it is estimated that an additional $148,000 is
12 required;
1 3
14 WHEREAS, due to the construction schedule of Shore Drive Intersections Project #2-
1 5 133, there is $148,000 available for transfer which will not delay the project;
1 6 WHEREAS, @hese funds will be restored to Shore Drive Intersections Project #2-133 in
1 7 the Proposed FY 1995/96 CIP cycle
1 8 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
1 9 VIIRGINL4, BEACH, VIRGINLA, that funds in the amount of $148,000 be transferred from
20 Shore Drive Intersections Project #2-133 to Community Development Site Acquisition Project
21 #2-217 in order to fund the increased costs for right-of-way acquisition and related legal and
22 appraisal services.
23 This ordinance shall be in effect from the date of its adoption.
24 Adopted the lidayof - October, 1994, by the Council of the City of Virginia
25 Beach, Virgini'a.
APPROVED AS TO CONTENT
Walter C. Kra e,, Jr
Department of Management and Budget
f./SWJ/@d ... q.i..rd
- 19 -
I-I.5
CONSENT AGENDA ITEM # 38474
Upon motion by I'l@@ Mayor Vess,,ms, seco,,ded by Councilinan Jones, City cou,cil ADIOPTED.-
Ordinance to declare EXCESS PROPERTY of the City of rlrginia
B-ch, located at 4601 N. Gr,enwell Road it, the peliti,, of JAMES
ORSIN and AL4RTH,4 M. ORSINI,,
1 and, authoriziiig the (ity Manager
to dispose of same (BAYSIDF BOROU(,'Ii).
Voting: 8-0
Council Members voli,,g Ay,
Robert K I)ean, William W- Ha-is-, Jr., Barbara M. Henley, Louis R.
JOnes, MaY- Meyera F,. obendorf, Na,,cy K Parkcr, Vice Mayor
Wllliam D. @evsoms, Jr. and Loui,,, M. @';trayhorti
Council Members Voting Nay:
Non e
COuncil Members Absent:
John A. Baum, Linw()()d 0. Branch, III, and John D. Mo,,s
October 11, 1994
AN ORDIN"CE DECLARING CERTAIN
PROPERTY EXCESS AND AUTHORIZING THE
CITY 14ANAGER TO DISPOSE OF SA14E
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA
BEACH, VIRGINIA: y of Virginia Beach acquired ownership
WHEREAS, the Cit co,ded in Deed
'bed property by Deed re
of the following descri
Book 1018, at Page 154; and is of the opinion that the
WHEREAS, the City council
following described property is in excess of the needs of the
City of Virginia Beach, COUNCIL OF TI'E
IqOW, THEREFORE, BF IT ORDAINED By THE
CITY OF VIRGINIA BEACH, VIRGINIA:
is hereby i
foll,wing described property
1. That the ity Of Virginia
declared to be in excess Of the needs of the C
Beach and that the City Manager is authorized to convey said
property in the manner he deems in the best interests Of the
therein any and all easements
city of Virginia Beach reserving erty be declared
pertaining thereto, and further that such prop ore particularly
in excess of the needs of the City anc, is m
described as follows:
iece or parcel of land
All that certain lot, P ts thereon situate in
together with all improvemen city of Virginia
the Bayside, Borough of the ed as -25'
Beach, Virginia and being designat. hat certain
STRIp OF PROPERTY To BE VACATED' on t OF 25'
plat entitled " plat Sho,in, A PORTION
PERTY To BE VAC@TED REMAINING PORTION
STRIP OF PRO & BERA L.
PARCEL DESIGNATED As "NICHOLAS
OF , AREA = 2 1/2 ACS." ON PLAT ENTITLED,
TOSCANO TE jAmpICOL & NICHOLAS &
-SURVEY MADE FOR ANTIONET 50' ST. E. OF PLEASURE
BERA TOSCANO ON SO. SIDE by John E.
RD." (M.B. 13, P. 16)., prepared which is
HO. Ltd. , a COPY Of
Sirine and Associates, t -'A".
attached hereto as Exhibi
2. The parcel sha 11 be c,mbined with the adjoining
property of the Petitioners into one parcel. to
3. This Declaration of Excess is subject
of the reverter rights tO the
Petitioners obtaining a release
above-referenced strip from the City of Norfolk.
SYKES,CARNES BOURDON
& AHERN. P C
IrrORNEYS AT LAW
4 This ordinance shall be effective from the date
of its adoption.
Adopted by the Council of the CitY Of Virginia Beach,
Oci ober 1994.
Virginia, on the day of I
D AS TO CONTENT
APPROVED AS TO
LEGAL SUFFIOIENC@
4559i
SYKES. CARNES, BOURDON
& AHERN. P C
ATTORNEYS AT LAW
2
N. GREENWELL IROAD (50') NOTE!'): I THIS @LAT IS THE RE@;ll@l Of: n,
(FORMERL@ A@ F W I)RIVE) FIELI) 7)tJRVEY.
S 83'2,@' E- LAT) 2 AREA OF LAND VACAIED
s 83'18'51" E (FIE@D) 4,,473 SO. F-T./O.114 ACRE
OLD 1 114.36' (I-IFLD) 3. GPIN NO.: 1479-58- 6568
LARGE I)LF, CON 4 ALIGNMENT OF 25' STRIP OF
PIPE Idwy mot PROPERTY WAS ESTABLISHED
BY THE PROLONGATION OF
PROPERTY LINES AS SHOWN ON
PLAT ENTITL.ED "AMENDED RESUB-
DIVISION PLAT OF LOT 4 AS SHOWN
ON PT..AT ENTITLED "SIJBDIVISLON OF
WOC)DBEACH", RECOR[)ED IN MAP
BOOK 151 AT PAGE 35.
5. SEE PLAT M.B. 55, P. 19, SHOWING
THIS PARCEL AS "TO BE RETAINED
BY J(-)HNNIE HALL, 77 966 SQ. FT."
-CO
C'4
L6 C'4
ro
REMAINING PORTION OF
0
0 PARCEL DESIGNATED AS
ui NICHOLAS & BERA L. TOSCANO
< Ln
< 0
0 -i 1.790 ACRES C,
a- Ce - 1'7 - 14
ow -0@-RL%I"
z r
0 Ln CIT%;@' OF NORFOLK
0 p r)
z z CURRc-NTL%:@
< C I T%:" OF VIRGINIA' BEACH
ui (D-B !010. P.154)
195.23
7 N/@5'T9 0
0 25.84
/@25.01'/'
@/2 0 2.
N 85-19'01,' W
2, STRIP OF
PROPERTY TO
BE VACATED
00
OLD
LARGE OLD CONC.
PIP
243.83- (FIELD) HWY MON.
N 83'23- W (PLAL) N 83-17'00'- W (FIELD)
13 12 NOW OR FORMERLY
PINE SHORES @ SAMUEL J.W. GIBSOR
(M.B.'48, P.8) PLAT SHOWNG
A PORTION OF 25' STRIP OF PROPERTY TO BE VACATED FOR
JAMES ORSINI AND MARTHA ORSINI
ON
REMAINING PORTION OF PARCEL DESIGNATED AS 'NICHOLAS & BERA L. TOSCANO,
AREA=2 1/2 ACS.' ON PLAT ENILTLED 'SURVEY MADE FOR ANTIONETTE JAMPICOL
& NICHOLAS & BERA TOSCANO ON SO. SIDE 50' ST. E. OF PLEASURE HO. RD.'
BAYSIDE BOROUGH - VIRGINIA BEACH, VIRGINIA (M
SCALE: 1 "= 50' APRIL 8, 1994
JOHN E. SIRINE AND ASSOCIATES, LTD.
SURVEYORS- ENGINEERS- PLANNERS
VIRGINIA BEACH, VIRGINIA
0 50 100 150 200 FEET
(3RAPHIC SCALE RE\4SED: 6 17 4
PETITION TO DECLARE CERTAIN PROPERTY EXCESS
AND TO AUTHORIZE DISPOSAL TO THE CONTIGUOUS
PROPERTY OWNER
P E T I T I 0 N
TO: THE MAYOR AND THE MEMBERS OF THE COUNCIL OF THE CITY OF
VIRGINIA BEACH, VIRGINIA
Your petitioners, JAMES ORSINI and MARTHA M. ORSINI,
by counsel, respectfully represent as follows:
1. That Petitioners apply to the Mayor and the
Council of the City of Virginia Beach, Virginia, for an
ordinance declaring the hereinafter described property to be in
excess of the needs of the City of Virginia Beach and to
authorize the City Manager to convey the property to the
Petitioners upon payment of fair market value as determined by
qualified appraisal and in accordance with City policy.
2. That your Petitioners own the property contiguou.,
to the hereinafter described property and are the only property
owner contiguous to said site. And that further the
hereinafter described property has no utility unless joined to
the contiguous property of Petitioners.
3. The property your Petitioners are asking to be
declared in excess of the needs of the City of Virginia Beach
so that they may purchase same is hereby described as follows:
ALL THAT CERTAIN lot, piece or parcel of land
situate in the Bayside Borough of the City of
Virginia Beach, Virginia and being designated as
"25' STRIP OF PROPERTY TO BE VACATED" on that
YKES, CARNES, BOURDON
& AHERN, P C
A@ORNEYS AT LAW
certain plat entitied "Plat Showing A PORTION OF
25' STRIP OF PROPERTY TO BE VACATED ON REMAINING
PORTION OF PARCEL DESIGNATED AS "NICHOLAS & BERA
L. TOSCANO, AREA = 2 1/2 ACS. " ON PLAT ENTITLED,
"SURVEY MADE FOR ANTIONETTE JAMPICOL & NICHOLAS &
BERA TOSCANO ON SO. SIDE 50' ST.E. OF PLEASURE
HO. RD.'- (M.B. 13, P. 16), prepared by John E.
Sirine and Associates, Ltd., a copy of which is
attached hereto as Exhibit 'A"'.
GPIN NO.: 1479-58-6568
4. That no inconvenience will result to any person
or property owner by reason of the sale of the hereinabove
described property.
WHEREFORE, your Petitioners pray that the Mayor and
City Council of the City of Virginia Beach, Virginia, declare
the hereinabove described property to be in excess of the needs
of the City of Virginia Beach and to authorize the City Manager
to convey same to your Petitioners upon payment to the City of
Virginia Beach, for the fair market value of said property as
determined by qualified appraisal.
Respectfully submitted,
JAMES ORSINI and MARTHA M. ORSINI
By-
Of Counsel
R. Edward Bourdon, Jr., Esquire
KES, CARNES, BOURDON SYKES, CARNES, BOURDON & AHERN, P.C.
& AHERN, P C, Pembroke One, Fifth Floor
ATTORNEYS AT @W Virginia Beach, Virginia 23462
(804) 499-8971
4558i
2
THIS DEED OF VACATION AND QUITCLAIM is made
this day of May, 1994, by and between the OF
VIRGINIA BEACH, a municipal corporation of the Commonwealth of
Virginia, "GRANTOR", party of the first part, and JAMES ORSINI
and MARTHA M. ORSINI, husband and wife, "GRANTEE", parties of
the second part, 4601 North Greenwell Road, Virginia Beach,
Virginia 23455.
W I T N E S S E T H
That for and in consideration of the sum of TEN
DOLLARS ($10.00) and other good and valuable consideration, the
receipt of which is hereby acknowledged, the party of the first
part hereby releases, vacates, and forever QUITCLAIMS unto the
party of the second part its right and interest, if any, in the
following described property:
All that certain lot, piece or parcel of
land situate in the Bayside Borough of the
City of Virginia Beach, Virginia, and being
shown as the 4,973 sq. ft./ 0./14 acre
hatched area on that certain plat entitled,
"PLAT SHOWING A PORTION OF 25' STRIP OF
PROPERTY TO BE VACATED ON REMAINING PORTION
OF PARCEL DESIGNATED AS 'NICHOLAS & BERA L.
TOSCANO, AREA = 2 1/2 ACS. ' ON PLAT ENTITLED
'SURVEY MADE FOR ANTIONETTE JAMPICOL &
NICHOLAS & BERA TOSCANO ON SO. SIDE 50' ST.
E. OF PLEASURE HO. RD. (MB 13, P. 16)
SCALE 1'1=50' APRIL 8, 1994," prepared by
John E. Sirine and Associates, Ltd., a copy
of which is attached hereto as Exhibit "A".
It being a part of the same property
conveyed to GRANTOR, by Deed of City of
- 1 -
Norfolk, a municipal corporation of the
State of Virginia, dated - 1
19 1 and recorded in the aforesaid Clerk's
Of l@c@ in Deed Book at Page
GPIN NO.:
This conveyance is made subject to conditions,
restrictions, easements, and reservations of record in the
chain of title, if any, constituting constructive notice
thereof.
Witness the following signatures and seals:
CITY OF VIRGINIA BEACH, a
municipal corporation of the
Commonwealth of Virginia
By:
City Manager/Authorized
Designee of the City
Manager
(SEAL)
ATTEST:
City Clerk
2
STATE OF VIRGINIA
CITY OF VIRGINIA BEACH, to-wit:
I, a Notary Public
in and for the City and State aforesaid, do hereby certify
that I City
Manager/Authorized Designee of the City Manager of the CITY OF
VIRGINIA BEACH, a municipal corporation of the Commonwealth of
Virginia, whose name is signed to the foregoing writing,
bearing date the day of 1 19 94 , has
acknowledged the same before me in my City and State aforesaid.
Given under my hand this day of
19 94 .
Notary Public
My Commission Expires:
STATE OF VIRGINIA
CITY OF VIRGINIA BEACH, to-wit:
I , I a Notary Public in
and for the City and State aforesaid, do hereby certify that
Ruth Hodges Smith, City Clerk of the CITY OF VIRGINIA BEACH, a
municipal corporation of the Commonwealth of Virginia, whose
name is signed to the foregoing writing, bearing date the
day of -, 1994, has acknowledged the same before me
in my City and State aforesaid.
Given under my hand this - day of
1994.
Notary Public
My Commission Expires:
4563i
3
LOCATION MAP
SEE GRID El
I BAY LANDING I
2 LAKESEOGE CO
IA,kY LTAKL
AEfil
n
- 20 -
Ltem ii--i I
PUBLIC HEARING ITEM # 38475
PLANNING
Mayor Meyera E. Oberndorf DECLARED a PUBLIC HEARING on:
PL,4NNING
(a) 117RGINL4 BEACH ORTHOP,4EDIC,4SSOCIATES CONDITIONAL CHANGE OF
ZONING
(b) TEA CELLULAR NETWORK SERI,7CES CONDITIONAL USE PERMIT
October 11, 1994
- 21 -
PUBLIC HEARING ITEM # 38476
PL4NNING
Attorney Morris Fine, 2101 I,rks, I'hone: 422-1678, represented the applicant
UPon motion by Council Lady @5trayhorn, seconded by Vice Mayor Sessom, City Council ADOPTED
Ordinance upo@ applicati(,n of "7RGINL4 BEACH ORTHOPAEDIC ASSOCIATES and CHARLES S.
FRIEDMAN for a Conditz nal s,,cat,,,n:
ORDINANCL UPON APPLICATION ()],' P7RGINL4 BEACH
ORTHOPAEDI(@ ASSOCIATESANDCHARLLS FRIEDMANFORA
CONDITIONAL CILIN(I'E ()F ZONIN(,' I)I@TRICT CI-4 5SIFICATION
FROM R- 5I) to 0- I Z070941430
BEITHEREBYORDAINI,,'DBY7TII,,'COUNCILOI"TIIP-('IIYOFVIR(;INL4BF,4CH,VIRGINIA
Ordinance upon application of Virgi?iia Beach Orthopaedic Associates
and Charles S. Friedmn for a Conditional Change of Zoning District
Classification from R-5D Residential Duplex District to 0-1 Offlce
District on certain property located on the west side of Kempsille Road,
south of Canterford Lane. 7he proposed zoning classification change to
0- I is for offlce land use. 7he Comprehensive I'lan recommends use of
this parcel for high density residential at densities that are compatible
with single-family use in accordance with other Plan policies. Said
parcel is located al 1445 Kempsville Road and contains 34,848 square
feet more or lcss Kl,, M15PWILE BOR()U(,'IL
The following conditions Yhall b(- r('quired.
1. Agreemerit (!ncompassing proffers shall be recorded with the
Clerk of the (,ircuit Court and is hereb), tnad(, a part of the
record.
The Ordinance shall be effective iii accordance with Section 107 (O of the Zoning Ordinance.
Adopted by the Council of the City of Virgitiia Beach, Virgirtia, on the 'Ievenlh o Octo er N ete
October 11, 1994
- 22 -
em -J.
PUBLIC HEARING ITEM # 38476 (Continued)
PLANNING
Voting: 8-0
Council Members Voting Aye:
John A. Baum, Robert K Dean, William W. liarrisort, Jr., Barbara M.
Henley, Mayor Meyera I,. Oberndorf, Nancy K I'arker, Vice Mayor
Wzlliam D. Sevvomy, Jr. atid louisa M. @trayho,ri
Council Members Voting Nay.
Non e
Council Members Abstaining:
Louis R. Jones
Council Members Absent:
Liriwood 0. Braitch, III and John D. Voss
Councilman Jones ABSTAINED av he owiis aii office building itext to the application.
October 11, 1994
- 23 -
e- II- ].b
PUBLIC HEARING ITEM # 38477
PLANNING
CorresPOndence fi'om J. Randall Royal, rice President - Engi,,i,ering Services, dated September 8, 1994,
-qu-ti,,g H7THDRAWAL is hereby made a part of the rec()rd.
UP- motion by Councilman Dean, seconded by Vice Mayor Sessoms, City Council ALLOWED
WITHDP-4WALaftheApplicatiotiofTEACELLUL,4RNETWORKSERVICESfora ndi-onal
Eermit:
ORDINANCL UPON APPLICATION OP TL4 CE] I UL4R NE7TVOPK
SERVICES FOR A CONDITIONAL USP-' I'ERMI7'FOR A 150-FOOT
COMMUNICATIONS TOWER
Ordinance upon application of TEA Cellular Network 5ervices for a
Conditional Use Permit for a 150-foot communication tower on certain
propertY located 2750 feet more or less west of General Booth Boulevar(4
2640 feet more or less north of Londott Bridge Road Said parcel is
located at 2385 Loiidon Bridge Road and colitallis 10 acres. I'RINCESS
ANNF. BOROU(;II.
Voting: 9-0
Council Members Voting Aye:
John A. Bawn, Robert Y- Dean, William W Ilarrison, Jr., Barbara M.
Henley, Louis R. Joites, Mayor Meyera E. Oberridorf, Nancy K Parker,
Vice Mayor William 1). @essoms, Jr. and Louiva M. .5trayhorn
Council Members Voting Nay:
Non e
Council Members Absent:
Linwood 0. Braiich. III, aild Johil D. Movv
October 11, 1994
24 -
APPOINTMENTS ITEM # 38478
Up- NOMINATION by Vice Mayor Sessoms, City Council APPOINTED:
BOARD OF BUILDING CODE APPEALS
ELECTRICAL DIVISION
Wade Malaby
Virgiriia Power
Uiiexpired term pluv 2-yearv thru 12131196
Voting: 9-0
Council Members Voting Aye.
John A. Baum, Robert K Dean, Wzlliam W. liarrison, Jr., Barbara M.
Henley, Louis R. Jones, Mayor Meyera ],*. Oberndorf Nancy K Parker,
Vice Mayor William D. .5essoms, Jr. and Louisa M. .5trayhorti
Council Members Voting Nay:
Non e
Council Members Absent:
Linw()od 0. Brancil, III, and John D. Vovs
October 11, 1994
- 25 -
Item II-K2.
APPOINTMENTS ITEM # 38479
Upon NOMINATION by rice Mayor.Scssoms, City (ouncil APPOINTED:
REk7EW AND ALLOCATION COMMITTEE (COIG)
Dr. .5uzanne Dandoy, MIIII
7'crm: Tenure as Ilealth I)irt-cf(ir
Voting: 9-0
Council Members Voting Aye:
John A. Baum, Robert K Dean, William W flarrison, Jr., Barbara M.
Henley, Louis R. J()tles, Mayor Meyera E. Oberiidorf, Nancy K. Parker,
rice Mayor William I). @essoms, Jr. and Louisa M. Strayhorii
Council Members Voting Nay:
None
Council Members Abseiit:
Linwood 0. Branch, III, and John D. Moss
October 11, 1994
- 26 -
e- -K3.
APPOINTMENTS ITEM # 38480
BY CONSENSUS, City Council PESCHEDULED the following APPOINTMENTS.-
COMMUNITY DEVELOPMENT CITIZEN ADVI,@ORY COMMI7TEE (CAC)
HISTORICAL RE117EW BOARD
PUBLIC LIBRARY BOARD
TRANSPORTATION SAFETY COMMISSION
October 11, 1994
- 27 -
Item II-L.I.
REAPPORTIONMENT ITEM # 38481
Councilman Moss distributed in City Council's Agenda Packages, a proposed Charter Amendment to
implement the Reapportionment Referendum, as approved by the voters.
Councibnan Baum expressed c(@ncern for the lack of residency requirements in Virginia Beach with
regard to a particular Borough. America was meant to be a representative democracy with checks and
balances, not one man, orie vote. 'The Senate has two Senators from each State. Ihe Council of Civic
Organizations has become a partisan political action Committee. Their newsletters are quite personal
Councilman Baum did not believe the majority were in favor of a ward systent.
Ilice Mayor Sessoms expressed ((@ticerri that under the proposed new system, the Pungo and Blackwater
Boroughs would not be repres(,iited. 'Ihese Iloroughs (@omprive an acreage of approximately one-half the
City.
Council Lady Strayhorn advised, fi)r marty years, ntinorities have been mivsing from the City Council.
Reapportionment, whether it be through the Ward Systenz or At-Large, every group should have
representation. Council Lady Strayhorn believed a City Council corisisting of only 7 members, all elected
at the same time, would be ideal. Ilowever, as the voters approv,ed the Reapportionment Referendum she
will vote for this Charter Amendmeiit.
Councilman Dean did not believe the Constitution reflects that land votes. People vote. 7he City Council
does care about their immediate constituents. Councilman Bawn has been in office over 22 years.
Individuahzed representation is already at the State level. Councilman Dean advised he can vote for only
one Member of the House and )ne Senator. Ile Attorney (;eneral advised a minimum residency
requireinent was unconstitutional. Councilman Dean is not aware ()f any City Council Member who does
not care about the entire Cit), of Virginia Beach, whether or )i(,t they represelit a particular Borough, or
serve at-large.
Mayor Oberndorf referenced her appoinitnetit of the Mayor's ConimiUee for Reapportionment. Mayor
Oberndorf did not express her views nor did she influence this (,@ommission regarding their final product.
7he Chairman was Attoryiey Doyiald IL Clark who presented the Final Report on September 24, 1990.
The City Council voted to accept the report, riot adopt same. The Citizens received over 28,000 signatures
to have the issue of Reapportionment placed on the Ballot. Mayor Oberndorf read the Notice of Public
Hearing into the Record: "Iht! Couticil for the City of Virginia Beach, Virginia, will hold a Pubhc
Hearing on 7hursday, October 25, 1994, at 6:00 P.M., pursuarit to Section 15.1-835 of the Code of the
City of Virgirtia Beach to determirie if the citizens of the City of Virgirtia Beach desire the General
Assembly to amend the City's exivting Councilnianic Electoral Plan. " 'Fhe proposed amendment to the City
Charter would provide for divisiopi of the City into severi districts of approximately equal population
effective July 1, 199$, with veven members to be elected only by the voters (@f their respective districts,
plus three members and th(, Mayor to be elected by and from the (,'ity al -large.
Council Lady Henley advised she persoiially did not favor a change to a Ward system, but as the citizens
approved same, she would vot(, to forward thi@v Charter Amendment to the (;eneral Assembly.
October 11, 1994
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- I-L
LEGISL4TIVE PAcF,4GE ITEM # 38482
7he DR4FT 1995 Legisiative Package is hereby made a part of the record.
CitY Council's BreaAfast with the City's Legislators has been SCIII','DULFD for October 20, 1994, 7.30
A.M. at the Pavilion.
October 11, 1994
- 29 -
I-N.
ADJOURNMENT ITEM # 38483
Mayor Oberndorf DECLARED the City Council Meeting ADJOURIVED at 3:55 P.M.
-----------
Chief Deputy City Clerk
-- ---------------- -------------------------
Ruth Hodges Smith CMCIA4E Meyera E Obcrtidorf
City Clerk Mayor
City of Virginia Beach
Krginia
October 11, 1994