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FEBRUARY 6, 2001 MINUTESCi CITY COUNCIL MAYOR MEYERA E OBERNDORF, At-Large VICE MAYOR WILLIAM D SESSOMS, JR, At-Large LINWOOD 0 BRANCH, !il, Beach -Dtstrtct 6 MARGARET L EURE, Centervdle - D,stnct 1 WILLIAM W HARRISON, JR, Lynnhaven - D~stnct 5 BARBARA M HENLEY, Pnncess Anne - District 7 LOUIS R JONES, Baystde - D~tnct 4 REBA S McCLANAN, Rose Hall. D~stnct 3 ROBERT C MANDIGO, JR, Kernpsvtlle -Dtstnct 2 NANCY K PARKER, At-Large ROSEMARY WILSON, At-Large JAMES K SPORE, Ctty Manager LESLIE L. LIIJ~EY, City Attorney RUTH HODGES-SMITH, MMC, City Clerk of Vir inia l each "COMMUNrrY FOR A LIFETIME" CITY COUNCIL AGENDA C17'Y HALL BUILDING l 2401 COURTHOUSE DRIVE VIRGINIA BEACH. VIRGINIA 23456.9005 PHONE (757) 427-4304 FAX (757) 426-$669 EMAll~ Ctycnclt~ctty vtrgmta-beach vtru$ February 6, 2001 I. CITY MANAGER'S BRIEFING - Conference Room - 11:00 AM A. EMERGENCY RESPONSE SYSTEM Bruce W. Edwards, Director of Emergency Medical Services REVIEW OF AGENDA ITEMS III. CITY COUNCIL COMMENTS IV. INFORMAL SESSION - Conference Room - 12:30 PM A. CALL TO ORDER - Mayor Meyera E. Oberndorf B. ROLL CALL OF CITY COUNCIL C. RECESS TO CLOSED SESSION Citizens may register to address City Council for a limited time on any item on the Formal Council Agenda. Speakers may register immediately prior to the meeting or, in advance, by calling the City Clerk's Office at 427-4303 V. FORMAL SESSION - Council Chamber - 2:00 PM A. CALL TO ORDER - Mayor Meyera E. Obemdorf B. INVOCATION: Reverend Richard Dinges Lyrmhaven Colony Congregational Church C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF CITY COUNCIL E. CERTIFICATION OF CLOSED SESSION F. MINUTES 1. INFORMAL & FORMAL SESSIONS G. AGENDA FOR FORMAL SESSION The Consent Agenda will be determined during the Agenda Review Session and considered in the ordinary course of business by Ctty Council to be enacted by one motion. H. PUBLIC HEARINGS 1. TAX EXEMPTION: UJFT Community Campus, L.L.C 2. VMSM FOUNDATION - Lease of Restaurant 3. SALE OF EXCESS CITY-OWNED PROPERTY: 5920 Sandpit Road, Bayside 4. STUMPY LAKE PROPERTY ACQUISITION RESOLUTIONS/ORDINANCES 1. Resolution . _ta~nagi~n't legislation~designa~ UJFT COMMUNITY CAMPUS, L.L.C., -ff~-X EXEMPT ~ra~na~ate and local realvand personal property.~n (DISTRICT 4- BAYSIDE) ~ . Resolution re issuance of the Development Authority's Housing Refunding Revenue Bonds, Series 1966: Royal Point, Apartments Investors ProJect Not to exceed $5,800,000 . Resolution to declare that NIMMO PARKWAY (formerly known as Ferrell Parkway) shall have its eastern terminus at Atwoodtown Road and shall not be constructed east of Atwoodtown Road. . Resolution re TRANSFER of Section 8 Annual Contributions Contract VA901 from the Virginia Housing Development Authority (VHDA) to the City who will comply with all the conditions applicable using funds as originally intended; and, authorize the City Manager to execute necessary documents. . Resolution to confirm the City's policy of not supplanting state, federal or private funding with local funds. . Ordinance re amendment to the Restaurant Lease Agreement between the City and the Virginia Museum of Marine Science Foundation, Inc., extending the term from June 14, 2001, to January 31, 2002, with renewal thereof, upon written agreement of the parties, for four additional one-year periods terminating January 31,200,6; correcting the name of the Department of Museums to the Department of Museums and Cultural Arts, and authorizing the City Manager to execute the necessary documents. J. Ks C. M, , . . Ordinance to declare a 21,788 square foot parcel of land as EXCESS PROPERTY at 5920 Sandpit Road; and, authorize the City Manager to convey this property to ROBINSON DEVELOPMENT GROUP for Thirty Thousand Dollars ($30,000) (DISTRICT 4 - BAYSIDE). Ordinance to authorize the City Manager to convey the City's interest in various school sites to the School Board: Tallwood Elementary Glenwood Elementary Ocean Lakes High Strawbridge Elementary Landstown Elementary and Middle Landstown High School New Castle Elementary with a 20' access line from Donnington Drive Ordinance to APPROPRIATE $86,669 from the Arts and Humanities Commission's Special Revenue Fund to the FY 2000-01 Operating Budget of the Department of Museums and Cultural Arts re funding current year grant obligations. APPOINTMENTS HUMAN RIGHTS COMMISSION VIRGINIA BEACH HEALTH SERVICES ADVISORY BOARD UNFINISHED BUSINESS NEW BUSINESS ADJOURNMENT CITY COUNCIL WORKSHOP COUNCIL CONFERENCE ROOM (Immediately following Formal Agenda) I. CALL TO ORDER- Mayor Meyera E. Obemdorf A. CITY'S PROPOSED MAJOR PROJECTS - as related to City Council's Policies III. ADJOURNMENT i i CITY OF VIRGINIA BEACH SUMMARY OF COUNCIL ACTIONS O H M B A C M E S DATE January 23, 2001 B R H J C A R P E W PAGE. 1 R R E O L N N A S I A E I N N A D D R S L N U S L E N I O K O S AGENDA C R O E S A G R E M O ITEM # SUBJECT MOTION VOTE H E N Y N O F R S N .FIVE YEAR .FORECAST Catheo/n R NEEDS/RESOURCES- WhResell, D~r CITY COUNCIL/ Cl~ Mgmt Serv SCHOOL BOARD Victoria Lewis, School Chf Fin Officer , I BRIEFINGS: A BOARDWALK TRAM Dale Castellow, Trans Plan Cord B LANDSCAPE/SIGN Eaten Lasley, ORDINANCE Z, onlng Admln C REDWING C_.K)LF Sara L Hensley, COURSEfPARKS & REC D~r, Parks & Rec COMMISSION REPORT II/IH/ CERTIFICATION/CLOSED SESSION CERTWIED 11-0 Y Y Y V Y Y Y Y Y Y Y IV/V/ E F MINUTES - January 9, 2001 APPROVED 11-0 Y Y Y V Y Y Y Y Y Y Y G/H PRESENTATION ADD Memorial Tribute to former Councilman Don Mayor's Tribute ON Memck (deceased Il01) ADD Recognmon/Tnbute to Congressman Owen Mayor's ON Pickett for 29 yrs service In local, state and Presentation federal govemmcnL 1 MAYOR'S CUP - Norfolk L~ghted Boat 6~ yr Va Beach Parade partlclpated/3rd yr in succession to w~n cup Mayor recogn~.ed thc "Youth Leaders In Action" I PUBLIC HEARINGS , I NIMMO PKWY/ATWOODTOWN RD Speakers/ Ordinance Scheduled for 2/6/01 @ 2PM 2 TAX EXEMPTION M E Cox Center for No Speakers Elderly Day Care, Inc , J/l Resolution to support legislation designating ADOPTED BY 11-0 Y Y Y V Y Y Y Y Y Y Y M. E. COX CENTER EXEMPT re CONSENT real/personal property taxation 2 Resolution re issuance of IDRB: ADOPTED BY 11-0 Y Y Y V Y Y Y Y Y Y Y CONSENT 3 Resolutions to ENDORSE A[X)PTED BY 1 l-O Y Y Y V Y Y Y Y Y Y Y apphcation to the Corem Trans CONSENT Bd for federal transportabon enhancement funds re' a Ferry Plantabon House restorabon - Phase I b Pungo Ferry Landing property acqu~sRIon for pubhc use c Cape Henry-Extension Multi- -- Purpose Trail CITY OF VIRGINIA BEACH SUMMARY OF COUNCIL ACTIONS O H M B A C M E S DATE' January 23, 2001 B R H J C A R P E W PAGE: 3 R R E O L N N A S I A E I N N A D D R S L N U S L E N I O K O S AGENDA C R O E S A G R E M O ITEM # SUBJECT MOTION VOTE H E N Y N O F R S N K/I COMMERCIAL INVESTMENT DEFERRED 11-0 Y Y Y V Y Y Y Y Y Y Y PROPERTIES, AMENDMENT to INDEFINrrELY BY CONSENT Green Run Land Use Plan to allow six gasoline pumps with convenience store Buckner Boulcvard/S. Rosemont Road (PRINCESS ANNE - DISTRICT 7) 2 CHECKERED FLAG MOTOR ,~LLOWED l l-O Y Y Y V Y Y Y Y Y Y Y CAR CO. at 263/267 N Lynnhaven WffHD~ WAL BY CONSENT Road ( DISTRICT 3 ROSE HALL): a COZ from R-10/B-2 to Conditional B-2 b CUP: motor vehicle sales (exoansion~ _ 3 SAIR ENTERPRISES, INC. CUP DEFERRED TO 11-0 Y Y Y V Y Y Y Y Y Y Y auto service station with 2/13/01 ~ 2PM BY CONSENT conventence store/auto repatr/ storaste at 3096 S Lynnhaven Rd (DISTRICT 3 - ROSE HALL) 4 GREATER SAINT ANDREWS APPROVED, 11-0 Y Y Y V Y Y Y Y Y Y Y A.M.E. CHURCH CUP church CONDITIONED, BY CONSENT additton/3008 MacDonald Road (DISTRICT I - CENTERVILLE) 5 SNYDER'S RV (Davis Comer APPROVED, 11-0 Y V Y V Y V Y V V Y Y Motors, Inc.) CUP motor vehicle CONDITIONED, BY CONSENT sales/rentals (RV sales) 470 Newtown Road (DISTRICT 2 - KEMPSVILLE) 6 MHMRSA CUP: group home APPROVED, 11-0 Y Y Y V Y Y Y Y Y Y Y (recovery center) 411 Birdneck CONDITIONED, BY CONSENT Circle (DISTRICT 6 - BEACH) 7 LUCOR, INC. CUP. auto service ctr APPROVED, 11-0 Y Y Y V Y Y Y Y Y Y Y (Jiffy Lube) at 3292 Virginia Beach CONDiTiONED, BY CONSENT Boulevard (DISTRICT 5 - LYNNHAVEN) 8 BETTY M. SUNDIN COZ from 0-- APPROVED, 11-0 Y Y Y V Y Y Y Y Y Y Y 2 to Condiaonal B-2 at 1385 Laskin CONDITIONED, - BY CONSENT Road (DISTRICT 5 - LYNNHAVEN) 9 Ordinance to AMEND §§ 203/230 ADOPTED BY 11-0 Y Y Y V Y Y Y Y Y Y Y CZO to revise off-street vehicular CONSENT parking for churches in shopping centers/clarify uses permitted CUP L APPOINTMENTS: RESCHEDULED B Y C O N S E N S U S HUMAN RIGHTS COMMISSION VA HEALTH SERV ADVISORY BOARD M/Ni ADJOURNMENT 10 40 PM -- O/ MINUTES VIRGINIA BEACH CITY COUNCIL V~rg~n~a Beach, Virgima February 6, 2001 Mayor Meyera E Oberndorf called to order the CITY MANAGER'S BRIEFING re EMERGENCY RESPONSE SYSTEM tn the Counctl Conference Room, Ctty Hall Butldtng, on Tuesday, February 6. 2001, at 11 O0,4 M Counctl Members Present Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R Jones, Robert C Mandtgo, Jr, Mayor Meyera E Oberndorf, Nancy K Parker, Vtce Mayor Wtlham D Sessoms, Jr and Rosemary Wtlson Counctl Members Absent Wtlham W Harrtson, dr [ENTE~D 12 14PM] Reba S McClanan [SPEAI~NG A T GARDEN CLUB ENTERED 12 I 0 P M] COMMENTS OF THE MAYOR ITEM # 47690 Mayor Oberndorf advised a Port Folio article gave the City Council "Bouquets of Flowers" for the Stumpy Lake acquisition. ITEM # 47691 Mayor Oberndorf referenced the 7`h Annual Human Rights program "Celebrating Diversity" on Monday, February S, 2001, which she and Councilman Mandigo attended. Fire Chief Gregory Cade was in attendance. Dr. Timothy Jenney, Superintendent of Virginia Beach Schools, was also in attendance, as one of his employees was a recipient of an award. The Mayor Learned that Attorney R. J. Nutter donates his services to individuals who are about to lose their homes or are homeless. Seven children in another city were living in a car. The government was going to separate the family and put the children in foster homes. A retired Navy SEAL and his wife, who have four children of their own, became foster parents to the children and have now formally adopted these seven children for which they received recognition. Such occasion makes one feel good to be a resident of Virginia Beach. It was "Chicken Soup for the Soul". ITEM # 47692 Mayor Oberndorf advised on Saturday, February 3, 2001, while she was in the company of Rudy Boesch at the Polar Plunge, a very special woman was introduced to all. She is the Kellam Crossing Guard who has participated for the last nine years in the Polar Plunge to raise fund for Special Olympics. She was badly injured recently in an auto accident at the school and her doctor had advised her to take this year off Mayor Oberndorf knew the City Council would be happy to know she was alive and well. As Mark Twain said "The stories of her death were greatly exaggerated. " -3- CITY MANA GER 'S BRIEFING EMERGENCY RESPONSE SYSTEM ll:OOA.M. ITEM # 4 7693 Bruce W Edwards, Dtrector of Emergency Medtcal Servtces, advtsed he and Chtef Gregory B Cade, Ftre Department, addressed the concept of the Emergency Response System to City Counctl on December 5, 2000 Thts concept (ERS) ts the basts for provtdtng servtce and affecttng a recent change tn the system Emergency Response System Coordtnated response usmg all avatlable resources Seamless continuum of care Untried operattng phtlosophy Constant work tn progress The Continuum of Care Eight phases of an ERS CALL Leadership and Management Emergency Recognttton Dispatch Response On Scene Care Transport Hospital Commumcatton and Feedback There has been member and ctttzen educatton about the Emergency Response System Executtve and Steertng Commtttees have been estabhshed and Ftrst Conttnuum Teams have been founded An arttcle to be pubhshed tn the next edttton of Beach Magaztne ts a key component of the educattonal process Executive Committee Responstble for overstght of the ERS Revtew pohcy changes and tmprovements Create continuum teams Comprtsed of Two Chtefs Two Deputy Chtefs Operattonal Me&cai Dtrector Steering Committee Recetve reports from Conttnuum Teams Recommend changes to Executtve Commtttee Comprtsed of Executtve Commtttee Conttnuum Chatrs Ctttzen Representattve At-large firefighter and rescue squad members Hospttal representattves Me&cai control officers February 6, 2001 -4- CITY MANAGER'S BRIEFING EMERGENCY RESPONSE SYSTEM ITEM # 47693 (Continued) The Continuum Teams formed were Emergency Communications; Leadership and Management; Response; and, Hospital. Priority Tasks Completed Implemented ALS ceruficatton and affihatton process Ftrefighter-medtc dtstrtbutton plan (transfers effecttve mtd-February) ALS Certtficatton Process A untried mechantsm ts tn place for any member, career or volunteer, to become certtfied at the ALS LEVEL Rescue squad membershtp not requtred for firefighters Member educatton about the process vta letters, open ortentatton and vtdeo program Membership Options Selected (previously active medics) Rescue Squad Only 1 Dual Rescue Squad and Ctty 14 Ctty Agency Affihatton Only 10 (Any of these opttons allows the me&c to provide ALS whde working on the fire truck) Potential New Medics Infield tratntng 2 Apphcattons betng processed 5 Apphcattons requested by member, but not returned 1 Dtd not request an apphcatton 10 How many medics are there? 110 Volunteer Rescue Squad Me&cs 25 Acttve Career Ftrefighter -Medtcs 7 Ftrefighters tn apphcatton/certtficatton phase 11 Ftrefighter apphcattons outstandtng 10 Ftrefighters opted not to parttctpate Chtef Cade explatned the Firefighter-Medic Distribution Ftrefighter me&cs will be asstgned to provide continuous ALS staffing at four stattons Ftrst stations selected based on factors such as Call volume Ambulance not asstgned to statton Spectalty needs (hazmat, techmcal rescue, etc ) Response Team created to conttnue to develop effecttve deployment and utthzatton of these resources Addtttonal engines to be designated as more me&cs parttctpate February~ 2001 -5- CITY MANAGER'S BRIEFING EMERGENCY RESPONSE SYSTEM ITEM # 47693 (Continued) Chtef Cade advtsed new firefighters, pendtng Ctty Councd's approval, wdl be htred tn the Sprtng of 2002 The tssue tn whether or not newly employed firefighters wdl be requtred to have ALS certtficaaon Stations with Firefighter-Medics assigned Full-Time London Bridge (Co3) Oceana (Co8) Thalia (Co 7) Woodstock (Col O) What Next? Make the concept of the Emergency Response System part of our orgamzattonal culture Conttnue to educate the pubhc about the ERS and the outstandtng servtce tt provtdes Conttnue to form addtttonal Conttnuum Teams Take acaon based on the work of the Teams Mr Edwards advtsed he was confident the Emergency Mechcal Servtce Volunteers are provtdtng a wonderful servtce Relattve the January computattons, there has been a decrease in response time (average ttme ambulance - 6 mtnutes 53 seconds, fire engme - 5 5 mtnutes) Care begtns as soon as the fire engtne arrtves It ts tmportant to note the fire department ts an tmportant part of the ERS system Mayor and Members of Ctty Councd expressed apprectatton to Bruce Edwards and Chtef Gregory D Cade for thetr endeavors to assure the pubhc safety servtces are rendered tn a responstble and prompt fashton The Mayor tnqmred relative response to an E-911 call, tn whtch the ambulance and fire truck were sent to the Central Library, as opposed to Princess Anne Htgh School Gwen Cowart, Director of COMIT, advtsed the audio tapes of both the call and the dtspatch have been reviewed The members involved wtth the event have been interviewed A report shouM be completed and released by approxtmately I O0 P M The audto tapes have been made avadable to the media Processes and procedures wdl be tdenufied and steps taken to assure an error of this type wdl not occur tn the future February 6, 2001 -6- AGENDA RE VIE W SESSION 11:34 P.M. ITEM # 4 7694 I1 Resolutton re legtslatton to destgnate UJFTCOMMUNITY CAMPUS, L.L.C., EXEMPT from state and local real and personal property taxation (DISTRICT 4 - BA YSIDE) Mayor Oberndorf advtsed UdFT ts the United Jewish Federation of Tidewater One of the butl&ngs near Wtldwater Outfitters ts now thetr recreatton center wtth classes for parents and chtldren The purpose of thts nonprofit corporatton ts to hold and managepropertyfor the charttable organtzattons operattng wtthm the dewtsh Federatton 's network Senator Frank Wagner ts sponsortng thts tax exempt legtslatton Mayor Oberndorf dtstrtbuted copies of correspondence from Mark L Goldstetn, Executive Vice President of the Untted dewtsh Federal of Ttdewater, to Ctty Counctl Counctl Lady Henley expressed concern relattve these ttems betngplaced on the Ctty Counctl's agenda so late for constderatlon by the General Assembly The Clty Attorney advtsed a pohcy wtll be devtsed estabhshmg a deadhne for submtsston of these tax exempt apphcattons to Ctty Counctl ITEM # 4 7695 15 Resolution to confirm the Ctty's pohcy not to supplant state, federal or prtvate fundtng wtth local funds Vtce Mayor Sessoms dtstrtbuted a City Council Policy relattve "Not Supplanting State, Federal and Private Funds with Local Funds". The Ctty Manager advtsed Ctty Counctl wtll be considering the Policy and not the Resolution durtng the Formal Sesston The approvedpohcy wtll be tn the Ctty Council's Pohcy Manual A pohcy allows moreflextbtlity than a resolutton tn future adjustment ITEM # 4 7696 B Y CONSENSUS, thefollowtng shall compose the CONSENT AGENDA: RES OL UTIONS/ORDINANCES 1 2 Resolution re issuance of the Development A uthority's Housing Refunding Revenue Bonds, Sertes 1966 Royal Potnte Apartments Investors project Not to exceed $5,800,000 14 Resolutton re TRANSFER of Sectton 8 Annual Contrtbuttons Contract VA901 from the Vtrgtnta Houstng Development Authortty (VHDA) to the Ctty who wtll comply wtth all the condtttons apphcable ustng funds as ortgtnally mtended, and, authortze the City Manager to execute necessary documents 15 ~ -- -' ............. "- ...... '- - '" ..... City Pohcy not to supplant state, federal or prtvate fundmg with local funds 16 Or&nance re Restaurant LeaseAgreement between the City and the Virginia Museum of Marine Science Foundation, Inc, extending the term from dune 14, 2001, to danuary 31, 2002, wtth renewal, upon wrttten agreement of the parttes, for four ad&ttonal one-year periods termtnattng January 31, 2006, correcting the name of the Department of Museums to the Department of Museums and Cultural Arts, and authortztng the Ctty Manager to execute the necessary documents February 6, 2001 -7- AGENDA RE VIEW SESSION ITEM # 47696 (Continued) 17 18 19 Ordtnance to declare EXCESS PROPERTY on a parcel of land at 5920 Sandptt Road, and, authorize the City Manager to convey this property to ROBINSONDEVELOPMENT GROUP for Thirty Thousand Dollars ($30,000) (DISTRICT 4 - BA YSIDE) Ordinance to authorize the City Manager to convey the City's interest in various school sites to the School Board Tallwood Elementary Glenwood Elementary Ocean Lakes High Strawbrtdge Elementary Landstown Elementary and Middle Landstown Htgh School New Castle Elementary with a 20' access hne from Donmngton Drive Ordinance to APPROPRIATE $86,669 from the Arts and Humanlttes Commlsston's Special Revenue Fund to the FY 2000-01 operattng budget of the Department of Museums and Cultural Arts re fundtng current year grant obligations. Council Lady McClanan will vote NAY on Item 1 6 Councilman Harrison will ABSTAIN on Item 1 7 February 6, 2001 -8- CITY COUNCIL COMMENTS 11:40A.M. ITEM # 47697 Councilman Branch requested the City Manager provtde tnformatton on the Senate and House of Representatives version of the budget and thetr tmpact on the City An assessment wtll be provtded tn Ctty Council's Agenda package on Friday, February 9, 2001 ITEM # 47698 Vtce Mayor Sessoms requested the Ctty Manager, through Economtc Development, evaluate local technology zones Bastcally, thts ts another method to enttce compantes to move to Vtrgtnta Beach Clarksvtlle, Falls Church, Harrtsonburg, Hampton and Wtnchester currently have local technology zones Thts allows the Ctty to provtde tncenttves other than cash A good example would be not to collect BPOL tax for two years on a newly acqutred economtc development ITEM # 4 7699 Counctl Lady Parker referenced the scheduhng of the usual City Council Retreat wtth Lyle Sumek The Ctty Manager advtsed the date ts usually scheduled for the end of February Mayor Oberndorf wdl forward a hst of posstble dates for Ctty Counctl's constderatton February 6, 2001 -9- ITEM ii 4 7700 Mayor Meyera E Oberndorf called to order the INFORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL tn the Ctty Councd Conference Room, Ctty Hall Buddtng, on Tuesday, February 6, 2001, at 11 42AM Councd Members Present Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R Jones, Robert C Man&go, Jr, Mayor Meyera E Oberndorf, Nancy K Parker, Vtce Mayor Wdham D Sessoms, Jr and Rosemary Wdson Councd Members Absent' Wdham W Harrtson, Jr and Reba S McClanan February 6, 2001 -lO- ITEM # 4 7701 Mayor Oberndorf entertatned a motton to permtt Ctty Counctl to conduct tts CLOSED SESSION, pursuant to Sectton 2 1-344(A), Code of Vtrgmta, as amended, for the followmg purpose PERSONNEL MATTERS Dtscusston, constderatton or tntervtews of prospective candtdates for employment, asstgnment, appotntment, promotton, performance, demotton, salartes, dtsctphntng, or restgnatton of spectfic pubhc officers, appointees, or employees pursuant to Sectton 2 1-344 (A) (I) To Wtt Boards and Commtsstons Commumty Servtces Board Human Rtghts Commtsston Vtrgtnta Beach Health Servtces Advtsory Board PUBLICLY-HELD PROPERTY Dtscusston or constderatton of the acqutsttton of real property for a pubhc purpose, or of the dtsposttton of pubhcly-held real property, where discussion tn an open meeting would adversely affect the bargatntng posttton or negottattng strategy of the pubhc body pursuant to Sectton 2 1-344(A)(3) To-Wtt Lotus Creek/Ferrell/Ntmmo Parkway Rtght-of-Way/Lotus Gardens Farm LEGAL MA TTERS Consultatton wtth legal counsel or brtefings by staff members, consultants, or attorneys pertatntng to actual or probable httgatton, or other specific legal matters reqmrtng the provision of legal advtce by counsel pursuant to Sectton 2 1-344(A)(7) Sportsplex 31se Street ProJect Town Center ProJect Lotus Creek/Ferrell/Ntmmo Parkway Rtght-of- Way/ Lotus Gardens Farm Upon moaon by Vice Mayor Sessoms, seconded by Councdman Branch, City Counctl voted toproceed tnto CLOSED SESSION. Vottng 9-0 Councd Members Vottng Aye Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R Jones, Robert C Mandtgo, Jr, Mayor Meyera E Oberndorf, Nancy K Parker, Vtce Mayor Wdham D Sessoms, Jr and Rosemary Wdson Councd Members Vottng Nay None Councd Members Absent Wdham W Harrtson, Jr and Reba S McClanan (Time of ClosedSession: 11:42 A.M. to 1:55 P.M.) Councdman Harrtson entered CLOSED SESSION 12:14 P.M. Councd Lady McClanan entered CLOSED SESSION: 12:10 P.M. February 6, 2001 -II- FORMAL SESSION VIRGINIA BEA CH CITY COUNCIL February 6, 2001 2:00 P.M. Mayor Meyera E Oberndorf called to order the FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL tn the Counctl Chamber, Ctty Hall Butldtng, on Tuesday, February 6, 2001, at 2 O0 P M Councd Members Present Ltnwood 0 Branch, III, Margaret L Eure, Wtlham W Harrtson, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf Nancy K Parker, Vtce Mayor Wtlham D Sessoms, Jr and Rosemary Wtlson Counctl Members Absent None INVOCATION Reverend Rtchard Dtnges Lynnhaven Colony Congregattonal Church PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Vtce Mayor Sessoms, betng a Corporate Officer of Wachovta Bank, DISCLOSED there were no matters on the agenda tn which he has a "personal interest", as defined tn the Act, esther tn&vtdually or tn his capacity as an officer of Wachovta Bank The Vtce Mayor regularly makes thts Dtsclosure as he may not know of the Bank's tnterest tn any apphcatton that may come before Ctty Councd Vtce Mayor Sessoms' letter of danuary 2, 2001, ss hereby made a part of the record February 6, 2001 Item V-E. - 12- CER TIFICA TION OF CLOSED SESSION ITEM # 47702 Upon motton by Vtce Mayor Sessoms, seconded by Counctlman Jones, Ctty Counctl CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS. Only pubhc bustness matters lawfully exempted from Open Meettng requirements by Vtrgtnta law were dtscussed tn Closed Sesston to whtch thts certtficatton resolutton apphes, AND, Only such pubhc bustness matters as were tdenttfied tn the motton conventng the Closed Sesston were heard, &scussed or considered by Vtrgtnta Beach Ctty Counctl Vottng 11-0 Counctl Members Vottng Aye Ltnwood 0 Branch, III, Margaret L Eure, Wtlham W Harrtson, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf, Nancy K Parker, Vtce Mayor Wtlham D Sessoms, Jr and Rosemary Wtlson Councd Members Voting Nay None Counctl Members Absent None February 6, 2001 CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The V~rgima Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded in ITEM # 47801, Page 10, and m accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.1-344. of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virginia law NOW, THEREFORE, BE IT RESOLVED: That the Virginia Beach City Council hereby certifies that, to the best of each member's knowledge, (a) only public business matters lawfully exempted from Open Meeting requirements by Virginia law were discussed m Closed Session to whmh th~s certfficat~on resolution apphes; and, (b) only such pubhc business matters as were ldentffied m the motion convening th~s Closed Session were heard, discussed or considered by Virginia Beach City Council. _~fi~h Hodge~ Smith, MMC C~ty Clerk February 6, 2001 Item V-F. 1. - 13- MINUTES ITEM # 47703 Upon motion by Vice Mayor Sessoms, seconded by Councd Lady Parker, City Councd APPROVED, AS CORRECTED, the Mtnutes of the INFORMAL AND FORMAL SESSIONS of January 23, 2001. Councdman Harrtson noted typographtcal error on Page 1 of the FIVE YEAR FORECAST NEEDS AND RESOURCES presentation to City Council and the School Board: School Board Members Present D A "Al"Albowtch, Jane S Brooks, Chatrman DantelD "Dan"Edwards. Nancy D Guy, Dan R Lowe, Mtchael W Stewart, Jerrt M Tata and Vtce Chatrman Arthur T Tate · _.,.,,,,,.., ~,,,~,,,o~, ~ .~,~,,, School Board Members Absent H Les Powell, Jr Ned L Rose [ENTERED 3 0.5 PM] Sandra Smtth-Jones Vottng i 1-0 Councd Members Voting Aye Lznwood 0 Branch, IIL Margaret L Eure, Wdham W Harrison, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf Nancy K Parker, Vtce Mayor Wdham D Sessoms, Jr and Rosemary Wdson Councd Members Voting Nay None Council Members Absent None February 6, 2001 - 14- Item V-G ADOPT AGENDA FOR FORMAL SESSION ITEM # 4 7704 BY CONSENSUS, Ctty Counctl ADOPTED: AGENDA FOR THE FORMAL SESSION February& 2001 - 15- Item V-H. 1. PUBLIC HEARING ITEM # 47705 Mayor Oberndorf DECLARED A PUBLIC HEARING: TAX EXEMPTION: UJFT Community Campus, L.L. C The followtng regtstered to speak Mark L Goldstetn, Executtve Vtce Prestdent, United dewtsh Federatton of Ttdewater, 5029 Corporate Woods Drtve, State 225, Phone 671-1600 Attorney John Cussen, Mtdgett & Rack, 477 Vtktng Drtve, State 430 Phone 687-8888 There being no further speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING February 6, 2001 -16- Item V-H.2. PUBLIC HEARING ITEM # 4 7706 Mayor Oberndorf DECL,4RED .4 PUBLIC HE.4RING VMSM FOUND.4 TION - Lease of Restaurant There betng no speakers, Mayor Oberndorf CLOSED THE PUBLIC HE.4RING February 6, 2001 -17- Item V-H. 3. PUBLIC HEARING ITEM # 4 770 7 Mayor Oberndorf DECLARED ,4 PUBLIC HEARING SALE OF EXCESS CITY-OWNED PROPERTY 5920 Sandpit Road, Bayside There betng no speakers, Mayor Oberndorf CLOSED THE PUBLIC HE,4RING February 6, 2001 -18- Item V-H. 4. PUBLIC HEARING ITEM # 47708 Mayor Oberndorf DECLARED ,4 PUBLIC HEARING STUMP Y L,4KE PR OPER TY ,4 CQ UISITION The followtng regtstered to speak tn SUPPORT: Rebecca Plate, 852 Outerbrtdge Quay, Phone 479-1957, represented Ctttzen 's for Stumpy Lake Mrs Plate chstrtbuted coptes of correspondence from organtzattons and tnchvtduals(Ehzabeth River proJect, Sterra Club, Cape Henry Audubon Soctety, Chesapeake Bay Foundatton, Vtrgtnta Beach Audubon, Southeastern Association for Vtrgtnta ~ Environment, the Nature Conservancy, and Dr Robert LAke) tn support of acquisition of Stumpy Lake Said letters are hereby made a part of the record S Paul Hamaker, 1813 Barkadtng Court, Phone 479-3113 There betng no further speakers, Mayor Oberndorf CLOSED THE PUBLIC HE,4RING. February 6, 2001 Item V-I. - 19- RES OL UTIONS/ORDINANCES ITEM # 4 7709 Upon motton by Vtce Mayor Sessoms, seconded by Councdman Branch, Ctty Counctl APPROVED IN ONE MOTION, Resoluttons/Ordtnances 2, 4, 5 (POLICY), 6, 7, 8 and 9 of the CONSENTAGENDA. Vottng 11-0 Councd Members Vottng Aye Ltnwood 0 Branch, III, Margaret L Eure, Wtlham W Harrtson, .Ir, Barbara M Henley, Louts R Jones, Reba S McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf, Nancy K Parker, Vice Mayor Wdham D Sessoms, Jr and Rosemary Wdson Counctl Members Vottng Nay None Counctl Members Absent None Councdman Harrtson advtsed he wtll ABSTAIN on 1 7 (Robtnson Development Group) Counctlman Harrtson ts not sure who the Robtnson Development Group ts, however, hts law firm represents a Robtnson and he wtshes to ABSTAIN as a matter of cautton Councd Lady McClanan will vote a VERBAL NA Yon 16 (Vtrgtnta Museum of Marine Science Foundatton, Inc ) Counctl Lady McClanan noted the prevtous lease was not brought to nor approved by Ctty Counctl The Ctty Attorney advtsed hts office accepts responstbthty that the ortgtnal lease tn 1996, dtd not come before Ctty Counctl for approval Thts ttem ts a rattficatton of that actton and approval of thts restaurant lease to the Vtrgtnta Museum of Martne Sctence Foundatton, Inc February 6, 2001 - 20- Item V-I. 1. RES OL UTIONS/ORDINANCES ITEM # 4 7710 Mark L Goldstetn, Executtve Vtce Prestdent, Umted Jewtsh Federatton of Ttdewater, 5029 Corporate Woods Drive, State 225, Phone 671-1600 Attorney John Cussen, Mtdgett & Rack, 477 Vtktng Drtve, State 430 Phone 687-8888 Upon motton by Counctlman Harrtson, seconded by Vtce Mayor Sessoms, Ctty Councd ADOPTED, AS CONDITIONED Resolutton re legtslatton to destgnate UJFT COMMUNITY CAMPUS, L.L. C., EXEMPT from state and local real and personal property taxation (DISTRICT 4 - BA YSIDE) The followtng condttton shall be requtred Approval ts conttngent upon the apphcant dehvertng the corporatton's amended charter to the Ctty Attorney for hts tnspectton re restrtcttng exempt properttes wtthout precedent Vottng 11-0 Counctl Members Vottng Aye Ltnwood 0 Branch, III, Margaret L Eure, Wtlham W Harrtson, Jr, Barbara M Henley, Louts R Jones, Reba $ McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf, Nancy K Parker, Vtce Mayor Wdham D Sessoms, Jr and Rosemary Wdson Council Members Vottng Nay None Counctl Members Absent None February 6, 2001 A RESOLUTION SUPPORTING LEGISLATION WHICH WILL DESIGNATE REAL AND PERSONAL PROPERTY OWNED BY UJFT COMMUNITY CAMPUS, L.L.C., AS BEING EXEMPT FROM STATE AND LOCAL REAL AND PERSONAL PROPERTY TAXATION WHEREAS, UJFT Commumty Campus, L.L.C., has requested the Council of the 8 City of Virginia Beach (the "Council") to adopt a resolution in support ohts request that the General 9 Assembly act in accordance with Article X, § 6(a)(6) of the Constitution of Virginia to designate the real and personal property of the UJFT Community Campus, L.L.C., as being exempt from state and local real and personal property taxation; 12 WHEREAS, UJFT Community Campus, L.L.C., currently owns no real property located in the City of V~rginla Beach (the "C~ty"), but anticipates receiving real property with an 14 assessed value of $320,000 in tax year 2000-01; taxes on th~s property in tax year 2000-2001 would 15 be $3904; 16 WHEREAS, UJFT Community Campus, L.L C., owns no personal property in the 17 City, and thus no personal property taxes have been assessed against or paid by this organization in recent years; 19 WHEREAS, pursuant to § 30-19.04(B) of the Code of Virginia, the Council has 2 0 properly advertised and conducted a public heating prior to the adoption of this resolution, giving 21 all citizens an opportunity to be heard; 22 WHEREAS, the provisions of § 30-19.04(B) of the Code of Virginia have been 2 3 examined and considered by the Council; and 24 WHEREAS, the Council 1s of the opinion that UJFT Community Campus, L.L.C., 2 5 should be designated as a benevolent organization within the context of § 6(a)(6) of Article X of the 2 6 Constitution of Virginia and that real and personal property located in the City owned by UJFT 2 ? Community Campus, L.L C, and used by it exclusively for benevolent purposes on a nonprofit basis 2 8 should be exempt from state and local real and personal property taxation. 29 30 NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 31 That the Council of the City of Virginia Beach, Virginia hereby supports the 32 enactment of legislation designating UJFT Community Campus, L.L.C., as a benevolent 3 3 organization within the context of § 6(a)(6) of Article X of the Constitution of Virginia and 34 exempting from state and local property taxation all real and personal property owned by UJFT 35 36 37 38 Commumty Campus, L.L.C, that 1s located w~th~n the C~ty and used exclusively for benevolent purposes on a nonprofit basis. Adopted by the Council of the City of Vlrg~ma Beach, Virginia, on the 6th day of ~'ebruary ,2001. CA7972 F :kData~TY\Ordin\NONCODE\UJFTtaxexem.res.wpd January 29, 2001 R-2 APPROVED AS TO LEGAL SUFFICIENCY: C,ty Attomey~Offi~e' DEC -I.~' O01TI,'EI 09 04 ¥..~ BE.-~CH CITY .-~TT~ TEL-'5'-,126-568' P. 003 APPLICATION TO CITY OF VIRGINIA BEACH FOR EXEMPTION FROM PERSONAL AND REAL PROPERTY TAXATION Applicants: Please complete this form and submit it to the City Attorney's Office, AL Section, Municipal Center, Virginia Beach, Virginia 23456. In any instance where additional space is needed to complete your answer to a particular question, please utilize a s~arate sheet of paper and attach it to this application. In filling out th~s form, be sure to describe your organization and its mission as completely as possible. Formal Name of Corporation/Organization: U,.I.E-T Comm. u~i t;y Camp u s, L. L. C. Address:. 5029 Coroorate Woods Drive, Suite 225 Virginia Beach, .V..A 23462 Telephone Number: ( 7 5 7 ) 6 71-16 0 0 1. Is the organization chartered or incorporated under the laws ofthe Commonwealth of Virginia? Yes , For what purpose is the organization chaffered? See Attached Statement , Summarize the organization's activities and accomplishments during the last year. See Attached Statement , , Describe in detml and specify the location of ail real and personal prope~'ty for which exemptlon is sought. See Attached Statement DEC -12' O01TLEI 09'04 BE.- CH CIT ' TEL.'5'-436-568' P. 003 . List the present tax assessment and taxes due for each pm'cci of' real property for which this exemption is sought: see Attached Statement Property GPhN*: Assessed Value: Property GPIN': Assessed Value: Land: S_ Land: $ Improvements: $ Improvements: $. Total Assessed Total Assessed Value: $ Value: * This number is on assessment notices and tax b,lls; it may also be obtained by call the Real Estate Assessor at 427-460 l. . For what purpose is the real property currently being used? If' there are several types o£ use for a single parcel, indicate such usages by areas of. the buildings and floor locations. See Attached Statement Does any other individual, association or corporation occupy or use any part o£ the premises of' any property for which exemptmn is sought? If so, give all details. See Attached Statement b, Is any income derived from the use of any portion of the real property by other individuals or groups, whether considered as rent or reimbursement fat necessary expenses for services incurred? It' so, give all details. See Attached Statement 7, List the present tax assessment and taxes due for personal property for which thc exemption is sought.' See Attached Statement DEC -12'OOITLE) 09.0,1 IA BEACH CIT ATT TEL '5' ,126-$68' P. 004 . With regard to personal property, state the purpose for which the property is being used. Is income derived from the use of any such property by md~viduais, groups or otherwise? If so, give all detmls. See Attached Statement . Is the organization exempt from taxation pursuant to Section 501(c) of the Internal Revenue Code of 19547 If so, attach a copy of correspondence from the Internal Revenue Service determining that the organization is tax exempt. See Attached Statement 10. Information about personal property tax bills may be obtained by calling the Comm~ssion~ of the Revenue at 427-4215. Has the ABC Board issued a currcnt annual alcohol beverage license for thc scrvice of alcohol beverages for use on the property from which tax exemption is here sought? No II. Is any director or officer of the agency paid compcnsatmn in excess of a reasonable allowance for salaries or other compensation? No 12. Does any part of the earnings, exclusive of salaries, of such organization inure to the benefit of any individual? If so, list what portion and to whom for each of thc past three years. No 13. What portion olr the service provided by such organization is generated by fonds received from donations, contnbuuons, or local, state, or federal grants7 Donations shall tnclude the providing of personal services or the contribution of any m-kind or other material servmes See Attached Statement DEC -12' O0(TLE) 09 05 BE.- CH ClT TEL '5'-426-568' P. 005 14. Does the organization provzde services for the common good of thc public? If so, explain m detatl and include in your explanabon a listing of the servmes provided, the cost of the services to the recipient and the method of determining cost of the services to the recipient, and any other details you deem pertinent. See Attached Statement 15. What part, if any, of the activities of the organization involves carrying on propaganda, or otherwise attempting to influence legislation'? None 16. Has the organization ever participated in, contributed to, or intervened in any polmcal campaign on behalf of any candidate for public office? If the answer is yes, please provzde any qualifying information you deem necessary. No 17. State the organization's rule, rcgulation, policy, or practice concerning discrimznatmn on thc basis of religious conviction, race, color, sex or national origin. See Attached Statement 18. List the name, business address and business telephone of the president and secretary of the corporation/organization as well as the managing officer. See Attached Statement 19. In addmon to thc above, please provide the following information: a. A copy of the orga.mznuon's most recent audited financial statement (i.e., current balance sheet and income and expense statement for the-orgamzatlon's last fiscal period), as well as a complete copy of any federal tax return filed by the organization for the most recent year. b. A detailed listing of the current salaries and/or other compensation of the officers and d~rectors of the organization. In addition, please specify, ns to each officer or &rector so listed, the bas~s of the listed salary or comoensatmn h.e nnnuaIIv ncr lne~ttno ht~,,r]v entnmtec;~ ,~t~'. ~ DEC -12'O0(TLEI 09'05 /l BELCH CIT~ ATT1. TEL '5' 426-568' P. 006 c. List thc salary ranges ot' each employee position classification and list thc numbcr of full-time and part-tsmc cmployces in each such classification. d. Specify what percentage of the orgamzation's gross income was required to pay real and personal property taxes for each of the last three years. Ce Explain in detail why the City Council of the City of Virginia Beach should recommend to the General Assembly of Virginia that this organization should be exempt from real and personal taxation in the City of Virginia Beach. Please hst m your explanation the services provided by the orgamzation. 20. Has the organization contacted any member of the General Assembly about sponsoring legislation that would designate the organizatmn's property as exempt from local taxation7 Yes This form was prepared by /.~,4,e~. ,t. &'O~ad~-,.-.v , whose title ,,,,nth the organization ~s f//' (.. (Signature) DEC -12 OOiTLE) 09 05 iA BE-iCH CiT) -~TT~ TEL '5' ,126-568' P. O0' Title STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: · being duly sworn, deposes and says tha~he ~s the.=_= · (legal name of ownership organization) named in the within entitled application; that he has read the foregoing information sheet and Imows the contents thereof; and that the same is true to his own knowledge except as to the matters herein stated to be alleged upon information and belief, and as to those matters he believes it to be true. Subscribed and sworn to before me this My Commission Expires UJFT COMMUNITY CAMPUS, L.L.C. APPLICATION TO CITY OF VIRGINIA BEACH FOR EXEMPTION FROM REAL AND PERSONAL PROPERTY TAXATION ATTACHMENT I~em 2: Purposes UJFT Community Campus, L.L.C. (the "Organization") is a Virginia nonprofit limited liability company that received its certificate of organization from the Virginia State Corporation Commission on May 8, 2000. The Organization is a religious and charitable limited liability company as defined in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"). Its purpose is to own and manage real property for other religious, charitable and educational organizations to assist such organizations in carrying out their tax-exempt purposes. Item 3: Activities and Accomplishments As stated above, the Organization's activities have been limited to activities related to its formation under state law. The Organization has not engaged in any other activities. Item 4: Location of All Real and Personal Property for which Exemption is Sought The Organization currently does not own any real or personal property. It is anticipated at present that the Organization will acquire an eight (8) acre parcel of real property located at 1244 Thompkins Lane, Virginia Beach, Virginia, as described in Item 5 of this Application. This property is currently owned by Tidewater Jewish Foundation, Inc. and is exempt from local real estate taxation. It is also anticipated that the Organization may acquire additional real property in the City of Virginia Beach at some future date. Parcels of real property that may be acquired at a future date may be owned by organizations whose property already is currently exempt, so that those transfers would not affect local real property tax collections. Other parcels that may be acquired in the future may be owned by other organizations that are not exempt from local taxation, and their transfer to the Organization may cause those properties to be come exempt from local taxation. It also is anticipated that the Organization may acquire tangible personal property, such as office furniture and equipment and other equipment (e.g., lawn equipment, building maintenance equipment and tools) for the maintenance and upkeep of property that it will acquire, for its agents to use in carrying out the exempt purposes of the Organization. Item 5: Present Tax Assessment Information As indicated above, the Organization does not currently own any parcels of real property. However, the Organization may acquire a certain undeveloped eight (8) acre parcel of real property located at 1244 Thompkins Lane, Virginia Beach, Virginia, currently owned by Tidewater Jewish Foundation, Inc., mentioned in Item 4, above. The following information is provided: Property GPIN: Assessed Value: Land: Improvements Total Assessed Value: 1466 2051 74 0000 $320,000.00 $320,000.00 $320,000.00 $320,000.00 Item 6: Current Use for Real Property There is no specified current use for the parcel of real property described in Item 4, above. The parcel is an undeveloped site that is used by Hebrew Academy of Tidewater and by students at Hebrew Academy of Tidewater fi.om time to time for recreational and social activities. Item 6(a): Use of Real Property by Other Individual, Association or Corporation The parcel of real property described in Item 4, above, is used by Hebrew Academy of Tidewater and by students at Hebrew Academy of Tidewater, a Section 501(c)(3) organization. The property is used for recreational and social activities of Hebrew Academy of Tidewater and its students. There is no building on the property and no other improvements have been made to the property. Item 6(b): Income Derived from Use of Real Property No income is derived by the Organization, Tidewater Jewish Foundation, Inc. or by Hebrew Academy of Tidewater from the use of the property. Tidewater Jewish Foundation, Inc., the current owner, does not impose any charges for the use of the property. Item 7: Present Tax Assessment for Personal Property for which Exemption is Souv.,ht As indicated above, the Organization does not currently own any personal property, and as a result, there is no present tax assessment for personal property of the Organization. It is anticipated that the Organization will only own personal property that will be used for administrative purposes or in connection with the maintenance of property owned by the Organization. Item 8: Purpose for the Use of Personal Property As indicated above, the Organization does not currently own any personal property. It is anticipated that the Organization will use its personal property for its exempt purposes, including, but not limited to, the maintenance of property owned by the Organization or that will be used in the Organization's offices, such as office furniture and equipment or lawn mowers or other equipment used for the upkeep of property. Item 9: Exemption fi.om Federal Income Tax The Organization has not yet applied for recognition of its exempt status under Section 501(c)(3) of the Code. It is anticipated that the Organization will apply for and receive a determination letter fi.om the Internal Revenue Service recognizing the Organization's exemption fi'om federal income tax under Section 501(c)(3) of the Code. Item 13: Financial Support To date, the Organization has not engaged in any fundraising activities. The Organization has received funds in the form of a contribution fi.om Tidewater Jewish Foundation, Inc. to permit the Organization to prepare and file its Articles of Organization with the State Corporation Commission of Virginia and to obtain its certificate of organization from the State Corporation Commission. Item 14: Provision of Services for the Common Good The Organization anticipates that it will own and maintain property on behalfofa number of charitable and religious organizations in the City of Virginia Beach. These other organizations provide a broad mxay of charitable services for residents of the City of Virginia Beach and the Tidewater community. These organizations are not specifically formed to own and maintain real property. The Organization will be able to own and maintain real property that can be used by these other organizations in an economic and efficient manner, thus freeing up more of those organizations' resources to carry out their exempt purposes. By relieving the burden on these other organizations of the responsibility for the maintenance and upkeep of real property used by the organizations, the Organization increases the organizations' abilities to serve the community at large, and thereby the Organization provides a benefit to the common good of the public. Any cost of providing this service has not yet been determined but will be reasonable in all regards. Item 17: Discrimination The Organization has no rule, regulation, policy or practice that discriminates on the basis of religious conviction, race, color, sex or national origin and does not discriminate on such bases. It is anticipated that the Organization will primarily assist other organizations whose missions benefit the Jewish community of Virginia Beach and Tidewater, Virginia in general, but neither the Organization nor such other organizations discriminate on the grounds of religious conviction, race, color, sex or national origin. Item 18: Officers/Managers The Organization's manager is Mark Goldstein, 5029 Corporate Woods Drive, Suite 225, Virginia Beach, Virginia 23462. Item 19: Requested Information (a) The Organization does not currently have audited financial statements, as the Organization was formed less than eight (8) months ago and its only activities have been connected with its formation under Virginia law. (b) The Organization does not pay compensation to any person currently. (c) The Organization has no employees currently and does not have a salary range or any employee classifications. (d) The Organization has been in existence for eight (8) months. The Organization currently owns no real property and no personal property and has not generated any gross income.. As a result, zero percent (0%) of the Organization's gross income has been required to pay real and personal property taxes over the last three (3) years. (e) The City Council of the City of Virginia Beach should recommend to the General Assembly of Virginia that the Organization should be exempt from real property and personal property taxation in the City of Virginia Beach because the Organization provides a significant benefit to many religious and charitable organizations that operate in the City of Virginia Beach. It is anticipated that the Organization will hold certain properties that already are exempt from local taxation, although it may acquire other properties that will not be exempt under their current ownership. The Organization will carry out a number of functions relating to the ownership, maintenance and upkeep of real and personal property ora number of nonprofit organizations, thus freeing up more resources of these organizations to directly benefit the citizens of the City of Virginia Beach. The Organization will be a diligent steward of the real and personal property and thus will achieve operating efficiencies in holding and operating the property for the good of many exempt organizations and thus, the public at large. The provision of benefits by these organizations and by the Organization thus lessens the burdens of government and contributes substantially to the quality of life of all residents of the City of Virginia Beach. A RESOLUTION AUTHORIZING THE ISSUANCE OF UP TO $5,800,000 IN HOUSING REFUNDING REVENUE BONDS FOR THE ROYAL PO1NTE APARTMENTS PROJECT LOCATED IN THE CITY OF VIRGINIA BEACH, VIRGINIA WHEREAS, the City of Virginia Beach Development Authority of ("Authority"), has considered the application of Grayco Inc. requesting the issuance of the Authority's revenue bonds m an amount not to exceed $5,800,000 ("Bonds") to assist in refunding and extending the maturity ofthe Authority' s Housing Refunding Revenue Bonds (Royal Polnte Apartments Investors ProJect) Series 1996 (the "1996 Bonds") previously issued by the Authority in the original principal amount of $6.5 million for the Royal Polnte Apartments project, an existing 208-unit multi-family residential rental complex (the "ProJect") located in the City of Virginia Beach, Virginia and has held a public hearing on December 19, 2000 WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), provides that the governmental unit having jurisdiction over the issuer of private activity bonds and over the area in which any facility financed with the proceeds of private activity bonds is located must approve the issuance of the bonds, WHEREAS, the Authority issues its bonds on behalf of the City of Virginia Beach, Virginia ("City"); the Project is located in the City and the City Council of the City of Virginia Beach, Virginia ("Council") constitutes the highest elected governmental unit of the City; WHEREAS, the Authority has recommended that the Council approve the issuance of the Bonds; and WHEREAS, a copy of the Authority's resolution approving the issuance of the Bonds, subject to the terms to be agreed upon, a certificate of the public hearing and a Fiscal Impact Statement have been filed with the Council. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: The Council approves the issuance of the Bonds by the Authority, as required by Section 147(0 of the Code and Section 15.2-4906 of the Code of Virginia of 1950, as amended ("Virginia Code") to permit the Authority to assist in the financing of the Project. The approval of the issuance of the Bonds does not constitute an endorsement to a prospective purchaser of the Bonds of the creditworthiness of the Project or the applicant. This resolution shall take effect immediately upon its adoption. Adopted by the City Council of the City of Virginia Beach, Virginia this February, 2001. 6th day of Clerk, City Council of the City of Virginia Beach, Virginia [SEAL] APPROVED AS TO LEGAL SUFFICIENCY. City Attorney's Offic~ F \Data\ATY\Forms\DEVAUTH\BOND\WORK\ca7943 res *\41341 1 VIRGINIA V~rg~ma Beach Development Author~ly One Columbus Center, State 300 Vlrg~ma Beach, VA 23462 (757) 437-6464 FAX (757) 499-9894 Webstte www wrg~ma-beach va us/deptJecondev Ia-mad ecdev@c~ty wrg~ma-beach va us December 19, 2000 The Honorable Meyera E. Obemdorf, Mayor Members of City Council Mumclpal Center Virginia Beach, VA 23456 Re. Grayco, h~c, a Vtrgtnta corporatton (Royal Potnte Apartments ProdecO Revenue Bonds Dear Mayor Oberndorf and Members of City Council. We submit the following in connection w~th the Royal Pointe Apartment ProJect located at 1749 Lacrosse Drive in the City of Virginia Beach, Virginia. (1) Evidence of publication of the notice of hearing is attached as Exhibit A , and a summary of the statements made at the public hearing ~s attached as Exhibit B The City of Virginia Beach Development Authority's (the "Authority") resolution recommending Council's approval is attached as Exhibit C (2) The Disclosure Statement is attached as Exhibit D (3) The statement of the Authonty's reasons for its approval as a benefit for the C~ty of Virginia Beach and its recommendation that City Council approve the mod~ficatmn of the bonds described above is attached as Exhibit E (4) The F~scal Impact Statement is attached as Exhibit F The Honorable Meyera E. Oberndorf, Mayor Members of City Council December 19, 2000 Page 2 (5) Attached as Exhibit G is a summary sheet setting forth the type of issue, and identifying the ProJect and the principals. (6) Attached as Exhibit H is a letter from the appropriate City department commenting on the ProJect. GLF/mlg Enclosures Very truly yours, EXHIBIT A NOTICE OF PUBLIC HEARING ON PROPOSED REVENUE BOND FINANCING BY CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY Not~ce ~s hereby g~ven that the C~ty of V~rg~ma Beach Development Authority ("Authority") w~ll hold a pubhc heanng at the request of Grayco, Inc, R~chmond, V~rg~ma (the "Apphcant") on the proposed ~ssuance by the Authority of approximately $5,800,000 of ~ts ~evenue bonds for the purpose of refinancing and extending the maturity of refunding revenue bonds prewously ~ssued by the Authority ~n the original pnnc~pal amount of $6.5 milhon ~n 1996 for the Royal Pomte Apartments project, an existing 208-umt multi-fmmly residential rental complex (the "ProJect") located at 1749 Lacrosse Drive ~n the C~ty of Vlrgima Beach, V~rgima. The Apphcant has entered ~nto a contract to purchase the Project from its emst~ng owner Upon completion of the sale m January 2001, the Apphcant wall cause the ProJect to be owned by Gray Property 1504 LLC, a V~rgm~a lnmted hab~hty company, whose address ~s c/o Grayco Inc., 5004 Monument Avenue, R~chmond, Vlrgmza 23230, which wall be formed by Gray Holdings LLC for the sole purpose ofowmng the ProJect The ~ssuance of revenue bonds as requested by the Apphcant will not conshtute a debt or pledge of the froth and credit of the Commonwealth of Virg~ma or the C~ty of Virg~ma Beach, V~rg~ma, and nmther the froth and credit nor the taxing power of the Commonwealth of V~rgima or any poht~cal subd~wsion thereof will be pledged to the payment of such bonds. The pubhc heanng, wluch may be conhnued or adjourned, wall be held at 8:30 a m on December 19, 2000, before the Authority, ~n Suite 300, at One Columbus Center, tn V~rgm~a Beach, V~rg~ma 23462 Any person interested in the ~ssuance of the bonds or the ProJect may appear at the heanng and present h~s or her wews Information regarding the Apphcant is on file and ~s open for mspechon at the Authonty's office at the address g~ven above dunng business hours A-1 Exhibit A THE VIRGINIAN-PILOT NORFOLK, VIRGINIA AFFIDAVIT OF PUBLICATION The Virginian-Pilot .................................................. + ........................... MCGUIRE WOODS BATTLE 901 EAST CARY STREET ONE JAMES CENTER RICHMOND, VA 23219 REFERENCE 10005988 741439 NOTICE OF PUBLIC HEA State of Virgmnla City of Norfolk This day, D Johnson personally appeared before me and after being duly sworn, made oath that 1) She is affldavzt clerk of The Vmrginlan-Pilot, a newspaper published by Landmark Communzcations Inc , in the cmties of Norfolk, Portsmouth, Chesapeake, Suffolk, and Virgmnia Beach, State of Virginza 2) That the advertisement hereto annexed has been published in said newspaper on the date stated NOTICE OF PUBUC HEA,R~ ON PROPOSE~ REVENUE BOND RIIIMIP.,IN~ Bt' CITY OF VIRGINIA BEACH D~q/Eu)I~M~T AUTHORITY Nobce is hereby given that the City of Virginia Beech Development Authority ('Authority") will hold e public hearing et the request of Grayco, Inc, R~chmond, Virginia (the "Apphcent') on the proposed issuance by the Authority of approximately $5,800,000 of Its revenue bonds for the purpose of refinancing end extending the maturity of refunding revenue bonds prevlouely Issued by the Authority in the original principal amount of $6 5 million in 1996 for the Royal Pointe Apartments ~oJect, an existing 208-unit multi family residential rental complex (the 'Project") located at 1749 Lecrossa Drive m the City of Virginia Beach. V~rgime The Applicant has entered Into e contract to pumhase the Project from Its axlstln~ owner Upon completion of the sale in January 2001. the Applicant will cause the Project to be ovmed by Grey Property 1504 LLC. a Virginia limited liability company, whose address Is c/o Grayco Irtc. 5004 Monument Avenue. Richmond. VIr .Inla 23230. which will be formed by Gray Holdings LLC for the sole purpose of owning the Project The issuance of revenue bonde es requested by the Apohcant will not constitute a debt or pledge of the faith end credit of the Common wealth of Virginia or the City of Virginia Beach. Virginia. end neither the faith and credit nor the taxing power of the Commonwealth of Virginia or any political subdivision thereof will be pledged to the payment of such bonds The pubhc hearing, which may be continued or adjourned, will be held at 8 30 a m on December 19. 2000. before the Authority. In Suite 300. at One Columbus Center. In Virginia Beech. Virglma 23462 Any person interested In the issuance of the bOndS or the Project may appear at the hearing and present his or her v~ews Information regarding the Applicant is on file and Is open for inspection at the Authonty's office at the address given above during business hours City of Vlr,[Inle Beach Development Authority ' VP December 5 and December 12.2000 PUBLISHED ON 12/05 12/12 TOTAL COST 458 80 AD SPACE 74 LINE FILED ON 12/15/0Q ........................ ~ .................. + ........................... Legal Affiant ,, f~'~l~J'Jl/l~'~'[~.~ Subscribed and sworn to bef~e..me ~n my.c~ty and state on the day and year aforesa~his ~ day of/- EXHIBIT B C~ty of V~rgm~a Beach Development Authority Record of Pubhc Heanng on December 19, 2000 (Royal Po~nte Apartment Investors ProJect) The chmrman of the C~ty of V~rg~ma Beach Development Authority (the "Authority") announced the commencement of a pubhc heanng on the request of Grayco Inc. on behalf of Gray Property 1504 LLC as the borrower (the "Borrower"), and that a not~ce of the heanng was pubhshed once a week for two consecutive weeks m the V~rgiman P~lot, a newspaper hawng general c~rculat~on ~n the C~ty of V~rg~ma Beach, V~rg~ma. Such pubhc heanng was held not less than s~x days and not more than 21 days after the second not~ce appeared ~n such newspaper. A copy of the not~ce and certfficate of pubhcat~on of such notice have been filed with the records of the City Councd of the C~ty of V~rg~ma Beach The following md~wdual appeared and addressed the Authority at such public heanng: Charles Ewmg, President of Grayco Inc, appeared before the Authority at the pubhc heanng to describe the ProJect and answer any questions. He explmned that Grayco Inc., through Gray Property 1504 LLC, a company to be formed by Grayco, lnc, was seeking to refinance emst~ng revenue bonds ~ssued by the Authority for the Royal Po~nte Apartments project The refinancing would occur w~tlnn s~x months to one year after the acquisition of the project wluch ~s expected to be completed ~n January or February 2001. It was explmned that because the refinancing would extend the maturity of the original bonds, a pubhc heanng was necessary under the Internal Revenue Code. Questions were called for and none were forthconung. The Chmrman then closed the pubhc heanng No other persons appeared to address the Authority, and the Chamnan closed the pubhc hearing The Authority hereby recommends that the C~ty council of the C~ty of Virg~ma Beach, V~rg~ma approve the ~ssuance of the proposed financing and hereby transmits the Ftscal hnpact Statement to the C~ty Council of the C~ty of V~rg~ma Beach and asks that this recommendation be received at ~ts next regular or special meeting at which tlus matter can be properly placed on the CouncWs agenda for heanng B~I EXHIBIT C RESOLUTION OF THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY CONCERNING THE ISSUANCE OF UP TO $5,800,000 REVENUE BONDS FOR THE PURPOSE OF REFUNDING BONDS FOR THE ROYAL POINTE APARTMENT PROJECT WHEREAS, the City of Virginia Beach Development Authority, a political subdivision of the Commonwealth of Virginia (the "Authority"), has been created and is existing under Chapter 643 of the Vlrglma Acts of Assembly of 1964, as amended (the "Act"), and is empowered by the Act to, among other things, issue its revenue bonds to refund bonds previously issued by the Authority; WHEREAS, the Authority has received a request from Grayco Inc., Richmond, Virginia, a Virginia corporation (the "Applicant") requesting that the Authority issue its revenue bonds to assist in refunding and extending the maturity of the Authority's Housing Refunding Revenue Bonds (Royal Pointe Apartments Investors ProJect) Series 1996 (the "1996 Bonds") previously issued by the Authority in the original principal amount of $6.5 million for the Royal Pointe Apartments project, an existing 208-umt multi-family residential rental complex (the "ProJect") located in the City of Virginia Beach, Virginia, WHEREAS, the Authority adopted a resolution on November 21,2000 approving the request of the Applicant to purchase the Project through a limited liability company to be formed and assume the obligations of the current owner related thereto, including the current owner's obligations with respect to the 1996 Bonds; WHEREAS, preliminary plans for the refunding bonds have been described to the Authority and a public hearing has been held as required by Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), and Section 15 2-4906 of the Act; WHEREAS, the Applicant has represented that the refunding will require an issue of revenue bonds in the aggregate principal amount not to exceed $5,800,000, and the Applicant desires that such bonds have a term to maturity of up to forty years to the extent permitted by law, NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY 1. It is hereby found and determined that refunding and extending the maturity of the 1996 Bonds for the ProJect will be in the public interest and will promote the commerce, safety, health, welfare, convenience or prosperity of the Commonwealth of Virginia, the City of Virginia Beach, Virginia and their citizens 2. The Authority hereby agrees to assist the Applicant or its assignee by undertaking the issuance of its refunding revenue bonds in an amount not to exceed $5,800,000 for a term to maturity of up to forty years to the extent permitted by law upon terms and conditions mutually agreeable to the Authority and the Apphcant, such terms and conditions to be set forth tn documents satisfactory to the Authority pursuant to which the bonds will be ~ssued and which shall be approved by subsequent resolution of the Authority. The bonds may be issued in one or more series at one t~me or from time to t~me. 3. At the request of the Applicant, the Authority approves McGmreWoods LLP, Richmond, Vtrgtma, as Bond Counsel and Newman & Associates as Underwriter and Remarketlng Agent in connection with the Issuance of the bonds. 4 All costs and expenses tn connection w~th the Project, including the fees and expenses of the Authority, shall be paid by the Applicant or, to the extent permttted by applicable law, from the proceeds of the proposed bonds. If for any reason such proposed bonds are not issued, tt is understood that all such expenses shall be pard by the Apphcant or tts asstgnee and that the Authority shall have no responsibdtty therefor 5. The Authority recommends that the City of Vtrglnia Beach, Virglma, approve the tssuance of the bonds 6. Tins resolution shall take effect immediately upon its adoption. V~ff~enrlta BG .e~am~ern t Au t h °ri tY Exlnb~t D DISCLOSURE STATEMENT Apphcant Grayco, Inc on behalf of Gray Property 1504 LLC All owners (if different from applicant) None Type of Application Not to exceed $5,800,000 Industrial Development Revenue and Refunding Bonds to refund existing bonds issued m 1996 by the City of Virginia Beach Development Authority for the Royal Pomte Apartments Project The bonds were initially issued for the benefit of Royal Pointe Apartment Investors which has agreed to sell the project to Grayco, Inc which will form Gray Property 1504 LLC for the sole purpose of owning the project I If the apphcant is a corporation, l~st all of the officers of the corporation Gray Property 1504 LLC Officers Elmon Gray, President Bruce B Gray, Treasurer Horace A Gray, Secretary Garland Gray, III, Assistant Secretary 2 If the applicant is a corporation, list all of the directors of the corporation The applicant is a member managed Virginia limited habllity company w~th sole member being Gray Holdings LLC The applicant does not currently own the project It expects to purchase the project on or about March 1, 2001 GRAYCO, 1NC on behalf of the applicant By ~~b~ Charles Ewing, Presid~nt~~ VIRGINIA Exhibit E Virgmm Beach l)evelopmenl Aulhtmty One Columbus Center, State 300 V~rg~ma Beach, VA 23462 (757) 437-6464 FAX (757) 49%9894 Webs~te www v~rgm~a-beach va us/dept/econdev ~-mad ecdev@city mrgm~a-beach va us CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY REFUNDING REVENUE BONDS (ROYAL POINTE APARTMENTS PROJECT) SERIES 1996 The City of Vlrglma Beach Development Authority has conducted a public hearing and granted prelmunary approval on Grayco, Inc's proposal to provide for the refunding of the Authorlty's Housing Refunding Revenue Bonds (Royal Polnte Apartments Investors ProJect) Series 1996 issued in the original aggregate pnnclpal amount of $6.5 mflhon and to extend the maturity of such bonds ~n connection with the refunding The Authority finds that the project will assist in mmntalnlng affordable housing units within the City of V~rglnla Beach, V~rg~ma and will foster economic development by prowd~ng housing for a d~versffied workforce. Exlnb~t F FISCAL IMPACT STATEMENT FOR PROPOSED BOND FINANCING To the City Council of Virglma Beach, V~rgima Apphcant: Facility: 1. Maximum amount of financing sought 5,800,000 . Estimated taxable value of the facility's real property to be constructed in the municipality. 7,568,900 o . Estimated real property tax per year using present tax rates Estimated personal property tax per year using present tax rates. 92,341 344 , Estimated merchants' capital tax per year using present tax rates. N/A 6.(a) Estimated dollar value per year of goods that will be purchased from Virginia compames w~thm the locality. 18,000 (b) Estimated dollar value per year of goods that will be purchased from non-V~rgima compames w~th~n the locality. 73,000 (c) Estimated dollar value per year of services that will be purchased from Virginia companies within the locality. 334,000 (d) Estimated dollar value per year of serwces that will be purchased from non-V~rginia compames within the locahty. 56,000 , Estimated number of regular employees on year round bas~s. o Average annual salary per employee. 22,000 Chmr¢~, ~2i-t~ ~~a Beach Development Authq~nty Robert G. Jones Exhibit G SUMMARY SHEET CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY INDUSTRIAL DEVELOPMENT REVENUE BOND Project Name. Royal Pmnte Apartments , Locatmn: Virginia Beach, VA 23454 Descnptlon of Project. To assist in refunding and extending the maturity of the Authonty's Housing Refunding Revenue Bonds (Royal Pointe Apartment Investors Project), Series 1996 Amount of Bond Issue' Not to exceed $5,800,000 Principals' Gray Property 1504 LLC Elmon T. Gray - President Bruce B. Gray - Treasurer Zomng Classlficahon: a Present zoning classification of the Property Residential Apartment Complex b Is rezomng proposed? If so, to what zoning classlficanon? Yes No X N/A DEPARTMENT OF HOUSING AND NEIGHBORHOO0 PRESF_RVATION (757) 426 5750 FAX (757) 426 5766 TDD (757) 426 5794 CODE ENFORCEMENT DIVISION (757) 427 4421 MUNICIPAL CENTER BUILDING 18A 2424 COURTHOUSE DRIVE VIRGINIA BEACH VA 23456-9083 November 17, 2000 Chairman, Virginia Beach Development Authority One Columbus Center, Suite 300 %rginia Beach, VA 23462 FAX# 499-9894 Gary Fentress, Esq. Office of the C~ty Attorney Municipal Center FAX# 563-1167 RE' Evaluation of Public Benefit Royal Pointe Apartment Project 1749 La Crosse Drive/208 Units Multi-family Housing VBDA Agenda November 21, 2000 I have reviewed the information provided regarding the above referenced project. In my opinion a public benefit ~s achteved by ensuring that 20% of the 208 apartments will be set aside for tenants whose ~ncomes are 80% of median gross ~ncome as adjusted for family s~ze as determined by HUD. Please let me know if you need anything further regarding this issue. Thank you. Sincerely, I~lrector .' rrl~3man · Proud Rectp~ent of the 1908 U S Se~mte Medalhon of Excellence for Produchvtty a~td ~/ahty m the Pubhc Sector VA r Illr~ ! 7O ooo ~ T Jom~ Map ~ ~, ~ ~o ( \ : - 22 - Item V-I. 3. RES OL UTIONS/ORDINANCES ITEM # 4 7712 The followtng spoke tn SUPPORT of the Resolutton Re Ntmmo Parkway Fred Green, 316 Teal Crescent 23456, Phone 426-6867 Wesley Petttcrew, 308 Swordfish Lane 23456, Phone 426-5221 Eve Estes Butts, Back Bay Restoration Foundation, 2724 Blue Bdl Drive 23456, Phone 426-3643 Henry Gardner, Vtce Prestdent- Sandbrtdge Ctvtc League, 2961 Sandfiddler Road 23456, Phone 721-3809 Admtral Dtck Dunleavy, 2220 Sandfiddler Road 23456, Phone 426-0225 Stephante Van Horn, 2401 Entrada Drive, 23456, Phon 426-8886 Herb Jones, 2313 Sandptper Road 23456, Phone 721-1103, suggested destgnattng Sandbrtdge Road as a Scemc Bypass Btll Brown, 2232 Sandptper Road 23456, Phone 721-5011 Don Ashby, 313 Ptckerel Lane, 23456, Phone 426-6635 Wynne Rentz, 2580 Atwoodtown Road, 23456, Phone 426-8447 Steve Howell, 2580 Atwoodtown Road, Phone 426-844 7 Nancy Grtffith, Member - Vtrgtma Beach Audubon Society, 1000 Belvotr Lane, Phone 366-6426 The followtng spoke tn OPPOSITION to the Resolutton and selhng the rtght-of-way Edward Garcta, Jr, Prestdent, False Cape Enterprtses, 2209 Commerce Pkwy 23454, Phone 340-1617 Captatn John Davey, Homeowners of Lotus Creek Ct, 720 Lotus Creek Drtve 23456, Phone 426-6763 Dean DaStlva, Prestdent- Vtrgtnta Beach Professtonal Ftrefighters, 3419 Va Beach Blvd - #B3 23452, Phone 431-3728 Jtm Reeve, 1476 Lotus Drtve 23456, Phone 721-1019 Chandler Dennis, 2212 Sandptper Road 23456, Phone 426-2612 Ben Cohen, Prestdent- Largo Mar Ctvtc League, 889 Los Colonts Drtve 23456, Phone 560-6580 Helen McDonald, 2360 Sandfiddler 23456, Phone 426-6653 Ann Henley, 3112 Colechester Road 23456 Carl Strass, Retired Envtronmental Attorney, 2828 Bluebtll Drtve 23456, Phone 721-3931 Jane Bloodworth Rowe, 608 Ocean Lake Drtve 23454, Phone 426-3053, presented 76 stgned pettttons Wdham A Smtth, 2533 Level Loop Road 23456, Phone 721-6907 Jack Gtbson, 2540 Entrada, 23456, Phone 426-3216, requested DEFERRAL to study tmpact Paula Gtbson, 2540 Entrada Drtve, 23456Phone 426-3216 Attorney Carl Eason, 1100 One Columbus Center 23462, Phone 497-6633, represented 35 homeowners Ltst of the homeowners ts hereby made a part of the record Maxtne C Graham, 3057 S Sandptper Road 23456, Phone 721-3000, presented 107 stgned pettttons Reece F Luket, Jr, 1046 Azalea Court, Phone 340-5948, expressed concerns relattve floodtng resulttng from a second roadway February 6, 2001 - 23 - Item V-L$. RES OL UTIONS/ORDINANCES ITEM ft 47712 (Continued) A motion was made by Council Lady Henley, seconded by Vice Mayor Sessoms to ADOPT a Resolution to declare NIMMO PARKWAY (formerly known as FERRELL PARKWA Y) shall have its eastern terminus at Atwoodtown Road and shall not be constructed east of Atwoodtown Road; and AUTHORIZE and DIRECT the City Manager to execute the Memorandum of Understanding between the City and the United States Fish and Wildlife Service and the Letter of Intent between Lotus Creek Associates, the United States Fish and Wildlife Service and the City. A motion was made by Councilman Harrison, seconded by Council Lady Parker to AMEND the Resolution adding verbiage after the lastparagraph: "that Nimmo Parkway right-of-way shouM be vacated, and to sell a portion of the closed Nimmo Parkway right-of-way to the United States Fish and Wildlife Service". A SUBSTITUTE MOTION was made by Council Lady McClanan, seconded by Council Lady Eure to DEFER the Resolution to declare NIMMO PARKWAY (formerly known as FERRELL PARKWA Y) shall have its eastern terminus at Atwoodtown Road and shall not be constructed east of Atwoodtown Road until such time as the Corps of Engineers has completed its full professional and objective review and given a decision on the City's permit application for Ferrell Parkway VI and VII alignments. Voting: 3-7 (MOTION LOST TO A NEGATIVE VOTE) Council Members Vottng Aye' Margaret L Eure, Reba S McClanan and Rosemary Wilson Council Members Voting Nay: Linwood 0 Branch, III,, William W Harrison, Jr., Barbara M Henley, Robert C. Mandigo, Jr, Mayor Meyera E Oberndorf Nancy K. Parker and Vtce Mayor William D. Sessoms, Jr. Council Members Abstaining: Louis R Jones Council Members Absent. None. Councilman Jones DISCLOSED andABSTAINED as he has an ownership interest in Resource Bankwhich exceeds 3% of the asset value of the bank. Resource Bank holds a note on the Lotus Creek property. While this resolutton does not specifically address the Lotus Creek property, this issue has not been resolved yet and there sttll might be some connection between the sale of the Nimmo Parkway right-of-way to the Lotus Creek issue. Councilman Harrison DISCLOSED he is a partner in the law firm of Willcox & Savage, and receives income from the firm which exceeds $ I O, 000 annually In the past, his firm has represented Dan Hoffler, one of the partners of Lotus Creek Associates, and it is reasonably foreseeable that Lotus Creek Associates could realize a direct or indirect benefit or detriment as a result of any action take by City Council on proposed plans for the extension of Nimmo Parkway south of General Booth Boulevard However, the matters on which his firm represented Mr Hoffler were non-commercial matters, and neither his firm nor he represents, or has represented, Lotus Creek Associates. Additionally, he has never personally represented Mr Hoffler, and hts firm does not presently represent Mr Hoffler on any matter The City Attorney has advised that his firm's past representation of Dan Hoffler does not cause him to have a personal interest in Lotus Creek Assoctates and therefore, he may participate In City Council's discussion and vote. He is able to partlclpate in such transactions fairly, objectively and in the pubhc's best interest. February 6, 2001 - 24 - Item V-L$. RESOLUTIONS/ORDINANCES ITEM # 47712 (Continued) Upon moaon by Councdman Harrison, seconded by Councd Lady Parker, the Resoluaon shall be AMENDED adding verbtage after the last paragraph "that Ntmmo Parkway rtght-of-way shouM be vacated, and to sell a poraon of the closed Ntmmo Parkway right-of-way to the Umted States Ftsh and Wddhfe Servtce" Vottng 7-3 Councd Members Voang Aye Ltnwood 0 Branch, III,, Wdham W Harrison, Jr, Barbara M Henley, Robert C Man&go, Jr, Mayor Meyera E Oberndorf, Nancy K Parker and Vtce Mayor Wdham D Sessoms, Jr Counctl Members Vottng Nay Margaret L Eure, Reba S McClanan and Rosemary Wdson Councd Members Abstatntng Louts R Jones Councd Members Absent None Councdman Jones DISCLOSED and ABSTAINED as he has an ownershtp tnterest tn Resource Bank whtch exceeds 3% of the asset value of the bank Resource Bank holds a note on the Lotus Creek property Whale thts resolutton does not spectfically address the Lotus Creek property, thts tssue has not been resolved yet and there stdl mtght be some connectton between the sale of the Ntmmo Parkway right-of-way to the Lotus Creek tssue Councdman Harrison DISCLOSED he ts a partner tn the law firm of Wdlcox & Savage, and recetves tncome from the firm whtch exceeds $1 O, 000 annually In thepast, hts firm has represented Dan Hoffler, one of thepartners of Lotus Creek Assoctates, and tt ts reasonably foreseeable that Lotus Creek Assoctates could reahze a dtrect or tndtrect benefit or detrtment as a result of any acaon take by City Councd on proposed plans for the extenston of Ntmmo Parkway south of General Booth Boulevard However, the matters on whtch hts firm represented Mr Hoffler were non-commerctal matters, and netther hts firm nor he represents, or has represented, Lotus Creek Assoctates Addtttonally, he has never personally represented Mr Hoffler, and hts firm does not presently represent Mr Hoffler on any matter The Ctty Attorney has advtsed that hts firm's past representatton of Dan Hoffler does not cause htm to have a personal tnterest tn Lotus Creek Assoctates and therefore, he may parttctpate tn Ctty Councd's dtscusston and vote He ts able to parttctpate tn such transacttons fatrly, objecttvely and tn the pubhc's best tnterest February 6, 2001 - 25 - Item V-I.$. RESOLUTIONS/ORDINANCES ITEM # 47712 (Continued) Upon motton by Counctl Lady Henley, seconded by Vtce Mayor Sessoms, Ctty Counctl ADOPTED, AS AMENDED*: Resolutton to declare NIMMO PARKWAY OCormerly known as FERRELL PARK}VA Y) shall have tts eastern termtnus at Atwoodtown Road and shall not be constructed east of Atwoodtown Road, and AUTHORIZED and DIRECTED the Ctty Manager to execute the Memorandum of Understanding between the City and the Umted States Ftsh and Wtldhfe Servtce and the Letter of Intent between Lotus Creek Assoctates, the Umted States Ftsh and Wtldhfe Servtce and the Ctty *Verbtage shall be added after the last paragraph That Ntmmo Parkway rtght-of-way should be vacated, and to sell aportton of the closed Ntmmo Parkway rtght-of-way to the Untted States Fish and Wtldhfe Servtce Vottng 7-3 Counctl Members Vottng Aye Ltnwood 0 Branch, III,, Wtlham W Harrtson, Jr, Barbara M Henley, Robert C Mandtgo, Jr, Mayor Meyera E Oberndorf Nancy K Parker and Vice Mayor Wdham D Sessoms, Jr Counctl Members Vottng Nay' Margaret L Eure, Reba S McClanan and Rosemary Wtlson Councd Members Abstatmng Louts R Jones Counctl Members Absent None Counctlman Jones DISCLOSED and ABSTAINED as he has an ownershtp interest tn Resource Bank whtch exceeds 3% of the asset value of the bank Resource Bank holds a note on the Lotus Creekproperty Whde thts resolutton does not specifically address the Lotus Creek property, thts tssue has not been resolved yet and there sttll mtght be some connectton between the sale of the Ntmmo Parkway rtght-of-way to the Lotus Creek tssue Counctlman Harrtson DISCLOSED he ts a partner tn the law firm of Wtllcox & Savage, and recetves tncome from the firm whtch exceeds $10,000 annually In thepast, hts firm has represented Dan Hoffler, one of thepartners of Lotus Creek Assoctates, and tt ts reasonably foreseeable that Lotus Creek Assoctates could reahze a dtrect or tndtrect benefit or detrtment as a result of any actton take by Ctty Counctl on proposed plans for the extenston of Ntmmo Parkway south of General Booth Boulevard However, the matters on whtch hts firm represented Mr Hoffler were non-commerctal matters, and netther hts firm nor he represents, or has represented, Lotus Creek Assoctates Addtttonally, he has never personally represented Mr Hoffler, and hts firm does not presently represent Mr Hoffler on any matter The Ctty Attorney has advtsed that hts firm's past representatton of Dan Hoffler does not cause htm to have a personal tnterest tn Lotus Creek Assoctates and therefore, he may parttctpate tn Ctty Counctl's dtscusston and vote He ts able to parttctpate tn such transacttons fatrly, objecttvely and tn the pubhc's best tnterest February 6, 2001 A RESOLUTION DECLARING THE INTENTION OF THE CITY COUNCIL THAT NIMMO PARKWAY (FORMERLY KNOWN AS FERRELL PARKWAY) SHALL HAVE ITS EASTERN TERMINUS AT ATWOODTOWN ROAD AND SHALL NOT BE CONSTRUCTED EAST OF ATWOODTOWN ROAD WHEREAS, the City's Master Transportation Plan, as 7 adopted on November 4, 1997, currently designates Nimmo Parkway 8 (formerly known as Ferrell Parkway) as terminating, in an easterly 9 direction, at Sandbridge Road; and 10 WHEREAS, on June 22, 1999, the City Council, by 11 Resolution, declared that "Ferrell Parkway shall be constructed 12 from General Booth Boulevard within the current Ferrell Parkway - 13 Phases VI and VII alignments;" and 14 WHEREAS, the United States Fish and Wildlife Service has 15 expressed a desire to purchase from the City the portion of the 16 Nimmo Parkway right-of-way lying between Atwoodtown Road and 17 Sandbridge Road, as well as a willingness to purchase certain 18 property, known as "Lotus Creek, Phases II and III" (hereinafter 19 "Lotus Creek Property"), from the owners thereof; and 20 WHEREAS, the Lotus Creek Property is the subject of an 21 approved Land Use Plan allowing the said Property to be developed; 22 and 23 WHEREAS, the said Lotus Creek Property was originally 24 rezoned from an agricultural zoning district classification (AG-1 25 and AG-2) to a residential zoning district classification (R-8) in 26 1980; and 27 WHEREAS, the R-8 zoning district classification was 28 amended to a PD-H2 Planned Unit Development designation in 1986, 29 and in connection therewith, a Land Use Plan governing the general 30 development of the Lotus Creek Property was approved at that time; 31 and 32 WHEREAS, the approved Land Use Plan was thereafter 33 amended in 1991 and 1994; and 34 WHEREAS, by reason of the aforesaid approvals and the 35 operation of law, the owners of the Lotus Creek Property have the 36 right to develop the Property, or a portion thereof, subject to 37 compliance with the approved Land Use Plan and with all existing 38 City, state and federal environmental and other regulations and 39 requirements; and 40 WHEREAS, the development of the Lotus Creek Property has 41 become imminent; and 42 WHEREAS, the City Council is of the opinion that the 43 development of the Lotus Creek Property would be detrimental to the 44 public interest, and that the Property, in its entirety, should be 45 maintained in its present natural state; and 46 WHEREAS, the only means by which the entirety of the 47 Lotus Creek Property may be preserved in its present natural state 48 is by the purchase of the said Property from the owners thereof; 49 and 50 WHEREAS, the willingness of the Fish and Wildlife Service 51 to purchase the Lotus Creek Property is contingent upon its 52 acquisition of the aforesaid portion of the Nimmo Parkway right-of- 53 way; and 54 WHEREAS, the Lotus Creek Property and the Nimmo Parkway 55 generalized alignment, as indicated on the City's Master 56 Transportation Plan, are located within the Ashville Bridge Creek - 57 Hells Point Creek - Scopus Marsh subwatershed, which constitutes 58 the major source of urban stormwater runoff into the Back Bay 59 watershed; and 60 WHEREAS, the Black Gut Natural Heritage Area, which lies 61 within the aforesaid subwatershed and is located in close proximity 62 to the Lotus Creek Property and adjoins the Nimmo Parkway 63 generalized alignment, contains exemplary freshwater marshes 64 supporting a high diversity of native plants and animals, including 65 two rare vegetative community types, three rare plant species and 66 five rare animal species; and 67 WHEREAS, protection of the Lotus Creek Property and 68 preservation of the Nimmo Parkway right-of-way in its natural state 69 east of Atwoodtown Road will help mitigate natural and human 70 threats to the Black Gut Natural Heritage Area and its respective 71 habitats, thereby reducing natural habitat destruction and loss; 72 and 73 WHEREAS, protection of the Lotus Creek Property from 74 development, along with preservation of the Nimmo Parkway right-of- 75 way in its natural state east of Atwoodtown Road, will also help 76 reduce nonpoint source pollution loadings to the Back Bay 77 watershed, including sediments, excessive nutrients and toxics such 78 as pesticides and herbicides; and 79 WHEREAS, the Ashville Bridge Creek - Hells Point Creek - 80 Scopus Marsh subwatershed serves as a headwater area to the larger 81 Back Bay watershed, and its importance was recognized in the Back 82 Bay National Wildlife Refuge Boundary Expansion Study, which 83 recommended enlargement of the refuge to include the Black Gut area 84 and adjoining properties, along with other properties, to help 85 safeguard wildlife resources residing permanently or seasonally in 86 the refuge; and 87 WHEREAS, the Lotus Creek Property adjoins lands 88 identified in the Back Bay National Wildlife Refuge Expansion 89 Study, and protection of this land in its natural state will afford 90 an additional buffer of protection to natural resources from the 91 adverse affects of development; and 92 WHEREAS, the Nimmo Parkway right-of-way east of 93 Atwoodtown Road traverses lands in the Back Bay National Wildlife 94 Refuge Expansion Study, and protection of this land in its natural 95 state will afford an additional buffer of protection to natural 96 resources from the adverse affects of urban development; and 97 WHEREAS, the City Council is of the opinion that a safe 98 and otherwise adequate roadway to Sandbridge may be obtained by 99 means other than the construction of Nimmo Parkway east of 100 Atwoodtown Road, such as by the construction of improvements to 101 Sandbridge Road; and 102 WHEREAS, the City Council has carefully considered all 103 available information, including public comment provided at a 104 public hearing held by the City Council on January 23, 2001; and 105 WHEREAS, the City Council is of the opinion that, for the 106 reasons stated, the public interest would best be served by 107 forbearing to construct Nimmo Parkway east of Atwoodtown Road; 108 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY 109 OF VIRGINIA BEACH, VIRGINIA: 110 That the City Council hereby declares its intention: 111 (1) that Nimmo Parkway (formerly known as Ferrell 112 Parkway) shall have its eastern terminus at Atwoodtown Road and 113 shall not be constructed east of Atwoodtown Road; 114 (2) that the Nimmo Parkway right-of-way should be 115 vacated; and 116 (3) to sell a portion of the closed Nimmo Parkway right- 117 of-way to the United States Fish and Wildlife Service. 118 BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF 119 VIRGINIA BEACH, VIRGINIA: 120 That the City Manager is hereby authorized and directed 121 to execute and deliver, on behalf of the City of Virginia Beach, 122 the Memorandum of Understanding between the City and the United 123 States Fish and Wildlife Service and the Letter of Intent between 124 Lotus Creek Associates, the United States Fish and Wildlife Service 125 and the City, which Memorandum of Understanding and Letter of 126 Intent were exhibited to the City Council on February 6, 2001. 127 Adopted by the Council of the City of Virginia Beach, 128 Virginia, on the 6TM day of February, 2001. 129 130 131 132 CA-7961 wmm\ ordres \nimmopkwy. res R-2 February 7, 2001 Item V-L4. RES OL UTIONS/ORDINANCES - 26- ITEM # 4 7713 Upon motton by Vice Mayor Sessoms, seconded by Counctlman Branch, Ctty Council ADOPTED: Resolutton re TRANSFER of Sectton 8 Annual Contrtbuttons Contract VA901 from the Vtrgtnta Houstng Development Authortty (VHDA) to the Ctty who will comply wtth aH the condtttons apphcable ustng funds as ortgtnally tntended, and, authortze the Ctty Manager to execute necessary documents Voting 11-0 (By Consent) Council Members Vottng Aye Ltnwood 0 Branch, III, Margaret L Eure, Wtlham W Harrtson, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Robert C Mandtgo, Jr, Mayor Meyera E Oberndorf Nancy K Parker, Vtce Mayor Wtlham D Sessoms, Jr and Rosemary PVtlson Counctl Members Vottng Nay None Counctl Members Absent None February 6, 2001 A RESOLUTION SUPPORTING AND APPROVING THE TRANSFER OF SECTION 8 ANNUAL CONTRIBUTIONS CONTRACT VA901 WHEREAS, the Section 8 program provides federal rental 9 subsidies to low-income households; 10 WHEREAS, the City of Virginia Beach receives Section 8 11 funding, both directly from the U.S. Department of Housing and 12 Urban Development ("HUD") and indirectly through the Virginia 13 Housing Development Authority ("VHDA"), pursuant to Section 8 14 Annual Contributions Contracts; 15 WHEREAS, the City's Department of Housing and 16 Neighborhood Preservation has recommended that the Section 8 Annual 17 Contributions Contract between HUD and VHDA be transferred from 18 VHDA to the City, thereby enabling the City to reap the various 19 benefits associated with operating one Section 8 program versus two 20 parallel programs; 21 WHEREAS, VHDA is agreeable to this proposed transfer; and 22 WHEREAS, HUD's consent to the transfer of the Annual . 23 Contributions Contract dated November 22, 2000, and designated as 24 number VA901, is subject to City Council's adoption of a resolution 25 agreeing that once the transfer is made, the City will continue to 26 comply with the conditions that were applicable to the funds when 27 they were provided to VHDA. 28 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 29 CITY OF VIRGINIA BEACH; 30 1. That City Council hereby supports and approves the 31 transfer of Section 8 Annual Contributions Contract VA901 from VHDA 32 to the City of Virginia Beach. 33 2. That City Council understands and agrees that, once 34 the transfer is made, the City will continue to comply with all 35 conditions that were applicable to the funds when they were 36 provided to the City through VHDA, including, but not limited to 37 the following: 38 a. That the funds authorized by the transfer will 39 be used for the same purposes as originally intended; that is, to 40 provide eligible families with the Housing Choice Vouchers (CFR 24 41 part 982) and/or Moderate Rehabilitation (Code of Federal 42 Regulations (CFR) 24 part 882; that the same population as 43 originally intended (CFR 24 part 882 and 982) will be served; and 44 that the vouchers will be used in the City of Virginia Beach as 45 originally intended. 46 3. That the City Manager is hereby authorized to execute 47 such documents as may be necessary to accomplish this transfer. 48 Adopted by the Council of the City of Virginia Beach, 49 Virginia on the 6th day of February , 2001. CA-7971 ORDIN~NONCODE~Section 8.res revised Prepared: January 17, 2001 R1 APPROVED AS TO CONTENT: H~s~[~g~ ~ ~N~ i~hb o rhoo d Pr~ ssrvat ion APPROVED AS TO LEGAL SUFFICIENCY: Policy Report Policy Report Transfer of HUD Section 8 Contracts from the Virginia Housing Development Authority to the City of Virginia Beach Department of Housing and Neighborhood Preservation January 23,2001 Policy Report Transfer of HUD Section 8 Contracts from the Virginia Housing Development Authority to the City of Virginia Beach Department of Housing and Neighborhood Preservation January, 2001 Background: The Section 8 program provides Federal rental subsidies to eligible Iow-~ncome households. From 1979 Through 1992, the City of Virginia Beach operated the Section 8 program solely as an "administrative agent" of the Virginia Housing Development Authority (VHDA) which had a contract for subsidy funding from HUD. The City performed the client casework, ~nspections and record keeping, while VHDA performed overall planning, administrative and financial functions, and set program policy. HUD provides a per/unit per/month administrative fee for the operators of the program. VHDA determined an appropriate "split" of this fee, and provided the City's share to us as a monthly check. This share has not been enough to cover the operating costs of the program, and therefore other funds (City and CDBG) are used to supplement operating costs. In the current budget, $99,354 of City funds are appropriated in support of the operating costs of the program. In 1992, it was determined that the City was in fact eligible to contract directly with HUD to operate the Section 8 program, and that it would be to the City's benefit to do so There were three anticipated benefits of doing this. 1) Under the existing arrangement with VHDA, we felt that the City did not receive an appropriate share of the administrative fee, based on the way program responsibilities were split. However, VHDA was not responsive to our concerns regarding this issue. Contracting directly with HUD would eliminate th~s problem and provide the full administrabve fee directly to the City. 2) Under the existing arrangement with VHDA, the City probably was receiving far less subsidy funding than it would if it were eligible to receive funding directly from HUD. This is because VHDA operates the program in many areas around the State, and the funding it received would have to be split among all those areas. Contracting d~rectly with HUD would allow us to compete in a much bigger "pot". 3) Under the existing arrangement with. VHDA, critical policy issues regarding criminal records checks, terminations from the program, and other ~ssues directly affecting people and neighborhoods in Virginia Beach, were decided by YHDA. We felt that we needed more control over what was done in our city. For the above reasons, in 1992 we applied for and received direct funding for 25 subsidy units from HUD. Since that time we have essentially operated the two programs in "parallel" - the VHDA program under their guidelines, and the HUD program. The critical differences in the HUD program are 1) we set policy; 2) we receive the full administrative fee; and 3) the subsidy funding is received by the City and we issue monthly checks to landlords. In 1998, our HUD program began to grow for two reasons: The first is that the Federal government, due to the improved economy and changing policy, began to provide new Section 8 funding for the first time in many years. The second reason is that the Federal government provided "conversion" funding for "project-based" developments where the HUD assistance to the project was being terminated. These two developments have resulted in our HUD program growing, from 60 units in 1998 to an estimated 800 by July 1, 2001. Two significant facts should be noted: 1) Our HUD program is now bigger than our VHDA program (800 vs 450); and 2) We receive the full administrative fee for all the HUD units ($46 from HUD as opposed to $28 from VHDA) In 1999, Susan Dewey was appointed as the new Executive Director of VHDA. Her ~nitiat~ves, including addressing significant issues with V~rginia Beach and other localities ~n the State, have resulted in a VHDA board decision to allow the transfer of units currently received by VHDA and managed by the City, to be received directly by the City. Considerations: Operational Considerations: As noted above, the only operational change involved in the proposed transfer of the units will be the increase in the amount of funds received by the City, and the increase in the number of monthly checks written. The Department of Finance is aware of this and has stated that they are capable of dealing with it. Organizational Considerations: There are no new organizational considerations raised by the transfer. By consolidating the two parallel programs we can achieve some operating efficiencies. Legal Considerations: There are no new legal considerations raised by the transfer, since we already have in place and in-force contracts with both VHD^ and HUD. Budgetary Considerations: As noted above,.the transfer will have a long-term positive impact on revenue. Public Information Considerations: Barring minor problems that may occur in the first month or so, the transfer of contracts should be and is intended to be transparent to those receiving subsidies, as well as to the participating landlords. No public information activities are considered necessary ~n regard to the transfer. Alternatives: The main short-term alternative to the proposed transfer is to maintain the status quo. This would eliminate the need to process additional checks, but also forego $70,000 in annual revenue, and would continue to require that we operate two parallel programs with somewhat differing policies. Recommendation: This transfer will provide important positive benefits to the City, as follows #1) We will now be able to set policy for all Section 8 units ~n the City; #2) We will now receive the full administrative fee for all units in the City. This will result in an immediate increase of approximately $70,000 annually in administrative fee income, thus reducing the need for City funding subsidy. ( Our proposed FY 2001-2002 budget for Section 8 requests zero City funding for the first time ever.) #3) We will stop operating the programs in parallel, thus reducing administrative complexity and confusion for our landlords. The only burden we assume is the accounting burden. We currently are accounting for and writing checks for approximately 700 units. If we accept the transfer on July 1, we will be accounting for and writing checks for approximately 1300 units. We have already consulted with the Finance Department and are investigating ways to smooth this workload for them, including potential future automation of the process. It is therefore recommended that Council adopt the resolution authorizing the acceptance of the transfer of HUD Section 8 Annual Contributions Contracts from VHDA Attachment: Agenda Request Resolution Re/~m~r~ed f~ Approval: An~Je~ ti(l: I~i~~n, Dir%tor DepaAme~ of Housing and Neighborhood Prese~ation Date: ~eApproved by: ),~_._. '~~~ City~ager ~ Date: I ' -27- Item V-L 5. RES OL UTIONS/ORDINANCES ITEM # 47714 Upon moaon by Vtce Mayor Sessoms, seconded by Councdman Branch, Ctty Councd APPROVED · ,~,,,,,,o,, ,~, ~,,,~,,,,, ,,,~ ,~,,y Ctty Pohcy not to supplant state, federal or private funding wtth local funds Vottng 11-0 (By Consent) Councd Members Vottng Aye Ltnwood 0 Branch, III, Margaret L Eure, Wdham W Harrtson, Jr, Barbara M Henley, Louts R Jones, Reba $ McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf Nancy K Parker, Vice Mayor Wdham D Sessoms, Jr and Rosemary Wilson Council Members Vottng Nay None Councd Members Absent None February 6, 2001 City Council Policy Title: Not Supplanting State, Federal, and Private Funds with Local Funds Date of Adoption: I Date of Revision: Index Number: Page 1 of 2 1.0 Purpose and Need The citizens of Virginia Beach receive Important, beneficial services from a wide variety of State, federal, and private agencies, as well as from City programs which rely on funding from these agencies. These agencies are critical partners with the City and the School system in the provision of programs to our community When these agencies terminate programming, reduce services, or curtail funding, it cannot be assumed that the City of Virginia Beach will maintain these programs. The City's ability to assume the financial responsibility for these services without significantly impacting other service areas which are solely the responsIbility of the City, or without having to raise taxes, is limited. The purpose of this policy is to formally adopt the City's long-standing pracbce of not automatically supplanting funds from State, federal, or private agencIes with local funds when those agencies reduce or eliminate funding to City or School programs. 20 Policy It ~s the pohcy of City Council to prevent, to the extent possible, the shifting of financial responsibdlty for State, federal, or privately funded programs to the citizens of Virginia Beach by not supplanting those funds with local funds when those agencies reduce funding to the various community programs that rely on that funding. 30 Procedure to Accomplish Administrative Directive 31 The Department of Management Services will provide informabon to the C~ty Manager on a periodic bas~s that reports any reductions in funding from State, federal, or private sources that are expected to adversely affect services to the cibzens of V~rg~nia Beach. When services are severely affected by such reductions, the City Manager and the Department of Management Services wdl determine what actions, if any, may be necessary to mitigate the impact on local services. 32 The C~ty Manager will report to City Council any ~nstances where reductions in State, federal, or private funding wdl have a severe enough effect on services that Council acbon is necessary. 40 Responsibility and Authority The Depadment of Management Services is responsible for reporting to the C~ty Manager any reductions in State, federal, or private funding that could have an effect on services provided to the c~tizens of Virg~ma Beach 50 Definitions Supplanttng For purposes of this policy, the subst~tubng of local funds for reducbons In State, federal, or private funding. T~tle Not Supplanting State, Federal, and Private Funds with Local Funds Date of Adoption. I Date of Revision: I Index Number' Page 2 of 2 State, federal, and private agencies: Agencies of either the State or federal governments, or non- governmental agencies, that either provide funds to the City of Virginia Beach for the provision of local services or offer those services themselves directly to the citizens. Approved as to Content: Approved as to Legal Sufficiency: Approved: Date City Attorney Date Chief Financial Officer Date Approved: Approved: City Manager Date Mayor Date Item V-I. 6. - 28 - RESOL UTIONS/ORDINANCES ITEM # 47715 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, Ctty Councd ADOPTED: Or&nance re Restaurant Lease Agreement between the Ctty and the Virginia Museum of Marine Science Foundation, Inc , exten&ng the term from June 14, 2001, to January 31, 2002, wtth renewal upon wrttten agreement of the parttes, for four ad&ttonal one-year pertods termtnattng January 31, 2006, correcting the name of the Department of Museums to the Department of Museums and Cultural Arts, and authortztng the Ctty Manager to execute the necessary documents Vottng 10-1 (By Consent) Counctl Members Vottng Aye Ltnwood 0 Branch, III, Margaret L Eure, Wtlham W Harrtson, Jr, Barbara M Henley, Louts R Jones, Robert C Man&go, Jr, Mayor Meyera E Oberndorf Nancy K Parker, Vice Mayor Wtlham D Sessoms, Jr and Rosemary Wtlson Counctl Members Vottng Nay Reba S McClanan Counctl Members Absent None February 6, 2001 ORDINANCE NO. AN ORDINANCE TO APPROVE AN AMENDMENT TO THE RESTAURANT LEASE AGREEMENT BETWEEN THE CITY AND THE VIRGINIA MUSEUM OF MARINE SCIENCE FOUNDATION, INC. EXTENDING THE TERM THEREOF AND CORRECTING THE NAME OF THE DEPARTMENT OF MUSEUMS TO THE DEPARTMENT OF MUSEUMS AND CULTURAL ARTS. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 WHEREAS, on February 20, 1996, the City of Virginia Beach entered ~nto a Restaurant Lease Agreement with the V~rg~ma Museum of Marine Science Foundation, Inc. (the "Foundation") pertaining to the operation and management of a restaurant and food service on the premises of the Virginia Marine Science Museum; WHEREAS, pursuant to Paragraph 2 of the Restaurant Lease Agreement, the effective term of the Restaurant Lease Agreement was from the period of June 15, 1996, through June 14, 2001; WHEREAS, it is more practical from a planning and financial perspective that the expiration of the term of the Restaurant Lease Agreement correspond with the end of the term of the Foundation's sublease with the new food service vendor the effective term of which is February 1, 2001 to January 31, 2006; WHEREAS, Paragraph 1 of the RestaurantLease Agreement refers to the Department of Museums, which has changed ~ts name to the Department of Museums and Cultural Arts, WHEREAS, the C~ty and Foundation staff members agree that an amendment to the Restaurant Lease Agreement is appropriate and have requested an extension of the expiration of the term of the Restaurant Lease Agreement and a change in the Restaurant Lease Agreement as to correct name of the Department of Museums. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA. That the Amendment to the Restaurant Lease Agreement between the City and the Foundation, extending the term thereof from June 14, 2001, to January 31, 2002, with renewal thereof, upon written agreement of the parties, for four additional one-year periods terminating January 31, 2006, and changing the name of the Department of Museums to the Department of 33 34 35 36 37 Museums and Cultural Arts in Paragraph 1 of the Restaurant Lease Agreement, ~s hereby approved, and the C~ty Manager or his designee is hereby authorized to execute such Amendment in the form substantially as attached hereto ADOPTED by the Council of the City of Virginia Beach, Virginia, on the _fie. h_ day of ~,..~ ...... ,2001. 38 39 40 41 42 43 Comment The proposed Amendment to the current Marine Science Museum Restaurant Lease extends the expiration date of the Lease Agreement from June 14, 2001, to January 31, 2006, effectively, which corresponds with the end of the term of the Foundation's sublease with the new food service vendor. The Amendment also changes the name of the Department of Museums in Paragraph I of the Restaurant Lease to the Department of Museums and Cultural Arts. All other prows~ons of the Lease shall remain as outlined. 44 45 46 47 APPROVED AS TO CONTENT: De'~t. of Mu~ms an~ural Arts APPROVED AS TO LEGAL SUFFICIENCY: Law Dept. 48 49 50 CA-7913 12/14/2000 F \USERS\LCLEMEN%PRIVATE\Restaurant~lSrestaurant ord wpd AMENDMENT TO THE MARINE SCIENCE MUSEUM RESTAURANT LEASE AGREEMENT BETWEEN THE CITY OF VIRGINIA BEACH AND THE VIRGINIA MUSEUM OF MARINE SCIENCES FOUNDATION ,INC. THIS AMENDMENT TO THE MARINE SCIENCE MUSEUM RESTAURANT LEASE AGREEMENT is made this~ day of ,2001, by and between the CITY OF VIRGINIA BEACH, Virginia, a municipal corporation of the Commonwealth of Virginia("Virginia Beach") and the VIRGINIA MUSEUM OF MARINE SCIENCES FOUNDATION,INC., a Virginia non-stock, non-profit corporation ( the "Foundation"), and amends that restaurant lease agreement dated February 20, 1996 by and between Virginia Beach and the Foundation for the operation and management of a restaurant and related food services on the premises of the V~rginia Marine Science Museum located in the City of Virginia Beach. WITNESSETH: THAT FOR AND IN CONSIDERATION of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto amend the Restaurant Lease Agreement as follows: 1. The expiration date of the term of the Restaurant Lease Agreement is hereby extended from June 14, 2001 to January 31, 2002 and may be renewed upon the written agreement of the parties for four additional one year periods terminating January 31, 2006. 2. The name of the Department of Museums as set forth in Paragraph 1 of the Restaurant Lease Agreement shall be changed to the Department of Museums and Cultural Arts. . effect. In all other respects the Restaurant Lease Agreement shall remain in full force and WITNESS the following signatures: CITY OF VIRGINIA BEACH (SEAL) ATTEST: Ruth Hodges Smith C~ty Clerk By: City Manager/Authorized Designee of the City Manager VIRGINIA MUSEUM OF MARINE SCIENCES FOUNDATION, INC. By: President STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this day of ,2001 ,by ~ity Manager/Authorized City Manager of the City of Virginia Beach, Virginia, on its behalfi My Commission expires Notary Public STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this day of ,2001, by Ruth Hodges Smith, City Clerk of the City of Virginia Beach, Virginia, on its behalf. My Commission expires Notary Public STATE OF VIRGINIA CITY OF , to-wit: The foregoing instrument was acknowledged before me this day of . , 2001, by , President of Virginia Museum of Marine Sciences Foundation, Inc., on its behalf. My Commission expires Notary Public APPROVED AS TO LEGAL SUFFICIENCY: Law Department APPROVED AS TO CONTENT: Dept. of Museums and Cultural Arts ~----~- F \DataLa. TYXForms\LEASES\finehost amd wpd SUMMARY OF TERMS MARINE SCIENCE RESTAURANT LEASE AGREEMENT LESSEE: Vlrglma Museum of Manne Science Foundation, Inc. TERM: June 15, 1996 - June 14, 2001 Extended from June 14, 2001 to January 31, 2002 with renewal thereof, upon written agreement of the parties, for four additional one year periods terminating January 31, 2006. RENT: $500.00 per month dunng such time that the Restaurant ~s open to the public RIGHTS AND RESPONSIBILITIES OF THE FOUNDATION: Will use the leased premises only for a restaurant and related food services functions. Operation of the restaurant to be consistent with operation of the Museum and standards set by the Director of the Department of Museums and Cultural Arts. Any sublease of the Leased Premises with a private restaurant operator or food service vendor shall comply with all terms set forth in Exhibit C and shall not conflict or negate any provisions of the Lease Agreement between the City and the Foundation. Will mmntaln regular hours of operation consistent with those of the Museum. All net profits arising from the sublease shall be expended annually by the Foundation for the benefit of the Museum on exhibits, special shows, programs and other operational activities of the Museum. Will be responsible for loss of property of the Foundation or the food service vendor or any of their employees or agents, ~rrespect~ve of the cause thereof RIGHTS AND RESPONSIBILITIES VIRGINIA BEACH: The Director of the Department of Museum and Cultural Arts will momtor the operation of the Restaurant and related food service. Will provide utilities 0.e. electricity, gas, heating, air conditioning, water) Will be responsible for major repairs. NON-APPROPRIATION: Virginia Beach may terminate the Agreement in the event that the City Council fails to appropriate funds to perform its obhgatlons under the Restaurant Lease Agreement. F \DatakATY\Ord~n\NONCODEkMSrestaurant sum wpd EXHIBIT A Item V-I. 7. - 29- RES OL UTIONS/ORDINANCES ITEM # 47716 Upon motton by Vtce Mayor Sessoms, seconded by Counctlman Branch, Ctty Counctl ADOPTED: Ordtnance to declare EXCESS PROPERTY on a parcel of land at 5920 Sandptt Road, and, authortze the Ctty Manager to convey thts property to ROBINSON DEVELOPMENT GROUP for Thtrty Thousand Dollars ($30, 000) (DISTRICT 4- BA YSIDE) Vottng 10-0 Counctl Members Vottng Aye Ltnwood 0 Branch, III, Margaret L Eure, Barbara M Henley, Louts R Jones, Reba $ McClanan, Robert C Man&go, Jr, Mayor Meyera E Oberndorf Nancy K Parker, Vice Mayor Wtlham D Sessoms, Jr and Rosemary Wtlson Counctl Members Vottng Nay None Counctl Members Abstatmng Wtlham W Harrtson, Jr Counctl Members Absent None Counctlman Harrtson ABSTAINED as he ts not sure who the Robtnson Development Group ts, however, hts law firm represents a Robtnson Chent and he wishes to ABSTAIN as a matter of cautton February 6, 2001 AN ORDINANCE DECLARING CERTAIN CITY PROPERTY EXCESS AND AUTHORIZING THE CITY MANAGER TO CONVEY SAME TO ROBINSON DEVELOPMENT GROUP 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 WHEREAS, the City of Vlrglma Beach (the "City") acquired ownership of a certain parcel of real property containing 21,788 square feet, located at 5920 Sandplt Road (GPIN 1459- 81-1748) in the City of Vlrglma Beach, Virginia (the "Property") by Deed recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, in Deed Book 3457, at page 0534; and WHEREAS, the City Council is of the opinion that the Property is in excess of the needs of the City and should be sold to Robinson Development Group. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1 That the Property is hereby declared to be in excess of the needs of the City and that the City Manager is hereby authorized to convey the Property to Robinson Development Group, more particularly described as follows All those certain lot, piece or parcel of land, situate, lying and being in the City of Virginia Beach (formerly County of Princess Anne'), State of Virginia, and being a part of Lot No. 27, on the Plat of Old James Cormck Farm, which said plat is duly of record in the Clerk's Office of the City of Vlrglma Beach, in deed Book 66, Page 157 and is know and designated as parcel, "June Smith," and is shown on the plat of"Property of June Smith et al Burton's Station - Pnncess Anne Co, Va" which is recorded in Deed Book 455, page 152, and in accordance with said plat, said property is more particularly described as follows: Beginning at a pin in the northwestern (erroneously referred to as northeastern) line of Gladiolus Harold's property as shown on said plat; thence running North 30° 58' East along the eastern line of Road No 4 as shown on said plat 105 035 feet to a point, thence running South 59 ° 2' East 207 33 feet to a point; thence South 30° 58' West 105 035 feet to the northeastern side of Gladiolus Harold's Property; thence along said line North 59° 2' West 207 33 feet to the point ofbeglnmng. IT BEING the same property conveyed to City of Virginia Beach by deed of Annie M. Brothers, a/k/a Annie Green, widow, dated November 2, 1994, and recorded in the Clerk's office of the Circuit Court of the City of Vlrglma Beach, Virginia, in Deed Book 3457, at page 534 2. That Thirty Thousand Dollars ($30,000 00) is to be the sale price of the 4 0 Property 41 42 43 44 45 avmlable. February 3. Any building site(s) created shall connect to pubhc water and sewer were Th~s Ordinance shall be effective from the date of ~ts adoption. Adopted by the Council of the C~ty of Vlrgima Beach, Vlrg~ma, on the 6th ~day of .,2001. CA-7947 1/10/00 R-1 F \DataL4~TY\Foz ms\Deeds\EXCESS\ca7947 ord ~/ Pubhc Works/Real Estate APPROVED AS TO LEGAL SUFFICiENCY Czty Attorney /f SUMMARY SHEET SALE TO ROBINSON DEVELOPMENT GROUP PRICE: $30,000/$1.37 PER SQ. FT. SIZE OF PROPERTY: 21,788 SQ. 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ISIX~ HILL DNISFI ~IO DNIX~QOIAI N¥I-LL ~I~-t.L¥~ X.LI~OD HOCII'eI~QNV~; HI-~ OgNI ZHDIV'&IS H.QNIZNOD XVt& 'l~::I ~v"~v'~cI 'QHNDI.~tHQNI'I HILL :HD¥~IIt ¥INIDRIA JO Slt~lfll6I~Pt 'IIDNfiOD X.LID :P _4ZIOON'A~IaO ¥~I~EPt ~IOXYPt MEMORANDUM OF UNDERSTANDING THIS MEMORANDUM OF UNDERSTANDING (this "Memorandum"), is made as of the ~,., ~'day of February, 2001, by and between the U.S. FISH & WILDLIFE SERVICE, a division of the Department of the Interior of the United States of America, for itself and on behalf of the United States of America (the "Service") and the CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia (the "C_C_~y"). I. Introduction. The Service and the City desire to enter into this Memorandum to set forth their understandings and agreements with respect to certain parcels of real property located in the City. II. Definitions. As used in this Memorandum, the following terms shall have the following meanings: "Associates" means Lotus Creek Associates, L.P., a Virginia limited partnership. "Bike/Pedestrian Path" means a public pedestrian/bicycle path which the City may construct on the Retained Nimmo Parkway Parcel. "Lotus Garden Farms Pmpe~y" means the real property and improvements located in Virginia Beach, Virginia, comprised of approximately 23.6 acres, GPIN 2423-07-7808, and more particularly depicted on Exhibit B attached hereto and made a part hereof. "Lotus Creek Property" means the real property and any improvements located in Virginia Beach, Virginia, adjacent to Hells Point Golf Course known as Parcel B-3-A [Map Book 280, page 5 comprised of approximately 18.47 acres], GPIN 2423-19- 8818, and Parcel B-2 [Map Book 261, page 45], GPIN 2424-21-9273. "Nimmo Parkway Right-of-Way" means the portion of the existing right-of-way for N~mmo Pmkway (formerly Fe~xeil Parkway) situated in Virginia Beach, V~rginia which l~es east of the Atwoodtown Road right-of-way to a point which is four thousand four hundred forty five feet (4,445') to the east, just west of such right-of way's ~nterscchon w~th Sandbndge Road. "Resolution" means the "Resolution Declaring the Intention of the City Council that N~mmo Parkway (formerly known as Fcrrell Parkway) Shall }lave Its Eastern Temfinus at Atwoodtown Road and Shall not be Constructed East of Atwoodtown Road", to be considered by the City Council on February 6, 2001, a draft of which is attached hereto as Exhibit A. "Retained Nim. rno Parkway Parcel" means a forty foot (40') portion of the Nimmo Parkway Right-of-Way, consisting of: (a) a twenty foot (20') wide strip of land, fee simple ownership of which shall be retained by the City, in which the City's existing water lines are located and on which the City (i) shall retain its existing water lines, (ii) may construct and maintain additional utility lines and (iii) may construct and maintain the Bike/Pedestrian Path and (b) a reservation of a ten foot (10') easement on both sides of such twenty foot (20') strip for construction and maintenance of such utilities and for construction and maintenance of a Bike/Pedestrian Path, and which property is more particularly designated and depicted on Exhibit C attached hereto and made a part hereof. "Sandbridge Road Exchange Property" means any real property owned by the City designated by mutual agreement between the City and the Service, which real property may include all or a portion of the right-of-way for Nimmo Parkway retained by the City which is located east of the Nimmo Parkway Right-of-Way. "Sandbridg¢ Road G-2 Alignment" means the proposed alignment for Sandbfidge Road identified as "Alternative G-2" in the City's Sandbridge Road Corridor Study and more particularly depicted on Exhibit D attached hereto and made a part hereof. "Sandbridge Road Improvem..ents" means any and all vertical and/or horizontal safety improvements to Sandbridge Road east of its intersection with Atwoodtown Road which may be made by or at the direction of the City from time to time at its discretion, including, without limitation, (a) the straightening of dangerous curves along Sandbridge Road, (b) the widening of the existing right-of-way for the Sandbridge Road right-of-way from its current variable width to a width to accommodate no more than one vehicular travel lane, a breakdown lane, a bicycle path and a road shoulder in each direction, (c) the improvement of existing drainage, (d) all necessary public utility and drainage easements, (e) the raising of the elevation of Sandbridge Road so that it may serve as an all-weather road with access to and from the Sandbridge area of the City, and (f) the realignment of a portion of existing Sandbridge Road to existing Lotus Drive, which improvements include, in concept, the Sandbridge Road G-2 Alignment; provided, however, that such improvements shall generally follow the existing location of Sandbridge Road and shall not increase the capacity of Sandbridge Road to more than one vehicular travel lane, a breakdown lane, a bicycle path and a road shoulder in each direction. "Sandbridge Road Property Exchange" means (a) the grant and conveyance by the Service on behalf of tile United States of America to tile City of fee sm~ple title to the Service Sandbrtdge Road Property, (b) the grant and conveyance by the City to the United States of America of fee s~mple title to the Lotus Garden Farms Property and any necessary Sandbrtdge Road Exchange Property, and (c) the payment by the owing party to the other of any equaitz~ng payment for any value dtfferentml between the Service Sandbndge Road l)~ operty, on the one hand, and the Lotus Garden Farms Property and any Sandbridge Road Exchange Property, on the other. "Service Nimmo Parkway Parcel" means the City's fee ownership designated as the Nimmo Parkway Right-of-Way, other than the Retained Nimmo Parkway Parcel more particularly designated and depicted as "TO BE CONVEYED TO USA" on Exhibit C attached hereto and made a part hereof. "Service Sandbridge Road Pro0ertv" means any and all real property owned by the United States of America as part of the Back Bay National Wildlife Refuge abutting Sandbridge Road, whether now owned or hereafter acquired, to be designated by mutual agreement of the parties hereto, in square footage sufficient to allow the City to make the Sandbridge Road Improvements, including, without limitation, that real property owned by the United States of America as part of the Back Bay National Wildlife Refuge identified in pink and green on Exhibit D attached hereto and made a part hereof, as well as depictions of approximate locations of necessary storm water basins as depicted on Exhibit D attached hereto and made a part hereof, and including without limitation, temporary construction easements over real property owned by the United States during the period of construction of the Sandbridge Road Improvements, and real property (or easements thereover) necessary for the City to obtain all necessary drainage facilities in connection with the Sandbridge Road Improvements. III. Lotus Creek Property. Associates is the owner of the Lotus Creek Property. Associates has been involved in protracted negotiations and discussions regarding the development of the Lotus Creek Property with the City, the Virginia Department of Environmental Quality and the United States Army Corps of Engineers. Associates has determined that it is in its best interest to sell the Lotus Creek Property rather than to proceed with its further development. Pursuant to and as further described in the Resolution, the City may be of the opinion that the preservation of the Lotus Creek Property in its natural state would be beneficial to the pubim interest as it would preserve open space and avoid environmental and traffic impacts. In addition, Associates and the City have determined that it is in the best interests of each of them to avoid further discussions and potential litigation regarding the development of the Lotus Creek Property. Accordingly, pursuant to the Resolution, the City may agree, that upon the sale by Associates to the United States of America of the Lotus Creek Property, the City shall pay to Associates the sum of $140,000 (a) in settlement of any and all potential claims Associates may have against the City for damages or costs it may have incurred as a result of any actions by the City in connection with the proposed development of the Lotus Creek Property, (b) in compensation for those items numbered 1-4 which are set forth in Charles E. Land's letter to the City dated December 18, 2000, and (c) to ensure that the Lotus Creek Property is sold to the 1 Jnltcd States of America and admlmstered by the Service as a part of Back Bay National \¥11dl~fc Rcfilge and, therefore, remmns m ItS natural state. IV. I~otus Garden Farms Property. The City Is the owner of the Lotus Garden Farms Property. The City Council of the City intends to hold a publm hearing to obtain public comment on determining that the Lotus Garden Farms Property is in excess of the needs of the City. In the event the City Council determines that the Lotus Garden Farms Property is in excess of the needs of the City, the City may exchange the Lotus Garden Farms Property for the Service Sandbridge Road Property pursuant to the Sandbridge Road Property Exchange. The Lotus Garden Farms Property will be conveyed to the United States of America and administered by the Service as part of the Back Bay National Wildlife Refuge. V. Nimmo Parkway Right-of-Way. The City is the owner of the Nimmo Parkway Right-of-Way. Pursuant to the Resolution, the City Council of the City may declare that the C~ty does not intend to construct Nimmo Parkway east of its intersection with Atwoodtown Road. The Planning Commission of the City and the City Council of the City each intend to hold a public hearing to discontinue the pubhc right-of-way in the Nimmo Parkway Right-of-Way. In the event it determines to discontinue the public right-of-way in the Nimmo Parkway Right-of-Way, the City Council of the City intends to hold a public hearing to obtain public comment on ~ietermining that the Service Nimmo Parkway Parcel is in excess of the needs of the City. In the event the City Council determines to discontinue the public right-of-way in the Nimmo Parkway Right-of-Way and that the Service Nimmo Parkway Parcel is in excess of the needs of the City, the City will sell the Service Nimmo Parkway Parcel to the United States of America for a purchase price equal to the fair market value of such property as determined by an appraisal reasonably acceptable to the City and the Service. The Service Nimmo Parkway Parcel will be administered by the Service as part of the Back Bay National Wildlife Refuge. VI. Retained Nimmo Parkway Parcel. In the event the right-of-way for the Nimmo Parkway Right-of-Way is discontinued and the City determines that the Lotus Garden Farms Property and the Service Nimmo Parkway Parcel are in excess of the needs of the City, the City intends to retain ownership of the Retained Nimmo Parkway Parcel. The City intends to retain the existing water lines located in the Retained Nimmo Parkway Parcel, to construct additional utility lines in the Retained Nimmo Parkway Parcel and may design and construct a Bike/Pedestrian Path. VII. Sandbridge Road Improvements/Sandbridge Road Property Exchange. Sandbridge Road is currently the only means of access to the Sandbridge area of the City. The City has determined that the making of certain safety improvements to Sandbridge Road is both necessary and desirable. The City has spent substantial resources studying the most advantageous way to improve Sandbridge Road. Nimmo Parkway was, at one point in time, slated to replace Sandbridge Road as the primary means of access to the Sandbridge area of the City. Pursuant to the Resolution, the City Council of the City may declare that the City does not Intend to construct Nimmo Parkway east of its intersection with Atwoodtown Road and determine that tile best solution for existing Sandbndge Road is to make tile Sandbridge Road I ~Bi'}! ox,'C~llCBlS. Thc Service, on behalf of the United States of America, has agreed to provide the City w~th ,~ny real p~ope~ty ~t admm~stms on behalf of the Umted States of America that the United States ~1 America owns (or may hereatler own) that the parties mutually agree is necessary to allow the C~ty to make the Sandbridge Road Improvements, including, without limitation, the Service Sandbridge Road Property. The Service has also agreed to support the City with respect to the Sandbridge Road Improvements, by publicaily stating its support, in concept, of the Sandbridge Road G-2 Alignment and providing the City with the Service Sandbridge Road Property. In addition, the Service and the City have agreed that simultaneously with the sales of the Lotus Creek Property and the Service Nimmo Parkway Parcel, and as a condttion precedent to the City's obligation to convey the Service Nimmo Parkway Parcel to the Service and to pay $140,000 to Associates, the City and the Service shall consummate the Sandbridge Road Property Exchange. The Service and the City acknowledge that the alignment for the Sandbridge Road Improvements has not yet been finalized. The Service agrees that ~f, after the design for Sandbridge Road and the Sandbridge Road Improvements has been finalized, there is additional real property owned by the United States of America and administered by the Service winch was not conveyed to the City as part of the Sandbridge Road Property Exchange, the Service shall cooperate with the City to convey to the City such additional real property as may be needed to accomplish the Sandbridge Road Improvements. Similarly, the City agrees that if, after completing the Sandbridge Road Improvements, there remains portions of the existing Sandbridge Road right-of-way which are no longer needed by the City, it shall cooperate with the Service to convey to the Service such real property (subject to ali appropriate and necessary legal and administrative action). VIII. Definitive Agreements. The City and the Service each acknowledge that this Memorandum sets forth the preliminary understandings of each of them regarding the Lotus Creek properties, the Nimmo Parkway Right-of-Way and the Sandbridge Road Property Exchange and shall be subject to the Service obtaining approval for the acquisition and exchange of lands set forth herein by the Migratory Bird Conservation Commission. Upon approval of this Memorandum by the City and the Service, the City and the Service shall, on or before March 20, 2001, enter into defimtive agreements/agreement(s) of sale regarding the purchases/exchange of the properties and other transactions contemplated hereby containing definitive representations, warranties, covenants and agreements regarding such transactions, and incorporating, among other agreements, the terms contained in this Memorandum and the following terms and conditions: A. Lotus Creek Property. The transactions contemplated in this Memorandum shall be conditioned on the simultaneous sale by Associates to the United States of America of the Lotus Creek Property to be administered by thc Service as part of the Back Bay National Wildlife Refuge. In tile event the sale of the Lotus Creek Property from Associates to the Un,ted States of America does not occur on or before May 6, 2001, rather party shall have the right to tcmfinate this Memorandum and any other defimtive agreements entered into between the parties ~n furtherance of tile transactions contemplated hereby B. Sale of Service Nimmo Parkway Parcel. . Necessary Legal and Administrative Action. The sale of the Service Nimmo Parkway Parcel shall be conditioned on the City's performance of all necessary legal and administrative action to vacate tile public right-of-way in the Nimmo Parkway Right-of-Way (retaining such interest, if any, as may be necessary to maintain the existing utility lines, to construct and maintain additional utility lines and to construct and maintain a Bike/Pedestrian Path) and to convey to the United States of America the Service Nimmo Parkway Parcel, including without limitation, all necessary legal advertisements, public hearings, City Planning Commission affirmative votes and recommendations and City Council affirmative votes and recommendations, it being understood that the City, the Planning Commission and the City Council have no obligation to take any particular legal or administrative action with respect to the Nimmo Parkway R~ght-of-Way or the Service Nimmo Parkway Parcel. . Feasibility Period. With respect to the Service Nimmo Parkway Parcel, the Service shall have a period of ninety (90) days to perform necessary due diligence for the Service Nimmo Parkway Parcel. . Purchase Price. Fair market value of the Service Nimmo Parkway Parcel as determined by an appraisal obtained by the Service at its cost and expense, which appraisal shall be reasonably satisfactory to the Service and the City, prepared by an appraiser acceptable to the Service and the City. 4. Deposit. None. ,. Settlement. Settlement for the Service Nimmo Parkway Parcel shall occur contemporaneously with the sale from Associates to the Service of the Lotus Creek Property, and in any event, on or before May 6, 2001. 6. AS IS. The Service Nimmo Parkway Parcel shall be conveyed "AS IS". e Prorations. All rents, interest, taxes and other appropriate items, if any, shall be prorated as of the date of actual settlement. . Costs and Expenses. Each party shall bear its own closing costs and expenses, including attorneys' fees. Any recording costs and fees, other than the grantor's tax, shall be borne by the purchaser of the applicable property. The seller of the applicable property shall prepare the deed to the buyer. The City shall expressly waive any reimbursement that it may be entitled to receive under the Uniform Relocation Assistance Act. . Closing Deliveries. At settlement for the Service Nimmo Parkway Parcel, the C~ty shall deliver to thc Umted States of Alnenca a special warranty deed and shall convey the Service N~mmo Pmkway Parcel m fee simple, fi'ee and clear of all mortgages, liens, encumbrances, leases, part~es in possession and sectmty ~nterests, but subject to any and all other restrictions, rights-of-way, easements and encroachments of record on the date of execution of the respective definitive agreement(s) of sale, and other restrictions, rights-of-way, easements and encroachments of record approved by the Service. 10. Right of Entry. Prior to settlement, the Service and/or its agents may exercise the right to enter upon the Service Nimmo Parkway Parcel for such purposes as it deems necessary to complete the acquisition of such property, including II. 12. 13. 14. inspection and testing of such property, upon reasonable notice to the City. Such access shall be at the Service's sole risk and expense. Possession. Possession of the Service Nimmo Parkway Parcel shall be delivered upon transfer of legal title at settlement. Risk of Loss. Risk of loss or damage to the Service Nimmo Parkway Parcel (other than loss or damaged caused by the Service) shall remain upon the City until transfer of legal title at settlement. Subdivision. Prior to settlement, the City shall cause, at its expense, the Service Nimmo Parkway Parcel to be legally and effectively subdivided so that it constitutes a separate subdivided parcel and shall prepare, at its expense for recordation, a final approved subdivision plat showing the Service Nimmo Parkway Parcel. Enforceability. The City and the Service shall each receive satisfactory assurances that the affirmative agreements regarding the sale of the Service Nimmo Parkway Parcel are legal, valid, enforceable and binding in the City, the Service and the United States of America. C. Sandbridge Road Improvements/Sandbridge Road Property Exchange. . 0 Necessary Legal and Administrative Action. The Sandbridge Road Property Exchange shall be conditioned on the City's performance of all necessary legal and administrative action to accomplish the Sandbridge Road Property Exchange, including without limitation, all necessary legal advertisements, public hearings and City Council affirmative votes and recommendations it being understood that the City, the Planning Commission and the City Council have no obligation to take any particular legal or administrative action with respect to the Lotus Garden Farms Property or any Sandbridge Road Exchange Property including, without limitation, any action regarding declaring the Lotus Garden Farms Property in excess of the City's needs or any action regarding closing the right-of-way for the Sandbridge Road Exchange Property or declaring the Sandbridge Road Exchange Property in excess of the City's needs. Service Support. The Service shall support the Sandbridge Road Improvements by pubi~cally stating its support In concept for the Sandbridge Road G-2 Alignment and prov~dang the City with the Service Sandbridge Road Property. Purchase/Exchange Price. Fair market value as determined by appraisals reasonably satisfactory to the Service and the City prepared by appraisers acceptable to the Service and the City. Exchange. The Service shall, on behalf of the United States of America, grant and convey to the City fee simple title to the Service Sandbridge Road Property depicted on Exhibit D attached hereto, and the City shall grant and convey to the Service fee simple title to the Lotus Garden Farms Property and any necessary Sandbridge Road Exchange Property. To the extent that the fair market values of such Properties are not equivalent, an equalizing payment shall be made by the owing party to the other. Each party shall obtain, at its own cost, an appraisal of the subject property owned by tr. Feasibility Period. With respect to thc Service Sandbridge Road Property, the Lotus Garden Farms Property and any Sandbridge Road Exchange Property, the Service and the City shall each have a period of ninety (90) days to perform necessary due diligence for such properties. 6. Deposit. None. . Settlement. Settlement for the Sandbridge Road Property Exchange shall occur simultaneously with the sales of the Lotus Creek Property and the Service Nimmo Parkway Parcel. 8. AS IS. All properties shall be conveyed "AS IS". . Prorations. Ail rants, interest, taxes and other appropriate items, if any, shall be prorated as of the date of actual settlement. 10. Costs and Expenses. Each party shall bear its own closing costs and expenses, including attorneys' fees. Any recording costs and fees, other than the grantor's tax, shall be borne by the grantee of the applicable property. The grantor of the applicable property shall prepare the deed to the grantee. The City expressly waives any reimbursement that it may be entitled to receive under the Uniform Relocation Assistance Act. 11. Subdivision. Prior to settlement for the Sandbridge Road Property Exchange, (a) the C~ty shall cause, at its expense, the Lotus Garden Farms Property and any Sandbridge Road Exchange Property to be legally and effectively subdivided so that it constitutes separate, subdivided parcel(s) and tax parcel(s), and (b) the Service shall cause, at Its expense, the Sermcc Sandbridge Road Property to be legally and effectively subd~wdcd so that It constitutes separate, subdivided parcel(s) and tax parcel(s). 12 Closing Deliveries. At settlement for the Sandbridge Road Property Exchange, (a) the City shall deliver to the United States of America a qu~tclmm deed and shall convey ItS interest ~n the Lotus Garden Fam~s Property and any Sandbndge Road Exchange Property free and clear of all mortgages, liens, encumbrances, leases, parties in possession and security interests, but subject to any and all other restrictions, rights-of-way, easements and encroachments of record on the date of execution of the exchange agreement, and other restrictions, rights-of-way, easements and encroachments of record approved by the Service, and (b) the United States of America shall deliver to the City a quitclaim deed and shall convey its interest in the Service Sandbridge Road Property free and clear of all mortgages, liens, encumbrances, leases, parties in possession and severity interest, but subject to any and all other restrictions, rights-of-way, easements and encroachments of record on the date of execution of the exchange agreement, and other restrictions, rights-of-way, easements and encroachments of record approved by the C~ty. 13. Right of Entry. (a) Prior to settlement, the Service and/or its agents may exercise the right to enter upon the Lotus Garden Farms Property and any Sandbridge Road Exchange Property for such purposes as it deems necessary to complete the acquisition there, including inspection and testing of such property, upon reasonable notice to the City. Such access shall be at the Service's sole risk and expense. (b) Prior to settlement, the City and/or its agents may exercise the right to enter upon the Service Sandbridge Road Property for such purposes as it deems necessary to complete the acquisition there, including inspection and testing of such property, upon reasonable notice to the Service. Such access shall be at the City's sole risk and expense. 14. Possession. Possession of the Lotus Garden Farms Property, the Sandbridge Road Exchange Property and the Service Sandbridge Road Property shall be delivered upon transfer of legal title at settlement. 15. Risk of Loss. Risk of loss or damage to the Lotus Garden Farms Property, the Sandbridge Road Exchange Property and the Service Sandbndge Road Property shall remain upon the respective legal title holders until transfer of legal title at settlement of the Sandbridge Road Property Exchange. 16. Sharing of Information. Prior to settlement of the Sandbridge Road Property Exchange, each of the City and the Service shall deliver to the other copies of any and all surveys, title reports, engineering reports, environmental and other written reports and information in its possession, ~f any. 17 Further Assurances. The Service and the City acknowledge that the alignment for the Sandbridge Road Improvements has not yet been finalized. The Service agrees that If, after the design for Sandbridge Road and the Sandbridge Road Improvements has been finalized, there is additional real property owned by the Umtcd States of America and admmmtcred by the Service winch was not conveyed to the City as part of the Sandbridge Road Property Exchange, the Service shall cooperate with the City to convey to the City such additional real property as may be needed to accomplish the Sandbridge Road Improvements. Simdarly, the City agrees that if, after completing the Sandbridge Road Improvements, there remains portions of the existing Sandbridge Road right-of- way which are no longer needed by the City, it shall cooperate with the Service to convey to the Service such real property (subject to all appropriate and necessary legal and administrative action). The City and the Service shall, at closing of the sale of the Service Nimmo Parkway Parcel and the Sandbridge Road Property Exchange, enter into such affirmative agreements as are necessary to evidence their understandings as set forth above and the Service and the City shall receive satisfactory assurances (including opinions of counsel) that such agreements are legal, valid, binding and enforceable upon the City, the Service and the United States of America. 18. Enforceability. The City and the Service shall each receive satisfactory assurances that the definitive agreement(s) regarding the Sandbridge Road Property Exchange are legal, valid and enforceable and binding on the City, the Service and the United States of America. IX. Brokerage Commissions. The City and the Service each represent to the other that no real estate broker or agent was involved in the sale or exchanges of the properties that are the subject of this Memorandum that would obligate either of them for the payment of any real estate commission or fee as a result of the sale or exchange of any of the properties contemplated by this Memorandum. X. Representations and Warranties. A. City Representations and Warranties. The City hereby makes the following representations and warranties to the Service: To the best of the City's knowledge, there is no action, suit, proceeding, claim, investigation, assessment, citizen suit or review pending or threatened against or affecting the title to the Lotus Garden Farms Property or, once designated, the Sandbridge Road Exchange Property. ,. That neither the Lotus Garden Farms Property nor any portion thereof, or, once designated, the Sandbridge Road Exchange Property, or any portion thereof, ~s presently subject to any other option or other contract pursuant to which any other party (other than the Service) has any right to purchase the such properties or any part thereof or any interest therein. . That neither the Lotus Garden Farms Property, nor any portion thereof, nor, once designated, the Sandbridge Road Exchange Property, or any portion thereof, Is subject to any lease or other agreement pursuant to which any party has the r~ght to occupy such properties or any part thereof. 4 The C~ty is the owner in fee simple of the Service Nimmo Parkway Parcel. . To the best of the City's knowledge, there is no action, suit, proceeding, claim, investigation, assessment, citizen suit or review pending or threatened against or affecting the title to the Service Nimmo Parkway Parcel. e That neither the Service Nimmo Parkway Parcel, nor any portion thereof, presently is subject to any option or other contract pursuant to which any other 10 party (other than the Service) has any right to purchase the Service Nimmo Parkway Parcel or any part thereof or any interest therein. e That neither the Service blimmo Parkway Parcel, nor any portion thereof, is subject to any lease or other agreement pursuant to which any party has the right to occupy the Service Nimmo Parkway Parcel or any part thereof other than the public's right to use the Service Nimmo Parkway Parcel as a public right-of-way. e That the City has the power and authority to enter into this Memorandum and agrees that, subject to necessary legal and administrative action described herein, it has full right, power and authority to convey, and that it will convey, to the United States of America, subject to the terms and conditions of this Memorandum, all of its right, title and interest in the Lotus Garden Farms Property, the Service Nimmo Parkway Parcel and the Sandbridge Road Exchange Property, free and clear of all mortgages, liens, encumbrances, leases, parties in possession and security interests, but subject to any and ali other restrictions, rights-of-way, easements and encroachments of record on the date of execution of the respective definitive agreement(s) of sale, and other restrictions, rights-of- way, easements and encroachments of record approved by the Service. B. Representations and Warranties of Service. The Service hereby makes the following representations and warranties to the City: Ii The United States of America is the owner in fee simple of the Service Sandbridge Road Property, which property is administered by the Service. e To the best of the Service's knowledge, there is no action, suit, proceeding, claim, investigation, assessment, citizen suit or review pending or threatened against or affecting the title to the Service Sandbridge Road Property. e That neither the Service Sandbridge Road Property, nor any portion thereof, presently is subject to any option or other contract pursuant to which any other party (other than the City) has any right to purchase the Service Sandbndge Road Property or any part thereof or any interest there~n. That neither the Service Sandbridge Road Property, nor any portion thereof, ~s subject to any lease or other agreement pursuant to which any party has thc right to occupy the Service Sandbndge Road Property or any part thereof. o That the Service has the power and authority to enter into this Memorandum, for ~tself and on behalf of the United States of America, and agrees that, it has full right, power and authority to (a) purchase, on behalf of the United States of America, the Lotus Garden Farms Property, the Sandbridge Road Exchange Property (once designated) and the Service Nimmo Parkway Parcel, and (b) enter into the Sandbridge Road Property Exchange on behalf of the United States of America. The undersigned representative of the Service is duly authorized to 11 execute this Memorandum on behalf of the Service and the United States of America. Xl. Environmental Condition. The City makes no representation or warranty respecting any condition of the Lotus Garden Farms Property, thc Nimmo Parkway Right-of-Way or, once designated, the Sandbridge Road Exchange Property, including without limitation, any environmental condition. The sale of thc Service Nimmo Parkway Parcel and thc exchanges of thc Lotus Garden Farms Property and any Sandbridge Road Exchange Property pursuant to the Sandbridge Road Property Exchange shall be contingent upon the results of a Contaminants Study of such properties by the United States of America. In the event that contaminants are found present on said properties or adjacent parcels, it will be at the discretion of the Service to either accept such property(les) in the condition that they are in or to determine to terminate any definitive agreements regarding the purchase/exchange of such property(les). XII. Covenants of City. A. The City shall not transfer any interest in, nor grant any easements, nor apply for, or enter into any application, permit, contractual agreement or understanding, written or oral, with respect to the Lotus Garden Farms Property, the Sandbridge Road Exchange Property or the Service Nimmo Parkway Parcel (or any interest therein) without the prior written consent of the Service. Be The City shall give thc Service immediate written notice of the institution of any litigation affecting title to the Lotus Garden Farms Property, the Service Nimmo Parkway Parcel, or once designated, the Sandbridge Road Exchange Property, or the City's right to convey the Lotus Garden Farms Property, the Service Nlmmo Parkway Parcel or the Sandbridge Road Exchange Property prior to the respective settlements thereof. C, The City shall not engage any broker for the sale or other disposition of the Lotus Garden Farms Property or the Service Nimmo Parkway Parcel or, once designated, the Sandbridge Road Exchange Property. D Prior to settlement on the Service Nimmo Parkway Parcel and the Sandbridge Road Property Exchange, the City shall dehver to the Service cop~es of any and all surveys, t~tic reports, engineering reports, enmronmental and other written reports and Inlbrmat~on ~n its possession, ~fany. XIlI. Covenants of Service. A. The Service shall not transfer any interest in, nor grant any easements, nor apply for, or enter into any application, permit, contractual agreement or understanding, written or oral, with respect to the Service Sandbridge Road Property (or any interest therein) without the prior written consent of the City. 12 The Service shall give the City immediate written notice of the institution of any litigation affecting title to the Service Sandbridge Road Property or the Service's right to convey the Service Sandbridge Road Property prior to settlement. C. The Service shall not engage any broker for the sale or other disposition of the Service Sandbridge Road Property. D. Thc Service shall support thc City in its decision to withdraw thc Nimmo Parkway Right-of-Way from public use and shall support the City's decision to make the Sandbfidge Road Improvements by publicaily stating its support in concept for the Sandbridge Road G-2 Alignment and providing the City with the Service Sandbridge Road Property. XIV. Miscellaneous. A. Notices. Any notice which may be or is required to be given pursuant to this Memorandum shall be delivered or sent by certified mail, postage prepaid, return receipt requested, and addressed as follows: If to the City, to: Mr. James K. Spore City Manager Municipal Center Virginia Beach, Virginia 23456 With a copy to: Leslie L. Lilley, Esquire City Attorney Municipal Center Virginia Beach, Virginia 23456 If to the Service: Mr. John P. Stasko U.S. Fish & Wildlife Service Refuge Manager Back Bay National Wildlife Refuge 4005 Sandp~per Road V~rgmia Beach, V~rginia 23456 With a copy to: Mr. Anthony Leger Regional Cluef U S. F~sh & Wildlife Service B, Costs and Expenses. Except as otherwise provided herein or in the definitive agreements to be entered into in furtherance of this Memorandum, each party shall pay all costs and expenses associated with the preparation and negotiation of this Memorandum and the transactions contemplated hereby. 13 C. Assignment. This Memorandum may not be assigned by either party without the prior written consent of the other. De Governlug Law. This Memorandum shall be governed by and construed in accordance with the laws of the Commonwealth of¥irginia and the applicable laws of thc Umted States of America. E. Time of the Essence. Time is of the essence with respect to the performance of the terms and conditions of this Memorandum. F. Modification. There may be no modification or amendment to this Memorandum, except in writing, executed by authorized representatives of the City and the Service. G. Non-Appropriation. It is understood and agreed by the parties hereto that neither the City nor the Service shall be bound and obligated hereunder and under the definitive agreements to be entered into in furtherance of this Memorandum only to thc extent that funds shall have been appropriated and budgeted for the purposes of this Memorandum (specifically, the payment of any necessary equalizing payment in connection with the Sandbridge Road Property Exchange, thc Lotus Creek Property acquisition or any other payment described herein). In the event that no funds are appropriated and budgeted by the City or the Service in any fiscal year for payments due on the transactions contemplated hereby, the party lacking the necessary funds shall immediately notify thc other party of such occurrence and this Memorandum (or, if applicable, the appropriate definitive agreement(s) in furtherance hereof) shall terminate on the last day of the fiscal year for which appropriation is received without penalty or expense to the City or the Service of any kind whatsoever. H. Non-Binding on Future Actions. Nothing contained in this Memorandum shall be deemed to require or obligate the City, the City Council of the City (or any member thereof), or the Planning Commission of the City (or any member thereo0 to take any particular action with respect to the proposed and intended actions contemplated hereby, including without limitation, approval of the discontinuance of the Nimmo Parkway Right-of-Way or the Sandbridge Road Exchange Property and/or declaring the Service Nimmo Parkway Parcel, the Sandbridge Road Exchange Property and/or the Lotus Garden Farms Property in excess of the City's needs. U. S. Congress. It is mutually agreed that no Member of or Delegate to Congress, or Resident Commissioner, shall be admitted to any share or part of this Memorandum, or to any benefit to arise thereupon. Nothing, however, hereto contained shall be construed to extend to any incorporated company, where this Memorandum is made for the general benefit of such incorporation or company. This Memorandum of Understanding sets forth the preliminary understanding of the City and the Service with respect to the transactions described herein. The parties will not be obligated to complete the transactions contemplated by this Memorandum of Understanding except pursuant to a definitive Agreement(s) of Sale and other definitive agreements which are in furtherance of the tenns set forth in this Memorandum of Understanding. 14 t'll'¥ ATTORN£Y ~NN~.~ P DI~ WITNESS TIlE FOLLOWING SIGNATURES AND SEALS AS OF TI~ DATE FIR. ST ABOVE SPECIFIED: CITY OF VIRGINIA BEACH ATTEST: By: __ (SEAL) City M~nagcr/Authodze'd Designee of Civy Manager City Clerk UNITED STATES OF AMERICA By (SEAL) W,ldiii¥'Rcfuge Systom, U.S. Fish &Wildlife Service, D~tment of the Int~'ior Certified as to Avdl~biliry o£Fuads Conlcnt Approved Form Approved i i · Director of Finance 15 EXHIBIT A [Resolution] 16 d '1, It' I o~ o t. i- %% '"'- :2'-"41 " I / // ~4~-47-~13B 2423-4' r~} 8 0 0 ~ 0 0 T ¥ T ?