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JANUARY 4, 2005 MINUTES CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL MAYORMEYERA E. OBERNDORF, At-Large VICE MAYOR LOUIS R. JONES, Bay..ide - Di..trict 4 HARRY E. DIEZ,EL, Kempsville - Di..trict 2 ROBERT M. DYER, Centerville - Di..trict 1 REBA S. McCLANAN, Ro..e Hall - Di..trict 3 RICHARD A. MADDOX, Beach - Di..trict 6 J1M REEVE, Prince.... Anne - Di..trict 7 PETER W SCHMlDT, At-Large RON A. VIUANUEVA, At-Large ROSEMARY WlLSON, At-Large JAMES L. WOOD, Lynnhaven -District 5 CITY COUNCIL AGENDA JAMES K. SPORE, City Manager LESUE 1. LIUEY, City Attorney RUTH HODGES SM1TH, MMCA, City Clerk 4 JANUARY 2005 I. CITY MANAGER'S BRIEFINGS - Conference Room A. JOINT LAND USE STUDY (JLUS) Robert 1. Scott, Director, Planning and AICUZ Task Force B. PHOTO SAFE UPDATE Chief A. M. Jacocks, Police C. TOWN CENTER - PHASE III Carol Hahn, Deputy City Attorney II. CITY COUNCIL LIAISON REPORTS III. CITY COUNCIL COMMENTS IV. REVIEW OF AGENDA ITEMS v. INFORMAL SESSION - Conference Room A. CALL TO ORDER - Mayor Meyera E. Obemdorf B. ROLL CALL OF CITY COUNCIL C. RECESS TO CLOSED SESSION CITY HALL BUlLDlNG I 240i COURTHOUSE DRIVE ViRGINIA BEACH, ViRGiNIA 23456-8005 PHONE: (757) 427-4303 FAX (757) 426-5669 EMAiL:Ctycncl@vbgov.com 2:00 P.M. 4:30 P.M. VI. FORMAL SESSION - Council Chamber 6:00 P.M. A. CALL TO ORDER - Mayor Meyera E. Oberndorf B. INVOCATION: Reverend Tommy Taylor London Bridge Baptist Church e. 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 AND FORMAL SESSION December 14, 2004 G. AGENDA FOR FORMAL SESSION H. PUBLIC HEARING 1. CITY PROPERTY LEASE FRANCHISES a. CourtYard Marriott Cafe - 2501 Atlantic Avenue - Boardwalk Cafe b. Black Angus - 706 Atlantic Avenue - Sidewalk Cafe c. Albie's Pizza - 20021 st Street - Side Street Cafe d. Dough Boys 24th Cafe - 2401 Atlantic Avenue - Sidewalk Cafe e. Planet Pizza Cafe - 812 Atlantic Avenue - Sidewalk Cafe I. RESOLUTIONS/ORDINANCES 1. Resolution to AUTHORIZE a non-binding Term Sheet re Phase III ofthe Town Center, requesting EXECUTION by the Virginia Beach Development Authority (VBDA) and AUTHORIZING the development of supplemental project documents. 2. Resolution to AUTHORIZE the issuance of Industrial Development Revenue Bonds (IDB) in an amount not to exceed $5,500,000 for the benefit of London Bridge Holding, LLC re financing the acquisition, construction and equipping of property and improvements at London Bridge Road and Precision Drive. 3. Resolution AUTHORIZING the City Manager execute a Memorandum of Understanding (MOU) with the District of Columbia during the 2005 Presidential Inauguration (January 15-21, 2005). 4. Ordinance to AMEND Chapters 1-2,6-3,6-5,6-30,6-114 and 31-28 of the City Code re the definition of resort season. 5. Ordinance to RENEW five existing franchises for the operation of Open Air Cafes in the Resort Area: a. CourtYard Marriott Cafe - 2501 Atlantic Avenue - Boardwalk Cafe b. Black Angus - 706 Atlantic Avenue - Sidewalk Cafe c. Albie's Pizza - 20021 5t Street - Side Street Cafe d. Dough Boys 24th Cafe - 2401 Atlantic Avenue - Sidewalk Cafe e. Planet Pizza Cafe - 812 Atlantic Avenue - Sidewalk Cafe 6. Ordinance AMENDING the Resort Advisory Commission (RAe) Bylaws re the composition of their membership. J. PLANNING 1. APPEAL decision of the Planning Director re the Certificate of Appropriateness for a sign at Village Shops - Rose Hall in behalf of SUSAN KROHN. RECOMMENDATION: DENIAL 2. Applications of H&A ENTERPRISES, LLC at Independence Boulevard and Smokey Road: (DISTRICT 4 - BA YSIDE) a. Change of Zoninf! District Classification from R-7.5 Residential District to Conditional B-2 Community Business District b. Conditional Use Permit re motor vehicle sales RECOMMENDATION: DENIAL K. APPOINTMENTS BIKEWAYS and TRAILS ADVISORY COMMITTEE BOARD OF BUILDING CODE APPEALS - Maintenance Division New Construction Division COMMUNITY POLICY AND MANAGEMENT TEAM - CSA -AT RISK COMMUNITY SERVICES BOARD FRANCIS LAND HOUSE BOARD OF GOVERNORS HEALTH SERVICES ADVISORY BOARD HISTORICAL REVIEW BOARD INVESTMENT PARTNERSHIP ADVISORY COMMITTEE MINORITY BUSINESS COUNCIL PARKS and RECREATION COMMISSION TOWING ADVISORY BOARD L. UNFINISHED BUSINESS M. NEW BUSINESS N. ADJOURNAMENT ************************ PUBLIC COMMENTS Non agenda Items ************************ *.*.....*..... If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERK'S OFFICE at 427-4303 Hearing impaired, call: Virginia Relay Center at 1-800-828-1120 ************** Agenda OI/04/05/sb www.vbgov.com MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia 4 January 2005 Mayor Meyera E. Oberndorf called to order the City Manager's Briefing re JOINT LAND USE STUDY (JLUS) in the Council Conference Room, City Hall, on Tuesday, January 4,2005, at 2:00 P.M. Council Members Present: Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt and James 1. Wood Council Members Absent: Richard A. Maddox [Out of City with Family] Ron A. Villanueva [Employee Funeral] Rosemary Wilson [Out of City with Family] -2- CITY MANAGER'S BRIEFING JOINT LAND USE STUDY (JLUS) 2:00 P.M. ITEM # 53379 Robert J Scott, Director - Planning, referenced on November 2, 2004, the status of the Joint Land Use Study and a list of possible actions was presented. The Office of Economic Adjustment has advised our Joint Land Use Study (JLUS) is the largest and most complicated Study ever undertaken. The appointed Joint Land Use Task Force has focused these alternatives into twenty-four (24) specific points, the "heart and sole" of the Joint Land Use Study. These twenty-four (24) points have been, in many cases, assembled with the Navy's assistance. The Task Force has met with Rear Admiral S.A. Turcotte, Commander - Navy Region Mid-Atlantic, and his staff to discuss all points. TheAir Installations Compatible Use Zones (AICUZ) Task Force endorsed these key points. Mr Scott cited the prominent members of the Joint Land Use Task Force: Senator Kenneth W. Stolle Chair Michael J Barrett Captain Thomas F. Keeley Councilman Richard A. Maddox Rear Admiral Fred Metz, Retired The Honorable Owen B. Pickett Councilman Jim Reeve Ronald C. Ripley JLUS KEY POINTS I 1. Address land use compatibility issues in thefollowing areas of priority: Accident Potential Zones Highest Noise Zone 75dB+ Other Noise Zones < 75dB II 2. Assemble a *Resort Area Master Plan that includes jet noise and accident potential among the range of key factors. Plan to achieve the following: Recognize need to redevelop the area Continue prosperity of tourist industry and conventions industry Capitalize on construction of new convention center Add 3,000 more residential units to area Curtail development in the APZ 's to match OPNA V Instruction guidelines *Mr. Scott defined the "resort area" as being from 42nd Street to Rudee Inlet and from approximately Birdneck Road to the Boardwalk. Relative additional residential units, the future of the Resort Area will be defined by the City Council and their policy. Over the next few weeks, a number of presentations re the Resort Area will be given to City Council. However, the existing zoning allows for additional residential units January 4,2005 - 3 - CITY MANAGER'S BRIEFING JOINT LAND USE STUDY (JLUS) ITEM # 53379 (Continued) Mr. Scott displayed the 1999 AICUZ Map. The three (3) shades of green depicted the three (3) bands of noise impact (65 - 70dB, 70 - 75dB and above 75db). The "blue" areas indicated the two (2) Accident Potential Zones - APZ I ( medium blue) and APZ II (light blue), as well as the Clear Zones at the end of the runways (darker blue). Some areas at the Oceanfront near the corner of Birdneck and Laskin Road that would be affected by this consideration and the plans need to reflect same. III. 3. *Amend zoning ordinance to remove hotels and motels and possibly other defined uses as principal or conditional uses in the industrial districts or office districts where impacted by greater than 65dB 4. Infill development clearly defined and allowed in Primary Residential Areas 5. No residential density increase in noise zones greater than 75dB, except per infill rules 6. Residential rezonings in noise zones greater than 70dB held to lowest reasonable density given nature of surrounding development 7. Amend zoning ordinance to encourage cluster development where AICUZ lines cross individual properties. 8 Allow expansion of existingplacs of worship in the AICUZ area and advise against construction of new facilities. Neither should be allowed in APZ's *Councilman Wood has served as the Liaison re the review and amendment of the Zoning Ordinance. IV 9. No increase in intensity of use in APZ'S when not in accord with the OPNA V Instructions 10. Subject to the establishment of an adequate funding program, purchase homes in APZ-2 from willing sellers at fair market value 11. Subject to the establishment of Funding source from combined local, state and federal sources Eminent Domain authority An appropriate relocation plan A reuse plan consistent with the OPNA V guidelines, Condemnation of houses in APZ-1 systematically over time 12. Establish a Virginia Beach Redevelopment Strategy January 4, 2005 -4- CITY MANAGER'S BRIEFING JOINT LAND USE STUDY (JLUS) ITEM # 53379 (Continued) V. 13. Seek state enabling legislation to allow transfer of development rights to other parts of the Transition Area 14. Assemble fundingpackage of state,federal and local funds to purchase from willing sellers affected property for open space in the greater than 70dB area of the Transition Area 15. City of Virgin ia Beach to seek adjustments in or expansion of Open Space, Agricultural Reserve and other programs to target portions of related funds for the purpose of acquiring land within a defined geographic corridor in the Transition Area 16. City of Virginia Beach and other affected Hampton Roads localities to seek federal funding source for purchase of certain conservation lands 17. Retain the Comprehensive Plan for the part of the Transition Area less than 75dB to keep density at no greater than 1 dwelling unit per acre. The Comprehensive Plan has never indicated that residential use is appropriate in noise zone > 75dB VI 18. City of Virginia Beach to take the lead requesting a regional briefing by the FAA on selective application of FAR Part 150 provisions 19. Provide public access to regionally approved JL US VIA Navy website and City of Virginia Beach related elements via VBGOV.COM 20. Continue to include the Navy in school site selection decisions 21. City of Virginia Beach and other affected Hampton Roads localities to pursue real estate disclosure of AICUZ and APZ zones to be part of the Multiple Listing Service data base 22. Request General Assembly to enable local governments to require interior noise attenuation for certain non- residential structures 23. Conduct a series of workshops and provide website information to increase public education of existing airport noise ordinance January 4,2005 - 5 - CITY MANAGER'S BRIEFING JOINT LAND USE STUDY (JLUS) ITEM # 53379 (Continued) 24. Establish administrative processes to assist the Navy in enforcing the terms of its restrictive easements Mr. Scott advised the Task Force is hoping, by adoption of the Joint Land Use Study, an acceptable course of action has been chartered that will comply with both the Navy and the community and is in accordance with the OPNA V Instructions. JLUS - Virginia Beach Timeline Date Meeting Actions January 3, 2005 AICUZ Task Force Meeting Agree or key recommendations January 4, 2005 City Council Meeting City Council briefed on progress of AICUZ Task Force progress and pending JLUS actions January 18, 2005 City Council Public Hearing Comments received from public/stakeholder group representatives January 25,2005 City Council Meeting City Council provides direction to Virginia Beach Policy Committee members to forward comments to Regional policy Committee February 10,2005 Regional Policy Committee Decide on JL US Meeting recommendations February 22, 2005 City Council Meeting Vote on recommendations - prioritize A SPECIAL FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL on Tuesday, January 18, 2005, at 6:00 P.M. shall be scheduled. The purpose of the FORMAL SESSION will be to conduct a PUBLIC HEARING re the JOINT LAND USE PLAN recommendations. Mr. Scott advised information relative the twenty-four (24) recommendations and notice of the Public Hearing shall be posted on the City's website. A phone number shall be listed re citizen inquires. January 4,2005 - 6- MA YOR 'S COMMENTS ITEM # 53380 Mayor Oberndorf referenced correspondence dated December 21, 2004, from Chairman Daniel D. Edwards - Virginia Beach School Board. The School Board invited City Council to take a tour of their alternative education facilities and programs. The City Council was requested to contact the School Board Clerk, Dianne Alexander, Phone: 263-1061, to coordinate the arrangements for staff and a Board Member to lead individual tours. The Mayor requested the City Clerk poll the members of City Council re their date of preference. ITEM # 53381 Mayor Oberndorf advised Robert Matthias, Assistant to the City Manager, forwarded information from Richmond re "Speaker William J. Howell- House of Delegates and House Republicans propose $938.5- MILLION Transportation Initiative". Mayor Oberndorf distributed said information which is hereby made a part of the record. January 4,2005 - 7 - CITY MANA GER 'S BRIEFING PHOTOSAFE UPDATE 3:00 P.M. ITEM # 53382 Chief A.M Jacocks, Police Department, advised City Council has shown, by their approval of the PhotoSafe system, their seriousness re "red light running" in Virginia Beach. The General Assembly is convening and will have several Bills to either extend or remove the sunset clause re the PhotoSafe system. Chief Jacocks distributed a photograph of the accident fatality on December 30,2004, at 1:30 PM at the intersection of Independence Boulevard and Witchduck Road. A truck depicted in the photograph ran a "red fight". Chief Jacocks introduced Sergeant Mark Summerell - Special Operations and Program Manager of PhotoSafe. MPO Ryan Arnold, Special Operations, is Sergeant Summerell's "right hand man" in this program. Sergeant Summerell referenced the "red light running" problem. Each year in the United States, red light violators cause I-MILLION crashes, 250,000 injuries and 2,000 deaths. Fatalities resultingfrom red light violators have increased three times that of any other traffic relatedfatality. In terms of injuries, deaths and property damage, the annual cost of red light violations exceeds $7-BILLION Using the 2001 crash data for Virginia Beach, local costs were $2.5-MILLION. Camera Locations Holland & Rosemont September 11,2004 Independence and Virginia Beach Boulevard October 22, 2004 Indian River and Kempsville November 11,2004 Indian River and Military Highway January 7, 2005 Each intersection has a "photo enforced" sign. There are twelve (I2) gateway signs at entrances to this City: "Red Lights Photo Enforced", advising citizens of this procedure. Sergeant Summerell displayed a video and photographs of violations. Violations: September 11, 2004 - December 20, 2004 Incidents Photographed Less Rejects Uncontrollable Factors Camera Malfunctions DMV not on File Emergency Vehicles Warning Letters Violation Notices Sent 7,174 2,056 7.7% 11.9% 4,8% 1.4% 3,029 2,089 Intersections Compared Average per Day Notice Rates - Period Ending 12/20/04 Holland and Rosemont 9.7 Independence and Virginia Beach Boulevard 33.8 Indian River and Kempsville 42.3 January 4, 2005 -8- CITY MANAGER'S BRIEFING PHOTOSAFE UPDATE ITEM # 53382 (Continued) A PhotoSafe Program Survey was performed by Continental Research Associates, Inc., a Norfolk based marketing researchfirm. Telephone interviews were conductedfrom October 24th through November 14th, 2004 with 300 randomly-selected Virginia Beach households. The study was commissioned by the Virginia Beach Police Special Operations Department to gauge how residents feel about red light photo enforcement. The survey consisted of thirty-three (33) questions which involved nine (9) minutes. The Margin of Error (compared to afull survey)::t 5.65% at 50%;:t 3.39% at 90%. Profile of Respondents (300 Surveys) Registered Voters Average Number of years lived in City Average Age % of individuals who had a moving violation 80.3% 19.5 46.1 18.0% Sergeant Summerell quoted sample questions and responses: What percent knew that cameras are being used in Virginia Beach? 86% What percent "Strongly Approved" or "Approved" of supplementing police efforts by using red light cameras? 84 % What percent agree that red light enforcement cameras will help remind people not to run red lights? 87.7% What percent agree that red light enforcement cameras will help reduce traffic accidents in the City? 84% Nearly two (2) out of three (3) people surveyed (62.0%) believe "running red lights" in Virginia Beach is a serious problem. CD's of the Survey were distributed to City Council. A written copy of the complete Survey was presented to the City Clerk and is hereby made a part of the record. Relative changing the sequence to have a longer "yellow light ", Traffic Engineering has been requested to review the light cycles re possible extension. However, this is the national standard: 3 seconds on a turn lane with 4.25 seconds on the straight lane (45 mile per hour zone). Traffic Engineering has been a part of this procedure since its inception. If the light cycles are being followed properly, Traffic Engineering can observe and perhaps make the adjustment for good traffic flow. Chief Jacocks advised studies have shown extending the yellow light interval does not change driver behavior once they are accustomed to the longer light. Sergeant Summerell advised relative citizen education many presentations have been given to the various Civic Leagues, Citizen Advisory Committee, various community groups, military bases and other organizations and they will be pleased to provide Briefings upon request. This month, a presentation will be made to the Council of Civic Organizations. A Traffic Safety video is also available and has a wide distribution on military bases and in the schools. January 4, 2005 -9- CITY MANAGER'S BRIEFING PHOTOSAFE UPDATE ITEM # 53382 (Continued) Because of legislative challenges, Chief Jacocks requested the City Council emphasize the importance of supporting the PhotoSafe legislation. Additional time is necessary to study the results and prepare an analysis of the PhotoSafe Program, prior to expansion. The five -year contract with the vendor is basically cost neutral to the City. Chief Jacocks advised the Department will be attending the General Assembly Session and will have this presentation available. A Press Conference is scheduled today, January 4, 2005, at 4:30 P.M. Councilman Wood distributed a Resolution to request the General Assembly SUPPORT legislation extending the use of Photo-Monitoring systems to enforce traffic light signals and enhance public safety. Councilman Wood requested this be ADDED to the Agenda, January 4, 2005 -10 - CITY MANA GER 'S BRIEFING TOWN CENTER - PHASE III 3:35 P.M. ITEM # 53383 The City Manager introduced Deputy City Attorney Carol Hahn,jor the Town Center. Deputy City Attorney Hahn has expended many hours perfecting these negotiations. The City Manager reiterated prior discussions with City Council re Town Center - Phase III: September 7, 2004 October 5, 2004 November 9, 2004 November 23,2004 December 7, 2004 Closed Session Briefing Briefing Public Comment Adoption of Resolution re Town Center - Phase III November 18,2004 Virginia Beach Development Authority Briefing Deputy City Attorney Hahn advised the term sheet has not changed dramatically. Elements of Phase III Block 6 Performing Arts Theatre (City Project) Approximately 40,000 square foot office/retail space, on two residual parcels Block 7 - Approximately 30-story hotellcondominium tower 104 unit (16-19 floors) residential condominium 215 room (10-12 floors) full-service Westin hotel 1,150 space public parking garage 17,000 square foot meeting roomlconference facility 33,000 square foot groundfloor retail/office space and hotel lobby Block 9 75, 000 -100,000 square foot multi-story multi-use Obligations of Authority Purchase the approximate 1,150 space garage on Block 7 for public parking Purchase meeting room/ conference facility for $6. 5-MILLION Enter into an agreement for management and operation of meeting roomlconference facility Pay into escrow $150,000 per year as a fee for capital reserves, maintenance and repair Construct traditional public infrastructure Sell Developer landfor Phase III under existing option agreement January 4, 2005 - 11 - CITY MANA GER 'S BRIEFING TOWN CENTER - PHASE III ITEM # 53383(Continued) Parking Facility Authority obligated to purchase parkingfacility upon opening of hotel and substantial completion of Block 7 .:t 1,150 spaces (currently estimated to be approximately $17,000 per space) At least one (1) parking space per condo will be bought or leased under terms to be agreed upon (allowing Authority to recover its cost) - remaining spaces free and open to the public for thirty (30) years. Price based on per space factor with guaranteed maximum Meeting Room/ Conference Facility Block 7 .:t 17,000 square foot meeting space owned by Virginia Beach Development Authority ($6.5-MILLION public) Will share kitchen with hotel Authority will enter into a lease agreement with hotel manager to operate and manage The Authority will pay into escrow $150,000 annually for capital reserves, capital repairs and capital maintenance, with annual adjustments (CPI with 3% cap) The City Council, Virginia Beach Development Authority and Performing Arts Theater will have the right to book for their own use without vavment of a reservation fee Hotel Operator to pay fee for use, but can earn-out based on hotel room tax generated The Authority and Developer to agree on a revenue sharing arrangement Infrastructure The Virginia Beach Development Authority constructs Block 7 and 9 Streetscapes ( .:t $1,160,000 public) Capital Improvement Program and Economic Development Investment Program (EDIP) funds The Development Authority and City may construct elevated pedestrian walkways over Columbus Street bridging Block 12, Block 7 and over Commerce Street bridging Block 7 and Block 6 ($2.5-MILLION public) January 4,2005 -12 - CITY MANAGER'S BRIEFING TOWN CENTER - PHASE III ITEM # 53383(Continued) Obligations of Developer Purchase land requiredfor development and construction of Phase III Dedicate land necessary for public infrastructure Invest between $90-MILLION and $114-MILLION in Phase III Other Changes Block 11 Developer and Authority have good faith intention to preserve Block 11 for a second high-rise Class-A office tower as contemplated in original concept of Town Center Conforming Changes Extend by one year dates by which Developer must purchase Block 12, Retail Space and remaining Option Land Grant Developer option to purchase residual parcels on Block 6 for commercial development at Virginia Beach Development Authority's cost plus cost of carry. Changes since November 9, 2004, Briefing Block 7 design refinements (ongoing) Deletion of office building Exterior modification Finalizing number of floors of condo/hotel tower and number of units/rooms Locations of elements Meeting Space - flexibility re: meeting space arrangement Block 6 Improvements Requirement that developer purchase and complete improvements on Block 6 deleted to reflect current theatre construction schedule Added portion of Block 6 infrastructure to Virginia Beach Development Authority Infrastructure Construction obligation ($340,000) Lou Haddad, President and Chief Executive Officer - Armada Hoffler, will provide renderings of the Condo/Hotel Tower, "Westin" during the City Council Formal Session. January 4, 2005 -13 - CITY MANA GER'S BRIEFING TOWN CENTER - PHASE III ITEM # 53383(Continued) Principles of Proposed Phase III Investment partnership between Armada/Hoffler, Town Center Associates and the Virginia Beach Development Authority (VBDA) (following the model of an Economic Development Park) All of the Virginia Beach Development Authority obligations are supported by a Support Agreement between the City and Authority The Authority obligations are supported by the City and structured to be paidfrom the revenues of Tax Increment Financing District (TIF) surrounding the project and a Special Tax District on the project itself Traditional public infrastructure (streets, street-scapes) to be funded through the Capital Improvement Program (CIP) and the Economic Development Investment Program funds (EDIP) The TIF is designed to accumulate funds to pay for purchase of the parking garage and meeting room conference facility Special Tax District pays for operation and maintenance costs of the Authority in operating parking garages Project paid for by TIF revenues; Special Tax available to cover shortfalls in the TIF Today's Action Approve Term Sheet Recommend Virginia Beach Development Authority approval of Term Sheet Authorize development of Phase III Development Agreement Next Steps Spring 2005 Spring 2007 Virginia Beach Development Authority Consideration Return Development Agreement to City Council and the Virginia Beach Development Authority for approval Begin construction on Block 7 Hotel opening, Garage purchase, Performing Arts Theatre opening January 20, 2005 Spring 2005 January 4,2005 -14 - CITY MANA GER 'S BRIEFING TOWN CENTER - PHASE III ITEM # 53383(Continued) Patricia Phillips, Director of Finance, presented, the Comprehensive Annual Report (CAFR) to City Council on November 23, 2004. A page within this CAFR reflected the Central Business District Tax Increment Financing (TIF) special revenue fund. For Fiscal Year 2004, the TIF incremental taxes since the District was created was approximately $1.6-MILLION. Debt service was paid out in the amount of$1.5- MILLION. Premium on Bonds was $600,000. There is a fund balance of $1,349,000, after payment of obligations. Projections have been made based on preliminary numbers reflected by Deputy City Attorney Hahn and the TIF will be able to cover the required debt service along with the existing debt. Taking advantage of a low interest rate environment, all of the Block 4 and Block 12 Garage Debt has been issued, as well as a portion of the Block 10 Debt. Management Services has a model, which measures project impacts to the government outside of the real estate tax. Over a 20-year period, approximately $85- MILLION (in terms of Personal Property Taxes, Business Licenses, Hotel/Meal and associated taxes) will benefit the City and schools. January 4,2005 -15 - CITY COUNCIL LIAISON REPORTS 4:05 P.M. ITEM # 53384 Council Members Wood and Schmidt, Liaisons to the Virginia Beach Performing Arts Theatre, distributed their report, which is hereby made a part of the record. Present Status November 1,2004: Notice to Proceed was issued to Clancy and Theys Construction Company January, 2005: The Finance Sub-Committee and the Fundation's Capital Steering Committee have been meeting to plan and implement the Capital Campaign The Advisory Committee and Sub-Committees continue work in Design Review, Facility Usage, Finance and Public Awareness Near-future actions Spring 2005 (April): Groundbreaking of new Theatre Spring 2005 (April): Demolition of Pavilion Theatre Summer 2007 - Opening of new Performing Arts Theatre ITEM # 53385 Council Members Wood and Schmidt, Liaisons to the Virginia Aquarium & Marine Science Center, distributed their report, which is hereby made a part of the record. Present Status The landscapingprojectfor the East Parking Lot has been divided so that work can begin in the areas that will not be affected by the Pedestrian Bridge project Near-future actions The architectural firm of Chermayefj, Sollogub & Poole (CSP) has reviewed the architectural contractfor the renovation and new exhibits project at the Aquarium and the contract should be resolved in the next two to three weeks. Unresolved Issues/Issues under study The Aquarium is working with the City to evaluate proposed sites for the Animal Care Annex (Stranding Center) Mayor Oberndorf complimented the news article re the rehabilitation and ultimate release of the Dolphin by the Virginia Aquarium and Marine Science Center and the story preceding this article re the Stranding Center. January 4, 2005 , -16- CITY COUNCIL LIAISON REPORTS ITEM # 53386 Council Members McClanan and Wilson are Liaisons to the Tax Assessment Task Force. Council Lady McClanan distributed a copy of their report. The Task Force held its first meeting on December 15, 2004 with ten (IO) of its twelve (I2) members in attendance. The agenda included a Briefing by Real Estate Assessor Jerald Banagan on the residential assessment process and a discussion by the Tax Force on holding the "Town Hall" meetings. The next meting of the Task Force is scheduledfor Thursday, January 13, 2005, 2:30 P.M. to 5:00 P.M. in the Economic Development Conference Room, Town Center. The agenda will include briefings by the Assessor on the commercial and hotel assessment process and finalizing dates, times and locations for the "Town Hall" meetings.' Three (3) "Town Hall" meetings will be held on Thursday evenings in late January and early February 2005. There will be one meeting for the Centerville, Kempsville and Rose Hall Districts, onefor the Bayside and Lynnhaven Districts and onefor the Beach and Princess Anne Districts. The City Attorney advised the Board of Equalization is the State created body by which assessments are adjusted. The City Council does set the rate to affect the tax dollars. ITEM # 53386 Councilman Schmidt, Liaison to the Community Services Board, advised the Board will make its annual sojourn to the General Assembly on Friday, January 13, 2005. January 4,2005 - 17- CITY COUNCIL COMMENTS 4:13 P.M. ITEM # 53387 Mayor Oberndorf advised there will be an extra weekend for the Holiday Lights on the Boardwalk, to raise funds for the Tsunami Relief The $10.00 per car on Friday, January 7, 2005 and Saturday January 8, 2005, will be donated to te American Red Cross for this relief The program is entitled "Keeping the Lights on for Tsunami Relief": The Virginia Beach Hotel/Motel Association and the Virginia Beach Restaurant Association will present the donations to the American Red Cross. ITEM # 53388 Mayor Oberndorf advised as per her request, a Resolution has been scheduled for tonight's City Council Session honoring the 2004 Landstown High School Varsity Football Team who compiled a 1400 record and won the school's first team State Championship. Mayor Oberndorfhas since learned other City schools have achieved a State championship: Princess Anne High School- Field Hockey; Cox High School- Girls' Volley Ball Team; and, Tallwood High School- Boys Volley Ball Team. These other teams shall be scheduledfor a City Council Session to recognize their achievements. ITEM # 53389 Councilman Reeve referenced news articles concerning possible restrictions concerning demonstrations at the Town Center Plaza. The City Manager advised the Virginia Beach Development Authority is considering these restrictions on January 20, 2005. The Plaza is owned by the Virginia Beach Development Authority. Donald Maxwell, Director - Economic Development, advised there was destruction involved with the skateboarders. The Virginia Beach Development Authority has not received a full briefing or made a decision. The staff is presenting a report with their recommendation to the Virginia Beach Development Authority. A Briefing shall be provided to City Council during the January 18, 2005, City Council Workshop. ITEM # 53390 Councilman Schmidt distributed an Ordinance to AMEND the City Code re establishing minimum requirements for adequate space for animals and limiting the time animals may be tethered. Councilman Schmidt requested the City Council review this ordinance to be scheduled for the City Council Session of January 11,2005. City Council received correspondence inAugustfromPETA re implementing legislation which would protect dogs relegated to life at the end of a chain. A letter of support has been provided by the Society for Preventionfor Cruelty to Animals (SPCA). ITEM # 53391 Council Lady McClanan expressed concern re Christmas Cards and Calendars provided by certain City Departments. Council Lady McClanan requested a report be provided relative the cost expended. The City Manager advised he has requested staff inventory and provide information relative the cost, which shall be provided to City Council next week. January 4,2005 -18 - CITY COUNCIL COMMENTS ITEM # 53392 Council Lady McClanan referenced citizens' concerns re the absence of a Christmas Tree on Mount Trashmore, while the Menorah has been placed back on Mount Trashmore after the recapping. Mayor Oberndorf did not know why a Christmas Tree has not been replanted on the top of Mount Trashmore. The Cape Henry Women's Club originally decorated the Tree. The Menorah was paidfor by private individuals in the City. They had requested City Manager George Hanbury for permission to place the Menorah on top of Mount Trashmore. Mr. Hanbury permitted their placing of the Menorah if the individuals would be responsible for the liability insurance. When Mount Trashmore was recapped, the same individuals obtained permission from the YMCA to place the Menorah at the base of the mountain in their parking lot. Council Lady McClanan requested information re the Seal on Mount Trashmore. After the recapping, the entire seal was "flat" and could not be distinguished as one drives on 1-264. The City changed the angle of the City Seal by tipping up and filling underneath with concrete. However, the Seal still cannot be distinguished. The City Attorney advised Associate City Attorney Rod Ingram is a Public Policy Attorney and will provide information to City Council relative this item. ITEM # 53393 Mayor Oberndorf referenced correspondence making strong assertions re a Redevelopment and Housing Authority. Mayor Oberndorf has responded to the representative of Citizens Action Coalition, Inc. ITEM # 53394 Councilman Schmidt presented a gift of peanuts in recognition of Councilman Diezel's achievement of a significant chronological milestone (65th Birthday) on Monday, January 10,2005. January 4, 2005 -19 - AGE N DA REV I E W S E S S ION 4:35 P.M. ITEM # 53395 1.1. Resolution toAUTHORIZE a non-binding Term Sheet re Phase III of the Town Center, requesting EXECUTION by the Virginia Beach Development Authority (VBDA) and AUTHORIZING the development of supplemental project documents. This item will be discussed during the Formal Session. Lou Haddad, President and Chief Executive Officer- Armada Hoffler, will provide renderings of the Condo/Hotel Tower, "Westin". ITEM # 53396 1.2. Resolution to AUTHORIZE the issuance of Industrial Development Revenue Bonds (IDB) in an amount not to exceed $5,500,000 for the benefit of London Bridge Holding, LLC re financing the acquisition, construction and equipping of property and improvements at London Bridge Road and Precision Drive. The City Manager advised the Navy has been briefed relative the land use. ITEM # 53397 1.3. Resolution AUTHORIZING the City Manager execute a Memorandum of Understanding (MOU) with the District of Columbia during the 2005 Presidential Inauguration (January 15-21, 2005). The City Attorney advised the Memorandum of Understanding has been revised (Section 9, Page 4): "Any request for legal representation will be made from the-f:f:fi: l'yfal 'oShal '.5 office Devartment of Justice. " The City Attorney advised the Police Officers will be deputized as Deputy Us. Marshals for this event and the purpose of the Inauguration. They will be covered by the Federal compensation and benefits. Chief Jacocks advised this is extremely valuable experience for the Officers. Theforty-three (43) officers view their participation in the Presidential Inauguration as an honor. The City of Chicago is sending three hundred (300) Police Officers. ITEM # 53397 1.4. Ordinance to AMEND Chapters 1-2,6-3,6-5,6-30,6-114 and 31-28 of the City Code re the definition of Resort Season As Councilman Maddox was not in attendance and he had brought this to the attention of City staff, Councilman Reeve and Council Lady McClanan had concerns and wished this deferred until the City Council Session of January 11,2005. January 4,2005 - 20- AGENDA REVIEW SESSION ITEM # 53398 Mayor Oberndorf's sponsored a Proclamation and this shall be ADDED to the Agenda: Resolution honoring the 2004 Landstown High School Varsity Football Team who compiled a 1400 record and won the school's first team State Championship. ITEM # 53399 Councilman Wood requested this Resolution be ADDED to the Agenda: Resolution to request the General Assembly SUPPORT legislation extending the use of Photo-Monitoring systems to enforce traffic light signals and enhance public safety. ITEM # 53400 BY CONSENSUS, thefollowingshall compose the CONSENT AGENDA: RESOLUTIONS /ORDINANCES I2. Resolution to A UTHORIZE the issuance of Industrial Development Revenue Bonds (IDB) in an amount not to exceed $5,500,000 for the benefit of London Bridge Holding, LLC re financing the acquisition, construction and equipping of property and improvements at London Bridge Road and Precision Drive. I3. Resolution AUTHORIZING the City Manager execute a Memorandum of Understanding (MOU) with the District of Columbia during the 2005 Presidential Inauguration (January 15-21, 2005). I4. Ordinance to AMEND Chapters 1-2,6-3, 6-5, 6-30, 6-114 and 31-28 of the City Code re the definition of Resort Season I5. Ordinance to RENEW five existing franchises for the operation of Open Air Cafes in the Resort Area: a. CourtYard Marriott Cafe - 2501 Atlantic Avenue- Boardwalk Cafe b. Black Angus - 706 Atlantic Avenue - Sidewalk Cafe c. Albie's Pizza - 200 2]'1 Street - Side Street Cafe d. Dough Boys 24th Street Cafe - 2401 Atlantic Avenue - Sidewalk Cafe e. Planet Pizza Cafe - 812 Atlantic Avenue - Sidewalk Cafe I6. Ordinance AMENDING the Resort Advisory Commission (RAe) Bylaws re the composition of their membership. Item I3 shall be APPROVED, BY CONSENT, with revision of the Memorandum of Undrstanding Item I4 shall be DEFERRED BY CONSENT, until the City Council Session of January 11, 2005 January 4,2005 - 21 - AGENDA RE VIE W SESSION ITEM # 53401 J.J. APPEAL decision of the Planning Director re the Certificate of Appropriateness for a sign at Village Shops - Rose Hall in behalf of SUSAN KROHN This Appeal shall be discussed during the Formal Session ITEM # 53402 J.2. Applications of H&A ENTERPRISES, LLC at Independence Boulevard and Smokey Road: (DISTRICT 4 -BAYSIDE) a. Change of Zoning District Classification from R-7.5 Residential District to Conditional B-2 Community Business District b. Conditional Use Permit re motor vehicle sales This item shall be discussed during the Formal Session. . January 4,2005 - 22- ITEM # 53403 Mayor Meyera E. Oberndorf entertained a motion to permit City Council to conduct its CLOSED SESSION, pursuant to Section 2.1-344(A), Code of Virginia, as amended, for the following purpose: PERSONNEL MATTERS: Discussion, consideration or interviews of prospective candidates for employment, assignment, appointment, promotion, performance, demotion, salaries, disciplining or resignation of specific public officers, appointees or employees pursuant to Section 2.2-3711 (A) (1), To Wit: Appointments: Boards and Commissions: Bikeways and Trails Advisory Committee Board of Building Code Appeals - Maintenance Division - New Construction Division Community Policy and Management Team - CSA At Risk Community Services Board - CSB Francis Land House Board of Governors Health Services Advisory Board Historical Review Board Human Rights Commission Investment Partnership Advisory Committee - PPEA Minority Business Council Parks and Recreation Commission Southeastern Public Service Authority (SPSA) Towing Advisory Board Virginia Beach Community Development Corporation - VBCDC PROSPECTIVE BUSINESS OR INDUSTRY: Discussion concerning a prospective business or industry where no previous announcement has been made of the business' or industry's interest in locating in the community pursuant to Section 2.2-3711 (A)(5). Upon motion by Vice Mayor Jones, seconded by Councilman Reeve, City Council voted to proceed into CLOSED SESSION (4:48 P.M.). Voting: 8-0 Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. OberndorJ, Jim Reeve, Peter W. Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson (Recess: 4:50 P.M. - 5:00 P.M.) (Closed Session: 5:00 P.M. - 5:35 P.M.) (Dinner: 5:35 P.M. - 6:00 P.M.) January 4, 2005 - 23- FORMAL SESSION VIRGINIA BEACH CITY COUNCIL January 4,2005 6:00 P.M. Mayor Meyera E. Oberndorf called to order the FORMAL SESSION of the VIRGINIA BEA CH CITY COUNCIL in the Council Chamber, City Hall Building, on Tuesday, January 4, 2005, at 6:00 P.M Council Members Present: Harry E. Diezel, Robert M Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt and James L. Wood Council Members Absent: Richard A. Maddox [Out of City with Family] Ron A. Villanueva [Employee Funeral] Rosemary Wilson [Out of City with Family] INVOCATION: Reverend Tommy Taylor London Bridge Baptist Church PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Council Lady Rosemary Wilson DISCLOSED her husband is a principal in the accounting firm of Goodman and Company and is directly and indirectly involved in many of Goodman and Company's transactions. However, due to the size of Goodman and Company and the volume of transactions it handles in any given year, Goodman and Company has an interest in numerous matters in which her husband is not personally involved and of which she does not have personal knowledge. In order to ensure her compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is her practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifYing any matters in which she might have an actual or potential conflict. If, during her review she identifies any matters, she will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council. Council Lady Wilson regularly makes this disclosure. Council Lady Wilson's letter of January 27,2004, is hereby made a part of the record. Council Lady Rosemary Wilson DISCLOSED she is a real estate agent affiliated with Prudential Decker Realty. Because of the nature of Real Estate Agent affiliation, the size of Prudential, and the volume of transactions it handles in any given year, Prudential has an interest in numerous matters in which she is not personally involved and of which she does not have personal knowledge. In order to ensure her compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is her practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifYing any matters in which she might have an actual or potential conflict. If, during her review she identifies any matters, she will prepare andfile the appropriate disclosure letter to be recorded in the official records of City Council. Council Lady Wilson regularly makes ths disclosure. Council Lady Wilson's letter of January 27,2004, is hereby made a part of the record. January 4, 2005 - 24- Item V-E. CERTIFICATION OF CLOSED SESSION ITEM # 53404 Upon motion by Councilman Dyer, seconded by Councilman Reeve, City Council CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS. Only public business matters lawfully exempt from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies; AND, Only such public business matters as were identified in the motion convening the Closed Session were heard, discussed or considered by Virginia Beach City Council. Voting: 8-0 Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4, 2005 RESOLUTION CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded in # ITEM # 53403, page 22, and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3711 (A) ofthe 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 RESOL YED: 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 in Closed Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Closed Session were heard, discussed or considered by Virginia Beach City Council. ~#;- uth Hodges mith, MMC City Clerk January 4, 2005 --1 - 25 - Item V-F.J. MINUTES ITEM #53405 Upon motion by Council Lady Wilson, seconded by Councilman Dyer, City Council APPROVED the Minutes of the INFORMAL and FORMAL SESSIONS of December 14, 2004. Voting: 7-0 Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt and James L. Wood Council Members Voting Nay: None Council Members Abstaining: Vice Mayor Louis R. Jones Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson Vice Mayor Jones ABSTAINED as he was not in attendance during the City Council Session of December 14,2004, January 4, 2005 - 26- Item V-G. ADOPT AGENDA FOR FORMAL SESSION ITEM # 53406 BY CONSENSUS, City Council ADOPTED: AGENDA FOR THE FORMAL SESSION ADDED: Resolution honoring the 2004 Landstown High School Varsity Football Team who compiled a 1400 record and won the school's first team State Championship. Resolution requesting the General Assembly SUPPORT legislation extending the use of Photo-Monitoring systems to enforce traffic light signals and enhance public safety January 4,2005 - 27- Item V-G.] RESOLUTION ITEM # 53407 Mayor Oberndorfread the Resolution signed by all Council Members.: LANDSTOWN EAGLES DAY January 4, 2005 The 2004 Landstown High School Varsity football team completed A "PERFECT SEASON" compiling a 14-0 record and outscoring their opponents 603 to 188. The Team defeated James Robinson High School to win the school's first team state championship and the first for a Virginia Beach football team since the playoff system has been in place. Coach Chris Beatty, in his second year at Landstown, was recognized as the Virginia Coach of the Year by the Virginia High School Coaches Association. Coach Beatty and the Captain of the Team ACCEPTED the RESOLUTION with gratitude. Roger D. Wilson, 2333 Rock Lake Loop, Phone: 471-5980, expressed appreciation for City Council's recognition of this Football Team. Mr. Wilson requested a parade in honor of the Landstown High School Football Team. January 4,2005 Itsnlutinu WHEREAS: The 2004 Landstown High School varsity football team completed a "pelfect season, " compiling a 14-0 record and outscoring their opponents 603 to 188; and WHEREAS: The team defeated James Robinson High School to win the school's first team state championship, and the first for a Virginia Beach football team since the playoff system has been in place; and WHEREAS: Junior Percy Harvin scoredfour touchdowns, intercepted three passes and gained 292 qlfensive yards in the state championship game and was named the Virginia AAA Player of the Year; and WHEREAS: Coach Chris Beatty, in his second year at Landstown, was recognized as the Virginia Coach of the Year by the Virginia High School Coaches Association; and WHEREAS: The team members represented their school and their city with class, displaying teamwork, leadership, and above all, sportsmanship; and WHEREAS: They were supported in their efforts by classmates, teachers and family members. NOW, THEREFORE, BE IT RESOLVED: That the City Council of the City of Virginia Beach is proud of the accomplishments of the 2004 Landstown High School varsity football team and thus declares the fourth day of January, 2005 as "LANDSTOWN EAGLES DAY" in the City of Virginia Beach and calls upon its Citizens to applaud the achievements of these student-athletes. ood, Lynnhaven 'h '.1..// ~ ./i . ..<{./q ( ,.\_,fflAX~~ Vice Mayor Louis R;Jones, BayS/de - 28- Item V-H.I albic/die PUBLIC HEARING ITEM # 53408 Mayor Oberndorf DECLARED A PUBLIC HEARING: CITY PROPERTY LEASE FRANCHISES a. CourtYard Marriott Cap - 2501 Atlantic Avenue - Boardwalk Cafe b. Black Angus - 706 Atlantic Avenue - Sidewalk Cafe c. Albie's Pizza - 200 2JSf Street - Side Street Cafe d. Dough Boys 24th Street Cap - 2401 Atlantic Avenue - Sidewalk Cafe e. Planet Pizza Cafe - 812 Atlantic Avenue - Sidewalk Cafe There being no speakers registered, Mayor Oberndorf CLOSED THE PUBLIC HEARING. January 4,2005 - 29- Item V-H.2 ADD-ON ITEM # 53409 Upon motion by Councilman Wood, seconded by Councilman Reeve, City Council ADDED to the Consent Agenda: Resolution requesting the General Assembly SUPPORT legislation extending the use of Photo-Monitoring systems to enforce traffic light signals and enhance public safety Voting: 8-0 Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4, 2005 - 30- Item V-I. RESOLUTIONS/ORDINANCES ITEM # 53410 Upon motion by Vice Mayor Jones, seconded by Councilman Reeve, City Council APPROVED IN ONE MOTION Items 2, 3(REVISED), 4 (DEFERRED), 5, 6 and 7 (ADD-ON) of the CONSENT AGENDA. Item 3, Memorandum of Understanding was REVISED, BY CONSENT. Item 4, was DEFERRED, BY CONSENT, until the City Council Session of January 11,2005.. Voting: 8-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4, 2005 - 31 - Item V-Ll. RESOLUTIONS/ORDINANCES ITEM # 53411 Lou Haddad, President and Chief Executive Officer - Armada Hojjler, provided renderings of the "Westin" Condo/Hotel Tower. A 35-story building is depicted; however, this is still under consideration. The trend is to make it bigger and better. This will be the tallest building in the Region. William Bailey, 4841 Rosecroft Street, Phone: 495-0677, President - Virginia Beach Professional Firefighters, registered in OPPOSITION. There are not a sufficient number offiremen to respond to afire in this type offacility, Upon motion by Councilman Diezel, seconded by Councilman Wood, City Council ADOPTED: Resolution to A UTHORIZE a non-binding Term Sheet re Phase III of the Town Center, requesting EXECUTION by the Virginia Beach Development Authority (VBDA) andA UTHORIZING the development of supplemental project documents, Voting: 7-1 Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, Mayor Meyera E.Oberndorf, Jim Reeve, Peter W Schmidt and James L. Wood Council Members Voting Nay: Reba S. McClanan Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4,2005 1 RESOLUTION APPROVING A NON-BINDING 2 TERM SHEET RELATING TO PHASE III OF THE 3 TOWN CENTER PROJECT, REQUESTING 4 APPROV AL BY THE VIRGINIA BEACH 5 DEVELOPMENT AUTHORITY AND 6 AUTHORIZING THE DEVELOPMENT OF 7 SUPPLEMENTAL PROJECT DOCUMENTS 8 9 WHEREAS, on behalf of the City of Virginia Beach (the "City") and the City of 10 Virginia Beach Development Authority (the "Authority"), the City Manager and City staff have 11 engaged in extensive negotiations with representatives of Armada/Hoffler Development Company, 12 L.L. C., and its affiliates, regarding the continued development of a Central Business District Proj ect 13 known as "The Town Center of Virginia Beach" (the "Project"); 14 WHEREAS, the Project is a development arrangement between the Authority and 15 Town Center Associates, L.L.e. (the "Developer"), for a mixed use commercial development 16 utilizing the structure of an economic development park in the B-3A Pembroke Central Business 1 7 Core District, an area of the City that is zoned to optimize development potential for a mixed-use, 18 pedestrian-oriented, urban activity center with mid-to-high-rise structures that contain numerous 19 types of uses, including business, retail, residential, cultural, educational and other public and private 20 uses; 21 WHEREAS, on November 23,1999, the City Council adopted Ordinance No. 99- 22 2567B establishing the Central Business District-South Tax Increment Financing Fund (the "TIP 23 Fund"); 24 WHEREAS, Phase I ofthe Project has been substantially completed and Phase II of 25 the Project is under construction, with several blocks of Phase II substantially completed; 26 WHEREAS, the Developer has worked with the City Manager and City staff and has 27 proposed a comprehensive development plan for Phase III of the Project; 28 WHEREAS, the Developer has worked with the City Manager and City staff to 29 develop a non-binding term sheet dated December 7, 2004, (the "Phase III Term Sheet"), which 30 outlines (a) minor modifications to Phase II of the Project, (b) a comprehensive development plan for 31 Phase III of the Project and ( c) the proposed responsibilities of the City, the Authority and the 32 Developer with respect to Phase III of the Project; 33 WHEREAS, a complete copy of the Term Sheet is attached to this Resolution as 34 Exhibit A and was provided to the City Council prior to its December 7, 2004, meeting; 35 WHEREAS, the obligations of the Authority outlined in the Term Sheet would be 36 supported by a support agreement between the City and the Authority (the "Phase III Support 37 Agreement"), with the traditional public infrastructure costs of the Project to be funded in part 38 through the City's CIP and in part through the Authority's Economic Development Investment 39 Program monies and the other obligations of the Authority structured to be paid, subject to annual 40 appropriation, by the available revenue from the TIF Fund, from the revenue generated by the special 41 tax district and by an additional mechanism for the Developer to pay projected shortfalls in the TIF 42 Fund; 43 WHEREAS, the City Council finds that Phase III of the Project will stimulate the 44 City's economy, increase public revenues, enhance public amenities and further the City's 45 development objectives for the Central Business District and provide necessary components to 46 further the goals contained in the City's Guidelines for Evaluation ofInvestment Partnerships for 47 Economic Development; and 48 WHEREAS, the City Council desires that the Authority approve and execute the 49 Term Sheet and pursue the development of supplemental Project Documents to be negotiated in 50 substantial conformity with the terms set forth in the Term Sheet. 2 51 NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 52 VIRGINIA BEACH, VIRGINIA; 53 1. The City Council approves the non-binding Term Sheet dated December 7, 54 2004, (the "Term Sheet") between the City of Virginia Beach Development Authority (the 55 "Authority") and Town Center Associates, L.L.C. (the "Developer"), a complete copy of which is 56 attached to this Resolution as Exhibit A, which outlines minor modifications to Phase II of the 57 Project and a comprehensive development plan for Phase III of the mixed-use commercial 58 development project in the Central Business District utilizing the structure of an economic 59 development park known as the "Town Center of Virginia Beach" (the "Project"). 60 2. The City Council requests and recommends that the Authority adopt a 61 Resolution consistent with this Resolution approving the Term Sheet, authorizing its execution, and 62 authorizing the City Manager and the City Attorney, on behalf ofthe Authority, to proceed with the 63 development of supplemental Project documents necessary and appropriate to implement the 64 changes to Phase II and Phase III of the Project substantially as outlined in the Term Sheet. 65 3. On behalf of the City of Virginia Beach, the City Manager and the City 66 Attorney are hereby authorized and directed to proceed with the development of supplemental 67 Project documents necessary and appropriate for the modifications to the Project outlined in the 68 Term Sheet, with such supplemental Project documents to be in substantial conformity with the 69 terms outlined in the Term Sheet. 70 4. The City Manager is directed to return the final supplemental Project 71 documents for approval by the City Council and the Authority and for authorization to execute the 72 Phase III Support Agreement so that the Authority can then proceed with the next phase of the 73 Proj ect. 3 74 Adopted by the Council of the City of Virginia Beach, Virginia, on the -.1 tL day 75 of January , 2005 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 CA-9353 F:\Data\A TY\Ordin\NONCODE\Early 04 - ORDIN\town center phase 1lI.v3.doc APPROVED A~ TO COfTENT: 14 aJIL If. {1ltf;t~ /C.w>f. EconomIc Development APPROVED AS TO LEGAL SUFFICIENCY: ~J~~~ J thJe- City Attorney 4 EXHIBIT "A" TERM SHEET PHASE III December 7, 2004 Representatives of the City of Virginia Beach (the "City"), the Virginia Beach Development Authority (the "Authority"), and Town Center Associates, L.L.C. (the "Developer") desire to develop the third phase ("Phase III") of the mixed-use commercial development known as The Town Center of Virginia Beach (the "Project"). The development arrangements for Phase I and Phase II of the Project are set forth, respectively, in (i) a Development Agreement (the "Development Agreement"), made as of March 6, 2000 between the Developer and the Authority, as supplemented by First Supplement to Development Agreement, made as of February 28, 2000, and a Second Modification to Development Agreement dated as of August 30, 2001, and (ii) a Phase II Development Agreement (the "Phase II Development Agreement") dated June 17,2003 between the Developer and the Authority, as amended by a First Modification to Development Agreement dated as of July 12, 2004. The Developer has proposed a development transaction (the "Transaction") that envisions a comprehensive development plan for Phase III. This Term Sheet outlines the principal terms of a public/private development arrangement for the Transaction. This Term Sheet is an outline of terms. Moreover, this Term Sheet is not, nor is it intended to be, an offer, an acceptance, or a binding agreement of any kind. To the contrary, this Term Sheet is only a summary of the basic terms of a possible transaction, which may be agreed in principle only. Although this Term Sheet identifies many of the material issues, any possible Transaction is complex and issues may arise during preparation and negotiation of definitive documentation that have not been discussed in this Term Sheet. Accordingly, legal obligations to each other will only be as specified in any definitive agreements that ultimately may be approved by City Council and the Authority's board, and executed by all of the parties. Additionally, none of the parties to this Term Sheet are under any obligation or duty to attempt to negotiate a Transaction or any related documentation or, if such negotiations commence, to continue such negotiations. Nonetheless, by approving this Term Sheet, each party indicates its belief that this Term Sheet can form the basis for a Transaction and the willingness to commence negotiation and preparation of definitive documentation toward that end. 1. General Description of Phase III. (a) Multi-Block, Mixed-Use Proiect. Under the Transaction, Phase III will be a multi-block, multi-facility mixed-use development. Phase III will be comprised of: (i) Block 6 - Pursuant to the Phase II Development Agreement, the Authority has exercised its right to require the Developer to release the Developer's right to purchase a portion of Block 6 to allow the Authority and/or City to construct a performing arts center. The remainder of Block 6 will consist of two parcels totaling approximately 40,000 square feet of retail/office space, which will be owned by the Authority. The Authority shall grant an option to the Developer to acquire the two remaining parcels under an agreement substantially on the same terms as the Option Agreement. The purchase price for each of the two parcels shall be an amount equal to the sum of the Authority's (or the City's, as the case may be) cost of acquisition for each parcel and the Authority's cost of carry from the date of acquisition to the date of closing under the option. The improvements and schedule of construction for the remainder of Block 6 by the Developer will be mutually agreed upon by the Developer and Authority in the development agreement to be executed for Phase III. (ii) Block 7 - The specific structures that will comprise the development in Phase III are still under desiqn. The elements of the proposed development on Block 7 are based upon conceptual desicms: thouQh the components to be contained in Block 7 are Iikelv to remain the same, the size of the structures and the elements within it (includinQ dimensions, square footaQes and associated costs) may chanQe durinQ the desiqn process. Anv such chanQes shall be subiect to the mutual aqreement of the parties. The current plans for Block 7 show an approximately 30-story, multi-use structure comprised of: (A) Approximately 33,000 square feet of first floor retail space, lobby for the Hotel, as hereinafter described, and approximately 17,000 square feet of meeting, pre-function and support space (the "Meeting Space"); (B) An approximately 1,150 space public parking garage (the "Phase III Garage"); (C) 10-12 floors for an approximately 215 room full service Westin hotel (the "Hotel"); and (D) 16-19 floors of residential condominiums with approximately 104 units ("Residential Condos"). (iii) Block 9 - a structure for approximately 75,000 to 100,000 square feet of multi-use space. 2. Purchase of Phase III Parking Garaqe and Meetinq Space and Meeting Space Operatinq Aqreement. 2 (a) Two Purchase Obliqations. The Authority will purchase the Phase III Garage and the Meeting Space. Like the Block 4 and Block 12 parking garages the Authority has purchased under the Development Agreements, the Phase III Garage and the Meeting Space will each be a condominium unit within the multi-use structures to be constructed by the Developer on Block 7. (b) Pricinq. (i) The purchase price for the Phase III Garage will be determined generally in the same manner as the Block12 garage (as set forth in Exhibit 11.6 of the Phase II Development Agreement). This price was determined by multiplying the total number of qualifying parking spaces by a "Per Space Factor". Qualifying parking spaces are those in compliance with the approved plans and applicable law. The Per Space Factor will be the sum of the following components: (i) agreed upon hard construction costs; (ii) agreed upon soft construction costs; (iii) an allocation of a portion of the land costs; and (iv) an allocation of construction loan interest. In no event shall the total acquisition cost for the Phase III Garage exceed a fixed amount to be agreed upon pursuant to subpart (ii) below. (ii) The exact purchase price for the Phase III Garage will be negotiated, but the negotiated maximum purchase price will be a fixed amount and will be supported by the Authority's cost analysis for the Garage. In addition, (x) the City's forecast of cash flows from the available TIF Revenues and (y) cash payments from the Developer (such payment amounts remain to be negotiated) must be sufficient to amortize over a 20-year period the anticipated financing of the agreed purchase price for the Garage. (iii) The purchase price for the Meeting Space will be the sum of the following components: (i) agreed upon hard construction costs; (ii) agreed upon soft construction costs; (iii) an allocation of a portion of the land costs; (iv) an allowance for an allocation of construction loan interest; and (v) the initial cost for furniture, fixtures and equipment necessary to open the Meeting Space for business. However, (x) the City's forecast of cash flows from the available TIF Revenues and (y) cash payments from the Developer (such payment amounts remain to be negotiated) must be sufficient to amortize over a 20-year period the anticipated financing of the agreed purchase price for the Meeting Space. Unless otherwise mutually agreed, the total acquisition cost for the Meeting Space shall not exceed the lesser of $6,500,000 or the actual cost thereof. (c) Meetinq Space Operatinq Aqreement. The Authority and Hotel owner will enter into a Meeting Space Operating Agreement wherein Hotel owner will have the right to use and will agree to manage the Meeting Space. The Meeting Space Operating Agreement will contain the following terms and conditions: 3 . (i) Assiqnment/Manaqer. Hotel owner shall assign the Meeting Space Operating Agreement to the manager of the Hotel selected by Hotel owner, as approved by the current lender and the Hotel Franchisor. The Meeting Space Operating Agreement will be separate and distinct from the Hotel Management Agreement, which will be executed by and between Developer and the Hotel manager; (ii) Term. The Meeting Space Operating Agreement will have a term (the "Franchise Time") equal to the term of Developer's Franchise Agreement with a Hotel Franchisor. The term "Hotel Franchisor" shall mean the franchisor of a full service Westin hotel or, after the Hotel has opened for business, a full service Westin hotel or a franchisor, reasonably acceptable to the Authority, of a national full-service hotel similar to Westin hotels in the U.S; (iii) Use/Operation. The Meeting Space Operating Agreement will provide for the operation, repair, maintenance and replacement of the Meeting Space and its components in accordance with commercially reasonable standards, in accordance with the condominium documents and as required by the Hotel Franchisor. The Meeting Space Operating Agreement will also provide for the performance and/or management of all sales, marketing, booking, preparation, service, accounting and any other services necessary for the operation of the Meeting Space. Hotel owner may enter into a management agreement with a manager for the management of the Meeting Space, provided such manager is acceptable to the Hotel owner's lender and the Hotel Franchisor; (iv) Authoritv/Citv Use. The Authority, the City (in connection with the performing arts center) and City Council shall have access to and use of the Meeting Space at mutually agreed upon times pursuant to a policy to be agreed upon, including, but not limited to, the use of the Meeting Space without the payment of a room reservation fee (though the Authority and City will pay food, beverage and other charges associated with the use of the Meeting Space) ; (v) Capital Reserves. The Authority will pay into escrow an annual fee for capital reserves and capital maintenance and repairs for the Meeting Space. The fee will be $150,000 per annum, which amount shall increase each year based on increases in the CPI, but not to exceed one hundred three percent (103%) times the amount of such fee for the immediately preceding year; (vi) Base Rent/Base Rent Credit. Rent shall be paid to the Authority for the right to exclusively use the Meeting Space. However, it is anticipated that there will be a rent credit based upon other revenue/taxes generated by the Hotel project and paid to the City. The rent credit mechanism will be based on a formula to be agreed upon by the parties; 4 (vii) Additional Rent/Revenue SharinQ. The Authority and Hotel owner shall enter into a revenue sharing agreement related to the operation of the Meeting Space; (viii) Audit. The Authority shall have the right to audit the books and records for the Meeting Space to verify hotel occupancy taxes and operating revenue and expenses for the Meeting Space. Provided such information will be reasonably accessible to the Authority, the Hotel manager may utilize a consolidated operating budget and financial statements for both the Meeting Space and the Hotel; (ix) Protective Provisions. Except as expressly provided in the Meeting Space Operating Agreement, the Meeting Space Operating Agreement will not terminate during the Franchise Time, and the Authority's right to terminate the Meeting Space Operating Agreement shall be limited to a default by Hotel owner or its successors and assigns under the Franchise Agreement which results in a termination of the franchise. The Hotel owner and its successors and assigns will use best efforts to cause the Hotel Franchisor to give notice to the Authority of any failure or default under the Franchise Agreement which if uncured could result in the termination of the Franchise Agreement, and the Authority shall have the opportunity to cure such default within a reasonable period of time. Hotel owner's rights under the Meeting Space Operating Agreement may be assigned to any subsequent owner of the Hotel only in connection with a transfer of the hotel franchise, and its rights thereunder may be pledged as additional collateral to its Hotel lender. (d) Conditions. Generally, the Authority's obligation to purchase the Phase III Garage and Meeting Space will be conditioned upon substantially the same types of real estate purchase contingencies as are set forth in the Development Agreements as to the purchase of the Block 4 parking garage and the Block 10 and 12 parking garages (for example, title, completion of construction in compliance with approved plans, and compliance with applicable laws, including zoning). The Authority also will receive in connection with each purchase substantially the same types and kinds of representations, warranties, closing deliveries and similar assurances as are set forth in the Development Agreements. In addition, the Authority's purchase obligations will be subject to the following contingencies. (i) The Phase III Garage and Meeting Space, as applicable, shall be substantially complete and equipped and ready for legal occupancy (i.e., move-in ready); (ii) The Hotel shall be substantially complete in accordance with its plans and open to the public for business in accordance with an executed franchise agreement between Developer and the Hotel Franchisor; 5 (iii) The structural shell for the Residential Condos shall be substantially complete. The standard for completion of the structural shell shall be mutually agreed upon by the Authority and Developer; (iv) The structural shell of the retail space in Block 7 shall be substantially complete. The standard for completion of the structural shell will be the same required for the Block 12 Commercial Space as provided in Exhibit 11 .3.2 to the Phase II Development Agreement. (v) Either (x) the structural shell of the improvements on Block 9 shall be substantially complete, (y) a note (with durable power of attorney) made by Developer and a guaranty agreement executed by the A/H Principals (each in form and substance satisfactory to the Authority) evidencing the obligation to pay the Reimbursement Amount for Phase III shall have been delivered to the Authority, or (z) Developer and Authority shall have entered into an arrangement satisfactory to both parties to ensure adequate payment of the Authority's debt service for the Phase III Garage and the Meeting Space (taking into account the then-current market conditions and the construction schedule for the other blocks of the Project). 3. Infrastructure Fundinq. (a) The cost of traditional public infrastructure components (streets, streetscapes, traffic signals, utilities, stormwater improvements, etc.) shall be funded through and shall be subject to City CIP and Authority EDIP appropriations. The municipal investment for Phase III streetscapes currently is estimated to be $1,500,000. (b) The City will evaluate the construction of an elevated pedestrian walkway over Columbus Street bridging Block 12 and Block 7 and an elevated walkway over Commerce Street connecting Block 7 and the performing arts center on Block 6 (construction of these walkways will be at City's sole discretion). The municipal investment for these pedestrian walkways is estimated to be $2,532,000 if both walkways are built. 4. Parkinq. Authority directly, or through a managing agent, will manage the Phase III Garage subject to the following principles: (a) The facility will be operated as a public parking garage. Upon completion of the Phase III Garage, the Developer shall purchase or lease at least one parking space per Residential Condo unit under an arrangement to be agreed upon, which will provide for the Authority's ability to recover its purchase and carrying costs for such spaces. The remaining spaces shall be available for public parking on a first-come, first served free basis. The Authority reserves the right to elect after the expiration of the initial 30-year period 6 following the Authority's acquisition of the Phase III Garage to charge a fee for parking. (b) The spaces to be leased as provided above may be located anywhere within the Phase III Garage. They also may be segregated on one or more levels of the Phase III Garage. Such spaces may be designated for users (M.:" names on spaces, numbers on spaces), but the selection of spaces that are so designated must be made on a random basis. (c) The Developer shall have the right to lease from the Authority an indeterminate number of parking spaces in the Phase III Garage (not to exceed 10% of the available total of spaces) under a long term lease upon terms and conditions similar to those set forth in Section 13.3.2 of the Phase II Development Agreement. 5. Modifications to Development Aqreements. (a) Block 12 Option. Pursuant to the Phase II Development Agreement, the Authority will purchase the Block 12 Commercial Unit from the Block 12 Developer and the Block 12 Developer will master lease the Block 12 Commercial Unit from the Authority. The Block 12 Developer has an option to purchase the Block 12 Commercial Unit and, following certain events, the Authority has an optionf'put" to require the Block 12 Developer to purchase the Block 12 Commercial Unit. The Block 12 Option Period will be extended by one year to equal the earlier to occur of (i) the date that is 48 months after the Block 12 Closing Date, or (ii) the date the Block 12 Financial Threshold is achieved. In addition, the date by which the Authority can require the Block 12 Developer to purchase the Block 12 Commercial Unit if the Block 12 Developer has not delivered security acceptable to the Authority for performance under the Block 12 Option and the Block 12 master lease shall be extended to September 1 , 2007 (provided the outside date under the Option Agreement is extended to September 1, 2007 as set forth in subsection (b) below). (b) Option Land. Pursuant to the Option Agreement, Developer has the right and obligation to purchase the remaining land in the Town Center project prior to September 1, 2006. Subject to approval by Authority's lender, and provided the existing option performance bond is adequately extended, these provisions will be changed to extend the outside date by which the Developer must purchase the remaining land (Blocks 6, 9 and 11) to September 1, 2007. The requirement that Developer must purchase the Block 12 Commercial Unit before purchasing the remaining land (not including Block 7) will remain. (c) Reimbursement Amount. The parties acknowledge that there is no TIF Shortfall Amount, no Reimbursement Amount and no Developer Payment Amount due for Phases I and II and that all documentation related thereto will be deemed satisfied, cancelled and/or returned to Developer, as well as any security provided therefore by Developer. 7 (d) ParkinQ. Authority and Developer anticipate that all the zoning requirements for Phases I, II and III improvements (as contemplated by this Transaction and outlined in this Term Sheet), shall be satisfied if the Phase III Garage is completed in accordance with the Transaction. Subject to the City obtaining a satisfactory independent parking analysis, all provisions in the Development Agreements and related documents (i) relating to adjusting the parking ratios to a stricter standard than what the City zoning ordinances in effect on December 1,2001 required or (ii) requiring Developer to provide for any additional parking in excess of that required by the City zoning ordinances in effect on December 1,2001, shall be deleted from all applicable documents. Notwithstanding that the Phase III Garage is currently estimated to be approximately 1 ,150 spaces, the Phase III Garage will be of sufficient size (which may be more or less than 1,150 spaces) to satisfy the City's parking requirements for (i) improvements to be built on Block 7, (ii) improvements proposed to be built on Blocks 6 and 9 and (iii) current parking deficiency, if any, which may exist in the Town Center Project. 6. Future Development of Block 11. Affiliates of Developer are the owners of Block 11 (such affiliates are referred to as the "Block 11 Owners") in the Project and Block 11 is not subject to the Development Agreements. Block 11 was formerly a portion of the property commonly known as One Columbus Center and it is currently used as a surface parking lot. Developer and the Block 11 Owners shall endeavor to work with the Authority to construct a multi-story office building or tower on Block 11 containing at least 75,000 square feet of class A office space, subject to market conditions and its feasibility. 8 (SEAL) ATTEST: Secretary / Assistant Secretary AUTHORITY: CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, a political subdivision of the Commonwealth of Virginia By: Name: Title: [Chairman] [Vice Chairman] Date: CITY: CITY OF VIRGINIA BEACH By: Title: Date: 9 DEVELOPER: TOWN CENTER ASSOCIATES, L.L.C., a Virginia limited liability company By: Armada/Hoffler Properties, LLC, a Virginia limited liability company (SEAL) By: A. Russell Kirk Manager Date: (SEAL) By: Louis S. Haddad Manager Date: and By: City Center Associates, LLC, a Virginia limited liability company (SEAL) By: Gerald Divaris Manager Date: F:\Data\ATY\OID\REAL ESTATE\Commercial Projects\Town Center\Phase III\TERM SHEET.v10.doc 10 - 32 - . Item V-I.2. RESOLUTIONS/ORDINANCES ITEM # 53412 Upon motion by Vice Mayor Jones, seconded by Councilman Reeve, City Council ADOPTED: Resolution to A UTHORIZE the issuance of Industrial Development Revenue Bonds (IDB) in an amount not to exceed $5,500,000 for the benefit of London Bridge Holding, LLC refinancing the acquisition, construction and equipping of property and improvements at London Bridge Road and Precision Drive. Voting: 8-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4, 2005 1 2 RESOLUTION OF THE CITY COUNCIL OF THE 3 CITY OF VIRGINIA BEACH, VIRGINIA 4 APPROVING THE ISSUANCE OF INDUSTRIAL 5 DEVELOPMENT REVENUE BONDS (LONDON 6 BRIDGE HOLDING LLC PROJECT) 7 8 9 WHEREAS, the City of Virginia Beach Development Authority (the "Authority") has 10 considered the application of London Bridge Holding LLC (the "Company") for the issuance of 11 the Authority's industrial development revenue bonds in an amount not to exceed $5,500,000 12 (the "Bonds") to assist in the financing of the Company's acquisition, construction and equipping 13 of a manufacturing facility to be leased to London Bridge Trading Company, LTD. for use in its 14 business of manufacturing sewn nylon equipment (all improvements and land being collectively 15 referred to as the "Facility") and has held a public hearing thereon on November 18,2004; and 16 WHEREAS, the Authority has requested City Council (the "Council") of Virginia Beach, 17 Virginia (the "City") to approve the issuance of the Bonds to comply with Section 147(f) of the 18 Internal Revenue Code of 1986, as amended; and 19 WHEREAS, pursuant to Section 15.2-4906, Code of Virginia, 1950, as amended, a copy 20 of the Authority's Resolution approving the issuance of the Bonds, subject to terms to be agreed 21 upon, and a reasonably detailed summary of the comments expressed at the public hearing, if 22 any, have been filed with the Council of the City of Virginia Beach, Virginia. 23 23 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, 24 VIRGINIA: 25 1. The Council of the City of Virginia Beach, Virginia, approves the issuance of the 26 Bonds by the City of Virginia Beach Development Authority, in a principal amount not to exceed 27 $5,500,000 to finance the Company's acquisition, construction and equipping of a manufacturing 28 facility to be leased to London Bridge Trading Company, LTD. for use in its business of 29 manufacturing sewn nylon equipment to the extent required by Section 147(f) of the Internal 30 Revenue Code. 31 2. The approval of the issuance of the Bonds, as required by Section 147(f) does 32 not constitute an endorsement of the Bonds or the creditworthiness of the Company; but, 33 pursuant to Chapter 643, Virginia Acts of Assembly of 1964, as amended, the Bonds shall 34 provide that neither the City nor the Authority shall be obligated to pay the Bonds or the interest 35 thereon or other costs incident thereto except from the revenues and moneys pledged therefor, 36 and neither the faith or credit nor the taxing power of the Commonwealth, the City or the 37 Authority shall be pledged thereto. 38 3, In approving the Resolution, the City of Virginia Beach, including its elected 39 representatives, officers, employees and agents, shall not be liable and hereby disclaims all 40 liability for any damages to any person, direct or consequential, resulting from the Authority's 41 failure to issue Bonds for the Facility for any reason. 4. This Resolution shall take effect immediately upon its adoption. 42 43 2 43 Adopted by the Council of the City of Virginia Beach, Virginia, on the -4..th- day of January 2005 44 45 46 47 48 CA9433 49 Novernber23,2004 50 51 52 53 APPROVED AS TO LEGAL 54 SUFFICIENCY: 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 H:\OlDIREAL ESTATEIDEYAUTHlBONDlWORKIDAI576 London Blidge TradingIResolution of City Council.DOC 82 #385491 v2 - Resolution of City Council 3 City c:>f Virgir1ia Beach LESLIE L. LILLEY CITY ATTORNEY MUNICIPAL CENTER BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VA 23456-9004 (757) 427-4531 FAX (757) 426-5687 TOD (757) 427-4305 November 18, 2004 The Honorable Meyera E. Oberndorf, Mayor Members of City Council Municipal Center Virginia Beach, VA 23456 Re: London Bridge Holding LLC Revenue Bonds Dear Mayor Obemdorf and Members of City Council: We submit the following in connection with proj ect London Bridge Holding LLC located at 2601 Reliant 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 ofthe statements made at the public hearing is 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 Authority's reasons for its approval as a benefit for the City of Virginia Beach and its recommendation that City Council approve the modification of the bonds described above is attached as Exhibit E. (4) The Fiscal Impact Statement is attached as Exhibit F. The Honorable Meyera E. Obemdorf, Mayor Members of City Council March 8, 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 Proj ect. Very truly yours, JVH/mlg Enclosures iiimmimm E 1 • 1.---;*. 1‘7"t`e nitlif?r,+.,*'-' ----ry3;r-:, .,.,,,,.... ...,,, ,...i,..,- . , --- . ,--..,c-c.„. ,i_ , i 41/ 4 * � � '��f i� tea y ,�,git ' .1.r • •,.•::. 1 i 'y4.x 132 .1h'> {' .•..-,_/.rrh ' �,.„ '�... �,• v4• _ • t. i ♦ i f . •it y t `t.[a�! . '' , 4 ' :.L:" point0" ot3 'd� =3•--f ri`•,^';;- Qi .!1-4-t'!, • 't phew e V"itr•ri:t. • . J• 0,1W:', C,' t, 1.-,4i.,:.,-1 F atick at' ' .- ,` t3atRvx;&i i�rrk ,,, } f 744M7:i '; ;t,,-,in t. �l.r -t -n orZn".-*; (: `fit.t--i fii 3'• :- ''A1, Lx .....7- 1 ✓t 0il4l 9 t. r A y.. r'•.-4.'-.---:`-',7i1,.,-'-''',:. 4 �� x rtt .,.IS a, a -AiSe 4>,.z,y r.sls , �fi t o l' '�`��-' co *Lnyt � ;-v.„-3,.,.,:-2;+ ! sem o 1. .r Y ‘...•-•,,..4,?,;,.lit y�i " yp„(� x Si+a$ xt �`¢ �' '` ',.,,,,,,p S V. r 4 *t r��F" f';v_`,".s "'y1-4?t ,t,-,! yam' •'� ",S �.y r , 'er 3 t r A s :3 3 M • 'C.o m'ir-'7•Y'.4. -14,'4'.''''':."••';' ss '.;c.Se. .. c.1 1 .m estriti,';.,,;1.,',: -.::,.....,,,,,,,,...1.:.,...e:3_,kx 7 s i °)-----1;;':4-=-:',, cit:-i ;Murdins Gornir r ::.1.,..v7,_.:7'''ar�dto f plony Actws • C'. I 1 `1' 411 Y L� . A -rEQ _,_,N, _ _._s. ✓{r'. I - v. ,-• l ,,,. Exhibit A THE VIRGINIAN-PILOT , NORFOLK, VIRGINIA AFFIDAVIT OF PUBLICATION The Virginian-Pilot --------------------------------------------------+--------------------------- I I I I I I I I I I I I I I I I I This day, D. Johnson personally appeared before mel and after being duly sworn, made oath that: I I I I I I I I I I I I I I I I I I I I I I I I I I I SPACE: 72 LINE I I WILLIAMS MULLEN, P.C. SUITE 1700 222 CENTRAL PARK AVE VIRGINIA BEACH VA 23462 REFERENCE: 39078411 122578U NOTICE OF PUBLIC HEA State of Virginia City of Norfolk 1) She is affidavit olerk of The Virginian-Pilot, a newspaper published by Landmark Communioations Inc., in the cities of Norfolk, Portsmouth, Chesapeake, Suffolk, and Virginia Beach, Common- wealth of Virginia and in the state of North Carolina 2)That the advertisement hereto annexed has been published in said newspaper on the date stated.. PUBLISHED ON: 11/04 11/11 TOTAL COST: FILED ON: , '2008 Exhibit A NOTICE OF PUBLIC HEARING ON PROPOSED INDUSTRIAL DEVELOPMENT REVENUE BOND FINANCING BY THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY (LONDON BRIDGE HOLDING LLC PROJECT) Notice is hereby given that the City of Virginia Beach Development Authority (the "Authority") will hold a public hearing on the application of London Bridge Holding LLC, a Virginia limited liability company, 3509 Virginia Beach Boulevard, Virginia (the "Applicant"), for the Authority to issue, pursuant to Chapter 643 ofthe Acts of Assembly of 1964, as amended, (the "Act"), up to $5,500,000 of its Industrial Development Revenue Bonds to assist the Applicant in financing the acquisition, construction and equipping of an approximately 51 ,000 square foot manufacturing facility on a 6.546 acre parcel ofland, known as Parcel 3-B as shown on Subdivision of Residual Parcel 3, GPIN # 1496-98-1048, located at the northwestern corner of the intersection of London Bridge Road and Precision Drive in Virginia Beach, Virginia (the "Project") for lease to London Bridge Trading Company, Ltd. for use in its business of manufacturing sewn nylon equipment. The public hearing which may be continued or adjourned, will be held at 2:00 p.m. on Thursday, November 18, 2004, before the Authority at the Authority's office at 222 Central Park Avenue, Suite 1000, Virginia Beach, Virginia 23462. As required by the Act, the Bonds will not pledge the faith and credit or the taxing power ofthe Commonwealth of Virginia or any political subdivision thereof, including the Authority, but will be payable solely from revenues derived from the Applicant and pledges therefor. Any person interested in the issuance ofthe Bonds or the location or purpose ofthe proposed Project may appear and be heard. A copy ofthe Applicant's application is on file and is open for inspection at the Authority's office at 222 Central Park Avenue, Suite 1000, Virginia Beach, Virginia 23462, during business hours. CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY #982890 vi - Notice of Public HearinglLondon Bridge Trading Company/Oceana Development Exhibit B CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY RECORD OF PUBLIC HEARING (London Bridge Holding LLC Project) The Chairman of the City of Virginia Beach Development Authority (the "Authority") announced the commencement of a public hearing on the request of London Bridge Holding LLC (the "Borrower"), and that a notice of the hearing was published once a week for two consecutive weeks in a newspaper having general circulation in Virginia Beach, Virginia. The Chairman indicated that a copy of the notice and a certificate of publication of such notice have been filed with the records of the Authority. The following individuals appeared before the Authority: William W. Harrison, Jr. of the law firm of Williams Mullen Douglas McDougal, Member of London Bridge Holding LLC Mr. Harrison gave a brief description of the Project (below defined). He explained that the Borrower has applied to the Authority for up to $5,500,000 of its industrial development revenue bonds to assist the Borrower for the purpose of financing the acquisition, construction and equipping of an approximately 51,000 square foot manufacturing facility on a 6.546 acre parcel of land located at the northwestern intersection of London Bridge Road and Precision Drive in the City of Virginia Beach, Virginia for lease to London Bridge Trading Company, LTD. for use in its business of manufacturing sewn nylon equipment (the "Project"). Mr. Harrison and Mr. McDougal answered various questions of the members of the Authority. No other persons appeared to address the Authority, and the Chairman closed the public hearing. The Authority hereby recommends that the City Council of the City of Virginia Beach, Virginia approve the issuance of the Authority's industrial development revenue bonds in a principal amount not to exceed $5,500,000 and hereby transmits the Fiscal Impact Statement to the City Council of the City of Virginia Beach and asks that this recommendation be received at its next regular or special meeting at which this matter can be properly placed on the Council's agenda for hearing. Dated: /7,,,/I,...tI-F- , ~~ ~/~~, Secretary/Asst. Secret #388335 v2 - record of public hearing - London Bridge 51.47662,] 3/6/02 Exhibit C RESOLUTION OF THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY INDICATING ITS INTENT TO ISSUE BONDS FOR LONDON BRIDGE HOLDING LLC TO ACQUIRE, CONSTRUCT AND EQUIP AN APPROXIMATELY 51,000 SQUARE FOOT MANUFACTURING FACILITY FOR LEASE TO LONDON BRIDGE TRADING COMPANY, LTD. WHEREAS, there has been described to the City of Virginia Beach Development Authority (the "Authority"), the plans of London Bridge Holding LLC (the "Company"), whose current address is 3509 Virginia Beach Boulevard, acting on its own behalf, to acquire, construct and equip an approximately 51,000 square foot manufacturing facility (the "Project"), located on property known as Parcel 3-B as shown on the Subdivision of Residual Parcel 3, GPIN # 1496- 98-1048, containing 6.546 acres and located at the northwestern intersection of London Bridge Road and Precision Drive in the City of Virginia Beach, Virginia (the "City") for lease to London Bridge Trading Company, LTD. for use in its business of manufacturing sewn nylon equipment; and WHEREAS, the Company, in its application and in its appearance before the Authority, has requested that the Authority issue its industrial development revenue bonds under the provisions of Chapter 643 of the Acts of Assembly of 1964 and the Industrial Development and Revenue Bond Act, Chapter 49, Title 15.2 of the Code of Virginia of 1950, as amended (collectively, the "Act") in such amounts as may be necessary to finance costs to be incurred in acquiring, constructing and equipping the Project; and WHEREAS, a public hearing has been held as required by Section 147(f) of the Internal Revenue Code of 1986, as amended, and applicable provisions of the Code of Virginia of 1950, as amended (the "Virginia Code"), NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY THAT: 1. The foregoing recitals are approved by the Authority and are incorporated in, and deemed a part of this Resolution. 2. It is hereby found and determined by the Authority that (a) provision of financing of the Project by the Authority will be in the public interest and will benefit the inhabitants of the City through the promotion of their safety, health, welfare, convenience or prosperity, and (b) the acquisition, constructing and equipping of the Project for the Company in the City will further the public purposes of the Act and provide a public benefit to the City by, among other things, promoting industry, commerce and developing trade. 3. It is hereby found and detennined that the Project will constitute an "Authority facility" within the meaning of the Act. - 1 - 4. To induce the Company to acquire, construct and equip the Project, the Authority hereby agrees to cooperate with the Company in the review and evaluation of the application to finance the Project and, subject to the Authority's final approval of the terms and conditions of the financing of the Project and the offering of the Bonds at a later date, to undertake the issuance of its industrial development revenue bonds therefor in the maximum principal amount of $5,500,000 (the "Bonds") upon the terms and conditions to be mutually agreed upon by the Authority and the Company. If finally approved by the Authority, the Bonds will be issued pursuant to an Indenture of Trust and certain other documents satisfactory to, and with terms to be approved by, the Authority. The Bonds will be issued only after the Authority has received the approving opinion of Bond Counsel as to the qualification of the Bonds under the Act and appropriate certifications and opinions as to the offering of the Bonds and the disclosure with respect thereto. 5. It having been represented to the Authority that it is necessary to proceed with the acquisition, construction and equipping of the Project, the Authority hereby agrees that the Company may proceed with the plans for the Project, enter into contracts for the acquisition, construction and equipping of the Project and take such other steps as it may deem appropriate in connection therewith, provided that nothing herein shall be deemed to authorize the Company to obligate the Authority without its consent in each instance to the payment of any moneys or the performance of any acts in connection with the Project. The Authority hereby agrees that the Company may be reimbursed from the proceeds from the Bonds for all costs expended prior to the issuance of the Bonds together with costs previously expended by the Company within sixty (60) days prior to the date of this Resolution with respect to the planning and the acquisition, construction and equipping of the Project (the "Expenditures"). The Authority reasonably expects to reimburse the Company up to $5,500,000 for Expenditures with the proceeds of the Bonds. The declaration and expectations stated in this Section 3 are intended to be evidence of official intent within the meaning of Treasury Regulation Section 1.150-2 promulgated under the Internal Revenue Code of 1986, as amended (the "Code"), and are based upon representations of the Company. Each Expenditure will be, unless otherwise approved by Bond Counsel hereinafter appointed, (a) of a type properly chargable to a capital account under general federal income tax principles (determined in each case as of the date of the Expenditure), (b) a cost of issuance with respect to the Bonds or (c) a nonrecurring item that is not customarily payable from current revenues. The Authority intends to make a reimbursement allocation, which is a written allocation by the Authority that evidences the Authority's use of proceeds of the Bonds to reimburse the Expenditure, upon written request of the Company no later than eighteen (18) months after the later of the date on which the Expenditure is paid or the Project is placed in service or abandoned, but in no event more than three (3) years after the date on which the Expenditure is paid. The Authority recognizes that exceptions are available for certain "preliminary expenditures," cost of issuance, certain de minimus amounts, expenditures by - 2 - "small issuers" (based on the year of issuance and not the year of expenditure), and expenditures for construction projects of at least five (5) years. 6. The Authority hereby agrees to the recommendation of the Company that Williams Mullen, Virginia Beach, Virginia, be appointed as Bond Counsel and hereby appoints such firm to supervise the proceeds and approve the issuance of the Bonds. 7. . The Authority hereby agrees, if requested, to accept the recommendation of the Company with respect to the appointment of an agent or underwriter for the sale of Bonds pursuant to the terms to be mutually agreed upon by the Authority and the Company. 8. All costs and expenses in connection with the financing and the acqulSltlOn, construction and equipping of the Project, including the fees and expenses of Bond Counsel, counsel for the Authority and the agent or underwriter for the sale of the Bonds shall be paid from the proceeds of the Bonds (but only to the extent permitted by applicable law) or by the Company. If for any reason such Bonds are not issued, it is understood that all such expenses shall be paid by the Company and that the Authority shall have no responsibility therefor. 9, The Bonds shall be limited obligations of the Authority and shall be payable solely out of revenues, receipts and payments specifically pledged therefor. Neither the commissioners, officers, agents or employees of the Authority, past, present and future, nor any person executing the Bonds, shall be liable personally on the Bonds by reason of the issuance thereof. The Bonds shall not be deemed to constitute a general obligation debt or a pledge of the faith and credit of the Commonwealth of Virginia or any political subdivision thereof, including the City of Virginia Beach and the Authority and neither the Commonwealth of Virginia nor any such political subdivision thereof shall be personally liable thereon, nor in any event shall the Bonds be payable out of any funds or properties other than the special funds and sources provided therefor. Neither the faith and credit nor the taxing power of the Commonwealth of Virginia, or any political subdivision thereof, including the City of Virginia Beach, shall be pledged to the payment of the principal of the Bonds or the interest thereon or other costs incident thereto. The Bonds shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. 10. The Authority shall not be liable and hereby disclaims all liability to the Company for any damages, direct or consequential, resulting from the Authority's failure to issue Bonds for the Project for any reason, including but not limited to, the failure of the city Council of the City of Virginia Beach to approve the issuance of the Bonds. Nothing herein shall be construed as a commitment or obligation on the part of the Authority to adopt a final resolution or execute any documents with respect to the Project. - 3 - 11. Unless this Resolution is extended by the Authority, the Bonds authorized hereunder shall be issued within one year from the date hereof or this Resolution shall become void and of no further force or effect. 12. The Authority hereby recommends that the City Council of the City of Virginia Beach approve the issuance of the Bonds and hereby directs the Chairman or Vice-Chairman of the Authority to submit to the City Council of the City of Virginia Beach a reasonably detailed summary of the comments, if any, expressed at the public hearing, the fiscal impact statement required by Virginia law, and a copy of this Resolution. 13. This Resolution shall take effect immediately upon its adoption. Adopted: November 18,2004. ~e~/A8~~~f( #982902 vI - Resolution of lntentlLondon Bridge Trading Company/Oceana Development - 4 - Exhibit D DISCLOSURE STATEMENT Date: November 4,2004 Applicant: LONDON BRIDGE HOLDING LLC All Owners (if different from Applicant): None Tvpe of Application: $5,500,000 Industrial Development Revenue Bonds to assist Applicant in acquisition, construction and equipping of an approximately 51,000 square foot existing building currently situated on a 6.546 acre parcel of land located at the northwestern comer of the intersection of London Bridge Road and Precision Drive, Virginia Beach, Virginia for lease to London Bridge Trading Company, LTD. for use in its business of manufacturing sewn nylon equipment (the "Project"). 1. The Applicant is a Virginia limited liability company. 2. The Applicant will be the owner ofthe Project. 3. London Bridge Trading Company, LTD. is a Virginia corporation whose sole shareholders, Douglas McDougal and Linda McDougal, are the only members of London Bridge Holding LLC. LONDON BRIDGE HOLDING LLC By ~~ Date: November 4, 2004 #983512 vI - Disclosure StatementlLondon Bridge/Oceana Exhibit E VIRGINIA BEP~CH Virginia Beach Development Authority 222 Central Park Avenue, Suite 1000 Virginia Beach, VA 23462 (757) 437-6464 FAX (757) 499-9894 Website: www.vbgov.com CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY APPROVAL OF THE ISSUANCE BY THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY TO ISSUE BONDS FOR LONDON BRIDGE HOLDING LLC TO ACQUIRE, CONSTRUCT AND EQUIP AN APPROXIMATELY 51,000 SQUARE FOOT MANUFACTURING FACILITY FOR LEASE TO LONDON BRIDGE TRADING COMPANY, LTD. The Development Authority recommends approval of the above-referenced financing. The benefits of the Project to the City include increased employment to 185 jobs (152 current, estimated 33 more); additional local taxes to be paid in the amount of $52,222; service to local military and law enforcement units; and growth of local business already located in the City of Virginia Beach, Virginia. Exhibit F FISCAL IMPACT STATEMENT DATE: November ~2004 TO: CITY COUNCIL OF THE CITY OF VIRGINIA BEACH APPLICANT: London Bridge Holding LLC TYPE OF FACILITY: Manufacturing facility for sewn nylon equipment 1. Maximum amount of financing sought: 2. Estimated taxable value ofthe facility's real property to be constructed in the municipality: 3. Estimated real property tax per year using present tax rates: 4. Estimated personal property tax per year using present tax rates: 5. Estimated merchant's capital (business license) tax per year using present tax rates: 6. (a) Estimated dollar value per year of goods that will be purchased from Virginia companies within the locality: (b) Estimated dollar value per year of good that will be purchased from non-Virginia companies within the locality: (c) Estimated dollar value per year of services that will be purchased from Virginia companies within the locality: (d) Estimated dollar value per year of services that will purchased from non-Virginia companies within the locality: 7. Estimated number of regular Employees on year round basis: 8. Average annual salary per employee: $5.500.000 $4.365.000 $ 52.222 $ 15.000 $ 6.000 $ 230.000 $ 0 $ 56.000 $ 0 ~ $ 19.700 The information contained in this Statement is based solely on facts and estimates provided by the Applicant, and the Authority has made no independent investigation with respect thereto. CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY By: Exhibit G SUMMARY SHEET CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY INDUSTRIAL DEVELOPMENT REVENUE BOND 1. PROJECT NAME: London Bridge Holding LLC Project 2. LOCATION: Northwestern comer of intersection of London Bridge Road and Precision Drive. 3. DESCRIPTION OF PROJECT: acquisition, construction and equipping of an approximately 51,000 square foot split level building on a 6.546 acre parcel ofland located at northwestern comer of intersection of London Bridge Road and Precision Drive, Virginia Beach, Virginia for lease to London Bridge Trading Company, LTD. for use in its business of manufacturing sewn nylon equipment. 4. AMOUNT OF BOND ISSUE: $5,500,000 5. PRINCIPALS: Douglas McDougal Linda McDougal 6. ZONING CLASSIFICATION: a. Present zoning classification of the Property: 12 b. Is rezoning proposed? Yes No x c. If so, to what zoning classification? #385450 v5 - Application for Bond - Virginia Beach - London Bridge036783.0003 Exhibit H VIRGINIA BEP~CH Virginia Beach Development Authority 222 Central Park Avenue, Suite 1000 Virginia Beach, VA 23462 (757) 437-6464 FAX (757) 499-9894 Website: www.vbgov.com November 18, 2004 Mr. Robert G. Jones Chair Virginia Beach Development Authority 222 Central Park Avenue, Suite 1000 Virginia Beach, VA 23462 Re: London Bridge Holding LLC Bond Financing Dear Bob: It is the finding of the Department of Economic Development that the proposed issuance of industrial revenue bonds in an amount not to exceed $5,500,000 for London Bridge Holding LLC to acquire, construct and equip an approximately 51,000 sq. ft. manufacturing facility for lease to London Bridge Trading Company, LTD. will (a) be in the public interest and benefit the inhabitants of the City through the promotion of their safety, health, welfare, convenience or prosperity, and (b) the acquisition, constructing, and equipping of the Project for the Company in the City will provide a public benefit to the City by, among other things, promoting industry, commerce and developing trade. I will be happy to answer any questions you may have at our meeting. Sincerely, 71~ Mark R. Wawner Project Development Manager MRW:lls - 33- Item V-L3. RESOLUTIONS/ORDINANCES ITEM # 53413 Upon motion by Vice Mayor Jones, seconded by Councilman Reeve, City Council ADOPTED, the Memorandum of Understanding as Revised* Resolution AUTHORIZING the City Manager execute a Memorandum of Understanding (MOU) with the District of Columbia during the 2005 Presidential Inauguration (January 15-21,2005). *(Section 9, Page 4): "Any requestfor legal representation will be made from the [/s. }.{al'!.ha:'j office Department of Justice. " Voting: 8-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4, 2005 1 2 3 4 5 6 7 ~ RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH THE DISTRICT OF COLUMBIA WHEREAS, Virginia law authorizes local governments to enter 8 into reciprocal agreements for cooperation in the furnishing of 9 police services with the District of Columbia; and 10 WHEREAS, it is deemed mutually beneficial to the City of 11 Virginia Beach and the District of Columbia to enter into an 12 agreement concerning cooperation with regard to law enforcement, 13 increasing the ability of the District of Columbia to promote 14 the safety and welfare of the Nation's Capitol during the 2005 15 Presidential Inauguration. 16 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF 17 THE CITY OF VIRGINIA BEACH, VIRGINIA: 18 That the accompanying Memorandum of Understanding is hereby 19 approved, and the City Manager is hereby authorized and directed 20 to execute said Agreement on behalf of the City of Virginia 21 Beach. A summary of the material terms is hereto attached and a 22 true copy of the Agreement is on file with the City Attorney. 23 Adopted by the Council of the City of Virginia Beach, Virginia on the 4th day of January, 2005. APPROVED AS TO CONTENT: CA9469 R1 December 10, 2004 H:\PA\GG\ORDRES\2005 Inauguration res.doc APPROVED AS TO LEGAL SUFFICIENCY: SUMMARY OF MATERIAL TERMS 1. EVENT - The 2005 Presidential Inauguration in Washington, De. 2. MEMORANDUM OF UNDERSTANDING - An agreement between the City of Virginia Beach, United States Attorney for the District of Columbia, United States Marshal Service and the Metropolitan Police Department to assign officers from the Virginia Beach Police Department to the Presidential Inauguration Task Force. This task force is established to implement measures to promote the safety of the President of the United States, inaugural participants, the public, visitors and residents while allowing individuals and groups to exercise their legal rights during the 2005 Presidential Inauguration. 3. NATURE - Allows the City of Virginia Beach to provide police manpower and equipment, if available, in an effort to maintain public safety during the above- described event. 4. TERM - This agreement is effective from January 15, 2005 through January 21, 2005, or as needed, to maintain public safety during the above-referenced event contingent upon the availability of City resources. 5. INSURANCE - For the limited purpose of defending claims arising out of the Presidential Inauguration Task Force activity, our officers, specially deputized as U.S. Marshals, while acting within the course and scope of their official duties and assignments pursuant to this MOU, are covered under the Federal Employees Liability Reform and Tort Compensation Act of 1988. 6. DEPUTATION - City of Virginia Beach police officers will be deputized as Deputy U.S. Marshals for this event and shall be considered federal employees during this event. 7. FUNDING - The city's personnel costs will be reimbursed by the District of Columbia. 8. LIABILITY - Officers participating in this operation are considered federal employees for liability purposes, when acting within the scope of their duties. 9. DURATION - This agreement may be terminated at anytime, by any of the participating agencies, by providing a seven-day notice of intent to withdraw to the Metropolitan Police Department. 10. MODIFICATIONS - This Memorandum of Understanding can be modified at anytime with the written consent of all parties. H:\P A \ORDRES\2005 Inauguration SOMT.DOC - 34- Item V-I 4. RESOLUTIONS/ORDINANCES ITEM # 53414 Upon motion by Vice Mayor Jones, seconded by Councilman Reeve, City Council DEFERRED until the City Council Session of January 11, 2005: Ordinance to AMEND Chapters 1-2,6-3,6-5,6-30, 6-114 and31-28 of the City Code re the definition of resort season Voting: 8-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter w: Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4,2005 - 35 - Item V-L5. RESOLUTIONS/ORDINANCES ITEM # 53415 Upon motion by Vice Mayor Jones, seconded by Councilman Reeve, City Council ADOPTED: Ordinance to RENEW five existing franchises for the operation of Open Air Cafes in the Resort Area: a. CourtYard Marriott Cap - 2501 Atlantic Avenue - Boardwalk Cafe b. Black Angus - 706 Atlantic Avenue - Sidewalk Cafe c. Albie's Pizza - 200 21st Street - Side Street Cafe d. Dough Boys 24th Street Cap - 2401 Atlantic Avenue - Sidewalk Cafe e. Planet Pizza Cap - 812 Atlantic Avenue - Sidewalk Cafe Voting: 8-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4,2005 1 AN ORDINANCE TO RENEW FIVE EXISTING 2 FRANCHISES FOR THE OPERATION OF 3 OPEN AIR CAFES IN THE RESORT AREA 4 5 6 WHEREAS, the following businesses (hereinafter "Grantees") wish to renew 7 existing franchise agreements for the operation of open air cafes at the oceanfront: 8 1. Courtyard Marriott Cafe (2501 Atlantic Avenue) boardwalk cafe; 9 2. Black Angus (706 Atlantic Avenue) sidewalk cafe; Albie's Pizza (200 21st Street) side street cafe; Dough Boys 24th Cafe (2401 Atlantic Avenue) sidewalk cafe; and 10 3. 11 4. 12 5. Planet Pizza Cafe (812 Atlantic Avenue) sidewalk cafe; 13 WHEREAS, the City has developed a franchise agreement for the regulation of 14 open air cafes that each of the above-listed Grantees will be required to execute as a 15 condition of franchise renewal; and 16 WHEREAS, based upon each Grantee's successful operation of an open air cafe 17 pursuant to a franchise during the past year, the Virginia Beach ConvenHon and Visitors 18 Bureau recommends a five-year renewal of the franchise of each of the foregoing 19 Grantees. 20 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 21 VIRGINIA BEACH, VIRGINIA: 22 1. That a franchise is hereby granted to each of the above-listed 23 Grantees to operate an open air cafe at the address indicated herein from May 1,2005, 24 to April 30, 2010, conditioned on each Grantee's execution of a franchise agreement 25 and compliance with all of the terms and conditions thereof. 1 26 2. That the City Manager, or his duly authorized designee, is hereby 27 authorized to enter into a five (5) year franchise agreement with each Grantee. 28 29 Adopted by the Council of the City of Virginia Beach, Virginia, on the 3 0 __F'_c>~rtl1_ day of January ,2005. 31 32 CA-9468 33 F:\Users\ VValldej\WP\BZA \openairord.doc 34 R-1 35 December 2, 2004 36 37 38 APPROVED AS TO CONTENT: 39 40 41 42 43 44 APPROVED AS TO LEGAL SUFFICIENCY: ~<vT ~~ City Attorney's Office 2 - 36- Item V-I. 6. RESOLUTIONS/ORDINANCES ITEM # 53416 Upon motion by Vice Mayor Jones, seconded by Councilman Reeve, City Council ADOPTED: Ordinance AMENDING the Resort Advisory Commission (RAC) Bylaws re the composition of their membership. Voting: 8-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4, 2005 1 2 3 4 AN ORDINANCE AMENDING THE RESORT ADVISORY 5 COMMISSION BYLAWS PERTAINING TO THE 6 COMPOSITION OF THE COMMISSION MEMBERSHIP 7 8 9 WHEREAS, by ordinance adopted on August 29, 1988, the City Council of the City 10 of Virginia Beach (the "City Council") added Section 2-6 of the City Code pertaining to the 11 Resort Advisory Commission ("RAC"); 12 WHEREAS, Section 2-6 of the City Code provides, among other things, that the 13 governance and the administration of the RAC shall be in accordance with its bylaws; 14 WHEREAS, on September 28, 2004, the City Council adopted Ordinance 2840, 15 which amended Section 2-6 (c) of the City Code by requiring City Council to appoint at 16 least one member from each of the following organizations: Virginia Beach Hotel/Motel 17 Association, Virginia Beach Restaurant Association, Resort Retailers Association, Virginia 18 Beach Division of Hampton Roads Chamber of Commerce, and Virginia Beach Council of 19 Civic Organizations; 20 WHEREAS, Article II, Section 1 of the RAC bylaws pertaining to the composition of 21 the RAC membership was not revised to reflect the September 28,2004, amendment to 22 Section 2-6(c), and is now inconsistent with the City Code; 23 WHEREAS, amendments to the RAC bylaws require the approval of City Council; 24 and 1 25 WHEREAS, City staff recommends that Article II, Section 1 of the RAC bylaws be 26 amended to achieve consistency with the City Code, and Council is of the opinion that the 27 amendment is necessary. 28 NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 29 VIRGINIA BEACH, VIRGINIA: 30 That the amendment to the RAC bylaws is hereby approved in the form as attached 31 hereto. 32 33 Adopted by the City Council of the City of Virginia Beach, Virginia, on the 4TH dayof 34 January, 2005. 2 - 37- Item V-L 7. RESOLUTIONS/ORDINANCES ITEM # 53417 ADDED Upon motion by Vice Mayor Jones, seconded by Councilman Reeve, City Council ADOPTED: Resolution requesting the General Assembly SUPPORT legislation extending the use of Photo-Monitoring systems to enforce traffic light signals and enhance public safety Voting: 8-0 (By Consent) Council Members Voting Aye: Harry E. Diezel, Robert M, Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Jim Reeve, Peter W Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4,2005 1 2 3 4 5 A RESOLUTION TO REQUEST THE GENERAL ASSEMBLY TO SUPPORT LEGISLATION EXTENDING THE USE OF PHOTO-MONITORING SYSTEMS TO ENFORCE TRAFFIC LIGHT SIGNALS AND ENHANCE PUBLIC SAFETY 6 WHEREAS, each year in the United States, persons who 7 run red lights at traffic intersections cause over one million 8 crashes, which result in over 250,000 injuries and 2000 deaths; 9 WHEREAS, state law currently authorizes the use of 10 photo-monitoring systems to enforce traffic light signals and 11 fine red light violators; 12 WHEREAS, in 2004, the City Council authorized the use 13 of photo-monitoring systems in the City of Virginia Beach and a 14 recent survey of Virginia Beach residents indicated that 84% of 15 residents "strongly approved" or "approved" the use of photo- 16 monitoring to improve safety of intersections; 17 WHEREAS, the state law that authorizes the use of 18 photo-monitoring systems has a sunset provision that prohibits 19 the use of these systems after July 1, 2005; and 20 WHEREAS, the City Council lS of the opinion that 21 photo-monitoring systems are an effective method of reducing red 22 light violations, and as part of its Community Legislative 23 Agenda, requested Virginia Beach's delegation to the General 24 Assembly to introduce and support legislation to eliminate or 25 extend the sunset provision. 26 27 28 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE 29 CITY OF VIRGINIA BEACH, VIRGINIA: 30 31 1. That the City Council hereby expresses its support for 32 the legislation that has been introduced to eliminate or extend 33 the sunset provisions of the photo-monitoring law (House Bill 34 1558 and Senate Bill 176), and requests that the City's local 35 delegation to the General Assembly support legislation in the 36 2005 Session of the General Assembly so that the use of photo- 37 monitoring systems to enforce traffic light signals may be 38 continued. 39 2. That the City Clerk is hereby directed to transmit a 40 certified copy of this resolution to each member of the City's 41 local delegation to the General Assembly. 42 43 44 Adopted by the Council of the City of Virginia Beach, Virginia, on the f+h day of fllll()JU.I' ,2005. CA-9486 H:\GG\OrdRes\PHOTORED.res.doc R-3 January 4, 2005 APPROVED AS TO LEGAL SUFFICIENCY: City Attorne ' 2 - 38- Item V-J. PLANNING ITEM # 53418 1. SUSAN KROHN APPEAL Certification of Appropriateness Re: Historical Review Road (sign) 2. H & A ENTERPRISES, L.L.C. CONDITIONAL CHANGE OF ZONING CONDITIONAL USE PERMIT January 4,2005 - 39- Item V-LJ. PLANNING ITEM # 53419 Susan Krohn, 3157 Virginia Beach Boulevard, Phone: 498-9051, represented herself and advised all the signs around and in the Rose Hall area are "back lit". Upon motion by Councilman Wood, seconded by Vice Mayor Jones, City Council ALLOWED APPEAL of HISTORIC REVIEW BOARD DECISION AND ALLOWED Mrs. Krohn's SIGN AS PROPOSED for the Certificate of Appropriateness for a sign at Village Shops - Rose Hall The sign shall be allowed to be "back lit", with a deep purple business logo and the other colors depicted in the sign conception. Voting: 7-1 Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, Mayor Meyera E.Oberndorf, Jim Reeve, Peter W. Schmidt and James L. Wood Council Members Voting Nay: Reba S. McClanan Council Members Absent: Richard A. Maddox, Ron A. Villanueva an d Rosemary Wilson January 4,2005 - 40- Item V-J.2. PLANNING ITEM # 53420 The following registered in SUPPORT: Attorney "Sonny" Stallings, represented the applicant and owner, Hamid Abdolazadeh, advised his client has been working on this application for three (3) years and clear title has been obtained for Smokey Lane. Thus, a curb cut has been eliminated. The application entails basically a parking lot for Autoland's vehicles. Landscaping has been proposed on all sides. The following registered in OPPOSITION: Vernon L. Dickens, S. 1488 Independence Boulevard, Phone: 464-5939, represented the residents and presented a petition in OPPOSITION from the citizens of Gracetown. Said petition is hereby made a part of the record. Marlene M. and Ernest R. Petty, 1591 Eagleton Lane, advised Smokey Lane as been utilized as an access to their home and the wheelchair ramp. She did not believe her area should go from residential to commercial. Upon motion by Vice Mayor Jones, seconded by Council Lady McClanan, City Council DENIED Ordinances upon application ofH&A ENTERPRISES, L.L.Cfor a Conditional Change of Zoning and a Conditional Use Permit (Gracetown): ORDINANCE UPON APPLICATION OF H&A ENTERPRISES, L.L. C. FOR A CHANGE OF ZONING DISTRICT CLASSIFICATION FROM R-7.5 TO CONDITIONAL B-2 Ordinance upon Application of H&A Enterprises, L.L. C. for a Change of Zoning District Classification from R-7,5 Residential District to Conditional B-2 Community Business District on the southeast corner of Independence Boulevard and Smokey Road (GPINS 147933019400000;14793302900000). The Comprehensive Plan designates this site as being part of the Primary Residential Area, suitable for appropriately located suburban residential and non-residential uses consistent with the policies of the Comprehensive Plan. DISTRICT 4 - BAYSIDE AND, ORDINANCE UPON APPLICATION OF H&A ENTERPRISES FOR A CONDITIONAL USE PERMIT FOR MOTOR VEHICLE SALES Ordinance upon Application of H &A Enterprises for a Conditional Use Permit for motor vehicle sales on property located on the southeast corner of Independence Boulevard and Smokey Road (GPINS 147933019400000;14793302900000), DISTRICT 4 - BAYSIDE January 4,2005 - 41 - Item V-J.2. PLANNING ITEM # 53420 Voting: 7-1 Council Members Voting Aye: Robert M Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt and James L. Wood Council Members Voting Nay: Harry E. Diezel Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4, 2005 - 42- Item V-K.1. APPOINTMENTS ITEM # 53421 BY CONSENSUS, City Council RESCHEDULED: BIKEWAYS and TRAILS ADVISORY COMMITTEE BOARD OF BUILDING CODE APPEALS - Maintenance Division New Construction Division COMMUNITY POLICY AND MANAGEMENT TEAM - CSA - AT RISK FRANCIS LAND HOUSE BOARD OF GOVERNORS HISTORICAL REVIEW BOARD INVESTMENT PARTNERSHIP ADVISORY COMMITTEE MINORITY BUSINESS COUNCIL PARKS AND RECREATION COMMISSION TOWING ADVISORY BOARD January 4, 2005 - 43- Item V-.K.2. APPOINTMENTS ITEM # 53422 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: Reverend Irvin W. Knight Unexpired thru 12/31/05 plus 3 years 01/01/06 -12/31/08 COMMUNITY SERVICES BOARD Voting: 8-0 Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt and James 1. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4, 2005 - 44- Item V-K.3. APPOINTMENTS ITEM # 53423 Upon NOMINATION by Vice Mayor Jones, City Council REAPPOINTED: SaRita Nery Ranger 3 years 1/01/05-3/31/08 HEALTH SERVICES ADVISORY BOARD Voting: 8-0 Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Ron A. Villanueva, Rosemary Wilson and Richard A. Maddox January 4, 2005 - 45 - Item V-K.4. APPOINTMENTS ITEM # 53424 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: Edward Gibbs 3 years 2/1/05-1/31/08 HUMAN RIGHTS COMMISSION Voting: 8-0 Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W. Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4, 2005 - 46- Item V-.K.5. APPOINTMENTS ITEM # 53425 Upon NOMINATION by Vice Mayor Jones, City Council REAPPOINTED: Michael J. Barrett 4 years 1/01/05 -12/31/08 SOUTHEASTERN PUBLIC SERVICE AUTHORITY (SPSA) Voting: 8-0 Council Members Voting Aye: Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4,2005 - 47- Item V-K. 6. APPOINTMENTS ITEM # 53426 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: Gregory Dragas 4 years 1/1/05 -12/31/08 VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION (VBCDC) Voting: 8-0 Council Members Voting Aye: Harry E. Diezel, Robert M Dyer, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt and James L. Wood Council Members Voting Nay: None Council Members Absent: Richard A. Maddox, Ron A. Villanueva and Rosemary Wilson January 4,2005 - 48- Item V-No ADJOURNMENT ITEM # 53427 Mayor Meyera E. Oberndorf DECLARED the City Council Meeting ADJOURNED at 7:28 P.M. Ci2~__tZ.L-[~~/.o;; Beverly 0. Hooks, CMC Chief Deputy City Clerk uth Hodges Smith, MMC City Clerk Meyera E. Oberndorf Mayor City of Virginia Beach Virginia After ADJOURNMENT, Public Comments relative Non Agenda Items were heard. January 4,2005 - 48- Item V-N. ADJOURNMENT ITEM is 53427 Mayor Meyera E. Oberndorf DECLARED the City Council Meeting ADJOURNED at 7:28 P.M. as,„„, D. yin .. Bevery ,..Oiooks, CMC Chief Deputy City Clerk uth Hodges mith, MMC Meyera E. Oberndorf City Clerk Mayor City of Virginia Beach Virginia After ADJOURNMENT,Public Comments relative Non Agenda Items were heard. January 4, 2005 - 49- PUBLIC COMMENTS Non Agenda Items Brian Kirwin, 304 Cripple Creek Court 23452, Phone: 463-0399, expressed concern re the articles in The Virginian Pilot re Thirty-first Street William Bailey, 4841 Rosecroft Street, Phone: 495-0677, President - Virginia Beach Professional Firefighters, referenced a document from the Fire Department, ranking as their No. 1 Priority: 4-man staffing on fire trucks. William Terry Calhoun, 2492 Navarre Way, Phone: 576-4355, expressed concern re the articles in the Virginian Pilot re regulations at the Town Center Plaza. Mr. Calhoun believed it inappropriate for the Development Authority to make decisions re 'free speech ". January 4,2005