FEBRUARY 21, 2012 WORKSHOP MINUTESCITY OF VIRGINIA BEACH
"COMMUNITY FOR A LIFETIME"
CITY COUNCIL
MAYOR WILLIAb4 D. SESSOMS, JR., At-Large
VICF. MAYOR LOUIS R. JONES, Bayslde -District 4
GLENN R. DAMS, Rose Hall -District 3
WILL/AM R. DeS7EPH, At-/,arge
HARRY E. D/F.Z67., Kempsville -District 1
ROBERT M. DYER, Centerville -District l
BARBARA M. HE;VLF.Y, Princess Anne -District 7
JOHN D. MOSS, At-Large
JOHN E. UHRIN, Beach -District 6
ROSEMARY WIL.tiON, At-Large
,IAMF.S L. WOOD, I,ynnhaven -District i
CITY COUNCIL APPOINTEES
CITY MANAGER - JAMh,'S K. SPORE
CITY ATTORNEY - MARK D. STILES
C[TY ASSESSOR - JERALD D. BANAGAN
CITY AUDITOR - LYNDON S. REMIAS
CI7Y CLERK - R UT H HODGES FRASF.R, MMC
CITY COUNCIL WORKSHOP AGENDA
21 FEBRUARY 2012
I. CITY COUNCIL BRIEFING -Conference Room -
A. REAL ESTATE ASSESSMENT ANNUAL REPORT
Jerald Banagan, Real Estate Assessor
II. CITY MANAGER'S BRIEFINGS
A. GOLF COURSE
Michael Kalvort, Director -Department of Parks and Recreation
Kevin Bennington, Golf Coordinator -Department of Parks and Recreation
Michael Fentress, Vice-Chairman -Parks and Recreation Commission
B. 25TH STREET PPEA
Barry Frankenfield, Strategic Growth Area Office Administrator
C. PLANNING ITEMS PENDING
Jack Whitney, Director -Planning
III. CITY COUNCIL DISCUSSION
CITYHALL BUILDING
2401 COURTHOUSE DRIVE
VIRG/NIA BEACH, V/RG/N/A 23456-8005
PHONE: (757J 385-4303
FAX (757J 385-5669
E- MA/L: crycnc!@vbgov.cotn
4:00 PM
A. HEADQUARTERS HOTEL REVOCATION OF LAND TRANSFER RESOLUTION
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VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
February 21, 2012
Mayor William D. Sessoms, Jr., called to order the CITY COUNCIL'S BRIEFING, re Real Estate
Assessor's Annual Report in the City Council Conference Room at 4: 00 P.M.
Council Members Present:
Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert
M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, John D.
Moss, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary
Wilson and James L. Wood.
Council Members Absent:
None
February 21, 2012
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CITY COUNCIL'S BRIEFING
REAL ESTATE ASSESSMENT ANNUAL REPORT
4:00 P.M.
The Mayor introduced Jerald D. Banagan, Real Estate Assessor, who gave his Annual Report.•
February 21, 2012
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CITY COUNCIL'S BRIEFING
REAL ESTATE ASSESSMENT ANNUAL REPORT
(Continued)
Mr. Banagan stated the overall median change is -4.87% and overall mean change is -5.29%. This
means 79% of assessments will be reduced.
Tlzis is the 4`'' year the City has had a decline in assessments.
February 21, 2012
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CITY COUNCIL'S BRIEFING
REAL ESTATE ASSESSMENT ANNUAL REPORT
(Continued)
Arerage residential values have a negative change with the biggest decline in high rise condos followed
by townhomes.
February 21, 2012
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CITY COUNCIL'S BRIEFING
REAL ESTATE ASSESSMENT ANNUAL REPORT
(Co~itinued)
Tlie City has seen an increase in construction of single family homes this year with considerably less
construction of duplexes and apartments.
February 21, 2012
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CITY COUNCIL'S BRIEFING
REAL ESTATE ASSESSMENT ANNUAL REPORT
(Continued)
Assessments on new homes declined from 2010 to 2011.
February 21, 2012
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CITY CO UNCIL'S BRIEFING
REAL ESTATE ASSESSMENT ANNUAL REPORT
(Continued)
The Lynnhaven Mall Shopping District TIF increased, while the Sandbridge District TIF, Central
B¢~siness District TIF and the Special Service District all declined. The decline is mainly due to condos
loss of value.
February 21, 2012
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CITY COUNCILS BRIEFING
REAL ESTATE ASSESSMENT ANNUAL REPORT
(Continued)
In 2011, 13 buildings received a tax creditfor being "energy efficient" buildings.
February 21, 2012
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CITY COUNCIL'S BRIEFING
REAL ESTATE ASSESSMENT ANNUAL REPORT
(Continued)
The City has Five Hundred Eighty (580) Citizens that are 100% Disabled Veterans and exempt from Real
Estate Taxes.
February 21, 2012
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CITY COUNCIL'S BRIEFING
REAL ESTATE ASSESSMENT ANNUAL REPORT
(Continued)
The City has 7, 398 Recipients of the Real Estate Tax Program for Senior Citizens and Disabled Persons.
The Mayor thanked Mr. Banagan for his presentation.
February 21, 2012
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CITYMANAGER'S BRIEFING
GOLF COURSE
4:I8 P.M.
The Mayor called to order the BRIEFING re Golf Course Performance. The City Manager introduced
Michael Kalvort, Director, Kevin Bennington, Golf Coordinator and Michael Fentress, Vice-Chair -
Parks and Recreation.
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Mr. Bennington stated the golf courses have seen a positive change.
February 21, 2012
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CITYMANAGER'S BRIEFING
GOLF COURSE
(Continued)
Five Courses -Three Partners
1. Bow Creek, Kempsville Greens and Red Wing lake
Golf Courses
-Parksand Recreation provides contract oversight.
2. Stumpy Lake Golf Course Inc.
-Parksand Recreation provides contract oversight.
3. Virginia Beach National Golf Club
- Virginia Beach Development Authority partnered with
Virginia Beach Golf Clubs LLC. The Department of
Economic Development provides financial oversight. Parks
and Recreation provides facility and maintenance
assistance.
The benefits of Public/Private Partnerships are clear and identified below:
The Benefits of Public/Private
Partnerships are Clear
- In the first 12 months of the three course agreement,
Virginia Beach Golf Management provided the City of
Virginia Beach with $342,152 in revenue based on rental
income and usage taxes.
- In the past three years, Stumpy Lake Golf Course provided
an average of $131,433 annually to the City of Virginia
.Beach in lease rent and usage taxes.
- In the past three years, Virginia Beach National Golf Club
provided an average of $237,885 annually to the City of
Virginia Beach in lease rent and usage taxes.
February 21, 2012
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CITYMANAGER'S BRIEFING
GOLF COURSE
(Continued)
Virginia Beach Golf Management
- The City of Virginia Beach entered into a lease agreement
with Virginia Beach Golf Management LLC. for the operation
and management of Bow Creek, Kempsville Greens and Red
Wing Lake Golf Courses on February 1, 2011. This is a ten
year agreement with the possibility of two 5-year renewals.
- Virginia Beach Golf Management will pay the City of Virginia
Beach rental of $150,000 or 10% of gross revenue, whichever
is greater.
._ ,
Virginia Beach Golf Management
- Virginia Beach Golf Management committed to investing
$552,500 to provide improvements to Kempsville Greens
and Red Wing Lake Golf Courses
- Fifty percent of the rental. income generated with this
partnership is placed into a golf course infrastructure and
improvement CIP account.
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February 21, 2012
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CITYMANAGER'S BRIEFING
GOLF COURSE
(Continued)
The total number of golf rounds is up almost 10, 000 rounds from 2010.
City of Virginia Beach and Virginia Beach
Golf Management Performance
Total Golf Rounds
BowCreek 29,759 28,111 23,984
KempsvilleGreens 30,223 27,257 32,536
Red Wing Lake 30,884 32,307 40,797
Totat 90,866 87,675 97,317
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City of Virginia Beach Golf Operations
Total Gross Revenue
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BowCreek $557,938 $532,070 $554,242
KempsvilleGreens $492,876 $516,769 $716,958
Red Wing $878,647 $927,792 $1,36Q547
Total $1,929,461 $1,976,631 $2,630,747
Profit/Loss
BowCreek $35,728 $31,008 $39,008
KempsvilleGreens {$128,781} {$194,003) $42,339
Red Wing $146,508 $271,723 $101,552
Total $53,455 $108,728 $182,899
February 21, 2012
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CITYMANAGER'S BRIEFING
GOLF COURSE
(Conti~iued)
Virginia Beach Golf Management has completed numerous course improvements to Kempsville Greens
and Red Wing Lake Golf Courses.
Virginia Beach Golf Management
Course Improvements
- In the first 11 months of operation VBGM has spent
$472,000 to improve Kempsville Greens and Red
Wing Lake Golf Courses.
-Kempsville Greens -cart path
renovation and replacement, tree work,
new fence at maintenance facility
i ~ i ~~`»~~° ~ - Red Wing Golf Course -clubhouse
"' `°"" ~ - renovation
Sta~mpy Lake Golf Course, Inc., has completed approximately $1-Million in improvements and additions.
Golf rounds have increased 17%.
Stumpy Lake Golf Course
- Stumpy Lake Golf Course was purchased by the City
of Virginia Beach in 2001.
- Parks and Recreation has negotiated a lease
agreement with Stumpy Lake Golf Course Inc.
February 21, 2012
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CITY MANAGER'S BRIEFING
GOLF COURSE
(Continued)
Stumpy Lake Golf Course contd.
- The current agreement with Stumpy Lake Golf Course began on
January 1, 2008 and will end December 31, 2017.
- The agreement includes the possibility of two 5-year
extensions.
- The City will receive rental for the lease of the course based on
10% of the gross income up to $900,000 and 12% above the
$900,000 in a calendar year.
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Stumpy Lake Golf Course contd.
- Three percent of the first $900,000 is placed in a dedicated
account reserved for Capital Improvements for the Stumpy Lake
Golf Course.
- Upon entering into the agreement, Stumpy take Golf Course LLC.
agreed to invest $545,000 in course and infrastructure
improvements within the first two years.
- In addition, Stumpy Lake committed to a total of $250,000 in
improvements by the end of the contract.
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February 21, 2012
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CITYMANAGER'S BRIEFING
GOLF COURSE
(Continued)
Stumpy Lake Goif Course
GolfROUnds 33,927 34,340 40,315
Gross Revenue $1,019,106 $1,032,594 $1,134,328
Rent paid to the City $97,155 $104,959 $116,119
Taxes paid to the City $23,492 $24,420 $28,155
Infrastructure Re-investmentfrom $656,860 $425,710 $11,668
Partner
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Stumpy Lake Golf Course Improvements
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February 21, 2012
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CITYMANAGER'S BRIEFING
GOLF COURSE
(Continued)
Virginia Beach National Golf Club has seen an increase of 19% in golf rounds.
Virginia Beach National Golf Club
- Virginia Beach Development Authority entered into
operational agreement for the Virginia Beach National
Golf Club in 2007.
- The initial term of the Virginia Beach National Golf
Club agreement was for 4 years and began April 1,
2007.
- The agreement has been amended to extend through
December 31, 2015 with the possibility of one 2-year
extension. ~ ~-
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Virginia Beach National Golf Club
- The Virginia Beach Development Authority will
receive 10% of the gross revenues as rent for the
Virginia Beach National Golf Club:
• Fifty percent of rental income is
placed in a CIP account for
improvements to the Virginia Beach
.~ National Golf Club.
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• Profit sharing of 25% of net income
over $100,000 per year.
February 21, 2012
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CITYMANAGER'S BRIEFING
GOLF COURSE
(Continued)
Virginia Beach National Golf Club
Golf Rounds 26,115. 25,990 3U,853
Gross Revenue $1,773,690 $1,621,586 $1,847,923
Rent paid to City $192,553 $155;723 $198,355
Taxes paid to City $57,883 $49,468 $59,674
Infrastructure Re-investmentfrom $19,620 $21,920 $16,380
Partner
Total Amount of Improvements Provided
to City of Virginia Beach by Partners
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Bow Creekvolr~ourse NA. NA ':~U
KempsvilleGreens Golf Course NA NA $187,342
Red Wing'Lake Golf Course NA NA $284,402
Stumpy Lake Golf Course $656,860 $425,710 $11,668
.Virginia Beach NationalGolfCourse $19,620 $21,920 - - $16,380
TOTAL OF FIVE COURSES $676,480 $447,630 $499,792
February 21, 2012
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CITYMANAGER'S BRIEFING
GOLF COURSE
(Continued)
We are Heading in the Right Direction
with Public/Private Partnerships for
our Municipal Golf Courses
The partnership with Virginia Beach Golf Management has
increased gross revenue by $650,000 in the first 11 months.
The past three years, our partners have provided over $3
million in revenue and improvements to the City of Virginia
Beach.
These public/private partnerships will ensure that self
sustaining, well maintained golf courses will remain available
for the community's enjoyment.
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February 21, 2012
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CITY MANAGER'S BRIEFING
25T"STREET PPEA
4:38 P.M.
The Mayor called to order the BRIEFING re the 25`" STREET PPEA. The City Manager introduced
Barry Frankenfield, Strategic Growth Area Office Administrator.
Mr. Frankenfield advised the City received an unsolicited PPEA for the parking lot at 25`x' Street from
Tl7e Breeden Company.
February 21, 2012
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CITYMANAGER'S BRIEFING
25TySTREET PPEA
(Continued)
February 21, 2012
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CITYMANAGER'S BRIEFING
25THSTREET PPEA
(Continued)
February 21, 2012
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CITYMANAGER'S BRIEFING
25THSTREET PPEA
(Continued)
February 21, 2012
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CITYMANAGER'S BRIEFING
25T" STREET PPEA
(Conti~tued)
25 TH STREET
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February 21, 2012
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CITYMANAGER'S BRIEFING
25THSTREET PPEA
(Continued)
February 21, 2012
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CITY MANAGER'S BRIEFING
PLANNING ITEMS PENDING
4:48 P.M.
The Mayor called to order the BRIEFING re the Pending Planning Items. The City Manager
introduced Jack Whitney, Director -Planning. Mr. Whitney advised there are only seven (7) Planning
items to be heard in March.
Tlae items below are scheduled to be heard by City Council on March 13, 2012.
February 21, 2012
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CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
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February 21, 2012
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CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
February 21, 2012
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CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
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February 21, 2012
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CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
February 21, 2012
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CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Coiztinued)
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February 21, 2012
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CITY MANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
February 21, 2012
-34-
CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
February 21, 2012
-35-
CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
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February 21, 2012
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CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
February 21, 2012
-37-
CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
The items below are scheduled to be heard by City Council on March 27, 2012.
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February 21, 2012
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CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
February 21, 2012
-39-
CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
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February 21, 2012
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CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
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February 21, 2012
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CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
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February 21, 2012
-42-
CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Caitiriued)
February 21, 2012
-43-
CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
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February 21, 2012
-44-
CITY MANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
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February 21, 2012
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CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
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February 21, 2012
-46-
CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
February 21, 2012
-47-
CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
February 21, 2012
-48-
CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
February 21, 2012
-49-
CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
.YSIDE
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FebYUary 21, 2012
-50-
CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
February 21, 2012
-51-
CITY MANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
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February 21, 2012
-52-
CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
February 21, 2012
-53-
CITYMANAGER'S BRIEFING
PLANNING ITEMS PENDING
(Continued)
February 21, 2012
-54-
CITY COUNCIL DISCUSSION
HEADQUARTERS HOTEL
REVOCATION OF LAND TRANSFER RESOLUTION
S: 02 P.M.
Cocncilman DeSteph stated that City Council decided not to move forward with the Headquarters Hotel
project. He would like input from Council to take the property back from the Development Authority
before asking City Attorney to draft a Resolution.
Councilman Moss stated he thinks it is an outstanding idea.
Councilman Diezel stated nothing can occur on that property without the approval of City Council.
Councilman Uhrin stated it does not cost the City anything to leave the property with the Development
Authority and acquiring a Headquarters Hotel is still a priority of City Council. He sees no point in
transferring the land back to the City.
Mayor Sessoms thanked Bill for bringing this to City Council for discussion and consideration prior to
plcccing this on an Agenda.
Councilman Moss feels this is a fundamental issue and he is not opposed to revisiting the issue.
February 21, 2012
-55-
CITY COUNCIL COMMENTS
5:07P.M.
Councilman Moss has had several business owners approach him requesting the City to double the
number of times per year the City would allow special promotional signs. Councilman Moss requested
the Staff provide detailed information.
Councilman DeSteph advised North Carolina and Delaware have passed ordinances supporting the
Military organizations and they provided that as a show of support as BRAC 2013 and 2014 are getting
closer. Councilman DeSteph has asked Staff to draft a resolution that will provide a strong stance in
support of our Military for City Council's consideration.
February 21, 2012
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ADJOURNMENT
Mayor William D. Sessoms, Jn, DECLARED the City Council Meeting ADJOURNED at 5:08 P.M.
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Amanda Finley-Barnes, C C
Deputy City Clerk, II
Rr h Hodges Fr er, MMC
ity Clerk
February 21, 2012