JANUARY 12, 2016 WORKSHOP MINUTES CITY OF VIRGINIA BEACH
"COMMUNITY FOR A LIFETIME"
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CITY COUNCIL ok
MAYOR WILLIAM D.SESSOMS,JR.,At-Large
VICE MAYOR LOUIS R.JONES,Bayside-District 4
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M.BENJAMIN DAVENPORT—At barge s "1 :
ROBERT M.DYER,Centerville-District 1
BARBARA M.HENLEY,Princess Anne- District 7 °F OUP
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SHANNON DS KANE,Rose Hall District 3
JOHN D.MOSS,At-Large
AMELIA N.ROSS-HAMMOND,Kempsville-District 2
JOHN E. UHRIN,Beach District 6
ROSEMARY WILSON,At-Large
JAMES L.WOOD,I ynnhaven-District 5 CITY HALL BUILDING
2401 COURTHOUSE DRIVE
CITY COUNCIL APPOINTEES VIRGINIA BEACH, VIRGINIA 23456-8005
CITY MANAGER-JAMES K.SPORE PHONE:(757)385-4303
CITY ATTORNEY- MARK D.STILES FAX(757)385-5669
CITY ASSESSOR-JERALD D.BANAGAN E-MAIL:clycncl@vbgov.com
CITY AUDITOR- LYNDON S.REMIAS
CITY CLERK- RUTH HODGES FRASER,MMC
CITY COUNCIL WORKSHOP AGENDA
12 January 2016
VICE MAYOR LOUIS R. JONES
PRESIDING
I. CITY COUNCIL BRIEFING - Conference Room - 4:00 PM
A. 2040 VISION TO ACTION COMMUNITY COALITION—Annual Update
Peggy Layne, Chair
Joe Voorhees, Vice Chair
II. CITY MANAGER'S BRIEFINGS
A. BURTON STATION FIRE and RESCUE STATION
Chief Steven Cover, Fire Department
B. TOURISM DEVELOPMENT FINANCING PROGRAM
Douglas Smith, Acting City Manager
Patti Phillips, Director- Finance
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VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
January 12, 2016
Acting Mayor Louis R. Jones called to order the CITY COUNCIL'S WORKSHOP in the City Council
Conference Room, Tuesday, January 12, 2016, at 4:00 P.M.
Council Members Present:
M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Acting
Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, Amelia N.
Ross-Hammond, John E. Uhrin, Rosemary Wilson and James L. Wood
Council Members Absent:
Mayor William D. Sessoms,Jr. Out of town with Family
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CITY COUNCIL'S BRIEFING
2040 VISION TO ACTION
COMMUNITY COALITION—
ANNUAL UPDATE
4:00 P.M.
Acting Mayor Jones welcomed Peggy Layne, Chair and Joe Voorhees, Vice-Chair of the 2040 Vision to
Action Community Coalition. Ms. Layne expressed her appreciation to City Council for their continued
support of the Envision 2040's Committee. The 2040 Vision was the end-result of an 18-month process
by the team initially charged with the Mission to create a Vision compelling, yet realistic that people
would support and embrace. The original Report was endorsed by the City Council June 12, 2012:
2040
Vision to Action
Community Coalition
"The future of Virginia Beach in our region"
VI�EACH"#,
Virginia Beach City Council Update
January 12,2016
www.vhaov.con,envs�onvbzoao
The Vision to Action Community Coalition was formed in October 2012 in order to monitor/measure the
planning and implementation of the Report. Also, the Coalition was to communicate the Vision with
Regional bodies, delegations and community groups. The coalition, in conjunction with the City's media
department, created a logo and a brief video which was presented:
Vision to Action Community Coalition
Communicate
i i
Education&Engagement
Evaluation of Policies,
Plans,and Decisions
Educate
January 12, 2016
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CITY COUNCIL'S BRIEFING
2040 VISION TO ACTION
COMMUNITY COALITION—
ANNUAL UPDATE
(Continued)
Mr. Voorhees advised the Members adopted these Elements to take the Vision to Reality:
From Vision to Reality
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Edwards cowl-":10 Ly�y�g';`, Arocho
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Martha Most Livable Kyle
cosserrN coastal community Ta•ir%wp
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The Coalition has several resources, including "The Strategic Plan to Achieve City Council's Vision”.
This document is published early each year, after the Council's Retreat and outlines the City's three (3)
year plan. Ms. Layne advised when reviewing this document she was surprised to discover there are two
(2) Visions: the Envision Virginia Beach 2040 and City Council's Vision 2029 (in January 2015).
Essentially, the City has "double vision"but how different are the Visions:
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January 12, 2016
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CITY COUNCIL'S BRIEFING
2040 VISION TO ACTION
COMMUNITY COALITION—
ANNUAL UPDATE
(Continued)
Below is the comparison of the two (2) Visions:
Let's compare...
Bold Step: Regionalism
As the largest city in the
...leading City in Virginia Commonwealth,Virginia Beach
a community with should take a leadership role.
diverse,distinctive neighborhoods
diverse local economy Canoe MA Learning
diverse living choices,and Co try Commnnj
effective transportation system _
...beautiful natural setting and resources cnpne Dome
Enriroamcnt Commonly
...a first class resort and vibrant Town
Center
...our people enjoy """e Thriving
Li/evyfe Economy
great schools and
places to have fun
City Council's Vision Vision 2040
Virginia Beach-A Community for a Most livable coastal community in the
lifetime world...
The Coalition suggests and requests the Envision 2040 be THE Vision for Virginia Beach. They feel with
one single Vision, the outreach message will be clear, concise and aligned with City Council's Strategic
Plans for the City's future:
Virginia Beach Vision 2040
Dino, C'net ae
Co..aniiy Environment
Learning 'team
Comm ay L,Jevyle
VIS%O4
Most Livable
Connected Coastal Community Thriving
Con.unfry in the world... Economy
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Acting Mayor Jones thanked Ms. Layne, Mr. Voorhees and the entire Committee for their hard work.
January 12, 2016
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CITY MANAGER'S BRIEFINGS
BURTON STATION FIRE
and RESCUE STATION
4:30 P.M.
Acting Mayor Jones welcomed Steve Cover, Chief— Fire Department. Chief Cover expressed his
appreciation to City Council for their continued support:
Diamond Springs/Burton Station
Fire and EMS Station
Below is the background relating to the Facilities Study:
Background - Facilities Study
► A comprehensive study in 2001 identified 8
large sections of the City located more than 4
minutes of travel time from a fire station
► Study recommended relocating 4 aging
facilities or adding 4 new ones to fill the gaps
► As a result of this research, 3 stations have
been relocated over the past decade (First
Landing, Town Center, Chesapeake Beach)
January 12, 2016
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CITY MANAGER'S BRIEFINGS
BURTON STATION FIRE
and RESCUE STATION
(Continued)
The current and significant coverage gaps were identified in the 2001 Study Area and also noted to be
outside CFAI(accreditation) Standard of Cover recommendations of 6:20 total response time:
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January 12, 2016
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-7-
CITY MANAGER'S BRIEFINGS
BURTON STATION FIRE
and RESCUE STATION
(Continued)
This map depicts a five(5)minute response time from this location:
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This map depicts a five (5)minute response time from the Burton Station Fire Station:
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January 12, 2016
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CITY MANAGER'S BRIEFINGS
BURTON STATION FIRE
and RESCUE STATION
(Continued)
As everyone knows, time is of the essence and five (5) minutes is key to provide assistance. After five
minutes the chance of survival is reduced greatly:
Why an Engine, Ladders Ambulance
FIRE DIAMO4ND THEORY
Ladder Engine
operations operations
With adequate apparatus and staffing to perform both Fire Suppression and
Rescue operations as well as medical care,these tasks can be accomplished
within 5 minutes of arrival, increasing the survivability profile of occupants
and reducing the inherent danger to firefighters.
On December 24, 2015, the department responded to a fire and, unfortunately, the first arriving Engine
arrived 6:34 after going reroute, which is 2:34 outside the Standard of Cover for travel time:
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December 24, 2015
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Interior fire damage done to a single family residential home.
January 12, 2016
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CITY MANAGER'S BRIEFINGS
BURTON STATION FIRE
and RESCUE STATION
(Continued)
Chief Edwards advised the enhancement below is being proposed. The foot print of the station would be
comparable to other projects intended to support thirty(30)firefighters and two (2) to five (5)EMS
personnel:
Proposed Enhancement
► Construct a new Fire and EMS Station
► Staff and deploy a Fire Department engine
and ladder company
► Staff and deploy an EMS Department
ambulance
► Consider relocation of EMS specialty
apparatus, particularly those designated for
regional response (i.e. EMS Mass Casualty
Truck)
Regional Benefits
► Improved Fire automatic aid capacity to
support the City of Norfolk, Norfolk
International Airport and Joint Expeditionary
Base Little Creek
► More optimal location for EMS mass casualty
resources designated as a regional response
asset, especially proximity to the airport
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January 12, 2016
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CITY MANAGER'S BRIEFINGS
BURTON STATION FIRE
and RESCUE STATION
(Continued)
OP FY 17-22
Diamond Springs/ Burton Station Fire&EMS Station
• Total square footage required is approximately 14,260
Building would house 10 firefighters and up to 5 EMS
personnel daily.
• This would be a 3 to 4 bay station
• 30 firefighters,six of which would be Fire Captains,would be
approximately$1,861,650 per year in salaries/benefits. A
new Fire Engine$550,000 and a new ladder is$1,200,000.
PPE,radios,and other equipment are also necessary at an
approximate cost of$7,000 each FF.
• 12 EMS Paramedics would be approximately$825,000 per
year in base salaries/benefits.Initial outfitting would be
approximately$6,000 per medic.A fully equipped ambulance
will cost up to$350,000. However,EMS intends to request a
volunteer rescue squad relocate an existing vehicle.
In the last ten (10)years there have been several fire fatalities in this area which potentially could have
been adverted with the addition of the Burton Station Fire Station:
Summary
► The Burton Station/Diamond Springs area
experiences a high volume of Fire and EMS
calls. However, this high demand area lies
outside the optimal travel distance from
existing stations.
► A new Fire and EMS Station, built in
conjunction with the SGA growth, will address
current gaps and provide capacity far into the
future.
12
Acting Mayor Jones thanked Chief Cover, Chief Edwards and the entire team for their continued work on
this Project.
January 12, 2016
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CITY MANAGER'S BRIEFINGS
TOURISM DEVELOPMENT FINANCING PROGRAM
4:49 P.M.
Acting Mayor Jones welcomed Patti Phillips, Director — Finance. Ms. Phillips expressed her
appreciation to City Council for their continued support and advised today's presentation is to review the
Hyatt House Hotel at 27`x'Street:
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HYATT HOUSE HOTEL 27T" STREET
TOURISM DEVELOPMENT FINANCING PROGRAM
Below is an overview of the Tourism Development Financing Program and governed and authorized by
State Code Sections 58.1-3851.1 and 58.1-3851.2:
Tourism Development
Financing Program
• Represents a mechanism whereby Virginia localities can
provide project generated sales tax remittances for private
sector debt service to close a project's financial gap provided
project meets statutory requirements.
• Ensures project fills tourism void.
• Creates partnership between developers, localities, and the
state.
January 12, 2016
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CITY MANAGER'S BRIEFINGS
TOURISM DEVELOPMENT FINANCING PROGRAM
(Continued)
Below is the Policy and Amendment the City Council adopted:
Council Adopted Policy and Amendment
• Originally Adopted March 13, • Amended on November 17,2015 for projects
2012 for Projects with a Funding with a funding gap between 20%and 30%:
Gap of 20%
Project Requirements:
✓ Capital investment>$30 million - Retains previously-approved requirements,and meets
• taxable sales>$I million some/all of the following:
• Increases year-round employment Capital investment above$50 million;
Fills a tourism void Creates a minimum of 50 full-time equivalent jobs
Located in the tourism zone Redevelops an existing building or facility;and
Proven private financing gap Is a premium flag or fills a brand gap.
• Avoids additional public investment
Four(4)projects have been approved State-Wide:
State-Wide Approved Tourism
Development Financing Projects
• Virginia Beach: Cavalier Hotel @ $145 million
• Fredericksburg: Hyatt Place @ $13 million
• Newport News: City Center (retail and restaurants)
@ $22 million
• Norfolk: Hilton Hotel ("The Main") @ $77 million
January 12, 2016
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CITY MANAGER'S BRIEFINGS
TOURISM DEVELOPMENT FINANCING PROGRAM
(Continued)
Below is the information regarding the 27`"Street Project:
Application of 27th Street Project for
30% gap (Phase I)
i' 156 Room Hyatt House,debuting that brand to our market
19,000 square feet of retail/restaurants on Atlantic Avenue
• 8,000 square feet of retail/restaurants on Pacific Avenue
• 448 space garage on Pacific Avenue
• Total private investment of$79.6 million
• Demolished three hotels(Seagull,Sunshine,Seaside)and a Dairy Queen(145 rooms)
Y Phase II to be determined but may consist of an additional 150-175 room Hyatt hotel
GAP= $23 million City Share= $7 million (plus interest)
Below are renderings of the proposed project:
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January 12, 2016
1
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CITY MANA 'S BRIEFINGS
TOURISMDEVELOPMENTGERFINANCING PROGRAM
(Continued)
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SITE -LAN DESIGN CUNCE ET
Below is the proposed site layout:
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January 12, 2016
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CITY MANAGER'S BRIEFINGS
TOURISM DEVELOPMENT FINANCING PROGRAM
(Continued)
Below are the benefits of the proposed project:
Project Benefits
• Brings Hyatt Flag to our market, which will induce some
visitation through loyalty-reward programs (world-wide
reservation system).
• Adds to supply of high quality brands in the middle of
the resort; benefit also to conventions.
• Creates 210 (estimated) full-time jobs and additional
seasonal jobs.
• Garage will supply some public parking.
Below is the estimated fiscal impact of Phase I:
Estimated Fiscal Impacts of Phase I (in millions)
30 Years
Simple NPV
C Developer C Developer
Net Fiscal Impact $72.4 $92.4 $36.5 $46.5
(before 1%Remittance of Sales Tax)
1%General Sales Tax (9.1) (13.1) (4.8) (7.0)
Net Fiscal Impact $63.3 $79.3 $31.7 $39.5
30%gap:1%local sales tax,1%state sales tax, plus 1%developer access fee
City share is 1/3 of$23 million or$7 million
Local share ends after 30 years
January 12, 2016
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CITY MANAGER'S BRIEFINGS
TOURISM DEVELOPMENT FINANCING PROGRAM
(Continued)
Below is a review of the Tourism Development Financing Program:
Review for Tourism Development
Financing Program
1. Investment over $50 million
2. Sales over $1 million annually
3. Increase year round employment
4. Fill a void in City Resort Area Action Plan
5. In Tourism Zone
6. Creates more than 50 FTE jobs
7. Premium flag— fills a brand gap
8. Redevelops or replaces older facilities
Below is the staff's due diligence in preparing the analysis:
Due Diligence
1.Staff prepared Fiscal impact analysis:
— Consultation briefly with CSL for spending benchmarks
— Used comparable data available city wide
2.Dr.Larry Filer an Economist at ODU reviewed for reasonableness
and confirmation of gap:
— Reviewed developer's confidential proforma
— Conference calls with: bankers
— Conference calls with: Hyatt Place and Hyatt House Mid-
Atlantic and Northeast,Vice President of Real Estate and
Development
— Conference calls with Crestline Hotels and Resorts operator
January 12, 2016
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CITY MANAGER'S BRIEFINGS
TOURISM DEVELOPMENT FINANCING PROGRAM
(Continued)
Below is the process and next steps should City Council wish to move forward:
Process and Next Steps
• Briefing to the Virginia Beach Development Authority-January 19
• City Council Ordinance to endorse the project and express its
willingness to provide the local 1%sales tax generated by the
project-January 19
• If approved by City Council,the staff will forward the project
application to the Virginia Tourism Corporation for its approval and
review by the State Comptroller.
• If approved by the City Council and the VBDA,the Developer,City
and VBDA will enter into a Performance Agreement as required by
State Statute.
Acting Mayor Jones thanked Ms. Phillips for this information.
January 12, 2016
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ADJOURNMENT
Acting Mayor Louis R.Jones DECLARED the City Council Meeting ADJOURNED at 5:31 P.M.
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Amanda Fin ey- acnes,M
Chief Deputy City Clerk
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Ruth Hodges Fraser, MMC
City Clerk
January 12, 2016