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8-14-2018 WORKSHOP / SPECIAL FORMAL SESSION MINUTES .„. 4.,„„,,,t,., ; 52.,,, ute„,„, 5, 4 ei `` ut X n Av:;.3 VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia August 14, 2018 Mayor Louis R. Jones called to order the JOINT CITY COUNCIL/DEVELOPMENT AUTHORITY BOARD BRIEFINGS, in Building 19, Tuesday,August 14, 2018, at 3:30 P.M Council Members Present: Jessica P. Abbott, M. Benjamin Davenport, Robert M Dyer, Barbara M. Henley, Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, John E. Uhrin, Rosemary Wilson, and Vice Mayor James L. Wood Council Members Absent: None Development Authority Board Members Present: Linwood Branch III, Jerrold Miller, Peter Mueller, Lisa Murphy, Vice Chair Charles Salle,Joseph Strange, and Chair Dorothy Wood Development Authority Board Members Absent: David Bernd, Bryan Cuffee, Michael Levinson, and Stephen McNulty 2 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT UPDATE ITEM#68385 3:38 P.M. Mayor Jones welcomed Ronald H. Williams, Jr., Deputy City Manager. Mr. Williams expressed his appreciation to the City Council and Development Authority for their continued support: c7Yy of Virginia Beach DOME SITE DEVELOPMENT Joint City Council&Virginia Beach Development Authority Meeting INFORMATIONAL BRIEFING August 14,2018 • Here is an Overview of the Request for Letter of Qualifications with specific criteria defined: Request for Letter of Qualifications February 8, 201 7 Responders were encouraged to demonstrate their ability to transform this site into a family-friendly unique multi-use destination to include features such as: • Multi-block mixed use development • Entertainment concepts • Minimum 3,500 seat live entertainment performance venue • Unique or new to market retail • Unique or new to market authentic restaurants • Residential but not as a primary use • Year-round programming attractive to both locals and tourists August 14, 2018 3 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT UPDATE ITEM#68385 (Continued) Here is the timeline of the Dome Site Selection Process: Dome Site Selection Process Here is an Overview of the four(4)completed Feasibility Studies: Exclusive Dealing Period Feasibility Studies During the Exclusive Dealing Period,Venture and the Authority,determined that equally sharing the expenses for studies and analyses was necessary to evaluate the proper scope and form of development 1. Entertainment Feasibility Study Validate market demand and affirm recommendations for size of venue 2. Retail Feasibility Study Validate market demand and affirm recommendations for retail mix 3. Overall Economic Impact Analysis Forecast overall economic impact of entire mixed use development 4. Parking Feasibility Study Validate parking demand and recommend total#of spaces August 14, 2018 4 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT UPDATE ITEM#68385 (Continued) Here is Today's Agenda: Today's Agenda A. Dome Project Update B. "The Wave"Developer Project Overview—Mike Culpepper,Venture Realty Group C. Entertainment Venue Feasibility Study —David Stone,Stone Planning D. Retail Potential and Merchandising Study—Nick Egelanian,SiteWorks E. Economic Impact Assessment—Paul Lambert,Lambert Advisory F. Parking Demand Analysis—Andy Hill,Desman G. Closed Session Mayor Jones expressed his appreciation to Mr. Williams for this presentation. August 14, 2018 5 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 3:42 P.M. Mayor Jones welcomed Michael Culpepper, Managing Partner— Venture Realty Group. Mr. Culpepper expressed his appreciation to the City Council and Development Authority for their support: DESIGNING THE 'W'AVE= A Vision to Transform the Virginia Beach Oceanfront P . +• 4P-1.- ' ` --rz •-"- _� .-r ` . \ rte '/ yfa -4IP - �. } t DOME SITE VIRGINIA BEACH,VA The next three(3)slides is the timeline from 1985 to present showing the various projects and proposals for the Dome Site: WHEREWE STARTED 1985—Tidewater Regional Transit proposed developing an$11 million transit center at the Dome(City Council rejected) 1990—Proposal for Dome and all surrounding land to be turned into a commercial entertainment center with public plaza 1991—City hires Basile,Baumann and Assoc.($70,000)to recommend use;they proposed mixed-use with a planetarium 1991—ODU studies Dome site,concludes: "DO SOMETHING! NOW!THE DOME HAS BEEN STUDIED TO DEATH" 1993—Proposal for Dixie Stampede,Civil War themed dinner-theater operation 1994--Dixie Stampede proposal abandoned after opposition from civic leaders 1994—'The Dome"is demolished 1995—Resort Advisory Commission suggests building an amusement park or playground as temporary attraction until decision for development is made 1996—Ellis Gibson/CRES present Atlantic Walk"plan,including mixed-use entertainment and retail district 1998—Harvard Study released,describing the Dome Site as"jewel of the Oceanfront";Beach leaders suggest shopping and entertainment center 2000—Pavilion Steering Committee assembled,engages PriceWaterhouse Coopers study to consider developing Convention Center at Dome August 14, 2018 6 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) 2002—City hires Skidmore Owings&Merrill to design new Convention Center;City considers Dome site 2006—Sun Rise Development Co.Ltd.proposal for hotels,condos,medical center,retail&shopping center,and fitness center 2006—Proposal for indoor/outdoor wave pool,multiplex,indoor wind tunnel,rock climbing wall,and live theater venue 2007—VBDA seeks additional plans to develop Dome Site,including Wave Loche,Armada Hoffler,Live Nation,Select Contracts (Dubai)for an indoor ski resort and Jenkins 2008—Leisure and Recreation Concepts Inc.(Jenkins)is selected to develop Dome Site into a mixed-use entertainment center 2008—City hires Sasaki Associates Inc.to master-plan Oceanfront and Dome site 2012—Michael Jenkins abandons the project 2013—RFP for the Dome Site 2014—Negotiations with The Peterson Cos.begin 2015—The Peterson Cos.unveils plans for"VA ViBE"including a luxury movie theater,upscale bowling alley,restaurants and shops 2016—The Peterson Cos.abandons the project 2017—RFQ for the Dome Site WHERE WE STARTED r II /� 7.. ,.. �r. SINCE 1994: 44 : 3+ ' t • 3 MAYORS '' 1�.` ? • 5 VICE-MAYORS — - s , t ' '*2 - ; ' • 36 MEMBERS OF CITY COUNCIL k_`•41G: ,�, ` II �- ' • 10+DOME PLANS t - • 10+DOME STUDIES '� • 0 PROJECTS :ter ■.. � OavEO BolingswwM-iAe Vrginu�pbt August 14, 2018 7 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) Here is an excerpt from the Public Notice Multi-Venue Entertainment Development Solicitation Request for Qualification: (RFQ): WHEREWE STARTED PUBLIC NOTICE MULTI-VENUE ENTERTAINMENT DEVELOPMENT SOLICITATION RFQ NO. 1-2017 • Multi-block mixed use development sec nos:f-onrccmE: • Entertainment concepts The cr y of Vrpuua beach Des clop ent Authority(VEDA)is aawnng this Request for a Lena of Quahficanom IRFQI for development of a 10 35 me the in 6e middle of the Clp's resort area The property x„formerly the ane of the Vxpo.Eenah Dome(Cm,mnon c ental and remain, • Minimum 3,500 seat live entertainment known as the Dame me.nes though the(-m has tinted tb<tate m prepaarbn for performance venue redo ekpsrenl uhlch rs We subject of this RFQ The VEDA sacks a'nom lcdpeabkespene rod. gmhted and capable developer with a anon¢cohnne annual and menial dn<lopment team exile arced m 0nuple5 uWn-cents urban de.elapoem projects to denp..des elopmanage and • Unique or new to market retail 000,0000 ell farm of this motet The C in of Vtresua Beach Key,has as,anbled duet blocks of pspavtwtelc 3 2 acre,each of pante devdo¢sent property bombed by Patine Avenue to the east and Baltic Ancone to the nen bernem Is and Sme<ts x orh an ad hnoml 0 ft one.,on • Unique or new to market authentic restaurants an adjacent parcel at the corner of Iia Sneer and Arctic Meath(total 10 35 acre:ace aerial at end of RFQI.The\"BDA de.s,,deekpment of than site as a fouls fnendiy unique mule-roue denmanon 010 redo ehynsot that amens reudan,and visnon and supports growth of the • Residential but not as a primary use Cm's oomeotaoo Inkiness Pumpfocus should he on a muumuu 3.5ht bin not Areata than 4 000 seal hoe emenaumunt sews.mph mans emenamonent.nab a mum of retail and restaurant • Year-round programming attractive to both locals components,ear nenad propen mus.and a pnkme structure m sansfv the parking requarmans of me dnelopnnm and punkt use parkiop spaces The promo Mould complement the mon and tourists acne lrfesnie,support columned praxth of the surrounding VOBe Creams Diatnct.be animated unit the aunombmp cowunmit).and preside an active and amacuse weetscape The Vsfsn a Beach Desekpueot AMWron01(\TSDAI nnends TO(VC Into an ecclusne uewturron pared 010 a elated deselopa on accordance AM the terms descnbed m Semen 3 Here are the various and evolving conceptual designs of"The Wave fe: WHERE WE STARTED 611,:+�Y�# 0,E.. �t`'`iso• f` til ,c: • .b - v�'`♦ : .w'w +fir --� • • gym .+ �✓ August 14, 2018 8 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) " 'HERE WE STARTED 4 --- ' tv.7...............: _ „„. ...., , „.............., s ___, ...".• _ _.,...,_ .... , .., , , ..___Th _ ......„ __ _.. . , ,, _ .,,,,,,, , r-- , . _ _ i ; _..., _ ...._,,,, ,, ______,, 1 HOW WE EVOLVED NM tli. prair, eft . ', **4 ' s 4 � " � $41411r- rAht August 14, 2018 9 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) Public Engagement included the "Chart The Future"online survey resulting in 2,500 responders and over 1,400 written comments: WE LISTENED PUBLIC ENGAGEMENT • OVER 25 PUBLIC/CIVIC EVENTS • OVER 2.500 SURVEY RESPONDERS • OVER 1.400 WRITTEN COMMENTS • INTERNATIONAL MEDIA AND SOCIAL ENGAGEMENT 111 /ou DOME SITE •- • 1 PROJE � i n Here is a summary of the survey results: ��OE LISTENED MUSIC EVENTS 91% MUSIC VENUE INTEGRATED PARKING GARAGES ° 85% 85/0 SURF EVENTS , -^ ' ....._._..._._... _ _ 81°/O .' EXPERIENTIAL RETAIL SURF PARK Warn '- EVENT SPACES PARKING WITHIN ONE BLOCK 87% it ' it 84°�- ` `. ° :'� ° August 14, 2018 10 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) Here are some of the comments received regarding proposed retail: WE READ THE COMMENTS -.. .....1ir,„imiland • i',1.3,-,, RE '�� ../ "Retail here needs to be unique.Please no more souvenir LLJJ ` r$ r I shops or national chains." HERMIT `�, „• I ERA �� t '4 "Avoid cheesy tourist shops(t-shirts,henna tattoos,ice� r . pi cream,candy-no thanksl)" .3 "A mix of both local arts and higher-end chains.Not R ,` tourist t-shirt shops.We have enough hermit crab e- r4,� �)�'r. - - A sales." I II k` I 1r • R' , "Please not just another cheap beach store like most of what is on the strip." mat.. As a result of the comments received, the proposed project was modified. Here is an Overview of the additions and/or modifications of the project: WE RESPONDED IINTEGRATED PARKING PARKING EAST OF PACIFIC 771, li POr 1 �,TIAALL IRETP C , l=_. J_ � .3.• ,. - ,�, • • •a '; E L =EADY SURF PARK C i wv _ r, l ' I� GREEN/PUBLIC EVENT SPACE 7.- ,, ...,...,.....,..,.„ r.. „.. r ,.......-,, L: ,........ ,. .,„..,...„..., , ._... ...., ENHANCED ENTERTAINMENT VENUE August 14, 2018 11 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) Here is an Overview of the studies conducted: WE STUDIED ENTERTAINMENT VENUE ,,u: FEASIBILITY STUDY Neg•algaeS Displacement&Economic Impact Assessment STONE The Wave In Context of Oceanfront Resort District Virginia Beach �1IfAV C RETAIL POTENTIAL G AND MERCHANDISING STUDY CARDEM SITEWORKS Office&Residential Assessment Wavegarden Virginia Beach - - The Wave _co c sic FeasVirginia Beach DESMAN I DESIGN MANAGEMENT VIRGINIA BEACH DOME SITE CURRENT TRENDS IN PARKING STRUCTURE CONSTRUCTION COSTS Here are the Two Fundamental Issues: �Y.l`I�E ANALYZED COST TWO FUNDAMENTAL ISSUES To achieve DESIRED PROJECT ELEMENTS and MASS,we must go VERTICAL PARKING To go VERTICAL,we must INTEGRATE PARKING to STACK USES. CHALLENGE: How do we INTEGRATE PARKING at an AFFORDABLE COST? DESIGN To TRANSFORM the Oceanfront,we need to ELEVATE the level of QUALITY. To elevate quality,we need to invest in DESIGN. CHALLENGE: How do we ELEVATE level of QUALITY at an AFFORDABLE COST? August 14, 2018 12 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) Here are the Advantages and Disadvantages of Free-Standing Deck parking garages: WE ANALYZED COST FREE-STANDING DECK - 7 .%, "vE` - z------...r.----: ,::Alai V - filf074,± ..,0°._,. --- ADVANTAGES DISADVANTAGES • LESS COST PER SPACE • CANNOT SUPPORT VERTICAL CONSTRUCTION • INEFFICIENT USE OF SPACE(LIMITS SCALE OF RETAIL DUE TO STRUCTURAL SHEAR WALLS) • OFTEN UNSIGHTLY Here are the Advantages and Disadvantages of Mixed-Use Deck parking garages: WE ANALYZED COST ` AN 1 °"°°.....„,_ MIXED-USE DECK 0.0 `= % i., I > ADVANTAGES ""..":: .� • SUPPORTS VERTICAL CONSTRUCTION -- �-- �� ' ``� : � ECONOMICAL USE OF SPACE ilIM �� • ALLOWS LARGE AREAS FOR RETAIL ANCHORS I �_ i� • PROVIDES SAFE PARKING"INTERNAL"TO •',"N. BUILDING _ • ri1It1 1 • LESS COST-EFFECTIVE .1 '�' 7I �Oc August 14, 2018 13 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) Here are the Advantages and Disadvantages of Current Level Design: WE ANALYZED COST tT- 000 CURRENT LEVEL OF DESIGN t .- -1 r .111 ADVANTAGES °! COST-EFFECTIVE 11111 DISADVANTAGES ■ • DOES NOT ALLOW LARGE ANCHOR USERS '" • PROMOTES SOUVENIR SHOPS ri li .. IN i; • OFTEN WOOD-FRAMED(LESS RESILIENT TO STORMS) iigrf J 1 . r LIMITED HEIGHT Here are the Advantages and Disadvantages of Proposed Level of Design: WE ANALYZED COST WI . i; ,4.1. t tt 114 • ' ( PROPOSED LEVEL OF DESIGN - '71 10 I 1 tl '(1�, WWIW '33^' - 1'• i ta` • TRANSFORMS PERCEPTION ADVANTAGES RESORT AREA �{ ..� . _ • ATTRACTIVE TO OUT-OF-MARKET BUSINESSES I .,. V- • "RAISES BAR"FOR FUTURE DEVELOPMENT „ „1 �+„•.._' • STEEL/CONCRETE CONSTRUCTION MORE RESILIENT TO STORMS .. I-- DISADVANTAGES .—� ____ VI' a, - •• 411,,h„}.. `,' ADDITIONAL COST " _ August 14, 2018 14 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) Chad Oppenheim is one of the architects consulted who provided inspiration images for the project: WE WERE INSPIRED �� `r �1.. fir.. 'ac _ �� b '00;.-I!.. • Al ` " """'llOPPENHEIM • ---; ARCHITECTURE :-.,... -- Inspirational Immo Only Here are examples of Experiential Retail concepts analyzed that provide an engaging experience and attract people to come to other retail shops nearby: WE ANALYZED CONCEPTS , CASE STUDY: EXPERIENTIAL RETAIL t To secure large,experiential retail like Notional Geographic:Ultimate , � - r` .` Explorer,we need SPACE,MASS and CONVENIENT PARKING. ,, 0 -- 1 SPACE: Nat Geo needs 35,000 sf with clear,open bays. . 3,l MASS: Users like Nat Geo need a critical mass of ticketed attractions and retail to promote synergy. ilia il 1 .; CONVENIENT PARKING: All retailers need convenient parking. When , f •45I the success of the retailer depends on recruiting several hundred ..i 0' 'f!- thousand patrons in all-weather,the need is greater. It Alote, EACH OF THESE NEEDS COMPETE FOR SPACE. a) -4 RETAIL STRUGGLES WHEN THESE THREE ELEMENTS ARE ABSENT. August 14, 2018 15 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) NJ`-�E ANALYZED CONCEPTS iim iS alft : +J.V. i , `, 1PYS'FNF MIDGE' e Y ' ORANGE COUNTY,°Ulf ONNIA . ,. I r, - �z ., . , I i NATNSNAL GEOGRAPHIC ULTIMATE EXPLORER SURMOS VIRTUAL REAMY MGM SHENYANG,MN. TORRANC{CALNORNIA WE ANALYZED CONCEPTS ,1, , i..tl;.s. , , . .. tr.. :I::.:i.1,::.i.',..i.oiji:3".... „xi.�` 1 x � + i —RSI- i • y ' lJ ' 4. =- - • Vin, . r Mil OMOOUS.OME/'OUS LIMOR Tom." TEXASrt E /ROOKIE.,NEW YORK MCO RIVERA,CAUPDRNLA August 14, 2018 16 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) WE ANALYZED CONCEPTS ---4 4t: ...g. 4I:* ,. . 1411 Li ir------.• . .• i4.-. ' 7,3.17iimum1111:: lit%,'1-;-5:....-yop.. iti -, ""ft a - i „ a t '-sem I- • FIVER CITY FOU •OFUF•ARUM FKMAgMO,VIRGINIA uIOGM,NOM UFOLIMA Here is The "Integrated Parking"Model: -_� _-_ THE"INTEGRATED PARKING"MODEL F < SCOPE __.alk_ ,'+ate. RETAIL/F&B/CINEMA 264,800 sf „ Y '1 OFFICE 150,000 sf ', ••,•• • -; ._ -""b` RESIDENTIAL 426 units ..--_ PARKING(DECK) 1,935 spaces t PARKING(STREET) 70 spaces • i PARKING(TOTAL) 2,005 spaces - - .7,.2 i `.. vi < - yy�� _ • WORLD-CLASS DESIGN • STATE-OF-THE-ART MUSIC VENUE • EVENT-LEVEL SURF PARK �, t '< • INDOOR ATTRACTIONS/RETAIL - '" • HEADQUARTERS OFFICE .<� -, • INTEGRATED PARKING � • MAXIMIZED ECONOMIC IMPACT August 14, 2018 17 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) Here are the revised and updated designs of"The Wave": 1S.,; '.s �. y � . r T H E W A V E Tom.n,,A,,e,, 16 '1rIV. .:: � L• 5, ..111:12.L.4: ti . . .e , ,,.,. It_j iNt„ '�k - .. a _=T- +� ., Ilr f e''' r : I r T N! �l/IEY/ A V E V Y` mina'a August 14, 2018 18 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) F �� ', Ntiliti*Z. r� ` ♦444 =-�,r .gip- s ! _ er .;- T H E NW A V E The design of the entertainment venue was created to evoke the memory of the original Dome Site: p _ �� y,. • ., i .. • ••• ' f ' ' ' ' -"I 'L‘ ' - i • E _I 11 - THEWAVE August 14, 2018 19 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) Here is an Overview of the economic impact during construction and as stabilized: WE ANALYZED IMPACTS DURING CONSTRUCTION Economic i• c • iType Employment Labor Income Output Direct Effect 2,300 $139,973,000 $337,800,000 • T r2 Indirect Effect 470 $22,493,000 $62,745,000 " - . - + ail Induced Effect 11Q $33.026.000 $107.848.000 ° '- Total Effect 3,600 $195,493,000 $508,394,000 -- .1049- ::..:. Source:IMPLAN _. .,.. AS STABILIZED • f Impact Type Employment Labor Income Economic Output � t , ''Direct Effect 1,600 $33,519,000 $88,967,000 i R Indirect Effect 200 $8,680,000 $30,441,000 ..4 4,411 t" Induced Effect 200 58,630000 $28.184.000 Total Effect 2,000 $50,828,000 $147,592,000 Source.IMPLAN The estimated revenue in the first year is$8-Million: WE ANALYZED IMPACTS DIRECT IMPACTS: CAPITAL IMPROVEMENT ltd PROGRAM Real Estate,Sales,F&B,Admissions and Other Tax Revenues: RESOURCE MANAGEMENT PLAN IT 7016.17 _ C24.2:1 t+ T117ryti mLn.t 1St Year: $8,170,400 _ 4114 This number does NOT include additional direct revenues such ,,y'- —` _ as parking fees and rents,which can equal up to$4 million per * , sok,tt.- - ` annum. August 14, 2018 20 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) Here are some of the Indirect Impacts: WE ANALYZED IMPACTS INDIRECT IMPACTS 17 1'' i _ s WM EST.80,000 NET NEW ROOM NIGHTS (NEW STAYS/EXTEND LENGTH OF STAY) ,..., ,«... , t.:; .. -' :ir VISITOR PROFILEIiitva x INCREASED REAL ESTATE VALUES • 34 years old AVG ANNUAL INCREASE IN VALUE OVER 12 YEARS: • Educated +} Earns+$75K/year CITY-WIDE AROUND MAJOR INVESTMENTS .a: Families LESS THAN 1% 8%+ Here is an Overview of the Proactive Stormwater Planning: WE ANALYZED IMPACTS Proactive Stormwater Planning • Improving current stormwater infrastructure •f • Use existing filtration to efficiently harvest on-site rainwater for lagoon • Potential to harvest off-site water • • Potential to use new technologies to promote positive stormwater impacts throughout Central Beach - ' .4'Y i i tG O t ® i4- ,..,off•' .l• �' ! '� E i 4.:-......'''.41k.' ' 1\4.---."'.17111111.1.1.1.1111Vr' August 14, 2018 21 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING "THE WAVE"DEVELOPER PROJECT OVERVIEW ITEM#68386 (Continued) • • .:Y .. i.) 41. moi. � M �•, .4.^t' C 't .i 3 �M_ • ..-- 1_yam. T H E :::JJJ ��...�^� A V E Mayor Jones expressed his appreciation to Mr. Culpepper for this presentation. August 14, 2018 22 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ENTERTAINMENT VENUE FEASIBILITY STUDY ITEM#68387 4:07 P.M. Mayor Jones welcomed David Stone - Stone Planning. Mr. Stone expressed his appreciation to the City Council and Development Authority for their support: EN TERTAI N M EN T FACILITY STUDY August 14,2018 City Council Briefing David Stone,Stone Planning ,.an mega . a STONE I,- „-I _ - T.? 4 _ 1 1 i r , 1 4 ' I,— ' 'f UVE M USIC/ '.�\4$ i . \r, 6 , ENTERTAINMENT `,�f f �1 '.�Ar r INDUSTRY - ` Y7 r:4; TRENDS e. •1046,: ' w - - f I 2 August 14, 2018 23 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ENTERTAINMENT VENUE FEASIBILITY STUDY ITEM#68387 (Continued) Here is an Overview of the Live Music/Entertainment Industry Trends: UVE MUSIC/ ENTERTAINMENT INDUSTRY MENDS THE TOURING EVENTS INDUSTRY The live entertainment industry is thriving—music,alorts.comedy speakers,and other forms of entertainment For music in particular,technology has increased the importance of live performances to artists. o Loss of revenue from physical sales o Number of concerts has increased dramatically o Increasing ticket prices and ticket sales Top 200 tours o 36%average 5.000 or fewei attendees O 18%average 5,000 to tel attendees o Consolidation of promoters: e Live Nation sells 40%*of worldwide tickets • AEG 12%,all others 46% gPi Here are the comparable facilities studied: UVE MUSIC/ ENTERTAINMENT INDUSTRY TRENDS COMPARABLE FACILITIES n The indoor/outdoor model is becoming mom populat particularly within broader mixed-use/entertainment developments c Facilities analyzed: EXPRESSasarawItaaLtallIvinem THE PAVILION LIVE! STAGE AE ® � Columbus.OH Pittsburgh.PA Irving,TX Columbus Arena District North Shore Toyota Music Factory 5,200 outdoor 12,200 indoor 5,000 outdoor 12,300 indoor 8,000 outdoor 1 2,500 and 4,000 indoor Adjamnt.m.0c:300 and 400 seats Other indoor opacities:400,450, and 1,500 Performance: Performance: Fist 4 Montle:54.vents.3,400 wogs.nen,$55 Inaood outauor:-In avant;2.100 evyelan, avg'titke prim 433 avg.ticket primPerformartoe: Iedearloatdoor:100 avant,(70 0,aoor130 TI,aaattnam:35 overdo 200 toe elan..414 outdoor).1,400 eve.seen,433 ave.ticket price avg.1V•k.t oris. TMs.Club.-15•vent.330.vy..e.n.,415 avg. ASC M�.�c luurye.et events.200 a,.alae., tlrke fa nielxn 415 eve.flake arkprivet*50. �, 55 privet*avant. fTOM! 4 August 14, 2018 24 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ENTERTAINMENT VENUE FEASIBILITY STUDY ITEM#68387 (Continued) 4'" FEASIBILITY AN D ECONOMIC } T _ IMPACT STUDY •ti ' tt 'r'�' ; �;r � SUM MARY .0 • 1 •,' ' ' 4 ! ! lr j • V1 A Here is an Overview of the Local Market: FEASIBILITY AND ECONOMIC I M PACT STUDY SUMMARY THE LOCAL MARKET Vrginia Beach has 450.000.residentsand the Desgnated Market � Area has 1.5 million residents r)' • SociSBURY The area is a major tourist market-19 million'person trips in 2017 Characteristics of the DMA market compared to the US �>" --• "' f♦ o Demographics o ung-lower average age ,rro_-- Le NORFOLK- Yo ••PORTSMOUTH- o Affluent-higher household income EWPORT NEWS xrsa3surrc o Educated-higher percent of poet-high school ti educations - -� o Employed-higher percent of full-time employees o /11611661110ta Ivltles: o More likely to attend concerts(rock,country and hip- hop/r8p) o More likely to attend comedy dubs aro.c *00 I11C(SCl1 6 August 14, 2018 25 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ENTERTAINMENT VENUE FEASIBILITY STUDY ITEM#68387 (Continued) Here is an Overview of The Local/Regional Entertainment Market: FEASIBILITY AND ECONOMIC I M PACT STUDY SUM MARY THE LOCAL/REGIONAL EN TERRAIN MEN T MARKET o Multiple indoor and outdoor facilities host ticketed and free events in the area o Indoor facilities. ., The need for a 2,500-to-3.500-seat venue at the beachfront was identified in 2002 A new facility would compete somewhat with the Chrysler Hall and The NorVa,and to a lesser extent.the Sandler Center Outdoor facilities: A new facility would compete somewhat with Union Bank 8 Trust Pavilion.and to a lesser extent,Veterans United Home Loans Amphitheater Free programming:there is a significant amount of free event offenngs in the market but the new venue is expected to complement current offerings and work with the City to provide more Here are the Conclusions and Recommendations: FEASIBILITY AND ECONOMIC IMPACT STUDY SUMMARY CON CLUSION SAND RECOM M EN DATION$ Virginia Beach/Hampton Roads is a strong and attractive market o Demand for live entertainment is increasing .o The Event Center is sized to attract more than half of touring events o There has long been an identified need for a new indoor enteranment venue at the beachfront e Competition with existing venues(particularly within Virginia Beach)will be minimal c Market feasibility for 3,200-seal indoor venue and 5,000-seat outdoor venue o Flexibility with capacities and configurations o OVG's involvement o Routing for touring events o Open booking policy o Bralt-in sound and light Ability to host free and ticketed events outdoors �J August 14, 2018 26 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ENTERTAINMENT VENUE FEASIBILITY STUDY ITEM#68387 (Continued) Here is the Operating and Economic Impact Forecasts: FEASIBILITY AND ECONOMIC IM PACT STUDY SUMMARY OPERAT1N G AND ECO NOM IC IM PACT FORECASTS .E.. __ oa�E_wBO 30 167 55 COO hen 0000sa 33 96 - 70 00 T_,oaac Mania 0,739 13x.50. tinm.. ..o......e..a un 12 I SOD 40 000 oa.�eams SO SSO 17 um ......e E .000 coon eaw Ee+ ss 047 SW n e.., Isoo .w oa.w saw a...•_n..ry Me NO r.wrw. 40, nfclxn STONE 9 Mayor Jones expressed his appreciation to Mr. Stone for this presentation. August 14, 2018 27 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT RETAIL ANALYSIS ITEM#68388 4:26 P.M. Mayor Jones welcomed Nick Egelanian, President — Site Works Retail Real Estate Services. Mr. Egelanian expressed his appreciation to the City Council and Development Authority for their support: T H E W A V E VIRGINIA SEAGN. v Nick A. Egelanian ��'SITEWORKS President ��RETAIL REAL ESTATE SERVICES Mr. Egelanian explained the United States has eight billion square feet of retail and is a five trillion dollar business: MALL AMAZON! FAILURE Whole Foods ! ! ! RETAIL APOCALYPSE OUTLET E_ e! GSI9NPART FOOT T S T ONjet"BgT TRAFFIC CLOS U RESPROLIFERATION WEALT t i til_ ; ui r ENTERTAINME H GAP STORES NT RETAIL IN FULL PRICE U.S.Retail&E-Commerce In The Post-Department Store Era August 14, 2018 28 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT RETAIL ANALYSIS ITEM#68388 (Continued) STRATEGIC RETAIL FRAMEWORK U.S.Retail&E-Commerce In The Post-Department Store Era Here is how retail looked in the 20th Century: Fro A r j U.S r. y , 0-it i I • 4 , 1 •iE 7 .L1 tESNICK �IUIHEIISI01 �� tr U.S.Retail&E-Commerce In The Post-Department Store Era August 14, 2018 29 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT RETAIL ANALYSIS ITEM#68388 (Continued) As roads were built and people moved, malls were established causing changes to the Department Store era: To The Department Store Era And 3,000 American Regional Malls .� - rte =-40061,4 JCPenney SE IS NORDSTROM U.S.Retail&E-Commerce In The Post-Department Store Era "Big Box"Retail are stores that represent the department stores from the 20th Century. There are four types; apparel, cosmetics,furniture and houseware: Department Store Deconstruction And "Big Box" Retail 11.111111t "- Id od • • . • i.1i. SEA kFA ^�.� ups Avis L; U.S.Retail&E-Commerce In The Post-Department Store Era August 14, 2018 30 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT RETAIL ANALYSIS ITEM#68388 (Continued) This shows the decline of Department Stores: The Result: Market Share "Big Box" Retailers Vs. Department Stores ; ,D% -Dept Stores % -Value Convenience 90% 10% 1928 1990 1992 1994 1996 1999 2000 2002 2004 2006 2008 2010 2012 2014 2016 U.S.Retail&E-Commerce hi The Post-Department Store Era Here is a comparison of Commodity Retailers Vs. Department Store Market Cap: Commodity Retailers Vs. Department Store Market Cap ($B) 2007 2016 ra vem.v rawa• ▪% ,vow ✓Macy• 0 wa raw. r Tartan Value Retailers$18B Value Retailers$758 Department Stores$858 Department Stores$268 U.S.Retail&E-Commerce In The Post-Department Store Era August 14, 2018 31 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT RETAIL ANALYSIS ITEM#68388 (Continued) B. 21St CENTURY U.S. RETAIL ALIGNMENT U.S.Retail& E-Connnerce In The Post-Department Store Era Mr. Egelanian explained that 85%of Commodity Retail is house hold necessities whereas 15%of Specialty Retail is for entertainment: 21st Century Retail Alignment Two SER‘ l Retail Industries 85o` COMMODITY SPECIALTY RETAIL RETAIL PRIMARY DISCRETIONARY HH INCOME TIME AND AND PURCHASES PURCHASES U.S.Retail&E-Commerce In The Post-Department Store Era August 14, 2018 32 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT RETAIL ANALYSIS ITEM#68388 (Continued) Here is an Overview of the Price/Convenience Equation: COMMODITY RETAIL: PRICE/ CONVENIENCE EQUATION ighest price lowest price ost convenient least convenien E try tia�► �� E-tail DF;uC; grocery Discount Category Warehou E-tail stores Stores killers se stores 881a200 s*— waknrt QaM 88[8200 Girt I it E-tail 81082011 U.S.Retail&E-Commerce In The Post-Department Store Era To be successful in Specialty Retail, Mr. Egelanian explained there must be an emotional connection through the best in either product or place: SPECIALTY RETAIL: EMOTIONAL CONNECTION DISCRETIONARY TIME DISCRETIONARY INCOME Best-in-class EMOTIONALAuthentic shops ATTACHMENT textured places ./ rA RODEO.,s1 3�t PRODUCT ;. PLACE N.RODEO DR` ft 'Hi. f •� pyx �rt1 z 11. U.S.Retail&E-Commerce In The Post-Department Store Era August 14, 2018 33 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT RETAIL ANALYSIS ITEM#68388 (Continued) Here are examples of the five (5) types of Specialty Retail Formats: SPECIALTY RETAIL FORMATS THEMED TRADITIONA OUTLET CENTERS& IL .AJ ALLS CENTERS ATTRACTIO STREETS -- -41 ,, ,,,,,,:it,„....„, iii.. ..i '',,,r,a,. ,0, , - ) IIP . c�:.� 'a' •�. iE- -4, .±I. b IGS 7 ' U.S.Retail&E-Commerce In The Post-Department Store Era Here is an Overview of the increase in Internet sales: As of 3rd Quarter 2017 - 9.1 % ... and ecommerce sales do represent a growing portion of retail sales U.P....Ea.wm..w SY..201.-2020 so o„s.,6 craw arra%of row raw safes • eCommerce constituted 9.1%of US Retail Sales in «" Q3 2017 `""' • US retail eCommerce sales M N" I I I I um isi M w will grow 6y 12.2%to A.. ................•... .k char..k H a,tier r.ur i« $48.1 Billion in 2017 1i'M•*''K hMw.b.4 ..._.. U.S.Retail&E-Commerce In The Post-Department Store Era August 14, 2018 34 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT RETAIL ANALYSIS ITEM#68388 (Continued) Amazon represented 1.7%of the Pure-Play Online Retailer Sales: RETAIL SALES DISTRIBUTION ( Part 3 ) 2015 Pure—Play online retailer sales and percent of total Pine ' Other. 588.5 B(2.00%) -46.11 Source ne0onel nteil Md nbon top 100 rebibnc .,v. .. w�Nr�,.. . 2015.suromonMr U.S.Retail&E-Commerce In The Post-Department Store Era T H E W A V E viecie • ee,.e., vtxc. . OUR FINDINGS U.S.Retail&E-Commerce In The Post-Department Store Era August 14, 2018 35 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT RETAIL ANALYSIS ITEM#68388 (Continued) Here is an Overview of the findings: THE WAVE: OUR FINDINGS 1. TRANSORMATIVE MIXED USE PROJECT 2. UNIQUE SPECIALTY RETAIL AND ATTRACTIONS 3. NET GENERATOR Of NEW MARKET DEMAND 4. BRIDGE FROM THE RESORT DISTRICT TO THE CONVENTION CENTER, THE VIBE&THE ARTS RISIhKET DISPLACEMENT U.S.Retail&E-Conunerce In The Post-Department Store Era Q&A Nick A. Egelanian MOP President: RETmI REM ESTATE SERVICES Mayor Jones expressed his appreciation to Mr. Egelanian for this presentation. August 14, 2018 36 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 4:44 P.M. Mayor Jones welcomed Paul Lambert, Managing Principal—Lambert Advisory. Mr. Lambert expressed his appreciation to the City Council and Development Authority for their support: DISPLACEMENT& ECONOMIC IMPACT ASSESSMENT THE WAVE IN CONTEXT OF OCEANFRONT RESORT DISTRICT VIRGINIA BEACH CITY COUNCIL BRIEFING AUGUST 14,2018 PAUL LAMBERT,MANAGING PRINCIPAL.LAMBERT ADVISORY July.2011 Here is the Oceanfront Resort District Map with the location of the proposed Sports Center and Dome Site: VIRGINIA BEACH Two Major Proposed Public or Public/Private Projects Proposed in Oceanfront Resort District August 14, 2018 37 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 (Continued) Here are the Two Principle Questions analyzed: Two Principal Questions the Lambert Advisory Economic Assessment Helps Answer • Do the economic and fiscal benefits of The Wave project exceed the public commitment of funds to the project? (a measure of return-on- investment for the Virginia Beach community) • When looking at the project in a citywide context;to what extent does the economic and fiscal activity generated from a given project displace economic and fiscal activity already being generated within the City? Important to measure net economic and fiscal impacts generated by a project which is the recipient of public investment,not total economic activity. SECTION ONE WHAT IS DISPLACEMENT AND IS IT BAD? August 14, 2018 38 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 (Continued) Here is an Overview of Displacement: Is Displacement Bad? • Not necessarily......it's natural in a market economy • Displacement however is not good when government intervenes and uses public money that could move economic and taxable activity from one business to another entirely like business. • Yet,important to take great care to not exclusively use measure of displacement when evaluating the prudency of public investment • Mathematical methodology for estimating displacement exists when comparing entirely like businesses. • However,no mathematical measures for determining if the qualitative qualities of one new business/development will encourage visitors/shoppers to: • Spend more money per visit than they would have with another business in the past • Draw visitors from a broader geographic region,or; • Become a catalyst for future private investment which improves the competitiveness of the city or district overall • Not all science some art This chart is a comparison of other similar cities to Virginia Beach and the growth rates in shopping, food&beverage and entertainment, with Myrtle Beach being the most similar: There Should Be Room to Grow Visitor Retail&Restaurant Expenditure: Virginia Beach Per Person/Per Day Shopping, Eating,and Entertainment Expenditure by Overnight Guests is Below Many Other Major Visitor Markets. sm..• •6uerMwnl 560A0 •lace Vegas $5000 baMgaks $x0.00 •VA Narh •MKtle Beach 530.00 $HOD I' $10.00 so.c.. 9mp0.6 source:IMNIEuaI CITY CMA August 14, 2018 39 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 (Continued) SECTION TWO HOW TO MEASURE NET NEW BUSINESS ACTIVITY? MEASURE FORWARD LOOKING NEW DEMAND ONLY Here are the Seven (7)Net New Potential Demand Drivers of Retail/Restaurants in Oceanfront Resort District through 2021: Seven Net New Potential Demand Drivers of Retail/Restaurants in Oceanfront Resort District through 2021 1. New residences in new units based upon a market analysis by Lambert Advisory completed for The Wave development project 2. New office workers based upon a market analysis by Lambert Advisory completed for The Wave development project 3. Additional hotel guests based upon the addition of hotel rooms in late planning or under construction between 2018 and 2021 and estimates of occupancy rates 4. New out-of-town participants,families,and coaches at Sports Complex based upon estimates developed by the City's Consultants and Convention&Visitors Bureau 5. New out-of-town attendance at Wave performance space based upon an analysis completed for The Wave 6. New out-of-town Wave Garden surfers based upon an analysis completed for The Wave 7. New out-of-town visitors to other Wave attractions(NatGeo&Bridge)based upon estimated developed for The Wave August 14, 2018 40 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 (Continued) Here is the 2021 Net New Demand for Retail/Restaurant:Residential: 2021 Net New Demand for Retail/Restaurant: Residential New Units Absorbed in Submarket 2018-2021(Lambert) 473 Average VA Beach Household Income(U.S.Census) $86,500 Total New Household Income $40,914,500 household income spent on non-auto retail goods/eating out 26% (U.S.Consumer Expenditure Survey) Total new non-auto retail/eating out expenditure $10,637,770 spent on retail goods(Economic Census;Lambert) 84% spent on food and beverage(Economic Census;Lambert) 16% Retail Sales per Square Foot(Lambert) $300 Restaurant Sales per Square Foot(Lambert) $350 New Square Feet Demanded-Retail 29,800 New Square Feet Demanded-Restaurant 4,900 Here is the 2021 Net New Demand for Retail/Restaurant: Office Workers: 2021 Net New Demand for Retail/Restaurant: Office Workers New Office Square Feet Absorbed in District 2018-2021(Lambert) 150,000 Square Feet per Worker(BOMA) 200 New Workers in District 750 Annual Expenditure per Worker:Food Service&Drinking(ULI) $1,389 Annual Expenditure per Worker:Shopper Goods(ULI) $1,965 Annual Expenditure per Worker:Convenience Goods(ULI) $2,438 Retail Sales per Square Foot(Lambert) $300 Restaurant Sales per Square Foot(Lambert) $350 New Square Feet Demanded-Retail 11,000 New Square Feet Demanded-Restaurant 3,000 August 14, 2018 41 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 (Continued) Here is the 2021 Net New Demand for Retail/Restaurant:Hotel Guests: 2021 Net New Demand for Retail/Restaurant: Hotel Guests 8021 New Oceanfront Resort Area Hotel Rooms 20182021(City) 480 New Homeshare Rooms(ODU,Lambert) 232 Hotel Occupancy(Smith Travel;Lambert) 65% Homeshare Occupancy(ODU,Lambert) 43% Additional Occupied Rooms per Night 412 Persons per Room(Hotels 2.5;Homeshare 2.0) 2.4 Visitor Days 357,500 Average per Visitor Daily Meal Expenditure(City) $27.83 Average per Visitor Dally Entertainment Expenditure(City) $11.12 Average per Visitor Daily Retail Expenditure(City) $15.45 Sales per Square Foot(Restaurants) $350 Sales per Square Foot(Entertainment) $100 Sales per Square Foot(Retail) $300 New Sgwre Feet Demanded—Retall/Entertalnment 58,200 New Spume Feet Dernended-Restaurant 28,400 Here is the financial impact from day visitors: What happens to restaurant expenditure when day trips increase? • Not measured in our summary numbers except for specific entertainment attractions/venues • In 2017 there were 8.9 million visitors who traveled more than 50 miles to visit Virginia Beach to spend the day(Longwoods International). • An increase from 6.9 million in 2013 and the number of day visitors has grown each year since 2013 at growth rates as high as 9 percent per year. • Average daily expenditure for food and beverage in Virginia Beach among day visitors is$22.33 per visitor or approximately$200 million in total in 2017. • Assuming a static$22.33 per visitor(current dollars),the growth in the number of day visitors between 2013 and 2017 generated over 125,000 square feet in demand for additional restaurant and bar space • By extension,every 100,000 additional day visitors in the future is likely to generate an additional$2.23 million in food and beverage sales or demand for another 6,400 square feet of restaurant and bar space. August 14, 2018 42 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 (Continued) Here is the 2021 Net New Demand for Retail/Restaurant/Entertainment: Virginia Beach Sports Center. 2021 Net New Demand for Retail/Restaurant/Entertainment: Virginia Beach Sport Center Net New Room Nights(VA Beach CVB) 90,900 Persons per Room 3.5 Visitor Days 318,150 Average per Visitor Daily Meal Expenditure(City) $27.83 Average per Visitor Daily Entertainment Expenditure(City) $11.12 Average per Visitor Daily Retail Expenditure(City) $15.45 Sales per Square Foot(Restaurants) $350 Sales per Square Foot(Entertainment) $100 Sales per Square Foot(Retail) $300 New Square Feet Demanded—Retail/Entertainment 51,800 New Square Feet Demanded-Restaurant 25,300 Here is the 2021 Net New Demand for Retail/Restaurant/Entertainment: Wave Performance Space: 2021 Net New Demand for Retail/ Entertainment/Restaurant: Wave Performance Space Non-VA Beach Visitors(Wave) 190,000 Percent Out-of-Town Visitors Stay Overnight 25.00% Per Capita Restaurant Spend Day Visitors(Longwood Study) $22.33 Overnight Event Visitors 47,500 Average per Visitor Daily Meal Expenditure(City) $27.83 Average per Visitor Daily Retail Expenditure(City) $15.41 Total Restaurant Expenditure(overnights+non-overnights) $4,500,000 Total Retail Expenditure(overnights) $734,000 Sales per Square Foot(Restaurants) $350 Sales per Square Foot(Retail) $300 New Square Feet Demanded-Restaurant 12,900 New Square Feet Demanded-Retail 2,500 August 14, 2018 43 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 (Continued) Here is the 2021 Net New Demand for Retail/Restaurant/Entertainment: Wave Garden: 2021 Net New Demand for Retail/Restaurant: Wave Garden Dry Surfers From Beyond 15-minutes(Wave Garden) 22,600 Overnight Surfer(Wave Garden) 42,300 Party Size per Surfer 2.0 Per Capita Eating Spend per visit day visitor $22.33 Per Capita Eating Spend per overnight visitor(1)2 day) $13.90 Per Capita Retail spend overnight visitor(1/2 day) $7.71 Per Capita Other Entertainment spend overnight visitor(1/2 day) $5.56 Total Restaurant Expenditure $2,185,000 Total Retail Expenditure $652,000 Totat Other Entertainment Expenditure $470,000 Sales per Square Foot(Restaurants) $350 Sales per Square Foot(Retail) $300 Sales per Square Foot(Other Entertainment) $100 New Square Feet Demanded—Restaurant 6,200 New Square Feet Demanded—Retail 2,200 New Square Feet Demanded—Other Entertainment 4,700 Here is the 2021 Net New Demand for Retail/Restaurant/Entertainment: Other Gates: 2021 Net New Demand for Retail/Restaurant: Other Gates Day Visitors From Beyond 50 miles(LDP&Madison) 153,900 Overnight Visitors(LDP&Madison) 188,100 Per Capita Eating Spend per visit day visitor $22.33 Per Capita Eating Spend per overnight visitor(1/2 day) $13.90 Per Capita Retail spend overnight visitor(1/2 day) $7.71 Per Capita Other Entertainment spend overnight visitor(1/2 day) $5.56 Total Restaurant Expenditure $6,051,000 Total Retail Expenditure $1,450,300 Total Other Entertainment Expenditure $1,045,836 Sales per Square Foot(Restaurants) $350 Sales per Square Foot(Retail) $300 Sales per Square Foot(Other Entertainment) $100 New Square Feet Demanded—Restaurant 17,300 New Square Feet Demanded—Retail 4,80D New Square Feet Demanded—Other Entertainment 10,400 August 14, 2018 44 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 (Continued) It is estimated an additional 314,400 square feet of retail and restaurant space will be needed at the Oceanfront by 2021: Summary: New Oceanfront Resort District Demand for Retail & Restaurant Space by 2021 2021 Personal& Restaurant Business 2021 New Services Retail/Entertain Square Space New Square Feet (additional Feet Demanded Demanded 15%)• Total New Residents 29,800 4,900 34,700 New Office Workers 11,000 3,000 14,000 New Hotel Guests in New Hotel Rooms 58,200 28,400 86,600 Overnight Virginia Beach Sports Center Visitors 51,800 25,300 77,100 Out-of-Town Wave Performance Space 2,500 12,900 15,400 Out-of-Town Wave Garden Surfers 6,900 6,200 13,100 Other Entertainment Gates—NatGeo&Bridge 15.200 17,300 32.500 Net New Square Feet Demanded&Absorbed 175,400 98,000 41,000 314,400 •Personal&business services include services typically found in retail space which are not considered retail such as dry clean drop stores,real estate offices,urgent care medical centers,and hair salons The summary of New Retail/Entertainment Demand vs. Proposed Supply shows an additional 42,500 square feet is needed: Summary: New Retail/Entertainment Demand vs. Proposed Supply New Projects Proposed/ Retail/Entertainment Retail/ Under Construction Restaurant Space Sq.Feet Estimated Net New Demand 314,400 Minus:The Wave (243,900) Minus:Cavalier/Oceanfront Marriott (28.0001 Additional Sq.Ft.of Retail/Entertainment/Restaurant Space Demanded 42,500 August 14, 2018 45 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 (Continued) SECTION THREE \\AVE DEVELOPMENT ECONOMIC IMPACT SUMMARY Here is The Wave Project Summary By Use with the Total Development Cost of$337.8-Million: The Wave Project: Summary By Use Total Development Cost of $337.8 million Office 150,000 square feet For-Rent Residential 426 units Retail/Restaurants 138,100 square feet Entertainment Retail/Fitness 60,800 square feet Cinema 45,000 square feet Wave Garden/Common Areas 229,000 square feet Parking 1,825 spaces Performance Space 3,500 seat August 14, 2018 46 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITYBOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 (Continued) Here is an Overview of the Economic Benefits from Construction: Economic Benefits from Construction: The Wave (all phases) Economic Impact Type Employment Labor Income Output Direct Effect 2,300, $139,973,000 $337,800,000 Indirect Effect 470 $22,493,000 $62,745,000 Induced Effect 830 $33,026,000 $107,848,000 Total Effect 3,600 $195,493,000 $508,394,0001 Source:IMPLAN Here are the Economic Benefits Once Operating&Stabilized: Economic Benefits Once Operating & Stabilized: The Wave Impact Type Employment Labor Income Economic Output Direct Effect 1,600 $33,519,000 $88,967,000 Indirect Effect 200 $8,680,000 $30,441,000 Induced Effect 200 $8,630,000 $28,184,000 1Total Effect 2,000 $50,828,000 $147,592,000 Source IMPLAN August 14, 2018 47 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 (Continued) Here is the estimated City Select Tax Revenue Generation from Wave Once Stabilized: City Select Tax Revenue Generation from Wave Once Stabilized iiiiii Taxable City:Sales/Admis. City:Sales/Admissions/ Bus Lic. Business Total. Sales• Prepared Food Prepared Food Tax• Tax Rate License Rate' Ta Entertainment Venue 510,142,000 10.0% $1,014,000 0.20% $20,000 $1,034,000 Tickets Entertainment Venue F&B $3,078,000 6.5% $200,000 0.20% 56,000 $206,000 Entertainment Venue- $834,000 LO% $8,000 0.20% $2,000 $10,000 Other Cinema $5,910,000 10.0% $591,000 0.20% $12,000 $603,000 Cinema Concessions $4,742,000 6.5% 5308,000 0.20% $10,000 $318,000 Retail-Restaurant $33,715,000 6.5% $2,192,000 0.20% $67,000 $2,259,000 Retail-Non-Restaurants $25,130,000 1.0% $251,000 0.20% $50,000 $301,000 Other Gated Entertainment $5,500,000 10.0% $550,000 0.20% $11,000 $561,000 Office $60,000,000 0.0% - 0.58% 5348,000 5348,000 Surf Park $5,130,000 5.0% $257,000 0.36% $19,000 $276,000 Surf Park Food&Beverage $294,000 6.5% $19,000 0.20% $1,000 $20,000 Surf Park Ancillary Revenue 5574,000 1.00% 56,000 0.20% .1.coo 57.000 Total $155,049,000 $5,396,000 $547,000 $5,943,000 Here is the estimated Annual City Property Tax Revenue Generation from Wave Once Stabilized: Annual City Property Tax Revenue Generation from Wave Once Stabilized Use Estimated Taxable Value Annual Real Estate Tax, Entertainment Venue Tax Exempt 1 Parking Tax Exempt Retail(Includes Cinema) _ $65,468,400 $656,32 Office _ _ $33,474,900 $335,601 Surf Park $24,990,000 $250,52 Residential $83,855,000 $840,601 Common Areas $14,400,000 144 360 • Annual Real Estate Taxes $222,188,200 $2,227,401 August 14, 2018 48 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 (Continued) .,u DISPLACEMENT& ECONOMIC IMPACT ASSESSMENT THE WAVE IN CONTEXT OF OCEANFRONT RESORT DISTRICT VIRGINIA BEACH Here is an Oceanfront Resort District Map where the Sports Center, Dome and Pier proposed projects are located: VIRGINIA BEACH Three Major Proposed Public or Public/Private Projects Proposed in Oceanfront Resort District There are three major projects in the Oceanfront Resort District for which the City of Virginia Beach is considering substantial public investment.These projects are in addition to the Cavalier project for which the City recently participated financially and the first phase of which has now opened. The first new project,The Wave(Dome),is a mixed use retail,residential,entertainment,and office project located several blocks off the beach primarily between Pacific Avenue and Baltic Avenue east-to-west and 18th and 20th streets north-to-south. The second,a indoor Sports Complex of more than 200,000 square feet located adjacent to the Convention Center is aimed at driving visitation in the City with a particular emphasis on non-peak seasonal visitation. Finally,the City has issued and received two responses to a solicitation for financial support for a pier project to be located on the Beach that also includes an —- entertainment attraction,hotel rooms,and retail/restaurants. The pier project is at a very early stage and as a result our analysis shows the potential net demand for space,with and without the pier project. While the three projects are untied, they certainly will impact one another and understanding the interrelationship of these three projects is important to guiding the City's investment decision making process. August 14, 2018 49 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT ECONOMIC IMPACT ITEM#68389 (Continued) Here is the 2021 Net New Demand for Retail/Restaurant:Pier Attraction: 2021 Net New Demand for Retail/Restaurant: Pier Attraction Whik still in the selection process,it is likely that any attraction ata new pier and associamd out-of-town 2021 visitation will drive demand for additional food and beverage purchases in the oceanfront Rema District as Pier Attraction Visitors From Beyond 15-minutes 300,000 long as the attraction is of a scale that it encourages Per Capita Eating Spend per Visit $14.00 longer stays in the City.M the details of this protea further evolves we will calculate the restive demand Total Restaurant Expenditure $4,200,000 which might he driven from the development of the Sales per Square Foot(Restaurants) $350 attnctinn"the pier. New Square Feet Demanded—Restaurant 12,000 Here is an Overview of the Summary: Summary: New Retail/Entertainment Demand vs. Proposed Supply Three new projects:The Wave,Pier,and Cavalier/Oceanfront Marnmt.5 have•significant amount of remil/rewamant apace built or proposed.Together.m the table hdow indicates,in sum the three protean will add..other 33t.000.oare fat of remit,rens,,..,std.nteasi.mem retail m the Dionon.&sed upon out analysis highlighted and mmmarb<d in the pages above,it would appear that if all three projects are delivered to the market prior to 2022,while they will 6e able o absorb a very significant 314,000 square feet of spare without displacing 2018 level business activity,there will be an oversupply/displacement of 12.003 quare feet of retail.pme or sales. While there is no reason to suspect that the market will not continue to grow after 2021,and that the excess space will be.b,orbed, Mere will be.period of adjonment should all of the space proposed be delivered to the market within the nen three years. New Projects Proposed/ Retail/Entertainment Retail/ Under Construction Restaurant Space The Wave 243,900 Pier Project 60,000 Cavalier/Oceanfront Marriott MISM Total Proposed/Under Construction 331,000 Minus:Estimated Demand 1314.0001 Over Supply(Vacant or Potential Displacement) 17,000 Mayor Jones expressed his appreciation to Mr. Lambert for this presentation. August 14, 2018 50 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT PARKING DEMAND ANALYSIS ITEM#68390 5:00 P.M. Mayor Jones welcomed Andy Hill, Director of Consulting Services —Desman Design Management. Mr. Hill expressed his appreciation to the City Council and Development Authority for their support: Dome Site Workshop ge,..iv , Parking Demand Analysis r` , City Council Briefing Presented by DESMAN Inc. a41 . -Tuesday,August 14,ill4r, ;,+~ 7�r `•moi cl ..x- `` 1 i Here is an Overview of Shared Parking: What is Shared Parking? • Established in collaboration between ULI and ICSC • Empirically based • Reflective of operation as an organic whole • Representative of local conditions • Environmentally/financially sustainable practice • Designed to establish critical capacity • Still requires effective management to succeed z li August 14, 2018 51 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT PARKING DEMAND ANALYSIS ITEM#68390 (Continued) Shared Parking NOT Shared Parking � . 1.1 .f. '4 r A. This diagram of the Project was used to determine land use demands: The Project , .„,____,..,............„ _ pa...sr.-- r.s.i.....• II,/ •' , iM i l'' ... ''' . _ ,......a....,....., M ;_S' � , . }0211 I „_�.. i_ � ti, k ._ _.. August 14, 2018 52 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT PARKING DEMAND ANALYSIS ITEM#68390 (Continued) Based on land use categories the estimated demand is 1,935 parking spaces: The Program 546.4444 spasms ./Casual .fast/Ca•541 Cato, *sawn/ .5{. Llirec.,14/ nipme551, 4.514.05, 14,55.4 .0,510rt 1aray 3CC 9.441 ,50C 7.5 n4,44 5 az nem s 4600 ea 30C Z IN< 555 1141.1•111•51,50. 110 54 •14.5.1 .1414d 1 4.30D 1.41.12 I.303 Read 4.003 .04 4/00 145.1 5.100 2 Mu.. 5100 anal •pr., ; matanpaiii awn mcos Stooklyn illozara 101100 1414115 lasso roaninents re Parsin sam c.c.seim ryisee 7,5 5,41L4.00..4.1.1 MAW ...hie. 2150 2150 2.44 ma... NOM 1.0190 0 .11 3 Here is an Overview of how land use values are determined: Base Demand Ratios • • land Use User Group Weekday Weekend U. Source Standard Retail Customer 2.90 3.20 /ksf GLA $hantd Perking 2nd(dition.Washington DC:AU-The Urban Land Institut,,2005,0.11 Employee 0.70 080 /Iof GLA thared Parkl.:2nd Edition.Washington DC:uu-me Urban Land Institute,2005,0.11 r.. Specialty Grocery Customer 3.50 3.70 /ksf DESMAN Inc.(proprietary inf°Prelims f rom 14 specialty voce'stores 0 New England,2093.20061. Employee 0.60 0.50 /ksf GLA DEMAAN Inc.(proprietary information from 14 specialty grocer storm M New England,2203.2006). Eine/Casual Dinr. Customer 12.00 19.00 /5 GLA parking 0/mention:Ott,Edtdon.Washington DC)ITE-Institute of Transportation Engineers,2010 Employee 2.20 3.70 /6,3 50.0 eikliNia..1190:thgation.Washington DC:ITE-Institute of Transportation Engineers,2010 FM,Casual Dinniv Customer 15.00 17.00 /ksi G. parking Generation:4th Edi.n.Washington DC:ITE-Institute of Transportation Engineers.2010 Employee 2.40 3.40 Nof G. Perking Generation:4th Edition.Washington DC:ITE-Institute of Transportation Engineers,2010 Cafe/Take Out Customer 12.00 16.00 Nuf GLA Parking Generation:ilth Edition.Washington DC:ITE-Institute of Transportation Engineers,2010 Employee 2.50 2.85 /ksf GLA Parking Gene/Miran:4th Edition.Washington DC:ITE-InstItute of Transportation Engineers,2010 ...um/Interactive Customer 3.68 3.19 /6.1000 DEMAPN Inc.(proprietary information 3,0,,,operation studies of the Snythsonian,N FPO,11405,BCM). Employee 0.65 0.56 /kV CPA DESIMPN Inc.(proprietary information from operation studies of Me 5rns Ma nian,NEAP,MoS,RCM), Nigh End Cinema Customer 0.19 0.26 /seat DESMAN Inc(proprietary information from AMC,2033-2009)and;hared Parkin;2nd(016.0..2035.P.11 Employee 0.01 0.01 /seat DESMAN Int(pop-rotary orrnation from AMC,2003.2009)and Shand Parkin:2nd Edition.,2005.0.11 LW estyry/E reertaininent Customer 6.60 5.50 /ksf GLA Shared Parking and Edition.Washington DC:UL)-Urban Land Institute,2005,p.11 and other contributors. Employee 0.40 0.25 /ksf GLA Shared Parting 2nd Edition.Washington DC:0/I-Urban Land I rtstrtute,2005,p.11 and other contribNors. Experiential Retail Customer 3.20 3.60 /ksf ALA Paned Patting 2nd Edition,Washington DC:1./0-The Urban Land Institute,2005,p.11 Employees 0.60 0.90 /ksf GLA Shand Parking 2nd Edkion.Washington 00:00-PD Urban Land Institute,2005,pall Studto/lBR 0.12 0.12 /unit DESMAN Inc. kilulti.BR 1.06 1.06 /unit DESMAN Inc. Rmeived 1.00 1.00 /unit DES...inc. Guest 0.05 0.05 N. DENMAN Inc. General Off Oe Visitor 0.30 0.03 /0.00/A Shand annins:3nd Edition,Washington OC:ULI•Urban Land Institute,2005,p.11 • Employee 3.50 0.35 pe GEA Shand Parkata:2nd Edann.Washington CC:VU-Urban Land Institute,2005.P.al Surf Pah Visitor 1.25 1.33 //al G. DESMAN Inc.(per ADG,MIA and other contributors) Employee 0.05 0.03 Nal G. DESMAN Inc(per ADG,WWA and other contributors) Performing Arts Venue Visitor 0.30 0.33 /s.t Shand Padldna 2nsl Edna°.Washington 00:00-Urban Land Inst..,2005,0.11 Employ. 0.07 0.07 /seat_...:2161LIZ end Edition.Washinron LIU :Urban Land Institut e 2005,p.I1 August 14, 2018 53 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT PARKING DEMAND ANALYSIS ITEM#68390 (Continued) Here is an Overview of how the adjustments made to the land use value: Adjustments • Modal:the percentage of users arriving by means other than a single- occupant vehicle • Most often determined by U.S.Census Journey to Work data for workers • Discretionary users are commonly less documented • Capture:the percentage of users patronizing a particular land use primarily and/or exclusively • Almost always based on anecdotal data or observations from comparable environments • Local:the percentage variance between actual observed occupancy and projected demand, after accounting for modal and capture adjustments • Determined by comparing projected demand to observed occupancy in an existing development 3 Here is an Overview of the Gross Demand Projections(WI Event): • Gross Demand Projections (w/ Event) W31-60476 wctitDay 390096s. 11[340 DAYS 944.3839,3 393919. 3..60. StaN.Nu1E F w6.. 5.63..8... Project r bProtect noM^..t 5 /2, /s, s h,i024 /.,c a ,99 6,7*... 0 07 Col 610' /2.1630' 48 2 84 91.1 GUU' /WG,' 57 5o.au87G.uzevuton.7 3600G p3 If u 910 Gu /1 As)CAA E /21630 ha.7 cn1s e s /104 6 '917 0 49 /57330' /5630 5 ' 5 MOA' 14 _ 0.K.w1 Dining 35.300 slw 30 hntu 6.27 MGu 73/FOG, 09 Ad.. 427 Fmdoew S /1.7330' 60 MGu' 03 /70630' 414 03 fled 131.4.Sa lcawiwnin a 4,300 2rGu hd GSA 7 AOI GSA 1 /32768A : MOF. 56 2 1m9o3e. 397 62135 7 Pal CSA' /1.69A 79 MGFA' 12 o.I,/Fake0ut Customer 4,300 sIaA 336 MGu F 56 /b76U /YOGA 3 OW WA 39 17,00,.. 230 he Gu 055 /187630' /3,5314 33 M0u' 1. r#..,wn/n..aane tatom., 35.000 .7630 Mics 0 /1576, 9170, hs,62A 67. F..po... M68A /22761A /,1604 .E M61A $,8)0cj_ atom. 900 wn i4 h«t a /wt 301 4 /wt 49 0.19 hxt 148Emdo9.e 03 hat 0 /wt 1 /wt tF 01 /seat estys.hntemin..n7 10A00s7 GSA 7/ 9127Gu / MGu 1 AOOeu : hd0u 42Emd see 3 hs76u' 3 MGu' C 91.03120 Ad6u'iential Reran Is,m3 sIG2A 36 /Isle, 3• 34 Mc+A 3.n A2t3u 57 M0u 3488737,.534 44 /141630 EG MGu 4 Ade, ant MGu 11snm.53 6d13/36R 133 3 /041 3 /u.t : /uni. u /40 34tOu4-117 132 meg 1 9, 134Rem,* 426 was I a /uni7 436 cc /9.t 07 /unit ¢ /u.t 426os Ann 05 /u.t 0' /unit 05 /,Gt 10_ /Office w 152.3.90 40A a AO SSA 9 /137630 03 /52138.3 Ce M39A ' • aw es Em7O..e 7608 3 /150680' a Mev.' 430 9 As,0..' 94 M30A' 44 116.030 2 5a /Id GFA 4s 1 hn 304 97 u hs76, a 4a /Id WA 04 02 91516. 310• a As,G74 13 03 9127 GSA ,4 06 MGM , , 4I ,O. n..ts vena sin, i35c0/ 0660 a /4440 4 /w3 :•:39%, 5 A..7 316 /..t 8003753« 0.03 /w0 .1301 003 heat 'o ®6. /8�7 003 /on .,; we n 3,333 26q 1440 1.769 I. 166 168 168SI 764 412 025305.00 TOTAL 436 4;T3 .s, 8 _ 1 August 14, 2018 54 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT PARKING DEMAND ANALYSIS ITEM#68390 (Continued) This graph depicts the fluctuation of the demands based on time of year: Seasonal Presence -Retail(Combined) —Grocery —Restaurant(Combined) Cinema Museum p —lNastyle —Apartments 9. ce —Surf Park —Performing Arts Venue 10. - ""1‘ni."'0-A 11 P -<1 P1W I VI 0 r°\ .: E ,iO4,1P#, -do"' ''' .../....4 ...,..e.,:.4k 14* - '.411140:411" ,... 6% 761, 3W ,.x . 66% 50% AIAN F. MAaaMAY MN AUG OCT NOV DEC nDY 1 a '.. � ..'161/'_..s — This graph depicts the fluctuation of the demands based on the time: Hourly Presence Retail Combined) —Grocery —Resteurant(Combined) fanema Museum lihstyle Apartments —Office —Surf perk —Perbrminb Arts Venue , 95% '144re I I p p 4 II I pric 6% 14 Aill \VI ...if -'44K44%64 5094 36x ir \ arm 2596 30% Y 1594 \ ow 6 8DO 9.m lam 1 x3.00 0. e10 m ]ro 1P00 3100 13.00 400 1500 16m 1].00 16.00 1900 3P ]]m x300 CO August 14, 2018 55 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT PARKING DEMAND ANALYSIS ITEM#68390 (Continued) This graph depicts the demand of parking based on a Peak Weekday in December: Peak Weekday (Non-Event, December) •� ,:o, < •afetlaakOut :G .e _ OE. ma •lityle/aepmmen, lafdrtakewt umnnt NIpNFnaC lifestyle/ante •Surf Fart •Performing Arta Venue al Otho 2.300 UP 2,200 2,100 2,000 1,900 nww®SUPPLY.1596 6•6615 11111 111111111 dilIlIl101ik 8 8 8 r. . m . .. r . 11 This graph depicts the demand of parking based on a Peak Weekend in December: Peak Weekend (Non-Event, December) •Apammenn •Sbntlard Retail •Experiential Retail •Specialty Grocery • •Fut Casual Omuta •Cali/Take Out •36,eten/Inhna0re NIgOEnd Cinema . ,n ..... •Surf Park •Performing 6R Venue •General OOke 2,300 2,x00 Y x,100 'Fi'�• 1.000 . _ 1,600 MS 1.900 MMFROSUY. SPAMOSS SPAM •3211 ague, a0 I �' .Pari. - - August 14, 2018 56 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT PARKING DEMAND ANALYSIS ITEM#68390 (Continued) This graph depicts the demand of parking based on a Peak Weekday with a sold-out event in July: Peak Weekday (Sold-Out Event, July) •Surf Park 1300 2 000 -110 cars PE.E.81/WM8. s•Am Ert, :000. ,00 !: IIIiiilHIII 13 "IA ear This graph depicts the demand of parking based on a Peak Weekend with a sold-out event in July: Peak Weekend (Sold Out Event, July) •Catenake Out fAuseunt/interareve We End Onem• •Litester/Enter4onme, •Surt Park •Perform,Arts Venue •General Offire 4197 cars 1st? 2 100 2 000 PLEMIED LAMY 0193838.ES ▪ 1*.rd•tde''' .° ▪ VIE% 800 ro---44"titj 4 8888888888888888888 s WANK August 14, 2018 57 JOINT CITY COUNCIL/ DEVELOPMENT AUTHORITY BOARD BRIEFING DOME PROJECT PARKING DEMAND ANALYSIS ITEM#68390 (Continued) Here are some Overflow Options: Overflow Options • 70 curbside spaces on adjacent streets • 600 spaces in commercial lots on adjacent parcels • 900 spaces within a three-block radius • Satellite parking and shuttle options to Convention/Sports Center • Improved shuttle service in process of being developed • Potential to augment capacity on-site with assisted/valet parking • Option to temporarily relocate/redirect non-discretionary users Mayor Jones expressed his appreciation to Mr. Hill for this presentation. August 14, 2018 58 GOA BBgC O4ca - G Ur�i 4,, $- *s'k`i. . ... �'' OUP MIS 0 VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia August 14,2018 Mayor Jones called to order the Virginia Beach City Council's SPECIAL FORMAL SESSION in Building 19, Tuesday, August 14, 2018, at 5:18 P.M. Council Members Present: Jessica P. Abbott, M. Benjamin Davenport, Robert M Dyer, Barbara M Henley, Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, John E. Uhrin, Rosemary Wilson, and Vice Mayor James L. Wood Council Members Absent: None August 14, 2018 59 MAYOR'S CALL FOR FORMAL SESSION ITEM#68391 Mayor Jones read the Mayor's Call for the SPECIAL FORMAL SESSION: August 9, 2018 "HONORABLE MEMBERS OF CITY COUNCIL In accordance with the Virginia Beach City Code, Section 2-21, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call for a SPECIAL FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL: Tuesday, August 14, 2018 Building 19, Municipal Complex 2416 Courthouse Drive Virginia Beach, VA Following the WORKSHOP SESSION, which begins at 3:30 P.M on Tuesday, August 14, 2018, there will be a SPECIAL FORMAL SESSION to convene into CLOSED SESSION for the sole purpose of discussing the Dome Project. Sincerely, s/ Louis R. Jones Mayor" cc: City Manager City Attorney City Clerk City Auditor Deputy City Managers MultiMedia Services Media and Communications FOI Office August 14, 2018 60 ITEM#68392 Mayor Louis R. Jones, entertained a motion to permit City Council to conduct its CLOSED SESSION, pursuant to Section 2.2-3711(A), Code of Virginia, as amended,for the following purpose: PUBLIC CONTRACT: Discussion of the award of a public contract involving expenditure of public funds, and discussion of terms or scope of such contract, where discussion in an open session would adversely affect the bargaining position or negotiating strategy of the public body pursuant to Section 2.2-3711(A)(29). • Dome Site Project August 14, 2018 61 ITEM#68392 (Continued) Upon motion by Council Lady Kane, seconded by Councilman Uhrin, City Council voted to proceed into CLOSED SESSION at 5:20 P.M. Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, M Benjamin Davenport, Robert M Dyer, Barbara M. Henley, Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, John E. Uhrin, Rosemary Wilson, and Vice Mayor James L. Wood Council Members Absent: None (Closed Session 5:20 P.M. - 6:28 P.M.) August 14, 2018 62 CERTIFICATION ITEM#68393 Mayor Jones RECALLED the SPECIAL FORMAL SESSION to order at 6:28 P.M Upon motion by Councilman Moss, seconded by Council Lady Kane, 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: 10-0 Council Members Voting Aye: Jessica P. Abbott, M Benjamin Davenport, Robert M Dyer, Barbara M. Henley, Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, John E. Uhrin, Rosemary Wilson, and Vice Mayor James L. Wood Council Members Absent: None August 14, 2018 0N1''BE4c Pif X4..L - 5 `.4. 0E4 'OF OUR 140\0*S 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#68392 Page 61 and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3712 of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virginia law. NOW,THEREFORE,BE IT RESOLVED:That the Virginia Beach City Council hereby certifies that,to the best of each member's knowledge,(a)only public business matters lawfully exempted from Open Meeting requirements by Virginia law were discussed 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. ; i r LL I i A41! daBaVVe , City Clerk August 14,2018 63 ADJOURNMENT ITEM#68394 Mayor Louis R. Jones, DECLARED the City Council SPECIAL FORMAL SESSION ADJOURNED at 6:30 P.M. ius Chief Deputy City lerk manda Barnes,M C Louis R.Jones City Clerk Mayor City of Virginia Beach Virginia August 14, 2018