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09-11-2018 WORKSHOP MINUTES .0.,,,tailAt tie+ el . .„." , .\-,..'41i ''-- -V- un i __15 N.;:iib' , ayes OUR w VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia September 11, 2018 Mayor Louis R. Jones called to order the CITY COUNCIL'S WORKSHOP in the City Council Conference Room, Tuesday, September 11, 2018, at 4:00 P.M. Council Members Present: 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: Jessica P. Abbott Out of Town -Family Emergency 2 ADD ON CITY COUNCIL'S BRIEFINGS HURRICANE FLORENCE UPDATE 4:02 P.M. Mayor Jones welcomed Stephen Cover, Deputy City Manager and Erin Sutton, Director —Office of Emergency Management. Mr. Cover expressed his appreciation to City Council for their continued support: HURRICANE FLORENCE COUNCIL BRIEF 09/11/2018 Mr. Cover advised preparations for Hurricane Florence began Saturday, September 8, 2018, with expected landfall on September 13th. Governor Ralph Northam has mandated evacuation for residents in Zone A and David L. Hansen, City Manager signed an Emergency Declaration. The City has designated six(6) Virginia Beach High Schools as emergency shelters, the Field House as a Medical Friendly Shelter and Landstown Elementary as a pet shelter for families who are in one of the emergency shelters. Shelters will begin opening on Wednesday, September 12t"at 6:00 PM and continue as needed: r .p1 � ph as L ` • , jj -Se(Sep 5 •M50mph - os '� j i w M�i3Omph �vnaea U � i S :M 14 mph M1fr3 " •i a. ? • a J.:, • Y .ln'cd SepIl lAM 150mph It , `1ue SoL$. • Sep1011AM 1Mnph S a' EMISW September 11, 2018 3 CITY COUNCIL'S BRIEFINGS HURRICANE FLORENCE UPDATE (Continued) Ms. Sutton provided information on the current forecast predictions. This graph shows Hurricane Florence as a Category 4 Hurricane making landfall approximately 30 miles north of Wilmington, North Carolina: n re size or ma e storm.nzaroous conomorns can occur outsloe of Ine come. vo .AII W°7_//dIIIIIMMINN 11.111111E 40P1 N H C FORECAST AS OF 1100•K1 VA $8t - AM Fri 35N, pi , 1 _`1 8 AM Thin 8PMWed" n T , \ 11 AM Tue 8 AM Wed �� -- 25N r _ Currently, the City has an 80%chance of tropical storm force winds between 35-74 miles per hour lasting up to 72 hours: asswr diiirdall 40N - ±- +» ha asiiipr -47 V. pi 35N 1I 30N , ri .."� . ,r, kFt: , t TROPICAL STORM FORCE WIND PROBABILITY UP TO 72 HOURS ,.t 90W 85W 80W 75W 70W September 11, 2018 4 CITY COUNCIL'S BRIEFINGS HURRICANE FLORENCE UPDATE (Continued) Rain totals are expected to be between 4-10 inches depending on how long the storm stalls: 111711 1011111111411' ' Incheso 115 0 4„. POTENTIAL RAINFALL THROUGH 0800 TUESDAY Hurricane Florence ' lee-hour Day 1.7 Rainfall Forecast(Inches) Created 7:20 AM EDT Tum Sr,11 2015 nose This is the expected path of Hurricane Florence: V4 •R 72 HOUR FORECAST ERROR IS 100 MILES THE SUSTAINED ~ I TROPICAL STORM FORCE WINDS EXTEND FROM THE a CENTER 150 MILES b.4 September 11, 2018 5 CITY COUNCIL'S BRIEFINGS HURRICANE FLORENCE UPDATE (Continued) Here is a comparison of the European versus U.S. models: EUROPEAN VS. US MODEL Hurricane FLORENCE Model Track Guidance Hurricane FLORENCE GEFS Tracks&Min.MSLP(mb) 4. _ 4.,,,.., .0.,.,..... s2 b.Niali»d 01 120 Sp 11 2018 - Initialiiad a100i Sp 11 201$ uw Cow varaaleraum Igor � -- � + am.•; - Cs '''W-f4.‘‘ r_-_, `` __ 000 Questions Mayor Jones expressed his appreciation to Mr. Cover and Ms. Sutton for the informative presentation and everyone working to prepare for this pending storm. September 11, 2018 6 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE 4:25 P.M. Mayor Jones welcomed Tony Nero, President and Lisa Baehre, Executive Director—Sandler Center Foundation. Mr. Nero expressed his appreciation to City Council for their continued support: THE SANDLER CENTER IS MORE THAN JUST A BUILDING. IT HAS A SOUL. Mr. Nero turned the brief over to Ms. Baehre: Lisa A. Baehre Executive Director Sandler Center Foundation September 11, 2018 City Council Briefing September 11, 2018 7 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) The Sandler Center Foundation goals are educate, inspire and enrich: SANDLER CENTER FOUNDATION educate I inspire I enrich 4'4 -rv-- Here is the Foundation's Origin: ORIGIN Community Roots • Philanthropic arm of a • Strong community support public/private partnership surpassed fundraising goal to establish a performing of$12.5M to reach $15M. arts center in • Purpose of the Foundation Virginia Beach. extends beyond initial capital investment. SANDLER +•. FOUNDATION September 11, 2018 8 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) Here is an Overview of the Foundation's First Steps: FIRST STEPS Public/Private Partnership • 2008: Virginia Beach for the Performing Arts Foundation officially changes its name to Sandler Center for the Performing Arts Foundation • Mission: Support the Sandler Center through community outreach efforts. f - e "F f ter ; ' SPIDLER ..� - 1`^ ` h FOUNDATION FIRST STEPS Public/Private Partnership • 2007-2017 MOU • Support from the City of Virginia Beach and the Office of Cultural affairs. • City employee designated to serve as a Development Specialist for the Foundation. • Office equipment and office and meeting space within the Sandler Center was also donated to support the Foundation and its mission. • 2010: Access the Arts in partnership with Spectra Venue Management and • in collaboration with Virginia Arts Festival. . • FOUNDATION • 5 nom. . ?�r►,! . - September 11, 2018 9 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) Here is an Overview of the Foundation's efforts between 2015-2017: 2015-2017 Establishing a Presence • 2015: Foundation hires a full time Executive Director. • 2016: Foundation hires an Education and Programs Director to take over rapidly expanding Access the Arts program. • 2017:A new agreement between the City of Virginia Beach and the Sandler Center Foundation reflects the growth and independence of the Foundation and its efforts to support the arts and cultural community within Virginia Beach. Former City employee transitions into full-time position with the Sandler Center Foundation as the Foundation's Deputy Director. ; �p _ SADDLER as Ala <�.. FOUNDATION• Here is an Overview of the Foundation Today: 2018 Today The Sandler Center Foundation's operating budget now supports five full-time staff and one part-time staff member, office equipment and the technology required to support opportunities, programs and partnerships developed by the Foundation to enrich and engage the community in Virginia Beach arts and culture within the Sandler Center for the Performing Arts. ri— f - - -0, £- —SAIIDLER xs Mr, ,' FOUNDATION 7 t YN. September 11, 2018 10 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) Here are the 2018-2019 Board of Directors: 2018-2019 BOARD OF DIRECTORS Anthony P.Nero Ronald Ripley James Corzatt Leslie Doyle Lisa A.Baehre President Vice President Secretory Past President Executive Director Nero Realty Ventures Ripley Heatwole Retired,Frieden U.S.Trust,BOA Sandler Center Foundation Wealth Management Private Wealth Management David L.Bernd Patti Eberhardt Ron Kramer John M.Owens,Jr. Sentara Independence Sandler Center Kramer Management Prevailance Inc. Adam M.Carroll Volunteer of the Year Enterprises Annie Sandler Wolcott Rivers Gates Juanita Felton Laura Miller Community Volunteer Michael Clayman Community Volunteer Community Volunteer Arthur B.Sandler Community Volunteer& Billy Foster Drew Monroe L M.Sandler&Sons,Inc. Retired Administrator, TowneBank Prosper Insurance Steven B.Sandler Chesapeake Public Dianne Frantz Group L.M.Sandler&Sons,Inc. Schools Community Volunteer Jeff Moore Kevin Stevenson Gerald Divaris Sue Grube Consumer Mortgage& PRA Group Divans Real Estate,Inc. Community Volunteer Investment Corp. Katherine Willis Katherine Katsias Vincent Olivieri Palladium Registered The Katsias Company Member Emeritus Investment Advisors .. R.J.Nutter • .1.1--;-- -,s _ Troutman Sanders ,_ - %I - 1��,. - -t - • --.f' ' ' N LER tri s "'tw t — '<' ....0.- /� J 1 FOU�IDATION,i 8 J.... p. • 1 ')Pali.-1111%. - ..`t — One of the goals of the Foundation's strategic plan is to Invest: 2018 INVEST The staff growth in development/fundraising is a component of a 5-year strategic plan to position the Foundation as a leader in arts education, community outreach, and performance underwriting and to provide more enrichment opportunities for the Community at the Sandler Center through the Foundation's programs & partnerships. .riF, riTi�� :>aR f, '' ' .y t, ,• IV. '', �7111N LER ti. - r '''1 T,- 1.. . ' "' ,F FOUNDATION September 11, 2018 11 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) Two-thirds of revenue is given back to invest in community programs: THE FOUNDATION'S INVESTMENT IN THE SANDLER CENTER FY2011-FY2018 socom co 5635.000.00 $540.00].00 Ussp01m 5390.023.00 $315,000.00 Sumniim 5165=00 $90.000.00 Won um N12 1V13 NY14 FV1S n'_6 IN17 NY18 10 Here is the Foundation's Mission: MISSION To educate, inspire, enrich and build our community, strengthen local arts organizations, and instill an appreciation of the arts through the underwriting of world-class performances in the Sandler Center. educate' inspire I enrich 4. • +•► - "' , `"' FOUNDATION September 11, 2018 12 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) OUR BRAND THE SANDLER CENTER IS MORE THAN JUST A BUILDING. IT HAS A SOUL. t2 Here is an Overview of the Strategic Vision made up of three (3)Pillars: STRATEGIC VISION THREE PILLARS I. Education Student matinees and partnerships II.Community Outreach Targeted outreach to key groups and communities III. Performance Underwriting World class performances,resident group support ' - -_ .-41-A, Amt., z ,� -� SA1�flLER MN. �!' ' �' . *� .��°*l FOUtIDAT:ON September 11, 2018 13 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) The next few slides provide an Overview of Pillar I-Education: PILLAR I: EDUCATION THEN 2010: Collaboration between the Sandler Center Foundation and Spectra Venue Management. • Under the guidance of the Foundation's Education Committee,Spectra Venue Management was responsible for handling all aspects of coordinating the matinees,including reserving theatre production groups and stage set-up,and managing all school reservations.The Foundation was responsible for the funding of Title I schools attending the educational matinees. • All matinees are aligned with the Standards of Learning(SOLS)and are geared for students in Pre-K through 8th grade. 4.. r<- ., , SANDLERR . _ < FOUNDATION is PILLAR I: EDUCATION NOW • The Foundation is responsible for all school reservations,funding Title I schools throughout the entire region,and reserving the theatre production groups in collaboration with Spectra Venue Management. • The Foundation made a goal to serve 100%Virginia Beach Title I schools for the 2016-2017 and 2017-2018 program years. That goal was accomplished! 4 _ - ' SANDLER� °* r• FOUNDATION September 11, 2018 14 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) PILLAR I: EDUCATION NOW • Since 2010,over 60,000 students have attended an educational matinee at the Sandler Center. 80% of those students were from a Title I school and received full funding as requested. • Virginia Beach reach: 2010-2011: 1,960 students; 2017-2018:8,289 students(74%funded by the Foundation) . ,a + SANOLERR 34. • �- t.. - + + '` FOUNDATION 16 .!"` .. w This chart shows the Total Student Reach By City for 2017/18: TOTAL STUDENT REACH BY CITY ACADEMIC YEAR 2017/18 Suffolk 1% Virginia Beach 51% Portsmouth 8% Norfolk Other Cities 01111111111111111°- 16% % Newport News Homeschool 3% 1% Hampton Chesapeake 17 3% 16% September 11, 2018 15 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) In 2015 it took eight(8)months for 6,000 students to go through the Education Program, now the Foundation met full capacity in three(3)weeks: PILLAR I: EDUCATION AUGUST 2018 The Foundation received more than 6,000 reservations within 24 hours of opening the 2018-2019 Education Program. * ..t, • IDLER� 41. a�"'. a`` FOODATION,' 18 VIRGINIA BEACH STUDENTS SERVED 9,000 5.289 8,000 7,000 6,000 4,986 5,000 4,345 3.797 4.000 3.150 3.151 3,000 2,839 : 11111 0 2010 2011 20112012 20122013 2013 2014 2014 2015 2015 2016 2016 2017 2017 7018 19 •funded •Not Funded September 11, 2018 16 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) PILLAR I: EDUCATION PARTNERS 2015—TODAY • Virginia Beach City • Richmond Ballet, Public Schools the State Ballet of Virginia • Chesapeake School District • Purdue University • Title I Coordinators for "'Nationwide study of the impact oeach Hampton Roads City children'sperformingarts on literacy • NAVSTA: Navy • Virginia Arts Festival Homeschool Program r DER t *. Ali int `. "'1 l 4. a^ �*r ' FOUNDATION • PILLAR I: EDUCATION THE FUTURE The Sandler Center Foundation will continue running the Education Program and developing more partnerships to reach as many students as possible and to always serve 100% of Virginia Beach Title I schools. _ ' SAIIDLER/ September 11, 2018 17 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) PILLAR I: EDUCATION THE FUTURE This year, the Foundation is beginning a pilot program, one of the first of its kind in the state, to provide funding to schools and other educational programs that specifically serve students with disabilities. I . �. 4,,,,, A ti � AIVDLER ` `` ,c'. FOUNDATION The next few slides provide an Overview of Pillar II- Community Outreach: PILLAR II: COMMUNITY OUTREACH 2015-TODAY Local Heroes Provides opportunities for teachers and first responders to bring their families to the Sandler Center at no cost and attend a performance by one of the Sandler Center's Resident Groups.The Foundation purchases tickets directly from the Resident Groups.Applicants are nominated by administration,peers in schools and the first responder community. For 2018,the program has been expanded to include military members and their families. NOLER W s "- . .: 3"' FOUNDATION September 11, 2018 18 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) The Foundation is partnering with local military families to participate in the healing arts program: PILLAR II: COMMUNITY OUTREACH 2015-TODAY Armed Services Arts Partnership (ASAP) Brings military members and their families to the Sandler Center to participate in ASAP's healing arts programs,addressing such issues as PTSD and transition back into civilian life.The programs include Improv, workshops and Stand-Up Comedy. • '`'e" ;> s•, �"' dri;:-‘1"4 _ F UOATION PILLAR II: COMMUNITY OUTREACH PARTNERS 2015-TODAY • Armed Services Arts Partnership • U.S. Navy's Morale, Welfare and Recreation (MWR) • Salvation Army's HeartStrings Program • Ability Center of Virginia _'� -,tA1VflLER " <-4 ,;;y�ag ` ♦v► : • t z " t' X711► 1•:.").V411121/# }'. ` FOUNDATION ZS September 11, 2018 19 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) PILLAR II: COMMUNITY OUTREACH FUTURE The 3 to 5-year strategic plan of the Foundation is to significantly expand its outreach into the Hampton Roads Community. FOCUS AREAS • Sandler Center • Partnerships with organizations which Resident Groups use the Sandler Center for programs that • The Military further the Sandler Center Foundation's mission to educate I inspire I enrich • a. ,,.� � - `% `-mo i Oiler. FOUNDATION,{ PILLAR III: PERFORMANCE UNDERWRITING • 2015-PRESENT 4 • April 2017 —Itzhak Perlman ? '•' The Sandler Center's opening act, returned . , , to celebrate the 10th Anniversary Season through a collaboration between the Jr. '• AK. Foundation and Virginia Arts Festival and was sponsored by the families of Steve and Art&Annie Sandler. ale ;2, °'�_ �'• atE •v September 11, 2018 20 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) PILLAR III: PERFORMANCE UNDERWRITING 2015-PRESENT May 2018—Bernstein on Broadway Part of a collaborative worldwide celebration with u ROB FISHER BROOKE SHIELDS Virginia Arts Festival: • Rob Fisher—Broadway's most sought-after music director! 1, i • Brooke Shields—Award-winning actress&Broadway star! • Ross Lekites—From Broadway's Frozen! • Mikaela Bennett—Headline-making young star! Jam ., • Virginia Symphony Orchestra&Virginia Symphony BOSS LEKITES MIN AEL4 BENNETT Orchestra Chorus A p , SANDLER asJr,t, ' ` I-r- FOUNDATION 28 The next few slides provide an Overview of Pillar III—Performance Underwriting: PILLAR III: PERFORMANCE UNDERWRITING 2019 October 2018 • Significant sponsor of Zeiders American Dream Theatre for their opening weekend. • Joint Board meeting with Foundation and Zeiders to explore opportunities for collaboration. February 2019- • The Sandler Center Foundation,in collaboration with Virginia Arts Festival, will be hosting a world-class opera singer!Performer TBA. 29 " .. ,* FOUNDATION September 11, 2018 21 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) PILLAR III: PERFORMANCE UNDERWRITING 2019 FY 2019 Launching a major fundraising initiative to develop a grants program for Resident Group support. Funds will be used to help Resident Groups offer something above and beyond their existing performances.Grant applications released Fall 2019 (expected)with funding beginning in FY20. f ; y.. DLER +,► Zt¢". A `t `. . ,.' FOUNDATION 30 A. • n ' PILLAR III: PERFORMANCE UNDERWRITING FUTURE • Continue to offer 1-2 significant • Significantly grow pool of funds performances annually,while for Resident Group support. significantly growing fundraising Funds will be split into Major and support for exceptional and Mini-Grants programs to help world-class performance Resident Groups create opportunities at the Sandler exceptional performances. Center. .,� " • _ SANDLER� a4 ...w: 31 - # r FOUNDATION September 11, 2018 22 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) 2019 AND BEYOND • Continue focus on three pillars: Education, Community Outreach, and Performance Underwriting. • Significantly grow fundraising in order to meet the Foundation's Mission: EDUCATES INSPIRE I ENRICH e32� tillibr 2019 AND BEYOND • Become a nationally recognized Foundation for providing exceptional opportunities for arts and culture in the community. • Continue to explore expansion of the Sandler Center in collaboration with the City of Virginia Beach and other stakeholders. - ihet„U September 11, 2018 23 CITY COUNCIL'S BRIEFINGS SANDLER CENTER FOUNDATION UPDATE (Continued) SANDLER CENTER FOUNDATION educate I inspire I enrich oat Mayor Jones expressed his appreciation to Mr. Nero and Ms. Baehre for the informative presentation and all of their hard work benefiting the City. September 11, 2018 24 CITY COUNCIL'S BRIEFING SHORT TERM RENTAL DISCUSSION 4:49 P.M. Mayor Jones opened the Short Term Rental Discussion and provided a letter from City Attorney, Mark Stiles, dated September 7, 2018, which is attached hereto and made a part of the record. Councilman Moss provided a letter, dated September 11, 2018, abstaining from the Short Term Rental Discussion and vote, which is attached hereto and made a part of the record. Councilman Moss stepped out during the discussion September 11, 2018 cyL ,t City of Vi r-giriia i aclz 94"s s -e F. OF OUR NATI°N VBgovcom MARK D.STILES CITY ATTORNEY MUNICIPAL CENTER BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH.VA 23456-9004 (757)385-4531 FAX(757)385-5687 TTY:711 September 7, 2018 Mayor Louis R. Jones Members of City Council Municipal Center 2401 Courthouse Drive Virginia Beach, VA 23456 Re: Short Term Rentals Dear Mayor Jones and Councilmembers: Attached is the revised Short Term Rental Ordinance that you requested last Tuesday (September 4, 2018). The revised Ordinance makes short term rentals a principal use in the Sandbridge Special Service District as mandated by the General Assembly and in any other area that the City Council, in the future, identifies as a Short Term Rental Overlay District. The ordinance does not create any STR Overlay Districts at this time. In all other zoning districts that permit residential dwellings, short term rentals are identified as conditional uses. Properties that have registered and paid transient occupancy taxes prior to July 1, 2018, are grandfathered from the conditional use permit requirement. The attached ordinance creates a single set of regulations applicable to all short term rental activity in the City. These regulations may be modified or additional or differing conditions may be imposed by the City Council in connection with the creation of specific STR Overlay District areas or upon the granting of a conditional use permit, provided such modifications or conditions are reasonably related to identified zoning and planning considerations. However, unless and until the City Council takes such future action, the regulations contained in the attached ordinance would apply to all short term rentals whether they are principal uses, conditional uses or grandfathered. The regulations are contained in Section 241.2 of the attached ordinance. Please review these regulations carefully to ensure that we have captured the intent and direction given. We have made some changes since the prior draft. Most of the changes are minor or of a technical nature. For example, we added the words "or operator" in paragraphs 3 (responsible person) Mayor Louis R. Jones Members of City Council Short Term Rentals September 7, 2018 Page 2of2 and 9 (Insurance), which previously only made reference to the owner of the STR. We also made revisions to paragraphs 4 (signs) (replaced sign size of 2 square feet with 4 square feet), and 14 (smoke detectors) (added reference to propane as well as natural gas). We also revised paragraph 16 to more clearly state that a violation of Section 241.2, a violation of a conditional use permit condition, or a structural change exceeding the limitations for grandfathered status may result in the City Council revocation of the grandfathered status or conditional use permit. There is one substantive addition to the provisions in Section 241.2 that I wish to specifically call to your attention. We are proposing the addition of a new paragraph 12, which requires the owner or operator to maintain a guest log including the name, address and telephone number of all overnight lodgers and to provide that log to the City upon request. This language was drawn from the text of the recently enacted Fairfax County Ordinance and is included for your consideration as an attempt to address concerns expressed by the City Council over the practical enforceability of the number of contracts within a seven-day period and the overnight occupancy provisions. You will have the opportunity to discuss the attached draft ordinance at your informal session on September 11. We will have a resolution referring this ordinance to the Planning Commission ready for your formal consideration on September 18. Also attached is a draft City Council Policy regarding the process for consideration of Short Term Rental Overlay Districts. This item may also be placed on an agenda if acceptable to you. Because this item need not be referred to the Planning Commission, you may wish to defer consideration of it until later in the process. As your city attorney and as a citizen I wish to express my appreciation for the time and attention you have devoted and will continue to devote to this difficult but important issue. Please contact me if you have any comments, concerns or questions. Sincerely, Mark D. Stiles City Attorney Encl. cc: David L. Hansen, City Manager Barry Frankenfield, Planning Kevin Kemp, Planning 1 AN ORDINANCE TO AMEND SECTIONS 102, 111, 401, 2 501, 601, 901, 1110, 1125, 1521 AND 2203 OF THE CITY 3 ZONING ORDINANCE AND SECTION 5.2 OF THE 4 OCEANFRONT RESORT DISTRICT FORM-BASED CODE 5 AND ADD SECTIONS 209.6 AND 241.2 OF THE CITY 6 ZONING ORDINANCE PERTAINING TO THE DEFINITION, 7 REQUIREMENTS AND USE OF HOME SHARING AND 8 SHORT TERM RENTALS 10 Sections Amended: City Zoning Ordinance Sections 102, 11 111, 401, 501, 601, 901, 1110, 1125 -b-,1, and 2203 and 12 Oceanfront Resort District Form-Bad oSection 5.2 13 t ' � 14 Sections Added: City Zoning Ordinance Sect ns 209.6 and 15 241.2 17 WHEREAS, the public necessity, convenience, general welfareApd, good zoning 18 practice so require; �. 19 20 BE IT ORDAINED BY THE I7:0--q NIL OF THE CITY OF VIRGINIA 21 BEACH, VIRGINIA: \;;. �'`''''€':',:-4.-,:4, 22 `` ". �cgc > 23 That Sections 102, 111,-401, 501';'-60f601, 1'110, 1125, 1521, and 2203 of the r 24 City Zoning Ordinance and Section 5.2 dfthe Oceanfront Resort District Form-Based 25 Code are hereby amended and reordained- and Sections 209.6 and 241.2 of the City 26 Zoning Ordinance :are hereby added and ordained, to read as follows: 27 ` �,� F, 28 ARTICLE 1. GENERAL;PROVISIONS 29 \,. N, 30 . . . . 'N. Y' 31 32 Sec. 102. Estab1ii :hfment odistricts and official zoning maps. 33 ` ,f 34 (a) In order to carry/ out the purposes and provisions of this ordinance, the 35 following districts are hereby established: 36 37 . . . . 38 39 (al) There are hereby established the - _ - e ' - - _ •_ _ e - - '- . 40 following overlay districts: 41 42 Shore Drive Corridor Overlay District ("SD"); 43 44 a) North End Overlay District ("NE"); 45 1 46 (j Old Beach Overlay District ("OB")i 47 48 (4) Historic Kempsville Area Overlay District ("HK"); 49 50 L) Workforce Housing Overlay District ("WF"); and 51 52 (6) Short Term Rental Overlay District ("STR"). 53 54 Such districts shall be designated on the official zoning map by the an 55 appropriate notation 4S-D-" following the designation ofthe underlying zoning district. As 56 an illustration, property in the Shore Drive Corridor,Oyerlay District and in the 13-4 Mixed 57 Use District shall be designated on the official zoning map as having the classification 58 "B-4(SD)." F 59 spy 60 - - - - - _ - . _ - • _ - _ d - - • • 61 - • - - - - - - - - - • -•. - e - . - - „ • _ __ ' -- 62 - *e - - - - • - - - 2 -•-e - _ . ' - - - • . - -- 65 • 66 _ _ - - - - - - - - _ - - • _ w. 67 - - - - - . _ - - _ - - _ - - - - - .-- • 68 - - - - - • - • ' - - - - 69 - •� - `e - - we e - e - - ! . . . r•- f~. __ - • _ •._ 70 e ••-•- e -•-: • _ - _ - - -- - • __ ■ _ e _ 71 72 • -- - - - - - - • - - - - ' .. ' - 73 - - - - - •- - - _ _ - - „ - • 74 _ _ - - _ - _ - -- - - - - - _ . 75 - - _ - -- - • - - - - --76 9' - - - :e e - • -�`- - - • - - - - - - - - . • .. _ „- 77 2(HK).,, 78 79 - - - • 80 - - - - - - - - - - - _ „ - e8 • • • 1 - - - - - - - - - - ' - • - - - -- • • 82 - - •- - - ' - ' - - - - - - ' - - - - - - - • 83 • - e ••-•_ e-•-- - - - - - - - - - -- - "_ A " -- • - e - -e - 84 e - `• - - - - •• -e - - - - - - -- - • -•• . - - -- - - - -. • 85 - _ -. •• - - - - - - - • - - - -- - 2. - -: - -- -- - - - - 86 • • - _ _ ._ _ e _ _ . - . _ _ 87 of the property. 88 89 . . . . 90 91 Sec. 111. Definitions. 2 92 93 • . . . 94 95 Home sharing. A dwelling in which a room or rooms are offered for rental for 96 compensation for a period of less than thirty (30) consecutive days by an owner who 97 utilizes the dwelling as his principal residence and occupies the dwelling during any 98 such rental period. 99 100 . . . . � 101 102 Hotel and motel. A building or group of attached or detached buildings containing 103 dwelling or lodging units in which fifty (50) percent or more:tf the units are lodging units., 104 and for which compensation is exchanged for short-term occupancy of the dwelling or 105 lodging units. A hotel shall include a lobby, clerk's desk ortcounter and facilities for 106 registration and keeping of records relating to hotel guests. 107 motels,- 108 otels:108 109 . . . . r 110 ti 111 Principal residence. PnnciOal residence shall .be the location where a person 112 lives fifty (50) percent or more of the.time.' A=person shall not have more than one (1) 113 principal residence. v 114 115 . . . . �� 116 X1i117 Short term rental.A dwelling that doee'bot meet the definition of home sharing in 118 which a room or: rooms,\.or the entire dwell:16g are rented for less than thirty (30) 119 consecutive days for compensation. 120 121 ARTICLE`2, GENERAL-\REQUIREMENTS AND PROCEDURES APPLICABLE TO 122 ALL DISTRICTS 123 124 A. REGULATIONS- ;RELATING TO LOTS, YARDS, HEIGHTS, OFF-STREET 125 PARKING, OFF-SlitET/LOADING, AND CERTAIN USES 126 127 . . . . 128 129 Sec. 209.6. Home sharing. 130 131 To the extent permitted by state law, each dwelling offered as a home share 132 must maintain registration with the Commissioner of Revenue's office and pay all 133 applicable taxes. 134 135 C. CONDITIONAL USES AND STRUCTURES 136 3 137 . . . . 138 139 Sec. 241.2 Short term rental. 140 141 Short term rental shall be subject to the following conditions unless specifically 142 modified by action of the city council in granting a conditional use permit or creating a 143 short term rental overlay district: 144 , , 145 1. Any property utilized as a short term rental all provide adequate off street 146 parking for its quests. A minimum ofarkinq space per bedroom is 147Nk-required. If such parking cannot be Proided 01#s. the owner must submit 148 a parking plan indicating how the parking reqs ent will be met. Such 149 plan shall be reviewed and approved by the Zoning Administrator. Stacking 150 of vehicles shall be allowed and_ no on-street parkineq shall be part of the 151 plan; ` >':, 152 153 2. No events with more h`1 4.ifty (50) people present, shall be held absent a Y it 154 special events permit. Vents th more than fifty (50) people are limited to 155 no more than three (3) ,events �in 'a calendar year. No more than one 156 hundred (100) people shallIbe present at-any event held on the property; 157 158 3. The owner or operator must provide the name and telephone number of a 159 responsible person, who may be =the owner, operator or an agent of the 160 owner or operator, who „is available to be contacted and to address 161 conditions=`occurrinq at the 'short term rental within thirty (30) minutes. 162 Physical response to the site of the short term rental is not required; 163 164 4. N-6 Signage shall be on site, except that each short term rental is allowed 165 one (4), four (4) square foot sign, posted on the building which identifies the 166 short term rental.:: Architectural signs naming the structure are excluded 167 from this limitation; 168 169 5. To the extent permitted by state law, each short term rental must maintain 170 registration with the Commissioner of Revenue's office and pay all 171 applicable taxes: 172 173 6. There shall be posted in a conspicuous place within the dwelling a summary 174 provided by the Zoning Administrator of City Code Sections 23-69 through 175 23-71 (noise), 31-26, 31-27 and 31-28 (solid waste collection), 12-5 (fires on 176 the beach), 12-43.2 (fireworks), and a copy of any approved parking plan; 177 4 178 7. All refuse shall be placed in automated refuse receptacles, where provided, 179 and comply with the requirements of City Code Sections 31-26, 31-27 and 180 31-28; 181 182 8. A short term rental shall have no more than one (1) rental contract during 183 any consecutive seven (7) day period; 184 185 9. The owner or operator shall provide proof of..liability insurance applicable to 186 the rental activity at registration and renewal of at least one million dollars 187 ($1,000,000.00) underwritten by insurers;acceptable to the city; 188 �. 189 10.There shall be no outdoor amplifiedEsound after.10 PM or before 10 AM; 190 191 11.The maximum number of persons on the property.after 11:00 PM and 192 before 7:00 AM ("Overnightlodgers") shall be two.(2) individuals per 193 bedroom plus four(4) additional persons;4 194 195 12.The owner or operator` must maintain4a'v;quest log including the name, 196 address and telephone nurnber. of all Overnight Lodgers. The guest log 197 must be made available upon request to any-City employee or agent tasked 198 with enforcing the Zoning,Ordinance or other applicable part of the City 199 Code;r/ 200 201 13.Any short term rental that has registered and paid transient occupancy 202 taxes to the'Corrimjssioner of the Revenue prior to July 1, 2018 shall be 203 considered grandfathered and'shall not be required to obtain a conditional 204 use permit, but mustmeet the conditions of section 241.2. Any expansion 205 of the footprint of the dwelling housing the short term rental that expands the 206 overall square footage bycnore than 25% or 1,000 square feet, whichever is 207 less, shall have its grandfathered status revoked and must immediately 208 obtain a conditional use permit to continue such use. Grandfathered status 209 shall ruri'with the land.; 210 211 14.To the extent permissible under state law, interconnected smoke detectors 212 (which may be wireless), a fire extinguisher and, where natural gas or 213 propane is present, carbon monoxide detectors shall be installed in each 214 short term rental; 215 216 15.Accessory structures shall not be used or occupied as short term rentals; 217 218 16.1n addition to other remedies available for violations of the City Zoning 219 Ordinance, upon the occurrence of a violation of the provisions of this 5 220 section; a violation of a condition imposed in a conditional use permit; or if 221 the conditions for grandfathered status are no longer satisfied, the City 222 Council may revoke the conditional use permit or grandfathered status of a 223 property after notice and hearing as provided in Virginia Code Section 15.2- 224 2204; provided, however, that written notice as prescribed therein shall be 225 given at least fifteen (15) days prior to the hearing; 226 227 17.All conditional use permits issued for short term rentals shall expire two (2) 2284- ,f. Years from the date of adoption. The renew • rocess of the conditional use 229 '� permit will be administrative and perform `by the Planning Department; 230 however, the Planning Department ata �tyi�fy the City Council in writing 231 prior to the renewal of any conditionase p e MI it,#or a STR, where the STR 232 has been the subject of neighborhood complaints;;:violations of its conditions 233 or violations of any building, housing, zoning, fire or other similar codes. 234 `` 235 ARTICLE 4. - AGRICULTURAL DISTRICTS '- / ;,_ 236 (p 237 (a) Principal and conditional ins sfAhe following chart lists those uses permitted 238 within the AG-1 and AG-2 Agricultural aStricts. Those uses and structures in the 239 respective agricultural districts shall be ".permitted as either principal uses indicated by a 240 "P" or as conditional uses indicated by a>"C 'Gses.and structures indicated by an "X" 241 shall be prohibited in the respective districts. No uses` or structures other than as 242 specified shall be permitted. ,, 243 Use ��%` AG-1 AG-2 Hoihe sharing meeting the requirements of section 209.6 P P 1 AShort term rental C C 1 Short term rental within'the Sandbridqe Special Service District* P P Short term rental within a STR Overlay District I P 1 P 244 *Sandbridge Special Service District defined in City Code Section 35.1-3. 245 246 (b) Accessory uses and structures. Uses and structures which are customarily 247 accessory and clearly incidental and subordinate to principal uses and structures, 248 including but not limited to, an accessory activity operated for profit in a residential 249 dwelling unit where (i) there is no change in the outside appearance of the building or 250 premises or any visible or audible evidence detectable from outside the building lot, 251 either permanently or intermittently, of the conduct of such business except for one (1) 252 nonilluminated sign not more than one (1) square foot in area mounted flat against the 6 253 residence; (ii) no traffic is generated, including traffic by commercial delivery vehicles, 254 by such activity in greater volumes than would normally be expected in the 255 neighborhood, and any need for parking generated by the conduct of such activity is 256 met off the street and other than in a required front yard; (iii) the activity is conducted on 257 the premises which is the bona fide residence of the principal practitioner, and no 258 person other than members of the immediate family occupying such dwelling units is 259 employed in the activity; (iv) such activity is conducted only in the principal structure on 260 the lot; (v) there are no sales to the general public of prk,ticts or merchandise from the 261 home, except for agricultural products, or agricultur_W: ed products, incidental to an 262 agricultural operation on which the dwelling unfit;{ , -ted; and (vi) the activity is 263 specifically designed or conducted to permit no more th_?ane (1) patron, customer, or 264 pupil to be present on the premises at anyone time. Notwtanding the provisions of 265 clauses (ii) and (vi) hereof, ministers, :marria9 a commissioht and other persons 266 authorized by law to perform the rites of marriage may permit a Maximum of eight (8) 267 persons on the premises at any one time in wnnecuion with the per irmance of such 268 rites, provided that all other regtt- ents of subdivision (b)(2) are ei:-4 The following 269 are specifically prohibited as a ; pry,activities: Convalescent or nursing homes, 270 tourist homes, massage or tattoo$pa�E moody piercing establishments, radio or 271 television repair shops, auto repair ss, P p p ors liar establishments. Rental of rooms in 272 a dwelling or the entire dwelling thirty(30) cors olive days or more is an accessory 273 use to the dwelling. 4 ,''' 274 .x 275 . . . . 276 t 277 ARTICLE 5. RESIDENTIAL DISTRICTS: 278 279 . . . 280 281 Sec. 501. Use regulations.; 282 283 (a) Principal and conditional uses. The following chart lists those uses permitted 284 within the R-40 through R-2.5 Residential Districts. Those uses and structures in the 285 respective residential districts shall be permitted as either principal uses indicated by a 286 "P" or as conditional uses indicated by a "C." Uses and structures indicated by an "X" 287 shall be prohibited in the respective districts. No uses or structures other than as 288 specified shall be permitted. 289 R- R- R- R- R- R- R- R- R- R- Use 40 30 20 15 10 7.5 5D 5R 5S 2.5 1 7 Home sharing meeting the PPPPP P P PP P requirements of section 209.6 Short term rental C C C C C C C C C C Short term rental within the Sandbridqe Special Service District* P P Ps. ; P P P PP P Y Short term rental within a STR " a Overlay District ROW P P P P . P P P P •290 Sandbridge Special Service District defined in City C64Sec ai5.1-3. 291 292 (b) Accessory uses and structures. Uses and structures which are customarily 293 accessory and clearly incidental and subordinate to p ncipal uses and structures and 294 where such accessorystructures do hot exceed the height principal structure and, 295 in all residential zontrig districts, except for R-30 and R-40, do not exceed five hundred 296 (500) square feet 6f floor ares or twenty (20) percent of the floor area of the principal 297 structure, whichever ,is greater.: In the R-30 and R-40 residential zoning districts, 298 accessoryuses and stlitcturpl shad;not exceed thirty (30) percent of the floor area of 299 the principal structure. Susi accessoi uses and structures include but are not limited 300 to: `�`.-;. 301 4.zF y3. 302 303 Il -Rental of rooms in a dwelling or the entire dwelling thirty (30) consecutive 304 days or more is`an accessory use to the dwelling. 305 306 . . . . 307 - 308 ARTICLE 6. - APARTMENT DISTRICTS 309 310 . . . . 311 312 Sec. 601. - Use regulations. 313 314 (a) Principal and conditional uses. The following chart lists those uses permitted 315 within the A-12 through A-36 Apartment Districts. Those uses and structures in the 316 respective apartment districts shall be permitted as either principal uses indicated by a 8 317 "P" or as conditional uses indicated by a "C." Uses and structures indicated by an "X" 318 shall be prohibited in the respective districts. No uses or structures other than as 319 specified shall be permitted. 320 Use A-12 A-18 A-24 A-361 • • • • Home sharing meeting the requirements of section 2o96 P p P p . . . . ,,te‘• Short term rental AllY'°, C C C C „211-1,n,/ zAk Short term rental within the Sandbridge Special Service Digilict* P P lo p Short term rental within a STR Overlay District ‘3t1:31P 1E 12 321 *Sandbridge Special Service District is defined in City Code Section 35.1-3. 322 A ''C'4- 323 (b) Accessory uses and stryctures. Uses' and structures whichlre customarily 324 accessory and clearly incidentej 'Afid, subordinate to principal uses and structures, 325 including but not limited to: 326 327 //: 328 '* ,,:., 329 (3) Rental of rooms in a dwelling or/the entire'dwelling thirty (30) consecutive , 330 days or more is an accessory use to the dwelling. 331 332 333 334 ARTICLE 9. - BUSINESS DISTRICTS , . 335 . . ._ 336 337 N' I-- \,-, • 4/„L, 338 Sec. 901. - Use regulations 339 ..,,, 340 (a) Principal and conditional uses. The following chart lists those uses permitted 341 within the B-1 through B-4K Business Districts. Those uses and structures in the 342 respective business districts shall be permitted as either principal uses indicated by a 343 "P" or as conditional uses indicated by a "C." Uses and structures indicated by an "X" 344 shall be prohibited in the respective districts. No uses or structures other than as 345 specified shall be permitted. 346 UB- B- B- B- B- B- B- I se 1 1A 2 3 4 4C 4K 9 • Home sharing meeting the requirements of section X X X X P P P I 209.6 1 Short term rental X X X X C C C 1 Short term rental within the Sandbridge Service P P P P P P P District* Alm Short term rental within a STR Overlay District P I P I P I P I P I P - r 347 *Sandbridge Special Service District is defined in City'Cod- .- 1s1-3. 348 -, � • 349 (b) Accessory uses and structures. Uses/ and structu .,which are customarily 350 accessory and clearly incidental and subordinate to the pnnci 6 --I ses and structures, 0. 351 including, but not limited to: � ., 352 =-:,-;,i,,,,,,,i 0. a353 . . . . 354 ctr'''''N'. . 355 L2) Rental of rooms in a dwel in txr,the entire dwelling thirty (30) consecutive 356 days or more is an accessory seo:,:the dwelling. 357 "" '' A 358 ARTICLE 11. - PLANNED DEVELOPMENT TRRIcTS, _. 359 :tip , .� 360 Sec. 1110. - Land use regulation 361 f:- k ,. , :, 362 '''''''4%363 ,r . 3 364 (c) Within" a PD-H1 District, all of„the principal uses and structures permitted within an 365 A-12 Apartment District other`'`ttlan hospitals and sanitariums, together with the 366 following'enumerated uses and structures, shall be permitted: 367 368 (1) Fraternity and•sorority houses, student dormitories and student centers; - 369 370 (2) Housing for seniors and disabled persons, with a conditional use permit; 371 372 (3) Marinas; 373 374 (4) Private clubs or social centers provided that clubs where conduct of commercial 375 affairs is a principal activity shall not be permitted; and 376 377 (5) Residential care for seniors, provided that no more than two (2) employees 378 including a bona fide resident of the dwelling shall be permitted; 379 380 n Home sharing meeting the requirements of section 209.6; 10 381 382 j7) Short term rentals within the Sandbridqe Special Service District; and 383 384 (8) Short term rentals within a STR Overlay District. 385 386 (d) Within a PD-H1 District, the following uses shall be allowed as conditional uses: 387 388 (1) Communication towers; 389 390 (2) Family day-care homes; 391 392 (3) Group homes; ; 393 394 (4) Kennels, residential; ". , 395 396 (5) Religious uses; s Yrs" 397 '�`° '`� / -,<. 398 (6) Wind energy conversion systems, free standing and roof-mounted; ac 399 _ � 400 (7) Home-based wildlife rehabilitation facilities, £,provided that the principal 401 structure is a.single-family dwelling and the lot'.1s-greater than two thousand 402 five hundred,(2,500) square feet. and 403 404 ) Short tenmrentals. 405 -4 ::k. 406 B. - PD-H2 PLANNEDUN IT,D�EVELOPMENT DISTRICT 407 408 . . . 409- 410 Sec. 1125. - Allowed uses. `c<-, 411 \ . :; 412 Within the PD-H2 District, only the following uses and structures shall be permitted: 413 414 (a) Principal uses and structures. 415 416 (1) Dwelling units of the types specified in the land use plan; 417 418 (2) Public buildings, structures, and other public uses; 419 420 (3) Recreational facilities of the type described in the plan; 421 422 (4) Child care education centers, in connection with public or private 423 elementary schools or churches, provided that such uses shall not be 424 eligible for residential density credit; 425 11 • 426 (5) Day-care centers, provided that such uses shall not be eligible for 427 residential density credit; 428 429 (6) Public utilities installations and substations; provided offices or storage or 430 maintenance facilities shall not be permitted; and provided, further, that 431 utilities substations, other than individual transformers, shall be surrounded 432 by a wall, solid except for entrances and exits, or by a fence with a 433 screening hedge five (5) to six (6) feet in height; and provided also, 434 transformer vaults for underground utilitievfnj like uses shall require only 435 a landscaped screening hedge, solid exceptr access opening..-; 436 amu.. 7 � Home sharing meeting the requirem Fi io , cfion 209.6; and 438 ,�`-. 439 (8) Short term rentals within the Sandbi dqe Special - ice District; and 440 441 (9) Short term rentals within a STR Overlay District. Ali,:. 442 , 443 444 (b) Accessory uses. Uses whi afe customarily. accessory and clearly incidental and 445 subordinate to the principal uses s,alf be.)allowed as accessory uses. Rental of rooms in ,,,, 446 a dwelling or the entire dwelling th 4 (363 consecutive days or more is an accessory 447 use to the dwelling. ``'<„ ''t;" 448 . \'l.4 449 (c) Conditional uses. 450 . 451 (1) Religious uses, provided that uch use shall not be eligible for residential 452 ,� density.credit; -.: 453 454 {2) Family daycare homes; foster homes and group homes, provided that such 455 uses shall riot be eligible for residential density credit; 456 457 (3) Home occupationi-4 458 459 (4) Housing for seniors and disabled persons-4 and 460 ,' `�.'/• - , (5) Short term ' 461 rental. 462 463 . . . . 464 465 C. RT-3 RESORT TOURIST DISTRICT 466 467 . . . . 468 469 Sec. 1521. Use regulations. 470 12 471 (a) The following chart lists those uses permitted within the RT-3 Resort Tourist District 472 as either principal uses, as indicated by a "P" or as conditional uses, as indicated by a 473 "C." Conditional uses shall be subject to the provisions of Part C of Article 2 (section 474 220 et seq.). Except for single-family, duplex, semidetached and attached dwellings, 475 buildings within the RT-3 District may include any principal or conditional uses in 476 combination with any other principal or conditional use. No uses or structures other than 477 those specified shall be permitted. All uses, whether principal or conditional, should to 478 the greatest extent possible adhere to the provisiof the Special Area Design 479 Guidelines (Urban Areas) set forth in the Referen -ififidbook of the Comprehensive 480 Plan. , ` 481 t., Use ' RT-3 i;. Home sharing meeting the requirements ofsection 209 6 P Short..term rental• C Short term rental within a.STR Overlay District I P 482 483 (b) Accessory uses and structures : Uses. and structures which are customarily 484 accessory and clearly'iincideital and subordinate to the principal uses and structures; 485 provided, however;that drive through facilities shall not be permitted as an accessory 486 use: 487 a 488 489 490 i21 Rental of\"rooms lit ,a dwelling or the entire dwelling thirty (30) 491 consecutive days or moreis an accessory use to the dwelling. 492 493 ARTICLE 22. - CENTRAL BUSINESS CORE DISTRICT 494 495 . . . . 496 497 B. - DEVELOPMENT REGULATIONS 498 499 . . . . 500 501 Sec. 2203. - Use regulations. 502 503 (a) The following chart lists those uses permitted within the Central Business Core 504 District. Uses and structures shall be allowed either as principal uses, indicated by a 13 505 "P", or as conditional uses, indicated by a "C." Uses and structures indicated by an "X" 506 shall be prohibited, unless allowed by special exception for Alternative Compliance 507 pursuant to Section 2205. No uses or structures other than as specified herein or as 508 allowed pursuant to subsection (b) shall be permitted. 509 Use District CBC Home sharing meeting the requirements of sec_tion.209.6 P Short term rental . C Short Term Rental within a STerlay District' P I 510 �v ;. 511 (b) If a proposed use is not expressly p ,,fitted p f ,want to subsection (a), but is 512 similar to a listed use, the Zoning Administrator , y fegorize the proposed use as a c.513 use permitted by this section, ertheras a principa r conditional use. In determining 514 whether a proposed use is similar to :a listed u e; he Zoning Administrator shall 515 consider (1) the actual or projected characteristics of tleproposed use in comparison 516 to those of the most,sii`>milar listed use; .and (2)'the categ tzetion of the proposed use 517 in the Standard Land=Use Coding Manual (First Edition January 1965). Rental of 518 rooms in a dwellini or. the entire dwelling thirty (30) consecutive days or more is an 519 accessory use to the dwelling.,.. 520 ,, ,'.` %. 521 APPENDIX 1. - OCEANFRONT RESORTDiSTRICT FORM-BASED CODE 522 ., _u 523 . . `� 524 525 Sec. 5.2. Permitted Use Table. 526t MIXED-USE = COMMERCIAL APARTMENT ROW DETACHED CIVIC BUILDING BUILDING BUILDING HOUSE HOUSE BUILDING Ground Upper Ground All Ground Upper Use Standard USE Floor Floors Floor Floors Floor Floors All Floors All Floors /Notes LODGING Home sharing = L = = L L L :7, See Sec.209.6 meeting the requirements of section 209.6 14 Short term rental = C _ = C C CSee Sec.241.2 meeting the — , requirements of section 241.2 527 Adopted by the Council of the City of Virginia Beach, Virginia, on the day of , 2018. APPROVED AS TO CONTENT: APPROVEDAS O LEGAL SUFFICIENCY: i ,,,,,4, .4,,,,,,,,,,„ ,,,,, Vt Planning Department City Attorney's Office , CA14500 R-20 September 7, 2018 e' °y. !,'. Y4x.,93 t i _C` i 15 • °5 � cyy� CL �,. .ti... City Council Policy Title: Short Term Rental Overlay Districts Date of Adoption: Dates of Revisions: Page 1 of I Designation of Short Term Rental Overlay Districts 'f'< It is the City Councils intention that requests for the creettot'�of a Short Term Rental("STR")Overlay District be initiated by property owners and to prow ieadchtianai opportunities for stakeholders in affected areas to provide input to City Council in:corinection Mitt}-such requests. Accordingly, the City Council may designate areas within the -City as Short'cerin Rental Overlay Districts in accordance with the following process: 1. Upon written petition by not less thin fifty(50)owner of real propeity within the boundaries of a proposed STR Overlay District,`'which boundaries shall be plainly identified in the petition,the City Council shall, upon notice to all property owners witlii the proposed STR Overlay District, condi t a`public hearing. The public hearing shall be conducted within the boundaries of the proposed;STR Overlay:;District if a sufficiently large and suitable venue is available for such hearing,: Notice of the public hearing shall be given as provided in Virginia Code Section 15?r2204 2. After the public hearing, at a future public meeting, City Council shall be presented for its consideration a resolution referring-to the Planning Commission a proposed zoning ordinance amendment creating theproposed STR Overlay District. 3. If referred to the Planning Commission, the zoning ordinance amendment shall proceed through the required statutory procedure`for consideration by the Planning Commission and ultimate decision by the City Counc1Y• 1 A RESOLUTION TO REFER AN ORDINANCE TO 2 AMEND SECTIONS 102, 111, 401, 501, 601, 901, 3 1110, 1125, 1521 AND 2203 OF THE CITY 4 ZONING ORDINANCE AND SECTION 5.2 OF THE 5 OCEANFRONT RESORT DISTRICT FORM- 6 BASED CODE PERTAINING TO THE 7 DEFINITIONS, REQUIREMENTS AND USE OF 8 HOME SHARING AND SHORT TERM RENTALS 9 TO THE PLANNING COMMISSION 10 11 12 WHEREAS, City Council on November 7, 2017 referred to the Planning 13 Commission three ordinances for the regulation of home sharing and short term rentals; 14 15 WHEREAS, Planning Commission on February 14, 2018 voted to recommend 16 the denial of all three alternatives and approval of a fourth option, the Planning 17 Commission version; 18 19 WHEREAS, City Council held numerous public hearings and workshops on the 20 issues and considered all four alternative ordinances, and on July 3, 2018 denied all 21 four alternative ordinances; 22 23 WHEREAS, City Council has discussed and selected another alternative for 24 referral to the Planning Commission for their recommendation. 25 26 NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 27 VIRGINIA BEACH, VIRGINIA: 28 29 That the above-entitled ordinance, a copy of which is attached, is hereby referred 30 to the Planning Commission for its consideration and recommendation. Adopted by the City Council of the City of Virginia Beach, Virginia, this day of , 2018. APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's Office CA14381 R-6 September 11, 2018 4 L Cit of Vir inia Beach y �t 4.4 OF DUR NA-W VBggov.com JOHN MOSS PHONE: (757) 363-7745 COUNCILMAN-AT-LARGE MOSSJOHN@COX.NET September 11, 2018 In Reply Refer to 0063742 Mrs. Amanda Barnes City Clerk Municipal Center Virginia Beach, Virginia 23456 Re: Abstention Pursuant to Conflict of Interests Act § 2.2-3115 (F) Dear Mrs. Barnes: Pursuant to the State and Local Government Conflict of Interests Act, I make the following declaration: 1. I am executing this written disclosure regarding the City Council's discussion and vote on an ordinance or ordinances that would regulate short term rentals in the City. 2. My mother-in-law's will provides that my wife will receive a 1/6 interest in a home located at 2945 Sandfiddler Road, Virginia Beach, VA 23456, which is within the Sandbridge Special Service District. The estate, however, is still in probate, and title to the home currently is in the name of her estate. Neither my wife nor I serve as executor, and we do not know when probate will be completed. 3. I have requested an opinion from the Commonwealth's Attorney regarding any restriction the Act might place on my ability to participate in the City Council's discussion and votes on this issue. Until I receive the opinion from him, out of an abundance of caution, and in the interest of transparency, I have chosen to disclose this interest and abstain from the City Council's discussion and votes on this matter. Accordingly, I respectfully request that you record this declaration in the official records of City Council. 4109 RICHARDSON ROAD,VIRGINIA BEACH,VIRGINIA 23455 Mrs. Amanda Barnes -2- September 11, 2018 Re: Abstention Pursuant to Conflict of Interests Act § 2.2-3115 (F) Thank you for your assistance and cooperation in this matter. Sincerely, John D. Moss Councilmember JDM/RRI 25 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS 5:09 P.M. Mayor Jones welcomed Ronald H. Williams, Jr., —Deputy City Manager and Patti Phillips, Director — Finance. Mr. Williams expressed his appreciation to the City Council for their continued support: \IB Virginia Beach Investment Partnerships Virginia Beach City Council Informational Briefing September 11,2018 Ronald H.Williams,Jr. Patricia A.Phillips Here is an Overview of Public-Private Partnership: Public-Private Partnerships • Agreement to leverage large scale development, generate public benefit or increase tax revenues • Used across country to spur private investment • Strategy for growing economy, distributing risk • Project not otherwise achievable • Guided by City Council Policy: Guidelines for Evaluation of Investment Partnerships for Economic Development September 11, 2018 26 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS (Continued) The Elements of Public-Private Partnerships are driven by City Council Goals and Policies: Elements of a Public-Private Partnership Council Goals Development Council Policy Agreement Investment ■ Partnership iii Legal Public Requirements Engagement Due Diligence (as needed) City Council Guidelines use two (2) Tiers when considering projects: • Contr utesto City Councils' Vision Comprehensive Plan ier 1•. and other relevant..plans City Council a •roes ., Generates synergy and Guidelines: attracts additional;private sector::de elopmr nt: ........... ................................ Evaluation of Investment Fiscal,economic8nd/or social Partnerships for Due genceo benefseaerwhatneshp Economic Providasf@randreaspnable Development nopraesec Pr 0 determine ;:Fre : r:i tpow ;;> : project's not:pi eed:ata tesired:quaUty>:>:: financial <>'>I P t b t fcr':P UblllC:sect.:;-<:.::::* feasibility September 11, 2018 27 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS (Continued) Here is an Overview of the Process for Investment Partnerships: • RFQ, PPEA, RFP or unsolicited developer proposal • City Council briefed on proposed project (Executive Session) Process for • City Council liaisons (and VBDA if Investment needed) assigned Partnerships • Due diligence • Public engagement • Development agreement for City Council approval Public Participation is different for each project and may include these factors: • May include cost contribution or incentives up • front(annually or combination) • Performance incentives based on taxes Public generated by project, (i.e. "but for" revenues): • Real estate or admissions taxes Participation • Virginia's Tourism Development Financing Program is Different ('GAP financing") • returns the 1% local sales tax from on-premises For Each sales each year until certain amount is reached Project • matched by another 1%of state sales tax and developer-imposed 1%access fee • Project evaluated for potential benefits and impact on City's revenues September 11, 2018 28 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS (Continued) One of the key elements of Due Diligence is the result found in the Feasibility Analysis: Due Diligence—Varies by Project • Feasibility Analysis • Independent estimates of revenues, costs and cash flows • Detailed project cost estimates • Access to developer's appraisals, applications and studies • Financial analyses • Pro forma income and expense schedules/cash flow • Internal rate of return analysis, returns on costs and equity • Cost to the City of incentives, debt service & other payments Due Diligence—Varies by Project • Direct and indirect fiscal and economic impacts • Ownership structure • Assess impact of any required governmental debt issuance • Determine need for outside professional assistance • Identify defaults and litigation • Monitor compliance with ongoing development agreements September 11, 2018 29 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS (Continued) Here is an Overview of the six(6)Recreation/Entertainment Projects: Recreation and Entertainment Projects • 6 projects • $53.9M private s N . - investment ,r .1 t_ -irel:. sg_ • $70.6M public , .4,„ P i.. investment . ' ^ " , ,. . `` s • Ratio of $0.76:$1 ... Iz:' -T'.,. Here is an Overview of the seven (7) Commercial&Economic Development Projects: Commercial & Economic Development �° • 7 projects Fril , -- "; ,_� e Q • $1 .01 B private investment • $194.4M ^ 4` public i' ,r .� investment -�,,:. • Ratio - 5.2:$1 September 11, 2018 30 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS (Continued) Here is "Snapshot"the Economic Development Investment Program (EDIP)from FY14-17: Economic Development Investment Program Snapshot: FY14-17 • 66 EDIP grants awarded; 219 grants J FARMHOUSE awarded since inception • 71% for existing company expansion feet projects a,e • 42% awarded to companies with fewer Health' than 50 employees SANJO 4111 • SWaM certified companies are twice as likely to receive an award than non- i MYTH ICE SWaM businesses The following slides provide an Overview of the six(6)Recreation and Entertainment Projects shown in order of opening from 1996 to 2010: Recreation and Entertainment Projects September 11, 2018 31 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS (Continued) Here is an Overview of the Amphitheater: Amphitheater • Public ownership, privately operated --- • Private investment: $7.5M • Public investment. $10.5M tom-- t • Private/Public Ratio: 0.7:1 •{ , • City cost recovery: < 9 years (2005) • Since 1996: • 620 events • 6.2 millionP atrons ' • Over$28.4M in revenues to City 1996 Here is an Overview of the Sportsplex and Regional Field Hockey Training Center: Sportsplex and Regional Field Hockey Training Center • Publicly owned, privately operated - • Private investment: $1.4M # s • Public investment: $13.5M -- $9.9M for •p Sportsplex, $3.6M for RFHTC - • Private/Public ratio: 0.10:1 4;,1°‘°° .V • City cost recovery N/A(community amenity); • • Annual cost avoidance of$400,000 S ` *' • In 2017 Sportsplex— 1,032 games with 470,457 attendance; RFHTC— 1,566 games with 271,455 attendance 1998, 2001, 2005 • Revenues to City since 2014: $69,996 September 11, 2018 32 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS (Continued) Here is an Overview of Heron Ridge Golf Course: Heron Ridge Golf Course • Private ownership and operation • Private investment: $6M # P . . iltari� a • Public investment: $2M land acquisition, road improvements & sanitary sewer service • Private/Public ratio: 3:1 �'' ' %, , --, ..:-.'„-41 • City revenues (1999 - 2017): $1.7M ,7..• ," • City cost recovery: 21 years (2020) 1999 Here is an Overview of Virginia Beach National Golf Course: VA Beach National Golf Course Icy, i--- " , : ;`, ""-'j, , • Public ownership (originally private); k- "2 . , ?-a' ;/ privately operated =i Ao iA I • Private investment: $11.5M a:: r. Public investment: $8.04M ($3.5M - - 1999, $4.54M in 2006 purchase .__ course) ` _ 11 R • Private/Public ratio:1.43:1 • City Cost Recovery: 41 years (2040) 1999, 2007 September 11, 2018 33 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS (Continued) Here is an Overview of the Sandler Center: Sandler Center v- 1 • PPEA process used; Public ownership N--- • Privately operated LICIPtivapeit 1 • Private investment: $11 84M Ile A,�ay� !`' r i • Public investment: $35M (TIP Fund) , (F= lim Yii de 1� 1: w i sa :,( I • Private/Public Ratio: 0 34 1 1,_, , -1 ! Ill • City Cost Recovery : NA - • Since 2007 5,059 events, over 1 5M .i -- patrons and over$1 4M in admissions taxes to City 2007 Here is an Overview of the Virginia Beach Field House: Virginia Beach Field House • Private ownership • Private Investment: $15.7M s - • Public Investment:Annual performance -- grant equal to real estate taxes paid for 10 •• I• > . .�,r- years, estimated total$1.5M; lease of land • Private/Public Ratio 10 5 1 i • Y -ea • City cost recovery: NA("but for"taxes) r • City paid $500,000 for hurricane hardening --public emergency/medical shelter , // ',.. • Revenue to City since 2010: $566,000 • 2017: 74,916 participants, over 712,000 2010 spectators attended events September 11, 2018 34 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS (Continued) The following slides provide an Overview of the seven (7) Commercial and Economic Development Projects shown in order of opening from 1997 thru estimated openings in 2020: Commercial and Economic Development Projects Here is an Overview of the Lynnhaven Mall Expansion: Lynnhaven Mall Expansion • Private ownership and operation -7' �°'� �; • Private Partner Simon Property Group I ``i • Private investment $100M for 300,000 SF expansion • Lynnhaven TIF District established to provide $11.5M + interest via incremental real estate taxes for public roads, BMP, ! _ • parking and transit services; dissolved 2012 IONA • Private Public ratio 8 7 1 ,.. ,,. • Real estate assessment and taxes FY 1998$143.5M/$1.8M FY 2013$271.3M/$2.6M TIF—July 1997-2012 FY 2019$282.3M/$2.8M Mall Expansion 2003 September 11, 2018 35 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS (Continued) Here is an Overview of Town Center: Town Center • Private buildings, public infrastructure • VBDA owns Westin Conference Center • Private Partner:Armada Hoffler • Private investment: $487.8M • Public investment: $108.6M • Private/Public Ratio: 4.5:1 • Town Center TIF District: $8.1 M in FY19 : annual debt service for City parking facilities • Outstanding debt $55.4M, debt payoff Phases V-FY34/VI-FY38;&TIF capacity significant growth starting FY24 • Non-real estate tax revenues: $8.2M +/- 2003 (I), 2005 (II), 2007 annually(2002—2017$88.8M) (III), 2014 (V), 2019 (VI) • City Cost Recovery. < 13 yrs(2014)based on all revenues generated Here is an Overview of 31st Street Hilton Hotel, Park and Parking Garage: 31st St. Hilton Hotel, Park and Parking Garage • Private ownership of hotel, publicly owned park and garage ;41V\ • Private Partner: Gold KeylPHR • Private investment: $41.5M • Public investment (2005): $31.7M • Private/Public ratio: 1.3:1 a .4,1711 • Annual City revenues $4.5M; over $48M to date • City cost recovery:<10 yrs (2014) 2005 September 11, 2018 36 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS (Continued) Here is an Overview of Operation Smile World HQ: Operation Smile World HQ • Private ownership and operation • Private Partner: Operation Smile .r. • Private investment: $25M ,t • Public investment: $3.74M = -=-_ �_-aG. IMOSP- • $1.4M in site improvements, dedication of 9.4 acres of City- owned land assessed at$2.34M .......,, 1 • Private/Public ratio: 6.68:1 2013 Here is an Overview of 25`h Street Garage&iFLY: 25th Street Garage & iFLY • Private facility and apartments, public garage (344 of 565 spaces) • Private Partner: Breeden Cos 1 • Private Investment: $21.66M • Public Investment: $7.65M in garage O , (from selling land to developer for $7.65M); $836,000 landscaping, annual incentive, lease 221 spaces u ,, ., _ir.1 I - , , ,,....: .•__ • Annual incentive payment of 90% but , ,_,,, _, „, for" admissions tax from premises sales up to $1.6M in total -? -- • Private:Public Ratio: 8.9:1 2016 • City Cost Recovery: 1-to-2 years September 11, 2018 37 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS (Continued) Here is an Overview of the Cavalier: Cavalier • Private investment: $274M (plus residential of$120M) • Private Partner: Gold KeylPHR • nin' iioFio's iu • Public investment: $26.17M to nnn include upfront payments of$13M, -_ and annual incentive payments: . Juunvaa■ , - • Real estate taxes paid,total$5M � ` r dr 11%�;jr= • TDFP equal to actual on-premises Ar $8 % local sales tax paid, up to total of $8.17M in "but for"taxes :46:=Iiii:I=NILit • Private/Public ratio: 10.5:1 2018 Phase I • City cost recovery : under 7 years 2019/20 Phase II Here is an Overview of CityView Two: CityView Two • Private Partner: Ripley Heatwole .11-1/74\r„- • ;/ h • Private investment: $60.5M 4-1• Public investment:Annual performance grant equal to: • incremental real estate taxes paid up to total of$10.2M within 25 yrs(parking) • $300,000 for easements for construction f": of Thalia Creek Greenway trails „,y • Private/Public ratio: 5.9:1 (excludingX31 •easement) ,. ; • City cost recovery N/A(no up front incentive paid. All "but for"taxes) Estimated 2020 September 11, 2018 38 CITY MANAGER'S BRIEFING INVESTMENT PARTNERSHIPS (Continued) Here are the Partnership Benefits to the City: Partnership Benefits to the City 13 projects $1.06B private investment $264.9M public investment $4.0:$1 ratio of private to public investment Recreation and Commercial and Entertainment conomic Development 6 projects 7 projects $ 53.9M private investment $1.01B private investment $70.6M public investment $194.4M public investment $0.76:$1 investment ratio $5.2:$1 investment ratio \(B Investment Partnerships Virginia Beach City Council Informational Briefing September 11, 2018 Mayor Jones expressed his appreciation to Mr. Williams and Ms. Phillips for the informative presentation. September 11, 2018 39 ADJOURNMENT Mayor Louis R.Jones DECLARED the City Council Workshop ADJOURNED at 5:55 P.M. 1402:37H_ _______.---- Chief Deputy City Clerk al(- mania ..rues,M City Clerk City of Virginia Beach Virginia September 11, 2018