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HomeMy WebLinkAboutMAY 4, 1999 MINUTESCity of Virginia Beach "WORLD'S LARGEST RESORT CITY" CITY COUNCIL MAYOR MEYERA E OBERNDORF At Large VI( E MAYOR WILLIAM D SESSOMS JR At Large LINWOOD 0 BRANCH II! Dtstrttt 6 Beath MARGARET L EURE Dtstrtct I Cenlervtlle WILLIAM W HARRISON JR Dtstrtct 5 l ynnhaven HAROLD HEISCHOBER At Large BARBARA M HENLEY Dt~trtrt 7 Prtnre$~ Anne LOUIS R JONE~ Dtstrtct 4 Baystde REBA S McCLANAN Dtstrtct 3 Ro~e Itall NANCY K PARKER At Large A M (DON) WEEKS Dtstrtct 2 Kernpsvtlle JAMES K SPORE Ctty Manager LESLIE L LILLEY Ctty Attorney RUTH HODGES SMITH CMC/AAE Ctly Clerk CITY COUNCIL AGENDA CITY HALL BUILDING I 2401 COURTHOUSE DRIVE !~TRGINIA BEACH VIRGINIA 23456 9005 PIIONE (757) 427 4~0~ FAX (757) 426 5669 EMAIL CTYCNCL~CITY VIRGINIA-BEACH VA U' May 4, 1999 I. CITY COUNCIL WORKSHOP - Conference Room - 10:00 AM Ao MANAGMENT RESOURCE PLAN [2 hrs.] E. Dean Block, Director Management Services , FY 1999-2000 Operating Budget FY 1999-2005 CIP II CITY MANAGER'S BRIEFING A, FERRELL PARKWAY PHASE VI - Development Participation Agreement Clarence Wamstaff, Director of Public Utilities/Public Works 12:NOON [30 min.] III. REVIEW OF AGENDA ITEMS IV. CITY COUNCIL COMMENTS V. INFORMAL SESSION - Conference Room - 1:00 PM A. CALL TO ORDER - Mayor Meyera E. Obemdorf B. ROLL CALL OF CITY COUNCIL C. RECESS TO EXECUTIVE SESSION VI. FORMAL SESSION - Council Chamber - 2:00 PM A. CALL TO ORDER- Mayor Meyera E. Obemdorf B. INVOCATION: Reverend John Boyer Church of Christ - Creeds C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF CITY COUNCIL E. CERTIFICATION OF EXECUTIVE SESSION F. MINUTES 1. INFORMAL & FORMAL SESSIONS April 27, 1999 G. AGENDA FOR FORMAL SESSION The Consent Agenda wtll be determtned durtng the Agenda Review Session and constdered tn the ordmary course of bustness by Ctty Council to be enacted by one motion. H. PUBLIC HEARINGS 1. REAL PROPERTY TAX INCREASE - (Resulting Assessment Increase) 2. BONDS a. GENERAL OBLIGATION BONDS $ [Schools, Roadways, Coastal, Buildings, Economic and Tourism, Parks and Recreation and other public facility improvements] 56,700,000 b. STORM WATER UTILITY BONDS $ 5,30O,OOO c. WATER AND SEWER UTILITY REVENUE BONDS $ 9,513,500 3. RESOURCE MANAGEMENT PLAN - Community for a Lifetime a. FY 1999-2000 OPERATING BUDGET $1,068,603,358 b. FY 1999-2000 CIP CAPITAL BUDGET $ 168,460,307 C. FY 1999-2005 CAPITAL IMPROVEMENT PLAN $1,290,638,119 I. HEARINGS FOR PUBLIC INFORMATION 1. MULTI-FAMILY RESIDENTIAL RENTAL HOUSING REVENUE BONDS a. Renaissance Housing, LLC $ 10,000,000 [The Hamptons and Hampton Court Apartments] b. Renmssance Houmng, LLC $ 9,000,000 [Mayfair I and Mayfair II Apartments] c. Silver Hill at Thalia $ 4,400,000 d. Tallwood LP $ 6,500,000 J. RESOLUTIONS . Resolutions to approve issuance of the Virginia Beach Development Authority's Multi- Family Rental Housing Revenue Bonds: Renaissance Housing, LLC Not to exceed $10,000,000 [The Hamptons and Hampton Court Apartments] b. Renaissance Housing, LLC Not to exceed $ 9,000,000 [Mayfair I and Mayfair II Apartments] c. Silver Hill at Thalia, LLC Not to exceed $ 4,400,000 d. Tallwood L.P. Not to exceed $ 6,500,000 , Resolution re the proposed merger of the Tidewater Transportation District Commission and the Peninsula Transportation District Commission; and, authorize the City Manager to execute the Definitive Agreement and Cost Allocation Agreement. K. ORDINANCES o Ordinance to AMEND Section 6-120.1 of the City Code re restrictions on the operation of personal watercraft. . Ordinance to AMEND Sections 35-182, 35-186 and REPEAL Section 35-183 of the City Code clarifying and limiting the tax on free admissions and providing exemptions for events benefitting charities. . Ordinance to APPROPRIATE $6,492,088 from the State Department of Emergency Services and the General Fund to a newly-created FEMA Special Revenue Fund re costs associated with clean-up activities necessitated by Hurricane Bonnie; and, estimated revenues from the Commonwealth be increased accordingly. 4, Ordinance to TRANSFER $100,000 from the Tourism and Growth Investment Fund (TGIF) Reserve for Contingencies to the FY 1998-1999 Operating Budget of the Department of Economic Development re purchase of an Assignable Option on approximately five acres of oceanfront property adjacent to Little Island Park at Sandbridge; and, to authorize the City Manager to execute the Option Agreement. 0 Ordinance to AWARD a lease of city-owned property at 1848 Pleasant Ridge Road to NEXTEL COMMUNICATIONS re constructing, maintaining and operating wireless telecommunications facilities; and, to authorize the City Manager to execute said lease. . Ordinance to AUTHORIZE temporary encroachments into a portion of the City's right-of- way at Mediterranean Avenue, 14th Street and 16th Street by VIRGINIA BEACH PENTECOSTAL CHURCH OF CHRIST re erection and maintenance of four directional signs (BEACH - DISTRICT 6) (Deferred April 13, 1999 and April 27, 1999). 7. License Refunds - $83,291.23 L. APPOINTMENTS FRANCIS LAND HOUSE BOARD OF GOVERNORS WETLANDS BOARD M. UNFINISHED BUSINESS N. NEW BUSINESS O. ADJOURNMENT MANAGEMENT RESOURCE PLAN FY 1999-2000 OPERATING BUDGET & C I P SCHEDULE DATE TIME BUDGET UNIT Thursday, May 6 - Workshop 3 PM - 5 PM Reconcihation Council Conference Room Tuesday, May 11 2 PM Council Action - Council Chambers If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERK'S OFFICE at 427-4303 Hearing impaired, call: TDD only 427-4305 (TDD - Telephonic Device for the Deaf) 04/29/99BAP AGENDA\05\04\99. www.virginia-beach.va.us MINUTES VIRGINIA BEACH CITY COUNCIL V~rg~n~a Beach, V~rg~n~a May 4, 1999 Counctlman Louts R. Jones called to order the MANAGEMENT RESOURCE PLAN WORKSHOP, FY 1999-2000 Operating Budget and FYI99-2005 Capital Improvement Program tn the Council Conference Room, Ctty Hall Butldmg, on May 4, 1999, at 10 O0 A M. Council Members Present. Ltnwood 0 Branch, III,, Barbara M Henley, Louts R Jones, Reba S McClanan and A. M "Don" Weeks Counctl Members Absent: Mayor Meyera E Oberndorf Vtce Mayor Wilham D Sessoms Margaret L. Eure Wtlham W. Harrison, Jr. Harold Heischober Nancy K Parker [EN ROUTE FROM WASHINGTON, D C ENTERED 10 33 A M] [ENTERED. 1.22 P M ] [APPOINTMENT A T 9 O0 A M ENTERED 1 O: 33 A M ] [ENTERED 10'25 A M] [ABSENT DUE TO ILLNESS] [MOTHER VERY ILL IN CHARLOTTE, NORTH CAROLINA] -2- CITY COUNCIL WORK~HOP M/INA GEMENT RES O UR CE PLAN 10:00 A.M. ITEM # 44923 E Dean Block, Dtrector Management Servtces, referenced the business area of Policy and Decision Support, which tncorporates the agencies whtch are a stgntficant part of the Government's Process City Manager General Registrar Law- City Attorney Legislative (City Council- City Clerk) Management Services Public Information Non-Departmental A very small portion of the total budget, less than 1%, ts expended on these government's acttvtttes, however, they are crtttcal tn terms of setttng goals and decidtng chrectton. The Debt Servtce and the Instructional Technology tssues wtll also be revtewed The fundtng alternattves wdl be identtfied and the staff will seek Ctty Counctl's &rectton to address this issue. Policy and Decision Support Council destination points set pace through goal setting acttvtties Increasing Number of registered voters, but low turnout. In 1994-95, there were approxtmately 158, 000 registered voters in Vtrgmta Beach and now approxtmately 230, 000 The number of registered voters is projected to be 245,000 by the end of the upcomingfiscal year. There ts a signtficant tncrease tn the workload of the Regtstrar. The number of prectncts has tncreased from approxtmately 63 Ftscal Year 94/95 to 74 today. Additional staffing for City Attorney's Office is betng proposed tn response to a request from the Courts to meet the addtttonal demands As evidenced through the Ctty's Ctttzen Survey, 94% of citizens say Virginia Beach is a safe place to live. A very important aspect of the City's efforts ts to sustain a high level of volunteer activity This has continued to grow and now there are over 10,000 Volunteers. This results tn reduced costs and a stronger commitment to commumty on the part of so many citizens and their tnvolvement in the government Support for regional agencies tncludes Communtty Organtzatton Grants and parttctpatton tn the Hampton Roads Economic Development Alhance, Virginta Institute Government, as well as the Hampton Roads Planntng Dtstrtct Commtsston and a commitment to asstst the Medtcal College of Hampton Roads All those acttvtttes assist tn btnchng the Ctty to the regton. Mr Block advtsed a request was received from Old Domtnion Untversity to contrtbute as much as $1- MILLION toward computers for the Htgher Education Center and this ttem was forwarded to Ctty Counctl This ttem has been tdenttfied as one of the ttems for constderatton tn the Reconcthatton Workshop Prevtously, funds had been tdenttfied to make tmprovements on the site and the roadway work The Ctty Manager advised ODU has now refined thts parttctpatton to $936,000. The Htgher Educatton Center should be opened tn July. Mayor Oberndorf advtsed there have been numerous fund ratsers hosted by some of the Ctty's most promtnent ctttzens requesttng donations from alumnt and ctttzens. May 4, 1999 -3- CITY COUNCIL WORKSHOP MANAGEMENT RESOURCE PLAN ITEM # 44923 (Continued) Concerning Debt Service, the Capital Improvement Program, as proposed, wdl comply with all City Council policies on debt management over the hfe of the Capital Improvement Program. The debt wall grow during the next two years due to constructton of the htgh school and the `4dvanced Technology center which will equate to over $40-MILLION in Charter Bonds. Mr. Block referenced distnbutton of responses to City Council questions as of May 4, 1999, relative the Resource Management Plan ,4 letter was received from Shertff Frank Drew yesterday, May 3, 1999, who, much to his surprise, learned he was the reciptent of 17 deputy positions and one secretarial position from the State Compensatton BoaRd. The State had not advised him of this earlier The downstde to this news ts there is some cost to the City, which will result tn an impact between $I00,000 and $150, O00 for Fiscal Year 1999-2000 in those portions of the cost required by law for the Ctty to pay, which include urn. forms, health insurance, et cetera. The Ctty wdl be coordmattng with Sheriff Drew and Chtef Deputy Lanteign over the next two weeks to mtnimtze those cost impacts and tdentt, fy whether or not tradeoffs can be made in the Shertff's Budget. City Councd wdl be advised at a future session, as these costs will not tmme&ately tmpact Council Lady Henley expressed concern over the lack of road improvements scheduled in the old Transition Area H She recalled that Indian River Plantation ts the only subdtvtsion tn the Ctty that is paytng cash proffers. Over the years now, through the work that has been done, they havepatd amounts to the City which was supposed to be utilized for road improvements. However, she believes in order to spend the funds, the road project must be in the Capttal Improvement Program. She is aware the funchng ts not sufficient to do major improvements; however, that section of lndian River Road is so bad with no shoulders and deep ditches. Council Lady Henley hopes some work may be done i.e. moving the ditch over and improving the shoulders with the funds collected before this section of roadway appears tn the CIP, whtch is probably 20 years in the future. Mr. Block advised informatton relative the total amount of money in this separate fund will beprovided as well as the total cost of these suggested tmprovements. This information wtll beprovtded after May 11, 1999. Mayor Oberndorf advised she was chsappointed tn the report relative Funding School Technology. When she requested the rtghts-of-way user fee ("phone fee ") be rescinded, she asked the staff to examine the City side of the Budget to find the funds. She did not wtsh anything to tmpact what had already been promtsed to the Schools to achieve thetr goals tn educating the chddren better than any other system tn the State of Virginia. The City Manager advised the funding mechanism recommended in the Policy Report was the reallocation of the additional lottery funds and the addttional FY 1999/2000 revenues, which encompass$3 % of the personal property tax. It would not take away from the funds that have been requested by the School Board tn thetr budget request. One of the staff's goals was not to alter the revenue sharing formula and not take away funds from the Schools. Councilman Harrison did not concur with the Policy Report dated April 30, 1999, concerning Funding School Technology. Counctlman Harrtson advtsed the "phone fee "was clearly a promise by the City to fund $1,$00,000 annually for $ ~ years to the Schools over and above their share of the six revenue funding sources. $569,775 represents 53 % of the Personal Property Tax increase and is clearlypart of the revenue sharing policy. The School Board approved betng responsible for $2-MILLION annually for the next etght years. The City is now saying to the School Board that they are to be responsible for $2,550, O00 for the next eight years and the Ctty wdl look to the lottery funds above the modernization policy to balance its share, whtch technically has already been allocated to the schools by the Governor and the General ,4ssembly Mr. Block advised the Four Alternatives for Funding School Technology: Policy Report of ,4pri130, 19999 Cut City Operattng Budget Two-Year Program Start-Up & `4udit 100% Lump Sum Funding - 8years. May 4, 1999 -4- CITY COUNCIL WORKSHOP M/INA GEMENT RES O UR CE PLAN ITEM # 44923 (Continued) On April 13, 1999, City Council approved an or&nance to resctnd the Telecommunications Right-of-Way Fee. At the same time, City Council directed the City Manager to identify an alternattve fundtng source for School technology needs. Several dectston crtterta were estabhshed as a framework for the recommendattons CRITERIA The Ctty/School Revenue Shartng Pohcy wtll not be changed or vtolated 2 No new, addtttonal or tncreased fees or taxes wtll be apphed or recommended. 3. No negative tmpact on Ctty programs 4 No negative impact on extsttng School tnstructtonal/operattng programs In order to provtde a rehable funding stream to achteve the recommended School technology tmtiative the followtng was proposed Allocate SI.O-MILLION of the additional School ending balance to School technology Thts wtll be above and beyond the annual contrtbution outhned below and wtll serve as a conttngency tn the event of a shortfall, provt&ng ttme to adjust the program and funding sources tf condittons warrant The full amount of the ad&tional School-share revenue identified in the memo of Aprtl 13, will be committed to technology In FY 1999-2000, the amount ts $569,775 ts projected to grow at an average 4% annual rate. To provtde the rematnder of the $1.5-MILLlON annually, begtnntng tn FY 1999-2000, it ts recommended that the extra state lottery funds, above the amount ortgtnally expected for modernization be allocated to technology. The amount for FY 1999-2000 ts $1,111,770. Thts amount ts expected to decrease by 2% annually. It ts proposed that a separate spectal revenue fund - Fund for Instructional Technology (FIT) - be estabhshed All montes for this purpose (except state technology grant funds) would be placed tn the fund Each year, only those amounts needed per the plan (as updated) would be budgeted Fund balances would be matntained and would earn tnterest Mr. Block advised there ts another pool of funds whtch the State has not taken actton upon and for whtch the City needs to be watchful and that ts the tobacco settlement The amounts are staggertng and Vtrgtnta is a parttctpant tn this process. Counctl Lady Henley advtsed thts Lottery plan was the Senate Plan There was a Plan from the House of Representatives, which would have provided the Ctty $20-MILLION a year in lottery funding begtnmng Ftscal Year 2000 and then conttnutng every year thereafter Counctl Lady Henley was concerned relattve the wtde dtspartty tn these two amounts Robert Matthtas, Asststant to the Ctty Manager, advtsed the House bastcally gave the Ctty the amount allocated thts year for Capital Construction and then tn the second year of the Btenntum would gtve the City double the amount of money They were gotng to codtfy where the Ctty would receive that amount of money every year thereafter -approxtmately $20-MILLION There is $323- MILLION tn profit from the lottery each year The State, under the current plan, ts now gtvtng the Ctty 40% and keeping 60%, but the State advtses they are returntng that to locahttes as they are pay tngfor SOL costs Counctl Lady Henley feels reasonably comfortable tn projecting the utilization of the lottery funds for modernization and technology. May 4, 1999 -5- CITY COUNCIL WORKSHOP MANAGEMENT PESO UR CE PLAN ITEM # 44923 (Continued) Mr Block respects the work of the Technology Committee and is concerned that thts proposal that could be tncorrectly construed as the City staff repuchattng the work of the Commtttee The staff beheves thts proposal retatns the essence of the Committee's efforts The reality ts 13,000 computers are betngpurchased and thts ts not affecttng the ongoing School Board operattons The School Board wtll sttll have $3-MILLION of chscrettonary addttional programs tn thetr budget There ts no tmpact on these programs The Ctty dtd not have a separate fund estabhshed when this technology was funded by the Telecommuntcattons fee Thts Plan will have more protectton and more control. The Ctty ts actually exceeding the $1.5-MILLIONannual contributton, whtch means that thts program is assured of conttnutng beyond 8years, as needs develop for technology Counctlman Jones was not as comfortable tn depending upon the lottery proceeds beyond the two years. There wtll be a new Governor tn two years who mtght not continue the program tn the same manner wtth the same amount The Ctty should not rely upon the "tobacco funds" The City has no tdea of what the next administration might do concerning the manner tn which to disburse or utthze these funds The City must depend upon reality. The City made a commttment that they would fund $1.5-MILLION of the technology program out of the Ctty budget and not from the School funds Clearly, this Pohcy, takes the fundtngfrom the Schools. Counctlman Jones tnqutred what was the Ctty gotng to do when the School Board advises addittonal expenses, which they must fulfill tn the tntertm between now and next year, and they say the Ctty took their $569,775 and uttltzed tt for a commitment tn technology Mr Block advtsed the School Board mtght have some concerns, as they chd not budget for health tnsurance Mr. Block advtsed the Revenue Shartng Pohcy has been extremely successful There have even been those who satd the Ctty has gtven the Schools too much fundtng There have been stgntficant fund balances every year on thepart of the schools. Thts year the total Increase approached $12-MILLION The Superintendent of Schools and the School Board chose to allocate those funds tn a parttcular way (not only those funds received from the Ctty, but from the State and Federal governmenO Thts body is under no obltgatton to treat a request from any agency as a requtrement This body ts under no obhgatlon to add funds anyttme somebody tdentt, fies a potenttal addtttonal need. The Schools have placed a great deal of emphasts on the past couple of years and thts year tn particular relative thts notton of partty (betng defined as everyone recetvtng the same pay increase) Thts year, tn an effort to achteve their verston of parlty, the School Board satd they would provtde 3% on July 1 to all of the personnel who are eligtble The 3% ts a step tncrease ,,lpproxtmately, 10% of the School employees are at the top of thetr scale and would not receive same In addttton, the School Board advtsed an across-the-board increase of l 1/2% would be provtded on January 1, 2000 The Ctty has not done this m four orfive years The Ctty wtllprovtde al ehgtble employees a 41/2% increase on their anniversary date ,4pproxtmately 90% of personnel tn the Ctty are ehgtble for thts tncrease Schools have allocated 7/10 more as a percentage of payroll than the Ctty has by' day-to-day pay tncreases. Mr. Block ctted examples ora school and ctty employee earmng $30, O00 per year The School Board employee would receive $1125 more during the fiscal year At the end of the fiscal year, they would be at a dtfferent pay level enttrely The Ctty employee wouM have to have an anntversary date equal to or earher than September 1 to recetve as much as the School employee durtng the Ftscal Year 70% of Ctty employees have an anmversary date later than September Ftrst. 7/10 o fa % of payroll for Schools equals $2.2-MILLION The School Board approved a bonus of $150 on April 20, 1999, and the checks wtll be chsbursed tn two weeks. These funds were from the endmg balance Relative Discretionary Programs, the School system added 205people tn the their School Operating Budget, not counttng grant funds In thetr April Twentieth presentation to Ctty Counctl, the School Board advtsed new initiatives totaling $2.4-MILLION (math academy for teachers, 25 additional teachers at 7h Bell in High Schools, 22fixed credit hours and 2 electives in 6-bell day) The Ctty has tdenttfied another $600,000 tn costs, whtch are discretionary, such as a pool of custodtans. Approxtmately $3-MILLION tn funding ts contained tn Discretionary Local Programs. Councilman Harrtson referenced the five two-to-three hour meetings of the Technology Committee to develop the Plan Counctlman Harrtson tnqutred tf the Ctty Manager or Mr. Block had consulted wtth Dr Jenney or any member of hts staff regardtng the Plan to in essence shift an addtttonal $569, O00 financtal burden to the Schools that was not contemplated by the Plan adopted by the Technology Commtttee. The Ctty Manager advtsed the Plan was revtewed with Dr denny and staff the other day and a copy of the Pohcy Report was provided them Concern was expressed. May 4, 1999 -6- CITY COUNCIL WORKSHOP MANAGEMENT RESO UR CE PLAN ITEM # 44923 (Continued) Councdman Harrtson also expressed concern relative the continued viability of the State lottery funds to fnance SI.I-MILLION. He is also concerned relative the conttnued vtabthty of the Personal Property Tax at the rate projected. Mr Block advtsed the staff shared thetr concerns about these same issues tn thetr Aprtl 13, 1999, memorandum Counctlman Weeks advised an article in the Virgtntan-Ptlot stated School Board Vtce Chatr Rosemary Wtlson asserts there are a number of computers purchased that are still tn boxes Mr. Block cited Alternative 2: Cut City Budget . Buy down (non recurring) CIP eliminations Lynnhaven Boat Ramp Bayside Library* Community Color Project Celebrate 2000 TOTAL BUY-DOWN $1,050,000 479,000 100,000 150.000 $1,779,000 2. Recurring Sources A. Reductions in FY 1999/2000 Proposed Budget New/Expanded City Programs. Eliminate additional Zoning Inspectors Eliminate Neighborhood Reinvestment Program Eliminate additional City Attorney positions Eliminate Vector Control Program Eliminate EMS Quality Assurance Program $ 181,000 100,000 53,153 54,47o 19,000 TOTAL $ 408,620 B. All additional city revenue per April 13 memo $ 502,641 Use all additional City fund balanceper Apri113 memo ($4.2-MILLION) to replace budgeted charter bonds now in CIP. Creates recurring stream of avoided debt service. FY 1999/2000 amount -- $ 420,000'* 14% permanent across the board cut in Non-city agency support, except tax relief(see April 13 memo) $ 276,000 TOTAL ~CURRING (FY 1999/2000) $1,607,681 A separate fund would be estabhshed. All montes except state grants would go into the fund The fund would earn tnterest *Baystde Ltbraryfunding tn CIP was to facthtate tmprovements/relocation to leased space. If Baystde Ltbrary ts to be new construction in future years, funds are needed to fund the stte locatton $100,000 ts retatned to tdenttfy the stte, performance preltminary engineertng **This amount dechnes each year, reflecting actual debt servtce pattern May 4, 1999 -7- CITY COUNCIL WORKSHOP MANAGEMENT RES O UR CE PLAN ITEM # 44923 (Continued) Wtth reference to Councilman Harrison's concerns, the Ctty Manager and Mr. Block advtsed thts ts an attempt to buy-down to cover the difference of the interest assumption in 810 computers whtch were not tncluded. The goal was to provide 13, 000 computers Counctlman Jones advtsed the Ctty's commttment was $1.5-MILLION per year and this must be focused upon Alternative 3 Front-Load Additional $3. O-MILLION into fund Sources recommended' $1,ooo, ooo $2,ooo, ooo Excess Policy Revenue City Ending Balance Advantages Meets immediate needs Recognizes changing technology/uncertainties Allows for program audit Requires no new taxes Minimizes impact on CIP/Budget Modernization program not impacted $569,775 available to School operations Large contingency is available Can be added to each year Dtsadvantages Need to revisit in 2001/02 Budget (May 2001) Not full 8- Year Program Alternative 4 Use fund balance of $11,300,000 currently in CIP or available Sources 1. Fund Balance from April 13 memo $ 6,800,000 2. Cuts to following projects Bayside Police Precinct Bayside Library Replacement Lynnhaven Boat Ramp Celebrate 2000 Community Color Project Sandbridge Fire Station Replacement Advantages 1,300,000 5oo, ooo 1,050,000 150,000 100,000 1.400,000 $11,300,000 Addresses 8-Year Program No Impact on Modernization $569,775 Available to Schools No Impact on Revenue-Sharing No Tax Increases Disadvantages Eliminate Council CIP Flexibility Cuts City Projects - Replacement Uncertain No Recurring Past 8 Years No Opportunity to Evaluate Program May 4, 1999 -$_ CITY MANAGER'S BRIEFING FERRELL PARKWAY PHASE VI 12:17P. M. ITEM # 44924 Clarence Warnstaff, Acting Director of Pubhc Works, advised on January 13, 1999, Ellis-Gibson Development Group presented their proposed development for the "Reasor Tract" which proposes commercial development of approximately 150 acres on a site located &rectly south of the Red Mill Farm and west of the Fox Chase sub&visions The proposal presents the City an opportumty to have the Developer design, de&cate right-of-way and build a portion of Ferrell Parkway - Phase VI, as well as the extension of Upton Drive. The proposed road network to be built bY the developer would support not only the proposed development, but would alsoprovtde an arterial connection to the Red Mill Farm and Fox Chase sub&visions to General Booth Boulevard. Two ahgnments were proposed. Mr. Warnstaff outhned these alignments on the map Straight alignment - Ferrell Parkway would continue in essence tn an easterly &rectton along the Ferrell Parkway alignment that was recommended in the Sandbridge Corridor Road Study Curved alignment - Ferrell Parkway ts would curve down to the intersection of Sandbrtdge and Prmcess Anne Road. Upton Drive wouM come into this portion of Ferrell Parkway The developer indicated both these alignments could be reviewed The City Staff ts recommends, in anticipation of reaching a satisfactory agreement with the Developer, that the City Council include $2 9- MILLION in the CIP Project # 2-007. It is estimated that the total CIP costs for an equtvalent project, tf undertaken solely by the City, would cost approximately $12,680,000 (tn FY99 dollars). These costs would mclude design, acquisition of rlght-of-way, construction and other typical project costs If the City were to cost-participate now, we would reahze a potential savings of at least $9,780,000. The City staff is recommending the straight alignment as opposed to the curved ahgnment The Sandbridge Road Corridor Study recommended the construction of Ferrell Parkway from General Booth Boulevard eastward to, at least, Camtno Real, regardless of the ultimate long-term ahgnment The study recommended Ferrell Parkway be developed as a four-lane &vtded highway from General Booth Boulevard to Atwoodtown Road and east of Atwoodtown Road to Sandbrtdge as a two lane highway Mr Warnstaff will inquire and advise whether an agreement with the Developer can be reached for future implementation The City Manager advised the Developer tn&cated they wish to proceed with this project imme&ately A description of the length, design cost and right-of-way cost associated with Project 2-007 will be provided. Council Lady McClanan advised this proposal is extremely intense development without a road system tn place. Council Lady Henley referenced her request for a Special Workshop on May 18, 1999, to provide an overview of this Corridor to include this 150 acres as there are so many applications involving this entire Corridor Council Lady Henley ts under the impression that the tntent would be not to develop all of these 150 acres as commercial, but to consider other types of rezonmgs as multi-family. Council Lady Henley needs to make a decision relative whether or not to swap the Sandbridge Road improvements rather than Ferrell. Council Lady Henley noticed tn the report received last week that the staff's recommendation ts against accepting the "swap" offer, which has been broadened due to other issues concernmg property which is currently owned by U S Fish and Wildhfe projects involving the Sandbrtdge Fire Station and the dratnage project Council Lady Henley requested this question of "swap "be considered during the May 18, 1999, Workshop Mr Spore advised an alternative course of action could be the City would choose not to cost-participate with the proposal made by the Ellis Gibson Development Group The Developer would then submit a site plan with the minimum amount of road network necessary to support his proposal rather than network that would also serve the surroun&ng communities This could result in a less than desirable roadway system for the pubhc The proposed FY1999-2000 CIP would then not include funding of the $2.9-MILLION. At some point in the future, the City would have to budd 100% of Ferrell VI, at the City's expense, tnclu&ng acquisition of right-of-way May 4, 1999 -9- CITY MANAGER'S BRIEFING FERRELL PARKWAY PHASE VI ITEM # 44924 (Continued) Rich Nettleton, Public Works - Engineering, advised each of the three lengths is apprommately 7/10 ora mile; therefore, there ts approxtmately 2 2 mdes of roadway overall The rtght-of-way depicted in "blue" on the map is currently owned by the development concern. Robert J Scott, Director of Planning, advtsed Counctl Lady Eure, the Reasorplan has not been submttted to the Department for review Mr Scott advtsed tn 1965, the Ctty rezoned 300 acres of land for commerctal development with no con&ttons or site plan The City gave up a tremendous amount of leverage &nce that ttme, tn the late 1970's a stgntficant amount of that 300 acres was rezoned to stngle famtly restdenttal (location of the Red Mtll subdiviston) There still remams approximately 150 acres of commerctally zoned property The staff has attempted, over the years, to have a comprehensive approach to the development of this land, but does not possess the leverage to do same Councilman Branch expressed concerns relative the City's obligations to improve pubhc roadways to the developer's property The Ctty Attorney requested this tssue be dtscussed during the Workshop Session of May 18, 1999, to enable the legal staff and the Planmng Department to confer relattve the development Mayor Oberndorf advtsed dtscusston should entad environmental posttions of agencies relattve the stratght and curved alignment Councdman Weeks advised there are over $100-MILLION of critical road needs in Kempsville Council Lady McClanan requested City Councd allow and schedule a time and place for the pubhc to state their concerns and comments regarding these decisions. May 4, 1999 - 10- AGENDA REVIEW 1:03 P.M. ITEM # 44925 Resolutton re the proposed merger of the Tidewater Transportation District Commission and the Peninsula Transportation District Commission; and, authortze the Ctty Manager to execute the Deftnittve Agreement and Cost Allocatton Agreement Thts ttem shah be &scussed during the Formal Session. ITEM # 44926 K. 1 Ordinance to AMEND Sectton 6-120.1 of the Ctty Code re restrtctions on the operatton of personal watercraft. Assistant City Attorney Randy Blow advised during its 1998 Session, the Virgima General Assembly enacted several amendments to the State Code pertatning to personal watercraft, whtch had a delayed effecttve date of January 1, 1999. Thts necessttates stmtlar amendments to Section 6-120.1 of the Ctty Code The mtmmum &stance that personal watercraft must matntatn from persons tn the water ts reduced from 100 to 50feet This amendment ts necessttated by the GeneraIAssembly's repeal (effecttveJanuary 1, 1999) of State Code Sectton 29 1- 744 1 whtch had authortzed locahttes, by ordtnance, to requtre that personal watercraft maintain a mimmum distance of l OO feet from swtmmers. Because that section was repealed, the Ctty must now rely, for its authortty, upon Sectton 29 1-748, which was also revised effective January 1, 1999, and only requtres thatpersonal watercraft matntatn a mtmmum &stance of 5O feet from people tn the water The Ctty Council will request the General Assembly, tn tts 2000 Legislative Package, to amend the State Code during tts 2000 Sesston by restattng thts &stance to be l OO feet. Mr Blow advised should Cay Councd not amend the City Code as here requested, State Code wouldprevail and fees from any enforcement would go to the State vs the Ctty if this amendment ts adopted ITEM # 4492 7 K4. Ordtnance to TRANSFER $100,000 from the Tourtsm and Growth Investment Fund (TGIF) Reserve for Conttngenctes to the FY 1998-1999 Operatmg Budget of the Department of Economic Development repurchase of an Assignable Option on approximately five acres of oceanfront property adjacent to Little Island Park at Sandbridge, and, to authorize the City Manager to execute the Option Agreement. The City Attorney advtsed he had copies of the actual 18-page Option Agreement for City Councd The Summary contatned wtthtn the agenda contatns all perttnent detads ITEM # 44928 BY CONSENSUS, the following ttems shah compose the CONSENT AGENDA RESOLUTIONS J1 Resolutions to approve tssuance of the Virginia Beach Development Authority's Multi-Family Rental Housing Revenue Bonds: a Renatssance Houstng, LLC Not to exceed $10,000,000 [The Hamptons and Hampton Court Apartments] b Renaissance Houstng, LLC Not to exceed $ 9,000,000 [Mayfatr I and Mayfatr II Apartments] c Stlver Hill at Thaha, LLC Not to exceed $ 4,400,000 d Tallwood £ P Not to exceed $ 6,500,000 May 4, 1999 -Il- AGENDA REVIEW ITEM # 44928 (Continued) ORDINANCES K 10rdtnance to AMEND Section 6-120 1 of the City Code re restrtcttons on the operatton of personal watercraft. K2 K3. K5. K6 Ordtnance to AMEND Secttons 35-182, 35-186 and REPEAL Sectton 35-183 of the City Code clartfytng and limiting the tax on free admissions and providing exemptions for events benefttttng charities. Ordinance to APPROPRIATE $6,492,088 from the State Department of Emergency Servtces and the General Fund to a newly-created FEMA Special Revenue Fund re costs assoctated wtth clean-up acttvittes necessttated by Hurricane Bonnie, and, esttmated revenues from the Commonwealth be tncreased accordtngly Ordtnance to AWARD a lease of ctty-owned property at 1848 Pleasant Ridge Road to NEXTEL COMMUNICATIONS re constructtng, matntatntng and operating wireless telecommunications facilities; and, to authorize the City Manager to execute said lease Ordtnance to AUTHORIZE temporary encroachments into a portton of the Ctty's rtght-of-way at Medtterranean Avenue, 14tn Street and 16tn Street by VIRGINIA BEA CH PENTECOSTAL CHURCH OF CHRIST re erectton and maintenance of four directional signs (BEACH- DISTRICT 6) (Deferred Aprtl 13, 1999 and April 2 7, 1999) K 7 License Refunds - $83,291.23 Item K 2 wtll be DEFERRED, BY CONSENT, until the City Council Session of May 25, 1999. Item K 6 wtll be DEFERRED INDEFINITEL Y, B Y CONSENT May 4, 1999 - 12- CITY COUNCIL COMENTS 1:15 P.M. ITEM # 44929 Mayor Oberndorf advtsed speaking wtth Counctlman Hetschober thts mormng Although he was not sufJ~ctently recovered to attend the meettng, his votce sounded stronger Counctlman Hetschober ts watching the City Counctl Sesston The Mayor and Counctl Members extended thetr prayers for complete recovery Councilman Hetschober expressed apprectatton for the beauttful flower arrangement He satd thts one was very unusual and certatnly more beauttful than any he had ever seen. He was dehghted City Council thought of him and expressed thetr feeltngs tn such a race way May 4, 1999 - 13- ITEM # 44930 Mayor Meyera E Oberndorf called to order the INFORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the Ctty Councd Conference Room, Ctty Hall Butldtng, on Tuesday, May 4, 1999, at 1 16 PM. Council Members Present £tnwood 0 Branch, III, Margaret £. Eure, Wtlltam W Harrtson, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Mayor Meyera E Oberndorf, Vtce Mayor William D Sessoms, Jr and A M "Don" Weeks Counctl Members Absent Harold Hetschober and Nancy K Parker May 4, 1999 - 14- ITEM # 44931 Mayor Meyera E. Oberndor~, entertained a motion to permit City Councd to conduct its EXECUTIVE SESSION, pursuant to Sectton 2 1-344, Code of Vtrgmta, as amended, for the followtng purpose PERSONNEL MATTERS Dtscusston or consideration of or intervtews of prospecttve can&dates for employment, assignment, appotntment, promotion, performance, demotion, salartes, &sciphntng, or resignation of spectfic publtc officers, appointees, or employees pursuant to Sectton 2 1-344 (A) (1) To Wtt Boards and Commissions Francts Land House Board of Governors Wetlands Board PUBLICLY-HELD PROPERTY' Discussion or consideration of the conditton, acqutsttton, or use of real propertyforpubhc purpose, or of the &sposttton of pubhcly-held property, or of plans for the future of an instttution whtch could affect the value of property owned or desirable for ownershtp by such tnstttutton pursuant to Sectton 2 1-344(A)(3) To-Wtt Communtty Servtces Board Facilities - Rosemont Dtstrtct (Bonney Road Stte) Prtncess Anne Dtstrict Kempsvtlle Dtstrtct Beach Dtstrict Lynnhaven Dtstrtct Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council voted to proceed tnto EXECUTIVE SESSION. Vottng: 9-0 Council Members Voting Aye: Ltnwood 0 Branch, III, Margaret L. Eure, Wilham W Harrison, Jr., Barbara M Henley, Louts R Jones, Reba S McClanan, Mayor Meyera E Oberndorf, Vice Mayor William D. Sessoms, Jr and A. M "Don" Weeks Counctl Members Vottng Nay. None Council Members Absent' Harold Hetschober and Nancy K Parker May 4, 1999 - 15- FORMAL SESSION VIRGINIA BEA CH CITY CO UNCIL May 4, 1999 2:28 P.M. Mayor Meyera E Oberndorf called to order the FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL tn the Councd Chamber, City Hall Budding, on Tuesday, May 4, 1999, at 2'28 P M Councd Members Present Ltnwood 0 Branch, III, Margaret L Eure, Wdham W Harrison, Jr, Barbara M. Henley, Louts R. Jones, Reba S McClanan, Mayor Meyera E Oberndorf, Vice Mayor Wdham D. Sessoms, Jr and A M "Don" Weeks Councd Members Absent' Harold Hetschober Nancy K. Parker [ABSENT DUE TO ILLNESS] [MOTHER VERY ILL IN CHARLOTTE, NORTH CAROLINA] INVOCATION' Reverend John Boyer Church of Chrtst- Creeds PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Vtce Mayor Sessoms, being a Corporate Officer of Wachovta Bank disclosed there were no matters on the agenda tn whtch he has a "personal tnterest", as defined tn the Act, either indtvidually or in hts capactty as an officer of Wachovia Bank, The Vice Mayor regularly makes this Disclosure as he may not know of the Bank's interest tn any apphcatton that may come before Ctty Councd Vice Mayor Sessoms' letter of January 4, 1999, ts hereby made apart of the record May 4, 1999 Item VI-E -16- CER TIFICA TION OF EXECUTIVE SESSION ITEM # 44932 Upon motton by Vice Mayor Sessoms, seconded by Councdman Jones, Cay Council CERTIFIED THE EXECUTIVE SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS. Only pubhc bustness matters lawfully exempted from Open Meeting requirements by Vtrgtnta law were chscussed tn Executive Sesston to whtch this certt, ficatton resolution apphes, AND, Only such pubhc bustness matters as were identified tn the motton conventng the Executtve Sesston were heard, dtscussed or constdered by Vtrgtnta Beach Ctty Councd Vottng 9-0 Counctl Members Voting Aye Ltnwood 0 Branch, III, Margaret L Eure, Wilham W. Harrtson, Jr, Barbara M Henley, Louis R Jones, Reba S McClanan, Mayor Meyera E Oberndorf Vtce Mayor Wdham D Sessoms, Jr and A. M "Don" Weeks Council Members Vottng Nay None Counctl Members Absent Harold Heischober and Nancy K Parker May 4, 1999 CERTIFICATION OF EXECUTIVE SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into EXECUTIVE SESSION, pursuant to the affirmative vote recorded in ITEM 44931, Page 14, and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.1-344. of the Code of Virginia requires a certification by the governing body that such Executive 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 Executive Session to which this certification resolution applies; and, (b) only such pubhc business matters as were identified in the motion convening this Executive Session were heard, discussed or considered by Virginia Beach City Council. odges S~ith, CMC/AAE City Clerk May 4, 1999 Item VI-F. -17- MINUTES ITEM # 44933 Upon motion by Vtce Mayor Sessoms, seconded by Councdman Jones, Ctty Councd APPROVED the Minutes of the INFORMAL AND FORlffAL SESSIONS of April 27, 1999. Vottng 9-0 Counctl Members Voting Aye Ltnwood 0 Branch, III, Margaret L Eure, Wdham W Harrison, Jr, Barbara M Henley, Louts R Jones, Reba S. McClanan, Mayor Meyera E Oberndorf, Vtce Mayor William D Sessoms, Jr and A M "Don" Weeks Councd Members Vottng Nay. None Counctl Members Absent Harold Hetschober and Nancy K Parker May 4, 1999 Item - 18- AGENDA FOR FORMAL SESSION ITEM # 44934 BY CONSENSUS, Ctty Councd ADOPTED: AGENDA FOR THE FORMAL SESSION May 4, 1999 Item VIoG 2. - 19- PROCLAMATION ADD-ON ITEM#44~5 Mayor Oberndorf PROCLAIMED : MAY4, 1999 QUALITY GO VERNMENT OR GANIZA TION DA Y The Crt yof Vtrginta Beach received the prestigtous Senate Productivity and Quality Award for Virginia, the 1998 Medalhon of Excellence Award for Publtc Sector Local Agenctes Thts award validates and recogmzes the excellence of the Vtrginta Beach Quahty Service System, our collaborattve systems approach to provtchng cost effective quahty customer servtce whtle helptng to create opportunities and outcomes tn the community tn partnershtp with ctttzens Thts presttgtous award ts a tribute to the tnnovatton, commitment and hard work of Ctty employees and volunteers who strive everyday to be the very best The City Manager, James K. Spore, ACCEPTED the PROCLAMATION, on behalf of the 5,600 Ctty Employees May 4, 1999 gVhereas: qbe City of Virginia $each receivedthe prestigious Senate (Productiwty andQuafity~ward f orVirgima, the 1998 Medallion of Bxce[fenceAwardforPubfic Sector £oca[Agenctes; and ~ereas: ~ awar~ va[i~ates an~ recogn~es the e~ce[~nce of t~e ~irgima Seach ~ua6ty Semce System, our co[~6omtive ~stems appwach to pwvi~ng cost ~ective qua6ty customer semice wht~ helping to create oppo~umties an~outcomes in t~e communtty ~ pa~ners~tp with cittzens; an~ ~ereas: ~ prestigio~ awar~ a tff~ute to the bmovation, commitment an~ar~wor~Ctty emp~yees an~vo[unteers w~o stffve eve~ay to 6e t~e ve~ 6est; and ~hereas: ~trginia Seach city government was recognize~ for its organizational qua6ty, strategic p~nnutg, productivity an~contbmo~ mtprovement ~o~s after 6etng evafitate~a[ong w~th ot~er state-wt~e app~cants; an~ ~ereas: ~eed6ac~rom t~e evafuators ~o ma~e an on-site visit compfimente~t~e City of ~irginia Seach on our c~tomer an~ cittzen focus, t~e strength of ~QSS, on cooperation among depa~ments anion the City ~ rewar~an~ recognition programs; and ~hereas: ~e Senate ~oductivity andQuafity~war~e~affion ~~ce[fence ~ the highest We[of mcogmt~on pmsenteKstate-wi~e forpw~uctivity an~quafi'ty e<ceF&nce; an~ Whereas: ~ recognition ~ ve~ grat~mg andvalidating as the City of Virginia $each has been striving to achieve thu Medalfion of Bxcel5nce for severalyears. How, ~er~ore, L Mqera ~. Obemdo~ Mayor ~ the City ~ Virginia $each, Virginia, do hereby Procfiim: May 4, 1999 Quality Government Organization Oay In Virginia $each, and encourage all citizens to be recognize the outstanding achievements of our city government. In 'Witness Whereof, I have hereunto set my handandcausedttie Offi'cialSealof the City of Virginia $each, Virginia, to be affixed this Gout'th ~Day of May, Hineteen HundredandHinety-Hine. Item VI-H. 1. - 20- PUBLIC HEARING ITEM # 44936 Mayor Oberndorf DECLARED A PUBLIC HEARING REAL PROPERTY TAX INCREASE- (Resulting Assessment Increase) The followtng regtstered to speak tn OPPOSITION: Shtrley Snyder, 905 Windsor Road, Phone' 422-532 7, resident of Bay Colony Lewts Winston, 5004 Cullen Road, represented the Lakeview Park Ctvtc League, Phone 363~8444 There betng no further speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING May 4, 1999 Item VI-H.2. - 21 - PUBLIC HEARING ITEM # 4493 7 Mayor Oberndorf DECLARED A PUBLIC HEARING: BONDS GENERAL OBLIGATION BONDS [Schools, Roadways, Coastal, Buildings, Economic and Tourism, Parks and Recreation and other public facility improvements] STORM WA TER UTILITY BONDS WA TER AND SEWER UTILITY REVENUE BONDS $ $6,7oo, ooo $,300,000 9,$~3,$oo There betng no speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING. May 4, 1999 Item VI-H.3. - 22 - PUBLIC HEARING ITEM # 44938 Mayor Oberndorf DECLARED A PUBLIC HEARING: RESOURCE MANAGEMENT PLAN- Community for a Lifetime FY 1999-2000 OPERATING BUDGET $1,068,603,358 FY 1999-2000 CIP CAPITAL BUDGET $ 168,460,307 FY1999-2005 CAPITAL IMPROVEMENT PLAN $1,290,638,119 The following regtstered to speak Dean DaSilva, 3419 Virgtnia Beach Boulevard, B-3, represented the firefighters and requested 15personnel and 27 Captain upgrades Martan Sanders, 3 797 Lake Tahoe Tratl, Phone' 471-06290, Chatrman Mayor Commtttee for the Dtsabled Lurhne Farwell, 1801 Camelot Drive, Phone' 481-7156, spoke relattve fundtngfor Endependence Center Rtchard Grtmstead, 411 15tn Street, Phone' 425-5309, represented restdents of the North Lake Holly expressing concerns relattve Lake Holly There being no speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING. May 4, 1999 Item VI-I. - 23 - PUBLIC INFORMATION ITEM # 44939 Mayor Oberndorf DECLARED A HEARING FOR PUBLIC INFORMATION MUL TI-FAMIL Y RESIDENTIAL RENTAL HOUSING REVENUE BONDS Renaissance Housing, LLC $ 10,000,000 [The Hamptons and Hampton Court Apartments] Renaissance Housing, LLC $ 9,000,000 [Mayfair I and Mayfair H Apartments] Silver Hill at Thalia $ 4,400,000 Tallwood LP $ 6,500,000 There being no speakers, Mayor Oberndorf CLOSED THE HEARING FOR PUBLIC INFORMATION May 4, 1999 Item VI-J/K. - 24 - RES OL UTIONS/ORDINANCES ITEM # ,14940 Upon motton by Vice Mayor Sessoms, seconded by Councdman Branch, C~ty Councd APPROVED IN ONE MOTION, Resoluttons 1 and Or&nances 1, 2 (DEFERRED), 3, 5, 6 (DEFER INDEFINITEL Y) and 7 of the CONSENT AGENDA Item 2 was DEFERRED, BY CONSENT, until the City Councd Sesston of May 25, 1999 Item 6 was DEFERRED INDEFINITEL Y, B Y CONSENT Vottng. 9-0 Councd Members Voting Aye Linwood 0 Branch, III, Margaret L Eure, Wdham W Harrtson, Jr, Barbara M Henley, Louis R Jones, Reba S McClanan, Mayor Meyera E. Oberndorf Vice Mayor Wtlham D Sessoms, Jr and A M "Don" Weeks Councd Members Vottng Nay' None Council Members Absent' Harold Heischober and Nancy K. Parker May 4, 1999 Item VI-J. 1. - 25 - RESOLUTIONS ITEM # 44941 Upon motton by Vtce Mayor Sessoms, seconded by Councilman Branch, Ctty Council ADOPTED Resoluttons to approve tssuance of the Virginia Beach Development Authority's Multi-Family Rental Housing Revenue Bonds: Renatssance Houstng, LLC Not to exceed $10, 000, 000 [The Hamptons and Hampton Court Apartments] Renatssance Houstng, LLC Not to exceed $ 9,000,000 [Mayfatr I and Mayfair II Apartments] Silver Htll at Thaha, LLC Not to exceed $ 4,400,000 Tallwood L P Not to exceed $ 6,500,000 Vottng 9-0 (By ConsenO Counctl Members Voting Aye Ltnwood 0 Branch, III, Margaret L Eure, Wtlham IV. Harrison, Jr, Barbara M Henley, Louis R Jones, Reba S. McClanan, Mayor Meyera E Oberndorf, Vtce Mayor Wtlham D Sessoms, Jr and A M "Don" Weeks Councd Members Vottng Nay. None Counctl Members Absent Harold Hetschober and Nancy K Parker May 4, 1999 R£SOLIITION APPROVING Tfl£ ISSUANCE OF MULTIFAMI~¥ RESID£NTL~,L RENTAL HOUSING REVENUE BONDS BY THE CITY OF_ .._VIRGINIA BEACH DIEv~[OP~M.E_NTA_U._T~ORITY WHEREAS, the City of Virginia Beach Development Authority (the "Authority") has considered the request of Renaissance Housing, LLC, a Delaware limited liability company (the "Borrower") for the issuance of the Authority's muhifamily residential rental housing revenue bonds in an amount not to exceed $11,000,000 (the "Bonds") to finance the acquisaion and rehabilitation of a muh~fam~ly residential rental housing project known as The Hamptons and Hampton Court Apartments, located at 701 Hampton Way in the City of Virginia Beach (the "Project"), to be owned by the Borrower or a wholly owned or controlled affiliate thereof or of The Doe Fund. Inc. a New Yo,'k not-for-profit corporation and has held a public hearing thereon on April 20, 1999, and WI:IEREAS, the Borrower has determined that the financing of the acquisition and rehabilitation of the P)oject will require the ~ssuance ofboncls in an amount no[ to exceed $10,000,000, and WHEREAS, Authomy has recommended that the City Council (the "Council") ofthe City of Virginia Beach (the "C~ty") approve the Issuance of the Bonds by the Authority to comply w~th ~he requiremem~ of Section 147(0(2) of the Internal Revenue Code of 1986, as amended, and Treasury Regulations l~sued thereunder (the "Code"), and WHEREAS, a copy of the fiscal ~mpact statement, the Authonty's resolution recommending approval of the Bonds by ~he Council. and a record of the public hearing held thereon have been filt.d with the Clerk of the Council, BE IT RESOLVED BY THE CITY COUNCIL OF TIlE CITY OF VIRGINIA BEACH, VIIIGNIA: 1 The Council approves the issuance of the Bonds by the Authority for the benefit of the Borrower in an amount not to exceed $10,000,00, to ~he extent and as required by Section 147{0(2) of the Code, m permit the Authority to a~sist In ~he financing of the Project 2 The approval of the issuance of the bonds, as required by Section 147(f)(2) of the Code, does not const~rme an endorsement of the Bonds or the creditworthiness of the Borrower, and the Bonds shall provide that ne~her the Commonwealth of V~rgima, the C~y nor ,he Authority shall be obligated to pay the Bonds or interest ~hereon t}r other costs incident thereto except from the revenues and money pledged therefor, and neither the faith and credit nor the taxing power of the Commonwealth of Virginia, the City or the Authomy shall be pledged thereto 3 This resolution shall take effect immediately upon its adoption Adopted by the Cltv CouncIl of the City of Virginia Beach, Virginia on May 4, 1999 A TRUE COPY TESTE' City clerk 2122408250 TO 91804?832294 P.05 The Hamptons & Hampton Court/Mayfair Apartments Location Map [ , , 0 .,5 CB H Icimrcl Eh Rece~vecl Apr-lZ-99 06:27'pm From-Z122406Z60 To-LE CLAIR RYAN PaIe 05 VIRGINIA Development Authortty One Columbus Center. Suite 300 V~rginia Beach, VA 23462 (757) 437-6464 FAX (7:57) 499-9894 F. Dudley Fulton, Chatr Stephen W. Burke. Vice-Chair W. Brantley Basnight ill, Secretary Kenneth D Barefoot, Treasurer Elizabeth A. "Betsy" Duke Robert F. Hagans. Jr. Robert G Jones April 20, 1999 The Honorable Meyera E. Oberndorf, Mayor Members of City Council Municipal Center Virginia Beach, VA 23456 Re; The Hamptons and Hampton Court Apartments 212 Unit Multi-Family Residential Rental Housing Project Dear Mayor Oberndorf and Members of City Council: We submit the following in connection with projects for The Hamptons and Hampton Court Apartments located at 701 Hampton Way in Virginia Beach, Virginia. (1) Evidence of publication of the notice of heating is attached as Exhibit A , and a summary of the statements made at the public hearing is attached as Exhibit B . The City of Virginia Beach Development Authority's (the "Authority") resolution recommending Council's approval is attached as Exhibit C. (2) The Disclosure Statement is attached as Exhibit D. (3) The statement of the Authority's reasons for its approval as a benefit for the City of Virginia Beach and its recommendation that City Council approve the modification of the bonds described above is attached as Exhibit E. The Honorable Meyera E. Obemdorf, Mayor Members of City Council Page 2 April 20, 1999 (4) The Fiscal Impact Statement is attached as Exhibit F. (5) Attached as Exhibit G is a summary sheet setting forth the type of issue, and identifying the Project and the principals. (6) Attached as Exhibit H is a letter from the appropriate City department commenting on the Project. FDF/GLF/rab Enclosures Very truly yo urs,./'~. Dudley ~fi~lfon Chairman~/ EXHIBIT A THE VIRGINIAN-PILOT NORFOLK. VIRGINIA AFFIDAVIT OF PUBLZCAT~ON L~CLAZR RYAN, ATTORNEYS RUSg£LL $. ~NG~R. £ REFRRENCE: ~000~386 R~c~a~d H~Z 469600409 ~Olq~ C~ty of Norfolk This day, D. Johnson personally appeared before me and after De~n~ duly sworn, made oat~ ~hac. 1) S~ ~ a~ldavzc clerk 06 T~e V~rgz;t~an-P~loc. a n=w;paper published by Landmark Communic&~ons Znc.. In =he ciule~ o~ Norfolk, PorK~mouuh, Chesapeake. Suffolk. and VLr~lnia ~eaeh. Sca=~ of anuexed ha~ been puDl~sh~d in 8a1~ newspaper on PUBLISHED ON: 04/07 04/14 TOTAL CO~T: 609.96 AD SPACE; 102 LZNE PIL£D ON 04/16/99 -_~. ___..-__. .--m .... --. .... .. .... ... ..... . Sub~cribed and ~wor~Jco Defo=~e ~n my c~cy and Ecace on the day and year EXHIBIT A NOTICE OF PUBLIC HEARING ON PROPOSED MULTIFAMILY RESIDENTIAL RENTAL HOUSING REVENUE BOND FINANCINGS OF THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY Notice is hereby given that the City of Virginia Beach Development Authority ("Authority") will hold a public hearing on the applications of Renaissance Housing, LLC, a Delaware limited liability company (the "Applicant") for the Authority to issue, pursuant to applicable provisions of Chapter 643 of the Acts of Assembly of 1964, the Housing Authorities Law, Title 36, Chapter 1, Code of Virginia 1950, as amended, and the Industrial Development and Revenue Bond Act, Title 49, Chapter 15 2 of the Code of Virginia 1950, as amended, (1) up to TEN MILLION DOLLARS ($10,000,000) ofits mulitfamily residential rental housing revenue bonds to assist in the acquisition, construction and renovation of a 196 unit multifamily residential rental housing facility known as Mayfair I and Mayfair II Apartments (the "Mayfair Facility"), located at 5826 Newtown Arch in the City of Virginia Beach, Virginia, and (2) up to ELEVEN MILLION DOLLARS ($11,000,000) of its multifamily residential rental housing revenue bonds to assist in the acquisition, construction and renovation of a 212 unit multifamily residential rental housing facility known as The Hamptons and Hampton Court Apartments, located at 701 Hampton Way, in the City of Virginia Beach, Virginia (the "Hamptons Facility," and, together with the Mayfair Facility, the "Facilities"). Each of the Facilities will meet the requirements of a qualified residential rental project within the meaning of Section 142(d) of the Internal Revenue Code of 1986, as amended The public hearing, which may be continued or adjourned, will be held at 8 30 a m on April 20, 1999, before the Authority at its offices located One Columbus Center, Suite 300, Virginia Beach, Virginia 23462 The Facilities will be owned by either the Applicant or a newly formed entity controlled by the Applicant or, depending on the availability of private activity bond cap allocation for the Facilities, a newly formed entity wholly owned by The Doe Fund, Inc., a New York 501(c)(3) not for profit corporation In any event, the bonds will not pledge the faith and credit or the taxing power of the Commonwealth of Virginia or any political subdivision thereof, but will be payable solely from revenues derived from the Facilities and pledges therefor Any person interested in the issuance of the bonds or the location or purpose of the proposed Facilities may appear and be heard A copy of the Applicant's applications may be inspected at the Authority's office at One Columbus Center, Suite 300, Virginia Beach, Virginia 23607 during business hours Comments on the Application may be forwarded to Mr Tony Valentine, Project Development Manager of the Authority, at its office located at One Columbus Center, Suite 300, Virginia Beach, Virginia 23462 City of Virginia Beach Development Authority F. ~udley Fu~ff Chairman EXHIBIT B CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY RECORD OF PUBLIC HEARING (THE HAMPTON$ & HAMPTON COURT APARTMENTS PROJECT) The Chairman of the City of Virginia Beach Development (the "Authority") announced the commencement of a public hearing on the request of Renaissance Housing, LLC, a Delaware limited liability company (the "Borrower") and that a notice of public hearing was published in the Virginian-Pilot, a newspaper having general circulation in the City of Virginia Beach, Virginia in accordance with applicable law governing the issuance oftax exempt bonds The Chairman indicated that a copy of the Notice and an Affidavit of Publication of such notice are to be filed with the records of the City Council of the City of Virginia Beach. The following individuals appeared and addressed the Authority: Richard L Hurlbert, Jr, Esq of the law firm LeClair Ryan, A Professional Corporation (Richmond, Virginia), bond counsel, attended the hearing and introduced Mr. Royce A Mulholland, Managing Member of the Borrower, who attended the hearing on behalf of the Borrower, and Steve Romine, Esq of the law firm Huff, Poole & Mahoney, P C, who attended the hearing as local counsel to the Borrower Mr Hurlbert gave a brief description of the resolution and the Project, and opened the floor for questions. Members of the Authority asked several questions regarding the Project, including questions regarding (a) the public benefit of the Project, which questions were answered by Mr Andrew Friedman of the Virginia Beach Department of Housing and Neighborhood Preservation, and (b) the location of the Project, the improvements and renovations that the Borrower intends to make to the Project, and the public notice requirements, which questions were addressed to the satisfaction of the Authority by Mr Mulholland and Mr Hurlbert, and Mr Romine The public benefits to be realized by the City of Virginia Beach as a result of the financing of the Project, as described by Mr Friedman, are (a) the improvement and renovation of the Project, which will enhance the quality of life of the residents of the Project and the aesthetic attractiveness of the Project, and (b) since none of the units at the Project are currently reserved for use by persons of low to moderate financial means, the increase in available rental units in the City of Virginia Beach for such persons, as will be required by applicable law governing the issuance of tax-exempt multifamily housing revenue bonds No other persons appeared to address the Authority, and the Chairman closed the public hearing The Authority hereby recommends that the City Council of the City of Virginia Beach, Virginia approve the issuance of the Bonds and hereby transmits the Fiscal Impact Statement to the City Council of the City of Virginia Beach and asks that this recommendation be received at its next regular or special meeting at which this matter can be properly placed on the Council's agenda for hearing · EXHIBIT C RESOLUTION OF THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY INDICATING ITS INTENT TO ISSUE BONDS FOR RENAISSANCE HOUSING, LLC OR A WHOLLY-OWNED AFFILIATE THEREOF OR OF THE DOE FUND, INC. TO ACQUIRE AND REHABILITATE A :21:2 UNIT MULTIFAMILY RESIDENTIAL RENTAL HOUSING PROJECT WHEREAS, there have been described to the City of Virginia Beach Development Authority (the "Authority"), the plans of Renaissance Housing, LLC (the "Company"), whose current address is 489 Fifth Avenue, 34~ Floor, New York, New York 1000:5, acting on its own behalf or as representative of a wholly-owned affiliate thereof or of The Doe Fund, Inc., to acquire and rehabilitate a 212 unit multifamily residential rental housing project known as The Hamptons and Hampton Court Apartments (the "Project"), located at 701 Hampton Way, in the City of Virginia Beach, Virginia, (the "City") which shall be established and maintained as a "qualified residential rental project" within the meaning of Section 142(d) of the Internal Revenue Code of 1986, as amended (the "Code") and, as and if necessary, Section 145(d) of the Code; and WHEREAS, the Company, in its application and in its appearance before the Authority, has requested that the Authority issue its multifamily residential rental housing bonds under the provisions of Chapter 643 of the Acts of Assembly of 1964 and the Industrial Development and Revenue Bond Act, Chapter 49, Title 15 2 of the Code of Virginia ! 950, as amended (collectively, the "Act") in such amounts as may be necessary to finance costs to be incurred in acquiring and renovating the Project. WHEREAS, a public hearing has been held as required by Section 147(0 of the Code and applicable provisions of the Code of Virginia 1950, as amended (the "Virginia Code") NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY THAT I The foregoing recitals are approved by the Authority and are incorporated in, and deemed a part of, this resolution 2 It is hereby found and determined by the Authority that (a) there is a significant shortage of affordable, sanitary and safe residential rental property in the City for individuals and families of Iow and moderate income, (b) provision of financing of such property by the Authority will be in the public interest and will benefit the inhabitants of the City through the promotion of their safety, health, welfare, convenience or prosperity, and (c) the acquisition and rehabilitation of the Project for the Company in the City will further the public purposes of the Act and provide a public benefit to the City by, among other things, ensuring the availability of affordable housing to individuals and families of Iow and moderate income 3 It is hereby found and determined that the Project will constitute a "residential rental project" as that term is defined in the Act 4 To induce the Company to acquire and rehabilitate the Project and maintain the Project in the City as a "qualified residential rental project" within the meaning of Section 142(d) of the Code and, as and if necessary, Section 145(d) of the Code, the Authority hereby agrees to cooperate with the Company in the review and evaluation of the application to finance the Project and, subject to the Authority's final approval of the terms and conditions of the financing of the Project and the offering of the Bonds at a later date, to undertake the issuance of its multifamily residential rental housing revenue bonds therefor in the maximum principal amount of $11,000,000 (the "Bonds") upon the terms and conditions to be mutually agreed upon by the Authority and the Company. If finally approved by the Authority, the Bonds will be issued pursuant to an Indenture of Trust and certain other documents satisfactory to, and with terms to be approved by, the Authority. The Bonds will be issued only after the Authority has received the approving opinion of bond counsel as to the qualification of the Bonds under the Act and appropriate certifications and opinions as to the offering of the Bonds and the disclosure with respect thereto. 5. It having been represented to the Authority that it is necessary to proceed with the acquisition and rehabilitation of the Project, the Authority hereby agrees that the Company may proceed with the plans for the Project, enter into contracts for acquisition and rehabilitation and take such other steps as it may deem appropriate in connection therewith, provided that nothing herein shall be deemed to authorize the Company to obligate the Authority without its consent in each instance to the payment of any moneys or the performance of any acts in connection with the Project. 6 The Authority hereby agrees to the recommendation of the Company that Messrs LeClair Ryan, A Professional Corporation, Richmond, Virginia, be appointed as bond counsel and hereby appoints such firm to supervise the proceedings and approve the issuance of the Bonds. 7 The Authority hereby agrees, if requested, to accept the recommendation of the Company with respect to the appointment of an agent or underwriter for the sale of Bonds pursuant to the terms to be mutually agreed upon by the Authority and the Company 8 All costs and expenses in connection with the financing and the acquisition and rehabilitation of the Project, including the fees and expenses of bond counsel, counsel for the Authority and the agent or underwriter for the sale of the Bonds shall be paid from the proceeds of the Bonds (but only to the extent permitted by applicable law) or by the Company If for any reason such Bonds are not issued, it is understood that all such expenses shall be paid by the Company and that the Authority shall have no responsibility therefor 9. In adopting this resolution, the Authority hereby declares its "official intent' to issue the Bonds within the meaning of Treasury Regulation Sections ! 150-2 and I 103-ST(a)(5) and certifies that, based upon the Company's application and other evidence available at the time of the adoption of this resolution, the Authority reasonably expects that it will use proceeds of the Bonds to reimburse original expenditures for the Project within the meaning and contemplation of Treasury Regulation Section I 150-2 10 The Bonds shall be limited obligations of the Authority and shall be payable solely out of revenues, receipts, and payments specifically pledged therefor Neither the commissioners, officers, agents or employees of the Authority, past present and f'uture, nor any person executing the Bonds, shall be liable personally on the Bonds by reason of' the issuance thereof'. The Bonds shall not be deemed to constitute a general obligation debt or a pledge of' the f'aith and credit of' the Commonwealth of' ¥irginia or any political subdivision thereof, including the City of ¥irginia Beach and the Authority and neither the Commonwealth of ¥irginia nor any such political subdivision thereof shall be personally liable thereon, nor in any event shall the Bonds be payable out of' any funds properties other than the special ~unds and sources provided therefor. Neither the faith and credit nor the taxing power of. the Commonwealth of. ¥irginia, or any political subdivision thereo~, including the City of. ¥irginia Beach, shall be pledged to the payment of' the pHncipal of'the Bonds or the interest thereon or other costs incident thereto. The Bonds shall not constitute an indebtedness within the meaning of' any constitutional or statutory debt limitation or restriction, 11. The Authority shall not be liable and hereby disclaims all liability to the Company for any damages, direct or consequential, resulting from the Authority's failure to issue Bonds for the Project for any reason, including but not limited to, the failure of the City Council of the City of Virginia Beach to approve the issuance of'the Bonds Nothing herein shall be construed as a commitment or obligation on the part of the Authority to adopt a final resolution or execute any documents with respect to the Project. 12. Unless this resolution is extended by the Authority, the Bonds authorized hereunder shall be issued within one year from the date hereof or this resolution shall become void and of no further force or effect 13. The Authority hereby recommends that the City Council of the City of Virginia Beach approve the issuance of the Bonds and hereby directs the Chairman or Vice Chairman of the Authority to submit to the City Council of the City of Virginia Beach a reasonably detailed summary of the comments, if any, expressed at the public hearing, the fiscal impact statement required by Virginia law, and a copy of this resolution This resolution shall take effect immediately upon its adoption Certified to be a true copy of a resolution adopted on/korii.. ~ 1999 Ch-airmar~ ~.~/ Secretary EXHIBIT D Disclosure Stat,ement This Disclosure Statement is provided in connection with the Application of Renaissance Housing, LLC, a Delaware limited liability company ("Renaissance"), to the City of Virginia Beach Development Authority (the "Authority"), for the Authority to issue up to $10,000,000 in principal amount of its bonds to finance the acquisition and rehabilitation of The Hamptons and Hampton Court Apartments, located at 701 Hampton Way in the City of Virginia Beach. The Members of Renaissance Housing, LLC are Royce A Mulholland and William Leidesdorf. Biographical information for Messrs. Mulholland and Leidesdorf is set forth below: William A. Leidesdor. f. Mr Leidesdorf has over twenty-seven years experience in capital markets, workout, development, marketing, evaluation and asset management of residential and commercial real estate and real estate related institutions. Mr. Leidesdoff has served in a senior executive capacity with Eastdil Realty, Inc., Lowe Enterprises, The Palmieri Company, and was the chief operating officer of a joint venture commercial mortgage conduit with Salomon Brothers, responsible for underwriting, credit committee, loan committee, closing and administration Mr Leidesdorf is currently a principal in Renaissance Housing Mr Leidesdoff is a licensed real estate broker in the State of New York He is also an associate member of the Urban Land Institute Mr Leidesdorf is a Director of American Property Investors, Inc, the general partner of American Real Estate Partners, L P, a master limited partnership listed on the New York Stock Exchange. He also serves as a Director, on behalf of an institutional investor, of Paloma LLC, the general partner of Simpson Housing Limited Partnership, a privately held multifamily residential development and management company headquartered in Denver, Colorado and active throughout the Southeast, Southwest and West Royce A. Mttlholland. Mr Mulholland has over fifteen years experience in the public and private real estate sectors He served in the executive branch of the government of the State of New York for eight years under the administration of Matin Cuomo. Mr. Mulholland served as Assistant Appointments Officer to the Governor, Management and Productivity Specialist (Division of the Budget), Deputy Director of Housing, Assistant Secretary of Housing and Chairman, Governor's Housing Sub- Cabinet (highest state housing post) He performed extensive work with the National Council of State Housing Finance Agencies (NCSHFA) and HUD Under his direction, New York State received national recognition for programs such as' the Housing New York Program, the Housing Trust Fund, the Affordable Home Ownership Program, the Permanent Housing for Homeless Families Program and the Infrastructure Demonstration Program He participated in the revision of the New York City Rent Stabilization Code and the New York State Building Code Mr Mulholland is currently a principal in Renaissance Housing In addition, he is President of Royce Affiliates, a vehicle established for the purpose of developing, financing and managing residential real property in New York State and other states, including Florida, New Jersey, and Georgia for persons of Iow to moderate financial means. Mr Mulholland provided client services including financial advisory, structuring and financial advice. Renaissance Housing is a single purpose entity formed for the purpose of acquiring and rehabilitating The Hamptons and Hampton Court Apartments and Mayfair I and Mayfair II Apartments, also located in Virginia Beach, Virginia. Accordingly, it has no operating history or historical financial statements. While the Mayfair and Hamptons transactions will be the first in Virginia for Renaissance Housing, Messrs. Mulholland and Leidesdorf are also principals in Renaissance National Housing, LLC, which is serving as the Owner's Representative and as such is currently in the process of rehabilitating two multifamily apartment projects in Virginia, one (Brook Ridge Apartments, 292 units) in Henrico County outside of Richmond, and the second (St. Michaels Apartments, 260 units) in the City of Newport News, each of which was recently purchased by newly formed 501(c)(3) entities that are owned by The Doe Fund, Inc., a New York not for profit corporation with which Messrs Mulholland and Leidesdorf have an ongoing business relationship through their various other multifamily residential rental housing developments Messrs Mulholland and Leidesdorf are committed to expanding the Renaissance presence in the Virginia market, and expect to play an active role in the communities in which their projects are located Messrs Mulhoiland and Leidesdorf are also principals in several other single purpose entities that have acquired and rehabilitated (or are in the process of acquiring and rehabilitating, as the case may be) multifamily residential rental apartment developments in Arizona and Florida. Financial information with respect to the other multifamily residential rental housing projects in which Messrs Mulholland and Leidesdorf are involved as described above is available, if necessary, on request LESLIE L LILLEY CITY ATTORNEY MUNICIPAL CENTER BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH. VA 23456-9004 (757) 427-453! FAX (757) 426-5687 TDD (767) 4;7.4368 EXHIBIT E THE HAMPTONS AND HAMPTON COURT APARTMENTS PROJECT RESIDENTIAL RENTAL HOUSING REVENUE BONDS The Authority recommends approval of the captioned financing. A public hearing was held on April 20, 1999 in respect of the application by Renaissance Housing, LLC, a Delaware limited liability company to acquire and rehabilitate The Hamptons and Hampton Court Apartments (the "Project") and public approval given to the Project at such public hearing. The public benefits of the Project, as described at the public hearing by Mr. Andrew Friedman of the Virginia Beach Department of Housing and Neighborhood Preservation, are (a) the improvement and renovation of the Project, which will enhance the quality of life of the residents of the Project and the aesthetic attractiveness of the Project, and (b) since none of the units at the Project are currently reserved for use by persons of low to moderate finanicial means, the increase in available rental units in the City of Virginia Beach for such persons, as will be required by applicable law governing the issuance of tax-exempt multifamiy housing revenue bonds. EXHIBIT F FISCAL IMPACT STATEMENT FOR PROPOSED REVENUE BOND FINANCING Date: To: , Project Name: Type of Facility: April ,1999 The City Council of the City of Virginia Beach, Virginia The Hamptons & Hampton Court Apartments Multifamily Residential Rental Housing Apartment Complex 1. Maximum amount of financing sought: $10,000,000 , Estimated taxable value of the facility's real property in the City of Virginia Beach: $ 5,747,500 , Estimated real property tax per year using present tax rates: $ 70,119.50 . Estimated personal property tax per year using present tax rates: $ N/A , Estimated merchants' (business license) tax per year using present tax rates: $ N/A o A. Estimated dollar value per year of goods that will be purchased from Virginia companies within the locality: $ 125,000 B. Estimated dollar value per year of goods that will be purchased from non-Virginia companies within the locality: $ 0 C. Estimated dollar value pre year of services that will be purchased from Virginia companies within the locality' $ 175,000 D. Estimated dollar value per year of goods that will be purchased from non-Virginia companies within the locality' $ 7. Estimated number of regular employees on a year round basis' Between 5 and 10 8. Average annual salary per employee' $ 20,000 The information contained in this Fiscal Impact Statement is bases solely on facts and estimates provided by the Applicant, and the Authority has made not independent investigation with respect thereto CITY OF VIRGINIA B~H//~ By' '" Cha~~t~- EXIIlBI I tJ SUMMARY SHEET CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY REVENUE BOND FINANCING 1. Project Name: 2. Location: 3. Description of Project: The Hamptons and Hampton Court Apartments 701 Hampton Way, City of Virginia Beach Multifamily residential rental apartment facility 4. Amount of Bond Issue: Approximately $10,000,000 Principals' Renaissance Housing, LLC (see attached list for members and backgrounds of each such member) 6 Zoning classification Present zoning classification of property multifamily residential (A-18) b. Is rezoning proposed? No b If so, what zoning Classification? N/A The Members of Renaissance Housing, LLC are Royce A Mulholland and William Leidesdorf Biographical information for Messrs Mulholland and Leidesdorf is set forth below: William ,4. Leidesdorf Mr. Leidesdorf has over twenty-seven years experience in capital markets, workout, development, marketing, evaluation and asset management of relldentlal and commercial real estate and real estate related institutions. Mr. Leideldorf has served in a senior executive capacity with Eastdil Realty, ]nc., Lowe Enterprises, The Palmieri Company, and was the chief operating officer of a joint venture commercial mortgage conduit with Salomon Brothers, responsible for underwriting, credit committee, loan committee, closing and administration Mr Leidesdorf is currently a principal in Renaissance Housing Mr. Leidesdorf is a licensed real estate broker in the State of New York. He is also an associate member of the Urban Land Institute Mr Leidesdorf is a Director of American Property Investors, Inc, the general partner of American Real Estate Partners, LP, a master limited partnership listed on the New York Stock Exchange He also serves as a Director, on behalf of an institutional investor, of Paloma LLC, the general partner of Simpson Housing Limited Partnership, a privately held multifamily residential development and management company headquartered in Denver, Colorado and active throughout the Southeast, Southwest and West Royce .4. M. lholla.d Mr Mulholland has over fifteen years experience in the public and private real estate sectors He served in the executive branch of the government of the State of New York for eight years under the administration of Mario Cuomo Mr Mulholland served as Assistant Appointments Officer to the Governor, Management and Productivity Specialist (Division of the Budget), Deputy Director of Housing, Assistant Secretary of Housing and Chairman, Governor's Housing Sub- Cabinet (highest state housing post) He performed extensive work with the National Council of State Housing Finance Agencies (NCSHFA) and HUD Under his direction, New York State received national recognition for programs such as the Housing New York Program, the Housing Trust Fund, the Affordable Home Ownership Program, the Permanent Housing for Homeless Families Program and the Infrastructure Demonstration Program He participated in the revision of the New York City Rent Stabilization Code and the New York State Building Code Mr Mulholland is currently a principal in Renaissance Housing In addition, he is President of Royce Affiliates, a vehicle established for the purpose of developing, financing and managing residential real property in New York State and other states, including Florida, New Jersey, and Georgia for persons of Iow to moderate financial means Mr Mulholland provided client services including financial advisory, structuring and financial advice City of Virginia Beach INTER-OFFICE CORRESPONDENCE DATE: April 14, 1999 TO: FROM: SUBJECT: F. Dudley Fulton, Chairman Andrew M. Friedman, Direct~(~,~., Department of Housing and N'e~l~.~ff~ood Preservation Financing for the Proposed Acquisition of Mayfair I and Mayfair Apartments and the Hamptons and Hampton Court Apartments Based on the proposed description and representation made in the attached letter from Richard L. Hurlbert, regarding the above referenced projects, I believe that the acquisition and rehab of the named projects will provide a public benefit. Therefore, the requested financing is in the public interest. Please contact me if you have any questions. AMF:jap Attachment c: Gary Fentress, City Attorney f:\users\jponder\memos\ml&llH&HC RESOLUTION APPROVING THE ISSUANCE OF MULTf'FAMILY RESIDENTIAL RENTAL HOVSINa REVENUE BONOS BY THE CITy. ~F VIRGINIA BEACH DE_V:E_.L_QPMENT AUTHORITY WHEREAS, the City of V~rginta Beach Development Authority (the "Authority") has considered the request of Renaissance Housing, LLC, a Delaware limited liability company (~he "Borrower") for the issuance of the Authority's multifamlly residential ren,al housing revenue bonds in an amount not to exceed $10,000,000 (the "Bonds") to finance the acqmsltion and rehabilitation of a mult~family residential rental housing project known as Mayfalr I and Mayfair 1! Apartments, located at 5826 Nev~own Arch ,n lhe C~ty of Virginia Beach (the "Project"), to be owned by the Borrower or a wholly owned affiliate thereof or of The Doe Fund, Inc, a New York not- for-profit corporatton, and has held a public heanng thereon on April 20, 1999, and WHEREAS, the Borrower has determined that the financsng of the acquisition and rehabil~tatmn of the Project w~ll require the ~ssuance of bonds in an amount not to exceed $9,000,000, and WHEREAS, the A,~thority has recommended that the City Council (the "Council") of the City of V~rgin~a Beach (the "City") approve the issuance of the Bonds by the Authority to comply with ;he requsrements of Section 14'7(0(2) of the Internal Revenue Code of 1986, as amended, and Trea~,ury Regulations issued thereunder (the "Code"), and WHEREAS, a copy of the fiscal impact statement, the Authority's resolution recommending approval of the Bonds by the Council, and a record of the pubhc heanng held thereon have been filed wi~h the Clerk of the Council, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIItGNIA: I The Council approves the issuance of the Bonds by the Authority for the benefit ofthe Borrower in an amount not ;o exceed $9,000,000, to the extent and as required by Secnon 147(f)(2) of the Code, to permit the Authorsty to assist in the financing of the Project 2 The approval of the issuance of the bonds, as required by Section 147(0(2) of the Code, does not constitute an endorsement ofthe Bonds or the creditworth.mess of the Borrower, and the Bonds shall provide that neither the Commonwealth of Virgim,~. the City nor the Authority shall be obligated to pay the Bonds or interest thereon ~,r other costs incident thereto except from the revenues and money pledged therefor, and neither the faith and credit nor the taxing power of the Commonwealth of Virgima, the City or the Authority shall be pledged thereto 3 This resolution shall take effect immediately upon its adoption Adopted by the City Council of the C~ty of Vsrglnia Beach, Vir,g~ma on May 4, 1999 A TKUE COPY TIESTE~ City Clerk APR 12 1999 06:2? 2122408250 TO 91804?832294 P.OS The Hamptons & Hamptan Court/Mayfair Apartments Location Map ,,% Q .5 CB E~ Richard Eli~L Received Apr-lZ-g9 06:Z?pm From-ZlZZ4OBZ50 To-LE CLAIR RYAN Page 05 VIRGiNiA Development Authority One Columbus Center. State 300 V~rgmia Beach, VA 23462 (757) 437-6464 FAX (757) 499-9894 F Dudley Fulton, Chair Stephen W Burke, Vice-Chair W Brantley Basmght Iii. Secretary Kenneth D Barefoot, Treasurer Elizabeth A "Betsy" Duke Robert F Hagans. Jr Robert G Jones April 20, 1999 The Honorable Meyera E. Oberndorf, Mayor Members of City Council Municipal Center Virginia Beach, VA 23456 Re~ Mayfatr I and Mayfatr H Apartments 196 Unit Multi-Family Residential Rental Housing Project Dear Mayor Oberndorf and Members of City Council: We submit the following in connection with projects for the Mayfair I and Mayfair II Apartments located at 5826 Newtown Arch in Virginia Beach, Virginia. (1) Evidence of publication of the notice of hearing is attached as Exhibit A, and a summary of the statements made at the public heating is attached as Exhibit B . The City of Virginia Beach Development Authority's (the "Authority") resolution recommending Council's approval is attached as Exhibit C. (2) The Disclosure Statement is attached as Exhibit D. (3) The statement of the Authority's reasons for its approval as a benefit for the City of Virginia Beach and its recommendation that City Council approve the modification of the bonds described above is attached as Exhibit E. The Honorable Meyera E. Obemdorf, Mayor Members of City Council Page 2 April 20, 1999 (4) The Fiscal Impact Statement is attached as Exhibit F. (5) Attached as Exhibit G is a summary sheet setting forth the type of issue, and identifying the Project and the principals. (6) Attached as Exhibit H is a letter from the appropriate City department commenting on the Project. FDF/GLF/rab Enclosures Very truly yours, Chairman o, THE VIRGINIAN-PILOT NORFOLK, vIRGINIA AFFIDAVZT OF PUBLZCATION LECLAIR RYAN, ATTORNEYS 707 E. MAIN ST llTH FLR RUSS£LL J. SZNGER. E RZCI. D~IOND, VA 232L~ EFRRF, NCE: L0007386 R&cnard Hu~l ~68600¢09 BoND z~y of NorEolk 'hi~ day. D. Johnson peraonally appeared be£ore me md al=e= ~n~ duly sworn, made oa=n =hac. t) She ~s a~dav&c cXerk of T~ V~rg~n~an-P~Xo=. a newspape~ published by Landmark Communica~ons Iflc.. In the cLtles of Norfolk, For=s~u~h, Chesapeake. suffolk, and Virginia ~each. SC&ca of ~e da=e scaced PUBLISHED ON; O~/07 04/14 TOTAL CO~T: 609.96 FILED ON 04/16/99 AD SPACE; 102 LINE Subscribed and ~wor~=o Defo=e Q~ ~n my c~cy and ~cace on the day and year ~oca~: . ~~ ~~ ~y c~ss~on e~ea oocooe= az. 2000 EXHIBIT A NOTICE OF PUBLIC HEARING ON PROPOSED MULTIFAMILY RESIDENTIAL RENTAL HOUSING REVENUE BOND FINANCINGS OF THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY Notice is hereby given that the City of Virginia Beach Development Authority ("Authority") will hold a public hearing on the applications of Renaissance Housing, LLC, a Delaware limited liability company (the "Applicant") for the Authority to issue, pursuant to applicable provisions of Chapter 643 of the Acts of Assembly of 1964, the Housing Authorities Law, Title 36, Chapter 1, Code of Virginia 1950, as amended, and the Industrial Development and Revenue Bond Act, Title 49, Chapter 15 2 of the Code of Virginia 1950, as amended, (1) up to TEN MILLION DOLLARS ($10,000,000) of its mulitfamily residential rental housing revenue bonds to assist in the acquisition, construction and renovation of a 196 unit multifamily residential rental housing facility known as Mayfair I and Mayfair II Apartments (the "Mayfair Facility"), located at 5826 Newtown Arch in the City of Virginia Beach, Virginia, and (2) up to ELEVEN MILLION DOLLARS ($11,000,000) of its multifamily residential rental housing revenue bonds to assist in the acquisition, construction and renovation of a 212 unit multifamily residential rental housing facility known as The Hamptons and Hampton Court Apartments, located at 701 Hampton Way, in the City of Virginia Beach, Virginia (the "Hamptons Facility," and, together with the Mayfair Facility, the "Facilities"). Each of the Facilities will meet the requirements of a qualified residential rental project within the meaning of Section 142(d) of the Internal Revenue Code of 1986, as amended The public hearing, which may be continued or adjourned, will be held at 8 30 a m on April 20, 1999, before the Authority at its offices located One Columbus Center, Suite 300, Virginia Beach, Virginia 23462 The Facilities will be owned by either the Applicant or a newly formed entity controlled by the Applicant or, depending on the availability of private activity bond cap allocation for the Facilities, a newly formed entity wholly owned by The Doe Fund, lnc, a New York 501(c)(3) not for profit corporation In any event, the bonds will not pledge the faith and credit or the taxing power of the Commonwealth of Virginia or any political subdivision thereof, but will be payable solely from revenues derived from the Facilities and pledges therefor Any person interested in the issuance of the bonds or the location or purpose of the proposed Facilities may appear and be heard A copy of the Applicant's applications may be inspected at the Authority's office at One Columbus Center, Suite 300, Virginia Beach, Virginia 23607 during business hours Comments on the Application ,nay be forwarded to Mr Tony Valentine, Project Development Manager of the Authority, at its office located at One Columbus Center, Suite 300, Virginia Beach, Virginia 23462 City of Virginia Beach Development Authority F. ~udley Fu~~'~ Chairman EXHIBIT B CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY RECORD OF PUBLIC IIEARING (MAYFAIR ! AND MAYFAIR Il APARTMENTS PROJECT) The Chairman of the City of Virginia Beach Development (the "Authority") announced the commencement of a public hearing on the request of Renaissance Housing, LLC, a Delaware limited liability company (the "Borrower") and that a notice of public hearing was published in the Virginian-Pilot, a newspaper having general circulation in the City of Virginia Beach, Virlilnla in accordance with applicable law governing the Issuance of tax exempt bonds. The Chairman indicated that a copy of the Notice and an Affidavit of Publicatlon of such notice are to be flied with the records of the City Council of the City of Virginia Beach. The following individuals appeared and addressed the Authority: Richard L. Hurlbert, .Ir, Esq. of the law firm LeClair Ryan, A Professional Corporation (Richmond, Virginia), bond counsel, attended the hearing and introduced Mr. Royce A Mulholland, Managing Member ofthe Borrower, who attended the hearing on behalf of the Borrower, and Steve Romine, Esq of the law firm Huff, Poole & Mahoney, P.C, who attended the hearing as local counsel to the Borrower Mr. Hurlbert gave a brief description of the resolution and the Project, and opened the floor for questions. Members of the Authority asked several questions regarding the Project, including questions regarding (a) the public benefit of the Project, which questions were addressed to the satisfaction of the Authority by Mr Andrew Friedman of the Virginia Beach Department of Housing and Neighborhood Preservation, and (b) the location of the Project, the improvements and renovations that the Borrower intends to make to the Project, and the public notice requirements, which questions were addressed to the satisfaction of the Authority by Mr. Mulholland, Mr. Hurlbert, and Mr. Romine. The public benefits to be realized by the City of Virginia Beach as a result of the financing of the Project, as described by Mr Friedman, are (a) the improvement and renovation of the Project, which will enhance the quality of life of the residents of the Project and the aesthetic attractiveness of the Project, and (b) since none of the units at the Project are currently reserved for use by persons of Iow to moderate financial means, the increase in available rental units in the City of Virginia Beach for such persons, as will be required by applicable law governing the issuance of tax-exempt multifamily housing revenue bonds. No other persons appeared to address the Authority, and the Chairman closed the public hearing. The Authority hereby recommends that the City Council of the City of Virginia Beach, Virginia approve the issuance of the Bonds and hereby transmits the Fiscal Impact Statement to the City Council of the City of Virginia Beach and asks that this recommendation be received at its next regular or special meeting at which this matter can be properly placed on the Council's agenda for hearing. EXHIBIT C RESOLUTION OF THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY INDICATING ITS INTENT TO ISSUE BONDS FOR RENAISSANCE HOUSING, LLC OR A WHOLLY-OWNED AFFILIATE THEREOF OR OF THE DOE FUND, INC. TO ACQUIRE AND REHABILITATE A 196 UNIT MULTIFAMILY RESIDENTIAL RENTAL HOUSING PROJECT WHEREAS, there have been described to the City of Virginia Beach Development Authority (the "Authority"), the plans &Renaissance Housing, LLC (the "Company"), whose current address is 489 Fifth Avenue, 34th Floor, New York, New York 10005, acting on its own behalf or as representative of a wholly-owned affiliate thereof or of The Doe Fund, Inc, to acquire and rehabilitate a 196 unit muitifamily residential rental housing project known as Mayfair I and Mayfair II Apartments (the "Project"), located at 5826 Newtown Arch, in the City of Virginia Beach, Virginia, (the "City") which shall be established and maintained as a "qualified residential rental project" within the meaning of Section 142(d) of the Internal Revenue Code of 1986, as amended (the "Code") and, as and if necessary, Section 145(d) of the Code, and WHEREAS, the Company, in its application and in its appearance before the Authority, has requested that the Authority issue its muitifamily residential rental housing bonds under the provisions of Chapter 643 of'the Acts of Assembly of 1964 and the Industrial Development and Revenue Bond Act, Chapter 49, Title 15 2 of the Code of Virginia 1950, as amended (collectively, the "Act") in such amounts as may be necessary to finance costs to be recurred in acquiring and renovating the ProJect WHEREAS, a public hearing has been held as required by Section 147(0 of the Code and applicable provisions of the Code of Virginia 1950, as amended (the "Virginia Code") NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF VIRG1NIA BEACH DEVELOPMENT AUTHORITY THAT I The foregoing recitals are approved by the Authority and are incorporated in, and deemed a part of, this resolution 2 It is hereby found and determined by the Authority that (a) there is a significant shortage of affordable, samtary and safe residential rental property in the City for individuals and families of Iow and moderate income, (b) provision of financing of such property by the Authority will be in the public interest and will benefit the inhabitants of the City through the promotion of their safety, health, welfare, convenience or prosperity, and (c) the acqmsition and rehabilitation of the Project for the Company in the City will further the public purposes of the Act and provide a public benefit to the City by, among other things, ensuring the availability of affordable housing to individuals and famihes of iow and moderate income 3 It is hereby found and determined that the Project wtll constttute a "residential rental project" as that term is defined tn the Act 4 To induce the Company to acquire and rehabilitate the Project and maintain the Project in the City as a "qualified residential rental project" within the meaning of Section 142(d) of the Code and, as and if necessary, Section 145(d) of the Code, the Authority hereby agrees to cooperate with the Company in the review and evaluation of the application to finance the Project and, subject to the Authority's final approval of the terms and conditions of the financing of the Project and the offering of the Bonds at a later date, to undertake the issuance of its multifamily residential rental housing revenue bonds therefor in the maximum principal amount of $10,000,000 (the "Bonds") upon the terms and conditions to be mutually agreed upon by the Authority and the Company If finally approved by the Authority, the Bonds will be issued pursuant to an Indenture of Trust and certain other documents satisfactory to, and with terms to be approved by, the Authority The Bonds will be issued only at, er the Authority has received the approving opinion of bond counsel as to the qualification of the Bonds under the Act and appropriate certification s and opinions as to the offering of the Bonds and the disclosure with respect thereto 5 It having been represented to the Authority that it is necessary to proceed with the acquisition and rehabilitation of the Project, the Authority hereby agrees that the Company may proceed with the plans for the Project, enter into contracts for acquisition and rehabilitation and take such other steps as it may deem appropriate in connection therewith, provided that nothing herein shall be deemed to authorize the Company to obligate the Authority without its consent in each instance to the payment of any moneys or the performance of any acts ~n connection with the ProJect 6 The Authority hereby agrees to the recommendation of the Company that Messrs LeClair Ryan, A Professional Corporation, R~chmond, Virginia, be appointed as bond counsel and hereby appoints such firm to supervise the proceedings and approve the issuance of the Bonds 7 The Authority hereby agrees, ff requested, to accept the recommendation of the Company with respect to the appointment of an agent or underwriter for the sale of Bonds pursuant to the terms to be mutually agreed upon by the Authority and the Company 8 All costs and expenses ~n connection with the financing and the acquisition and rehabilitation of the Project, including the fees and expenses of bond counsel, counsel for the Authority and the agent or underwriter for the sale of the Bonds shall be prod from the proceeds of the Bonds (but only to the extent permitted by apphcable law) or by the Company If for any reason such Bonds are not issued, it is understood that all such expenses shall be paid by the Company and that the Authority shall have no responsibility therefor 9 In adopting this resolution, the Authority hereby declares its "official intent' to issue the Bonds within the meaning of Treasury Regulation Sections I 150-2 and I 103-ST(a)(5) and certifies that, based upon the Company's application and other evidence available at the time of the adoption of this resolution, the Authority reasonably expects that ~t will use proceeds of the Bonds to reimburse original expenditures for the Project within the meaning and contemplation of Treasury Regulation Section I 150-2 10 The Bonds shall be limited obligations of the Authority and shall be payable solely out of revenues, receipts, and payments specifically pledged therefor Neither the commissioners, officers, agents or employees of the Authority, past present and future, nor any person executing the Bonds, shall be liable personally on the Bonds by reason of the issuance thereof. The Bonds shall not be deemed to constitute a general obligation debt or a pledge of the faith and credit of the Commonwealth of Virginia or any political subdivision thereof, including the City of Virginia Beach and the Authority and neither the Commonwealth of Virginia nor any such political subdivision thereof shall be personally liable thereon, nor in any event shall the Bonds be payable out of any funds properties other than the special funds and sources provided therefor. Neither the faith and credit nor the taxing power of the Commonwealth of Virginia, or any political subdivision thereof, including the City of Virginia Beach, shall be pledged to the payment of the principal of the Bonds or the interest thereon or other costs incident thereto The Bonds shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction 11 The Authority shall not be liable and hereby disclaims all liability to the Company for any damages, direct or consequential, resulting from the Authority's failure to issue Bonds for the Project for any reason, including but not limited to, the failure of the City Council of the City of Virginia Beach to approve the issuance of the Bonds Nothing herein shall be construed as a commitment or obligation on the part of the Authority to adopt a final resolution or execute any documents with respect to the Project 12 Unless this resolution is extended by the Authority, the Bonds authorized hereunder shall be issued within one year from the date hereof or this resolution shall become void and of no further force or effect 13 The Authority hereby recommends that the City Council of the City of Virginia Beach approve the issuance of the Bonds and hereby directs the Chairman or Vice Chairman of the Authority to submit to the City Council of the City of Virginia Beach a reasonably detailed summary of the comments, if any, expressed at the public hearing, the fiscal impact statement required by Virginia law, and a copy of this resolution This resolution shall take effect immediately upon its adoption Certified to be a true copy of a resolution adopted on April ,1999~ Chairman ~ x Secretary EXHIBIT D Disclosure Statement This Disclosure Statement is provided in connection with the Application of Renaissance Housing, LLC, a Delaware limited liability company ("Renaissance"), to the City of' Virginia Beach Development Authority (the "Authority"), for the Authority to issue up to $9,000,000 in principal amount of its bonds to finance the acquisition and rehabilitation of. Mayf.air I and Mayfair II Apartments, located at 5286 Newtown Arch in the City of. Virginia Beach. The Members of' Renaissance Housing, LLC are Royce A Muiholland and William Leidesdorf Biographical information for Messrs Mulholland and Leidesdorf is set forth below. William A. Letdesdorf Mr Leidesdorf has over twenty-seven years experience in capital markets, workout, development, marketing, evaluation and asset management of residential and commercial real estate and real estate related institutions Mr Leidesdorf has served in a senior executive capacity with Eastdil Realty, Inc, Lowe Enterprises, The Palmieri Company, and was the chief operating officer of a joint venture commercial mortgage conduit with Salomon Brothers, responsible for underwriting, credit committee, loan committee, closing and administration Mr Leidesdorf is currently a principal in Renaissance Housing Mr Leidesdorf is a licensed real estate broker in the State of New York He is also an associate member of the Urban Land Institute Mr Leidesdorf is a Director of American Property Investors, Inc, the general partner of American Real Estate Partners, L P, a master limited partnership listed on the New York Stock Exchange He also serves as a Director, on behalf of an institutional investor, of Paloma LLC, the general partner of Simpson Housing Limited Partnership, a privately held multifamily residential development and management company headquartered in Denver, Colorado and active throughout the Southeast, Southwest and West Royce A. M,,iholland. Mr Muihoiland has over fifteen years experience in the public and private real estate sectors. He served in the executive branch of the government of the State of New York for eight years under the administration of Marlo Cuomo Mr Mulhoiland served as Assistant Appointments Officer to the Governor, Management and Productivity Spec,alist (Div, sion of the Budget), Deputy Director of Housing, Assistant Secretary of Housing and Chairman, Governor's Hous,ng Sub- Cabinet (highest state housing post) He performed extensive work with the National Council of State Housing Finance Agenc,es (NCSHFA) and HUD Under his direction, New York State received national recognition for programs such as. the Housing New York Program, the Housing Trust Fund, the Affordable Home Ownership Program, the Permanent Housing for Homeless Families Program and the Infrastructure Demonstration Program He participated in the revision of the New York City Rent Stabilization Code and the New York State Building Code Mr Mulholland is currently a principal in Renaissance Housing In addition, he is President of Royce Affiliates, a vehicle established for the purpose of developing, financing and managing residential real property in New York State and other states, including Flor,da, New Jersey, and Georgia for persons of Iow to moderate financial means Mr Mulhoiland provided client services including financial advisory, structuring and financial advice. Renaissance Housing is a single purpose entity formed for the purpose of acquiring and rehabilitating Mayfair I and Mayfair II Apartments and The Hamptons and Hampton Court Apartments, also located in Virginia Beach, Virginia. Accordingly, it has no operating history or historical financial statements. While the Mayfair and Hamptons transactions will be the first in Virginia for Renaissance Housing, Messrs Mulhoiland and Leidesdorf are also principals in Renaissance National Housing, LLC, which is serving as the Owner's Representative and as such is currently in the process of rehabilitating two multifamily apartment projects in Virginia, one (Brook Ridge Apartments, 292 units) in Henrico County outside of Richmond, and the second (St. Michaels Apartments, 260 units) in the City of Newport News, each of which was recently purchased by newly formed 501(c)(3) entities that are owned by The Doe Fund, lnc, a New York not for profit corporation with which Messrs Mulholland and Leidesdorfhave an ongoing business relationship through their various other multifamily residential rental housing developments Messrs Mulhoiland and Leidesdorf are committed to expanding the Renaissance presence in the Virginia market, and expect to play an active role in the communities in which their projects are located Messrs Mulholland and Leidesdorf are also principals in several other single purpose entities that have acquired and rehabilitated (or are in the process of acquiring and rehabilitating, as the case may be) multifamily residential rental apartment developments in Arizona and Florida Financial information with respect to the other multifamily residential rental housing projects in which Messrs Mulholland and Leidesdorf are involved as described above is available, if necessary, on request VIRGINIA BEACH Developmenl Aulhorllv One Columbus Center, State 300 V~rgmla Beach, VA 23462 (757) 437-6464 FAX (757) 499-9894 F Dudley Fulton, Chair Stephen W Burke, Vtte-Chatr W Branlley Ba,,mgh! Ill. Secretary Kenneth D Barefoot. Treasurer Ehzabeth A ' Betsy" Duke Robert F Hagans. Jr Robert G Jones EXHIBIT E MAYFAIR I AND MAYFAIR II APARTMENTS PROJECT RESIDENTIAL RENTAL HOUSING REVENUE BONDS The Authority recommends approval of the captioned financing. A public hearing was held on April 20, 1999 in respect of the application by Renaissance Housing, LLC, a Delaware limited liability company to acquire and rehabilitate the Mayfair I and Mayfair Il Apartments (the "Project") and public approval given to the Project at such public hearing. The public benefits of the Project, as described at the public hearing by Mr. Andrew Friedman of the Virginia Beach Department of Housing and Neighborhood Preservation, are (a) the improvement and renovation of the Project, which will enhance the quality of life of the residents of the Project and the aesthetic attractiveness of the Project, and (b) since none of the units at the Project are currently reserved for use by persons of low to moderate finanicial means, the increase in available rental units in the City of Virginia Beach for such persons, as will be required by applicable law governing the issuance of tax-exempt multffamiy housing revenue bonds. FISCAL IMPACT STATEMENT FOR PROPOSED REVENUE BOND FINANCING Date: To: Project Name' Type of Facility: April __, 1999 The City Council of the City of Virginia Beach, Virginia Mayfair I and Mayfair II Apartments Muitifamily Residential Rental Housing Apartment Complex 1. Maximum amount of financing sought $ 9,000,000 , Estimated taxable value of the facility' s real property in the City of Virginia Beach $ 5,172,900 Estimated real property tax per year using present tax rates $ 63,109 38 Estimated personal property tax per year using present tax rates $ N/A Estimated merchants' (business license) tax per year using present tax rates $ N/A A Est.nated dollar value per 3'ear of goods that will be purchased from V~rgnma compames ',~-lllun the locality $ 100,000 B EsUmated dollar x alue per )'ear of goods that will be purchased from non-V~rgima companies within the locality $ C Estimated dollar value pre year o£ services that will be purchased from V~rg~ma compan,es ~lllun the locality $ 145,000 D Estimated dollar value per year of goods that will be purchased from non-Virginia compames w~tlun the Iocalfly $ Estimated number of regular employees on a year round basis Between 5 and 10 8 Average annual salary per employee $ 20,000 The information contained in this Fiscal Impact Statement is bases solely on facts and estimates provided by the Applicant, and the Authority has made not independent investigation with respect thereto CITY OF VIRGINIA BEACJ:t/~ DEVELOP~t-~ A~T-Jq~'F¥ , v - .,/)~,-~ ' ~ ~- - ~ / EXHIBIT G SUMMARY SHEET CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY REVENUE BOND FINANCING 1. Project Name: Mayfair I and Mayfair II Apartments 2. Location: 5826 Newtown Arch, City of Virginia Beach 3. Description of Project' Multifamily residential rental apartment facility 4. Amount of Bond Issue' Approximately $9,000,000 5 Principals Renaissance Housing, LLC (see attached list for members and backgrounds of each such member) 6 Zoning classification Present zoning classification of property multifamily residential (A-18) b Is rezoning proposed? No b If so, what zoning Classification9 N/A The Members of Renaissance Housing, LLC are Royce A Mulholland and William Leidesdorf Biographical information for Messrs Mulhoiland and Leidesdorf is set forth below. Wiiham A. Leidesdo~f. Mr. Leidesdorf has over twenty-seven years experience in capital markets, workout, development, marketing, evaluation and asset management of residential and commercial real estate and real estate related institutions Mr Leidesdorf has served in a senior executive capacity with Eastdil Realty, Inc, Lowe Enterprises, The Palmieri Company, and was the chief operating officer of a joint venture commercial mortgage conduit with Salomon Brothers, responsible for underwriting, credit committee, loan committee, closing and administration Mr Leidesdorf is currently a principal in Renaissance Housing Mr Leidesdorf is a licensed real estate broker in the State of New York He is also an associate member of the Urban Land Institute Mr. Leidesdorf is a Director of American Property Investors, Inc, the general partner of American Real Estate Partners, L P, a master limited partnership listed on the New York Stock Exchange He also serves as a Director, on behalf of an institutional investor, of Paloma LLC, the general partner of Simpson Housing Limited Partnership, a privately held multifamily residential development and management company headquartered in Denver, Colorado and active throughout the Southeast, Southwest and West Royce A. Mulbolland Mr Mulhoiland has over fifteen years experience in the public and private real estate sectors He served in the executive branch of the government of the State of New York for eight years under the administration of Mario Cuomo Mr Mulholland served as Assistant Appointments Officer to the Governor, Management and Productivity Specialist (Division of the Budget), Deputy Director of Housing, Assistant Secretary of Housing and Chairman, Governor's Housing Sub- Cabinet (highest state housing post) He performed extensive work with the National Council of State Housing Finance Agencies (NCSHFA) and HUD Under his d~rection, New York State received national recognition for programs such as the Housing New York Program, the Housing Trust Fund, the Affordable Home Ownership Program, the Permanent Housing for Homeless Families Program and the Infrastructure Demonstration Program He participated in the revision of the New York City Rent Stabilization Code and the New York State Building Code Mr Mulholland is currently a principal in Renaissance Housing In addition, he is President of Royce Affiliates, a vehicle established for the purpose of developing, financing and managing residential real property in New York State and other states, including Florida, New Jersey, and Georgia for persons of Iow to moderate financial means Mr Mulholland provided client services including financial advisory, structuring and financial advice EXHIBIT H City of Virginia Beach INTER-OFFICE CORRESPONDENCE DATE: April 14, 1999 TO: FROM: SUBJECT: F. Dudley Fulton, Chairman Andrew U. Friedman, Direct~(~l,~,~ Department of Housing and N'e~[l~IYood Preservation ch Financing for the Proposed Acquisition of Mayfair I and Mayfair Apartments and the Hamptons and Hampton Court Apartments ,, , Based on the proposed description and representation made in the attached letter from Richard L. Hurlbert, regarding the above referenced projects, I believe that the acquisition and rehab of the named projects will provide a public benefit. Therefore, the requested financing is in the public interest. Please contact me if you have any questions. AMF:jap Attachment c: Gary Fentress, City Attorney f:\users\lponder\memos\ml&llH&HC RESOLUTION APPROVING THE ISSUANCE OF REVENUE BONDS FOR SILVER HILL AT THALIA, LLC WHEREAS, the Internal Revenue Code of 1986, as amended (the "Tax Code"), provides that the highest elected governmental officials of the governmental units having jurisdiction over the Issue of private activity bonds and over the area in which any facility financed with the proceeds of private activity bonds is located shall approve the issuance of such bonds; and WHEREAS, the City of Virginia Beach Development Authority (the "Authority") issues its bonds on behalf of the City of Virginia Beach, Virginia (the "City") and the members of the City Council of the City (the "Council") constitute the highest elected governmental officials of the City; and WHEREAS, Section 15.2-4906 of the Code of Virginia of 1950, as amended (the "Virginia Code"), provides that the Council shall within 60 calendar days from the date of the public hearing with respect to industrial development revenue bonds either approve or disapprove the issuance of such bonds; and WHEREAS, the City of Virginia Beach Development Authority (the "Authority') held a public hearing on February 24, 1998 with respect to the reapplication of Silver Hill at Thalia, LLC (the "Company") for the issuance of the Authority's Multi-Family Residential Rental Housing Bonds in an amount not to exceed $4,400,000.00 (the "Bonds") to assist the Company in acquiring approximately 3± acres of land located at 4353 Bonney Road, Virginia Beach, Virginia and developing, constructing and equipping on such land an approximately 142-unit apartment complex for elderly and disabled residents of low and moderate income to be located at 4353 Bonney Road, Virginia Beach, Virginia (collectively, the "Facility"); and WHEREAS, following the public hearing held February 24, 1998, the Authority approved the issuance of the Bonds in an amount not to exceed $4,400,000 for the benefit of the Company to finance the Facility; and WHEREAS, on April 14, 1998, the Council approved the Company's application for the Bonds; and WHEREAS, pursuant to Treasury Regulation Section 5f. 103-2(f) promulgated under the Code, the Bonds must be issued within one year of the date of approval by the Authority and the Council; and WHEREAS, the Company anticipates the Bonds being issued before June 1, 1999; and WHEREAS, in its appearance before the Authority on April 20, 1999, the Company requested that the Authority reaffirm its Resolution adopted by the Authority on February 24, 1998, approving the issuance of the Bonds (the "1998 Resolution"); and WHEREAS, a second public hearing was held as required by § 147(0 of the Intemal Revenue Code of 1986, as amended, and by § 15.2-4906 of the Code of Virginia of 1950 as amended, on April 20, 1999; and WHEREAS, the Authority has favorably considered the Company's re-application and a copy of the Authority's resolution re-approving the issuance of the Bonds, subject to terms to be agreed on, a reasonably detailed summary of the comments expressed at the public hearing with respect to the Bonds and a statement in the form prescribed by Section 15.2-4907 of the Virginia Code have been filed with the Council, together with the Authority's recommendation that the Council re-approve the issuance of the Bonds; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. The recitals made in the preambles to this Resolution are hereby adopted as a part of this Resolution. 2. The City Council approves the issuance of the Bonds by the Authority to assist in the financing of the Facility for the benefit of the Company to the extent of and as required by Section 147(0(2) of the Tax Code and Section 15.2-4906 of the Virginia Code. The approval of the issuance of the Bonds, as required by Section 147(0(2) of the Tax Code and Section 15.2-4906 of the Virginia Code, does not constitute an endorsement of the Bonds or the creditworthiness of the Company, but, as required by Section 15.2-4909 of the Virginia Code, the Bonds shall provide that neither the City nor the Authority shall be obligated to pay the Bonds or the interest thereon or other costs incident thereto except from the revenues and monies pledged therefor and neither the faith, credit nor taxing power of the Commonwealth of Virginia, the City or the Authority shall be pledged thereto. 3. In adopting this Resolution, the City, including its elected representatives, officers, employees and agents shall not be liable and hereby disclaims all liability for any damages to any person, direct or consequential, resulting from the Authority's failure to issue the Bonds for any reason. 4. This Resolution shall take effect immediately on its adoption. Adopted by a quorum of the Council of the City of Virginia Beach, Virginia, on May 4, 1999. 86457002\Council Resolution 99 I I II DUTCH CIR. TILLMAN DR Z NORFOLK & SOUTHERN RR RD. SITE LOCATION SCALE: 1 "= 1000' MAP SURVEYING-ENGINEERING P LANN I N G - E NVIRO N M E NTAL 242 MUSTANG TRAIL - SUITE 8 VIRGINIA BEACH, VIRGINIA PH. (757) 431-1041 ~_ FAX ('757)403-1412 j 2.690.000 F T Joins Map 4 76.o~ ~o S C O E F G H 12'7~°'e' A B C B [ F G II J 2 b~o ooo, , Jo/nsMap 20 "' ,~ ~..,[, 2 7oo.ooo ~' VIRGINIA BEACH Development Authority One Columbus Center, Suite 300 Virginia Beach, VA 23462 (757) 437-6464 FAX (757) 499-9894 F. Dudley Fulton, Chmr Stephen W. Burke, V~ce.C, hmr W. Brantley Basnight III, Secretary David A. King, Jr., Asmtant Secretary Kenneth D. Barefoot, Treasurer Elizabeth A. "Betsy" Duke Kenneth F. Palmer April 20, 1999 The Honorable Meyera E. Obemdorf, Mayor Members of City Council Mumcipal Center Virginia Beach, VA 23456 Re: Stlver Hill at Thaha, LLC Multi-Family Residential Rental Housing Bonds Dear Mayor Obemdorf and Members of City Council' We submit the following in connection with a project for Silver Hill at Thalia, LLC, a Virginia limited liability company located at 4353 Bonney Road in Virginia Beach, Virginia. (1) Evidence of publication of the notice of hearing is attached as Exhibit ,4 , and a summary of the statements made at the public hearing is attached as Exhibit B . The City of Virginia Beach Development Authonty's (the "Authority") resolution recommending Council's approval is attached as Exhibit C. (2) The Disclosure Statement is attached as Exhibit D. (3) The statement of the Authonty's reasons for ~ts approval as a benefit for the City of Virginia Beach and its recommendation that City Council approve the modification of the bonds described above is attached as Exhibit E. (4) The Fiscal Impact Statement is attached as Exhibit F. The Honorable Meyera E. Obemdorf, Mayor Members of City Council Page 2 April 20, 1999 (5) Attached as Exhibit G is a summary sheet setting forth the type of issue, and identifying the Project and the principals. (6) Attached as Exhibit H is a letter from the appropriate City department commenting on the Project. Very tml ours ~. Dffdley Fulto/ny - · Chairman c/ FDF/GLF/rab Enclosures EXHIBIT A NOTICE OF PUBLIC HEARING ON PROPOSED MULTI-FAMILY RESIDENTIAL RENTAL HOUSING BOND FINANCING OF THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY Notice is hereby given that the City of Virginia Beach Development Authority (the "Authority") whose address is Suite 300, One Columbus Center, Virginia Beach, Virginia, will hold a public hearing at 8:30 a.m. on Tuesday, April 20, 1999, on the Application and Plan of Financing of Silver Hill at Thalia, LLC (the "Company"), for the issuance of the Authority's Multi-Family Residential Rental Housing Bonds pursuant to Chapter 643 of the Acts of Assembly of 1964, as amended and supplemented by the Industrial Development and Revenue Bond Act, Title 15.2, Chapter 49 of the Code of Virginia of 1950, as amended (the "Act"), in an amount not to exceed $4,400,000 to assist the Company in the acquisition of a 3+/- acre parcel of land in Virginia Beach, Virginia, on the south side of Bonney Road having a street address of 4353 Bonney Road, and the development, equipping, and construction on such land of an approximately 142-unit apartment facility for elderly and handicapped residents (the "Project"). As required by the Act, the Bonds will not pledge the credit or taxing power of the City of Virginia Beach, Virginia, or the Authority, but will be payable solely from revenues derived from the Company and pledges of those revenues. Any persons interested in the issuance of the Bonds or the location or nature of the proposed Project may appear and be heard. A copy of the Company's application is on file and is open for inspection at the Authority's office during business hours. City of Virginia Beach D~Auth ' . F. ~[ud~e~-~ui~ (,/'- Chairman 86457002/notice of public hearing 99 EXHIBIT A THE VIRGINIAN-PILOT NORFOLK, VIRGINIA AFFIDAVIT OF PUBLICATION The Virginian-Pilot CLARK & STANT, P.C. 900 ONE COLUMBUS CENTER VIRGINIA BEACH, VA 23462 00028104 N. Nicole Ha 428601409 BOND State of Virginia City of Norfolk This day, D. Johnson personally appeared before me and after being duly sworn, made oath that: 1) She is affidavit clerk of The Virginian-Pilot, a newspaper published by Landmark Communications Inc., in the cities of Norfolk, Portsmouth, Chesapeake, Suffolk, and Virginia Beach, State of Virginia. 2) That the advertisement hereto annexed has been published in said newspaper on the date stated. PUBLISHED ON: 04/05 04/12 TOTAL COST: 382.72 FILED ON: 04/16/99 AD SPACE: 64 LINE lumbus Cent~. ~_~nia B~ch. Vl~inla. will hold ~ ~t ~ R~ue ~ ~. ~t~ 15 2.~er 49 Vl~_d 19~. ~ ~ (~ "~'). In an ,~nt m~ ~.~.~ W ~ ~ ~W in t~ ~u~t~ +/- ~ ~ W ~ in Vl~nb ~. V~ln~. ~ ~ R~ ~l~ s ~ ~ ~ 4353 R~. ~ ~ ~. ~ui~. ~ ~m ~p~ ~mnm (~ "~') ~ ~ui~ ~ will ~ ~ ~ ~lt ~ ~xln~ ~er ~ t~ ?~nlm ~. ~l~lni~. ~ the ~. b~ will ~ ~yab~ h~ A~~~nf s appleton ~ ~ fde ~ Iso~n ~r I~n at ~ ~h~l~'s off~e duri~ b~l~ C~ ~ Vistula Beech ~nt Au~l~ VP A~I 5 a~ ~d12. 1999 Legal Affiant: ~--~~%~'t~ + Subscribed and sworn t%5 before.me in my city and state on the day and year aforesaid thisA__ZO/~ day of A~ Notary: ~)~~/~q ~ My commission expires October 31, 2000 EXHIBIT CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY RECORD OF PUBLIC HEARING ON APRIL 20, 1999 (Silver Hill at Thalia, LLC Pro]eeO The Chairman of the City of Virginia Beach Development Authority (the "Authority") announced the commencement of a public hearing on the request Silver Hill at Thalia, LLC (the "Borrower"), and that a Notice of the Hearing was published once a week for two consecutive weeks in The Virginian-Pilot, a newspaper having general circulation in the City of Virginia Beach, Virginia. Such public hearing was noticed for April 20, 1999. Such public hearing was held not less than six days and not more than 21 days after the second notice appeared in The Virginian-Pilot. A copy of the Notice and Certificate of Publication of such notice have been filed with the records of the City Council of the City of Virginia Beach. hearing: The following individuals appeared and addressed the Authority at such public C. Grigsby Scifres, an attorney with Clark & Stant, P.C., appeared on behalf of the Borrower. Mr. Scifres stated that the proposed issuance of bonds (the "Bonds") was approved by the Authority and the Council for the City of Virginia Beach (the "Council) in February and April, 1998, respectively. Mr. Scifres referred to the Record of Public Hearing and Resolution adopted by this Authority on February 24, 1998 outlining the public benefits of the issuance of the Bonds. Mr. Seifres explained that the Borrower did not receive an allocation from the state ceiling in 1998 but did receive an allocation on March 4, 1999. Mr. Scifres then outlined the requirements of the Internal Revenue Code of 1986, as amended, relating to the issuance of tax-exempt bonds within one year of the date of public approval. Mr. Scifres stated that the Borrower expects to issue the Bonds before June 1, 1999 and that therefore he was appearing before the Authority on behalf of the Borrower to re-obtain public approval of these Bonds. Mr. Gary L. Fentress also appeared and made brief comments further highlighting the points made by Mr. Scifres, as outlined above. No questions were raised by members of the Authority. No other persons appeared to address the Authority, and the Chairman closed the public hearing. The Authority hereby recommends that the City Council of the City of Virginia Beach, Virginia approve the issuance of $4,400,000 of multi-family residential rental housing bonds in support of the proposed financing and hereby transmits the Fiscal Impact Statement to the City Council of the City of Virginia Beach and asks that this recommendation be received at its next regular special meeting at which this matter can be properly placed on the Council's agenda for hearing. 86457002/Record of public hearing 99 EXHIBIT C RESOLUTION OF THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY WHEREAS, in the City of Virginia Beach, Virginia ("City"), there is a significant shortage of affordable, sanitary and safe residential rental housing property for elderly individuals and families, including those of low or moderate income; and WHEREAS, the provision of financing of affordable, sanitary and safe residential rental housing property in the City for elderly individuals and families, including those elderly individuals and families of low and moderate income, will be in the public interest and will benefit the inhabitants of the City and the Commonwealth of Virginia ("Commonwealth") through the promotion of their safety, health, welfare, convenience and prosperity; and WHEREAS, private enterprise has been unable, without assistance, to plan, acquire, develop, construct, repair, rehabilitate or maintain adequate affordable housing or provide significant long-term mortgage financing for such projects; and WHEREAS, the availability to private developers of below-market interest rate loans is necessary to promote and assist the planning, acquisition, development, construction, rehabilitation, repair and/or maintenance of such projects; and WHEREAS, representatives of Silver Hill at Thalia, LLC, a Virginia limited liability company (the "Company"), applied in February, 1998 to the City of Virginia Beach Development Authority ("Authority") for assistance in financing the acquisition of a 3 +/- acre parcel of land in the City, on the south side of Bonney Road having a street address of 4353 Bonney Road, and the developing, equipping and construction on such land of an approximately 142-unit apartment facility for elderly and handicapped residents, together with all necessary and related personal property, furniture, fixtures and equipment (collectively, the "Facility"); and WHEREAS the Company in its appearance before the Authority on February 24, 1998 and in its application described the benefits to the City and requested the Authority to issue its multi- family residential rental housing bonds under Chapter 643 of the Acts of Assembly of 1964, as amended and supplemented by the Industrial Development and Revenue Bond Act, Title 15.2, Chapter 49 of the Code of Virginia of 1950, as amended (the "Act"), in such amounts as may be necessary to finance costs to be incurred in financing the Facility; and WHEREAS, a public hearing was held as required by § 147(0 of the Internal Revenue Code of 1986, as amended, and by § 15.2-4906 of the Code of Virginia of 1950 as amended, on February 24, 1998; and WHEREAS, following the public heating held February 24, 1998, the Authority approved the issuance of its bonds in an amount not to exceed $4,400,000 (the "Bonds") for the benefit of the Company to finance the Facility; and WHEREAS, pursuant to Treasury Regulation Section 5f. 103-2(f) promulgated under the Code, the Bonds must be issued within one year of the date of public approval; and WHEREAS, the Company anticipates the Bonds being issued prior to June 1, 1999; and WHEREAS, the Company has requested that the Authority reaffirm its Resolution adopted by the Authority on February 24, 1998, approving the issuance of the Bonds (the "1998 Resolution"); and WHEREAS, a second public hearing has been held as required by § 147(f) of the Internal Revenue Code of 1986, as amended, and by § 15.2-4906 of the Code of Virginia of 1950 as amended, on April 20, 1999; and WHEREAS, the Authority was created to serve certain purposes, among which are those of promoting the safety, health, welfare, convenience and prosperity of inhabitants of the City and the Commonwealth by assisting in the planning, development, acquisition, construction, repair or rehabilitation of affordable, sanitary and safe facilities used primarily for multi-family residences; NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY: 1. The Authority finds that (i) there is a significant shortage of affordable, sanitary and safe residential rental housing facilities in the City for elderly individuals and families, including those elderly individuals and families of low and moderate income, (ii) the provision of financing of such facilities by the Authority will be in the public interest and will benefit the inhabitants of the City and the Commonwealth through the promotion of their safety, health, welfare, convenience or prosperity, and (iii) the issuance of the Bonds will be consistent with the purposes of the Act and the powers of the Authority. 2. To assist the Company with respect to the Facility, the Authority agrees to undertake the issuance of its multi-family residential rental housing bonds in an amount not to exceed $4,400,000 on terms and conditions to be mutually agreed on between the Authority and the Company. The Facility shall be leased or sold by the Authority to the Company pursuant to a lease or installment sale agreement which will provide payments to the Authority sufficient to pay the principal of and premium, if any, and interest on the Bonds and to pay all other expenses in connection with the maintenance of the Facility. The Bonds will be issued in form and pursuant to terms to be set by the Authority, and the payment of the Bonds shall be secured by an assignment, for the benefit of the holders of the Bonds, of the Authority's rights to payments under the lease or installment sale agreement and may be additionally secured by a deed of trust and assignment of leases on the Facility. 3. It having been represented to the Authority that it is necessary to proceed immediately with the construction and equipping of the Facility, the Authority hereby agrees that the Company may proceed with plans for the Facility, enter into contracts for acquisition, construction and equipping and take such other steps as it may deem appropriate in connection therewith, provided that nothing herein shall be deemed to authorize the Company to obligate the Authority without its consent in each instance to the payment of any monies or the performance of any acts in connection with the Facility. The Authority agrees that the Company may be reimbursed from the proceeds of the Bonds for all lawful costs so incurred by it. 4. The Authority hereby agrees to the recommendation of the Company that Clark & Stant, P.C., Virginia Beach, Virginia, be appointed as bond counsel and hereby appoints such firm to supervise the proceedings and approve the issuance of the Bonds. 5. The Authority hereby agrees, if requested, to accept the recommendation of the Company with respect to the appointment of a placement agent or underwriter for the sale of the Bonds and a remarketing agent for the remarketing of the Bonds pursuant to terms to be mutually agreed on. 6. All lawful costs and expenses in connection with the financing and the acquisition, construction and equipping of the Facility, including the fees and expenses of the Authority, counsel for the Authority, bond counsel and the placement agent or underwriter for the sale of the Bonds and the remarketing agent for the remarketing of the Bonds, shall be paid from the proceeds of the Bonds or by the Company. If for any reason such Bonds are not issued, or such Bonds are issued but it is determined that a part or all of such costs are not lawfully payable out of Bond proceeds, it is understood that all such expenses shall be paid by the Company and that the Authority shall have no responsibility therefore. 7. The Authority's declaration of intent to reimburse lawful costs and expenses in connection with the financing and the acquisition, construction and equipping of the Facility from the proceeds of the Bonds, as set forth in the 1998 Resolution, remains in full force and effect. 8. The Authority hereby recommends that the City Council of the City (the "Council") reaffirm its approval of the issuance of the Bonds and hereby directs the Chair or Vice-Chair to submit to the Council the statement in the form prescribed by § 15.24907 of the Code of Virginia of 1950, as amended, a reasonably detailed summary of the comments expressed at the public hearing required by § 15.2-4906 of the Code of Virginia of 1950, as amended, and a copy of this Resolution. 9. This Resolution will take effect immediately on its adoption. The undersigned hereby certifies that the above Resolution was duly adopted by the Commissioners of the City of Virginia Beach Development Authority at a meeting duly called and held on April 20, 1999, and that such Resolution is in full force and effect on the date hereof. Date: AprilP' ,1999 W. Brantley Basnight{ I Secretary, City of Virginia Beach Development Authority DISCLOSURE STATEMENT Date: April 13, 1999 Applic,~t: Silver Hill at Thalia, LLC Al! Owners (if different from Applicant): None Tv0e o.f A_o01icatiorc $4,400,000 Multi-Family Residential Rental Housing Bonds to assist the Applicant in financing the acquisition of approximately 3 acres of land and the development, construction and equipping of a 142-unit apartment facility thereon for elderly and disabled residents of low and moderate income in the City of Virginia Beach. 1. If the Applicant is a limited liability company, list all of the members and managers of the limited liability company: Richard M. Waitzer, sole member and manager of the company. 2. The Applicant is the owner of the Project. SILVER HILL AT THALIA, LLC, a Virginia limited ':~bility company , ~ By: /~ /,// .~'~/ Richard M.~/ai{~;;lr." ' Sole Member and Manager 86457002~Dtsclosure Data VIRGINIA BEACH Development Authority One Columbus Center. Suite 300 Virginia Beach. VA 23462 {757) 437-6464 FAX {757) 499-9894, F. Dudley Fulton, Chair Stephen W. Burke, Vice. Chmr W. Brantley Ba~night !11, Secretary Kenneth D. Barefoot. Treasurer Elizabeth A "Betsy" Duke Robert F Hagans. Jr Robert O Jones EXHIBIT E CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY $4,400,000 MULTI-FAMILY RESIDENTIAL RENTAL HOUSING BONDS, SERIES 1999 The Authority recommends approval of this financing. The proceeds of the Bonds to be issued will be used to assist the Applicant in financing the acquisition of land and the development, construction and equipping on such land of the 142-unit multi-family residential apartment project for elderly and disabled residents of Iow and moderate income. The Applicant's project will result in approximately $5,000,000 of new capital investment in the City. The development of affordable housing for elderly and disabled residents in the City, along with the capital investment, construction payroll, direct tax revenue and creation of jobs constitutes the basis for this recommendation. Primarily, this financing will assist the City in meeting the affordable housing needs of its elderly and disabled population. EXHIBIT F FISCAL IMPACT STATEMENT DATE: April ,20, 1999 TO: THE CITY COUNCIL OF VIRGINIA BEACH. VIRGINIA PROJECT SILVER HILL AT THALIA, LLC TYPE OF FACILITY: Multi-Family Apartments for Elderly 1. Maximum amount of financing sought $, 4,400,000 e Estimated taxable value of the facility's real property to be constructed in the municipality $ 5,000,000 , Estimated real property tax per year using present tax rates 61,000 · Estimated personal property tax per year usin8 present tax rates $ lt850 , Estimated merchant's capital(business license) tax per year using present tax rates N/A , . Estimated dollar value per year of goods and services that will be purchased locally Estimated number of regular employees on year round basis Construction: $4,500,000 Annually: $ 175,000 8. Average annual salary per employee $ 21, ooo The information contained in this Statement is based solely on tracts and estimates provided by the Applicant, and the Authority has made no independent investigation with respect thereto. City of Vi~~B.~eve~/ent EXHIBIT G SUMMARY SHEET CITY OF VIRGINIA BEACH DEVELOPMENT AI.rFHO~TY INDUSTRIAL DEVELOPMENT RE~ BOND I, PROJECT NAME: 2. LOCATION: SILVER HILL AT THALIA, LLC 3 acres; 4353 Bonney Road, Virginia Beach 3~ DI~$CRIPTION OF PROJECT: Apar,'c:ments for elderly and d.i.,ab, le of Iow to moderate income AMOUNT OF BOND ISSUE: 5. PRINCIPALS: $ 4,400,000 Richard M. Waitzer 6. ZONING CLASSIFICATION: a. Present zoning classification of the Property Was 0-1; Now A-36 with Conditional Use Permit b. Is rezoning proposed? Yes x No c. If so, to what zoning classification? Conditional A-36 with a Conditional Use Permit for up to 142 Elderly Apartments. NOTE: Rezoning and Conditional Use Permit have been granted. NOTE. THIS DOCUMENT MUST BE ON 8-1/2 x 14 INCH PLAIN BOND PAPER. EXHIBIT H City of Virginia Beach INTER-OFFICE CORRESPONDENCE DATE: April 14, 1999 TO: FROM: SUBJECT: F. Dudley Fulton, Chairman Andrew M. Friedman, Direct(~(~~ Department of Housing and N~il~(~h~)od Preservation Silver Hill at Thalla The proposed project will provide a public benefit by creating affordable housing for senior citizens. Therefore, I believe that it is in the public interest to provide the requested financing for this project. Please contact me if you have any questions. AMF:jap Attachment c: 'Gary Fentress, City Attorney f:\users\jponder\memos\silhill RESOLUTION OF CITY COUNCIL APPROVING THE ISSUANCE OF NOT TO EXCEED $6,500,000 OF HOUSING REVENUE BONDS BY THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY FOR TALLWOOD, L. P WHEREAS, the City of Virginia Beach Development Authority (the "VBDA"), has considered the application of Tallwood, L P., a Virginia limited partnership (the "Borrower"), for the issuance and sale of its Housing Revenue Bonds (Tallwood, L P. ProJect), Series 1999, in a principal amount not to exceed $6,500,000 (the "Bonds"), to finance a portion of the cost of the acquisition, construction and equipping of a 120-umt multl-famdy residential rental housing project (the "Project") to be located on the North side of the 2000 block of Kempsvdle Road, in the City of Virginia Beach, which Project will reserve either (a) at least 20% of the housing units therein for persons whose income is 50% or less of area median gross income or (b) at least 40°,/0 of the housing units therein for persons whose income is 60% or less of area median gross income; WHEREAS, the Borrower will own and operate the ProJect; WHEREAS, Section 147(0 of the Code provides that the highest elected governmental officials of the governmental units having jurisdiction over the issuer of private activity bonds and the area in which any facility financed with the proceeds of private activity bonds is located shall approve the issuance of such bonds; WHEREAS, the ProJect is located in the City of Virginia Beach and the members of the City Council of the City of Virginia Beach (the "Council") constitute the highest elected governmental officials of this City; WHEREAS, Section 15.2-4906.C of the Code of Vlrglma of 1950, as amended (the "Virginia Code"), provides that a governing body shall within 60 calendar days from a public hearing with respect to bonds requmng public approval under the Internal Revenue Code either approve or disapprove the issuance of such bonds; WHEREAS, the VBDA held a public heanng on April 20, 1999, on the Borrower' s request for the issuance of the Bonds to finance the Project, WHEREAS, a copy of the VBDA's resolution approving the Borrower's ProJect and fiananclng request, a reasonably detmled summary of the comments expressed at the pubhc heanng with respect to the Bonds, and a statement in the form prescribed by Section 15.2-4907 of the 226393 V~rg~ma Code have been filed w~th the Council, together w~th the VBDA's recommendation that the Council approve the Borrower's ProJect and financing; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA; 1. The above-mentioned remtals are hereby adopted as a part of th~s Resolution. 2. The Council approves the Borrower's ProJect and the Bonds, to the extent reqmred by Section 147(f)(2)(D) of the Code and Section 15.2-4906 of the V~rg~ma Code. 3. The approval of the Bonds, as required by Section 147(f)(2)(D) of the Code and Section 15.2-4906 of the Virginia Code, does not constitute an endorsement to a prospective purchaser of the Bonds of the cre&tworth~ness of the Project or the Borrower, but, as reqmred by Section 36-29 of the V~rg~ma Code, the Bonds shall prowde that nmther the C~ty of V~rgima Beach nor the VBDA shall be obhgated to pay the Bonds or the ~nterest thereon or other costs ~nc~dent thereto except from the revenues and moneys pledged therefor and neither the froth or cre&t nor the taxing power of the Commonwealth of V~rg~ma, the C~ty of V~rgima Beach nor the VBDA shall be pledged thereto. 4. The Council recommends to the V~rg~nla Small Bus~ness F~nanc~ng Authority that ~t grant an allocation of the local housing authority private act~wty bond allocation to the ProJect and the Bonds. 5. Th~s Resolution shall take effect ~mme&ately upon ~ts adoption Adopted by the Council of the C~ty of V~rg~ma Beach, V~rglnla, on May _4, 1999. ADOPTED. ATTEST: Mayor Clerk of the Council 226393 1 2 ~.~ /// ~ ~-.~.~ ' ~,~ ' , ~v~ ~ .. .......  ~.~ 0~61 IOGl OUAY ~ orov~ ~ ~ A~ant~c Shem '~ j~d.,,., t ( ,~ i.,.,, .., B C O E F G IH J VA GRID .670.000 FI'76'12 30' Joins Map 25 2.680,000 FT 76'10 O0 BORROWER: PROJECT: LOCATION: TALLWOOD, L.P. 120-unit multi-family residential rental housing project North side, 2000 block of Kempsville Road BOND AMOUNT: Not to exceed $6,500,000 VIRGINIA BEACH Development Authority One Columbus Center. Suite 300 V~rg~nla Beach, VA 23462 (757) 437-6464 FAX (757) 499-9894 F Dudley Fulton, Chatr Stephen W Burke, Vtce-Chatr W Brantley Basmght ill, Secretary Kenneth D Barefoot. Treasurer Elizabeth A "Betsy" Duke Robert F Hagans. Jr Robert G Jones April 20, 1999 The Honorable Meyera E. Oberndorf, Mayor Members of City Council Municipal Center Virginia Beach, VA 23456 Re~ Tallwood, L.P. 120 Unit multi-family residential rental project Housing Revenue Bonds Dear Mayor Obemdorf and Members of City Council: We submit the following in connection with projects for Tallwood, L.P., located on the north side of the 2000 block of Kempsville Road, Virginia Beach, Virginia 23464. (1) Evidence of publication of the notice of hearing is attached as Exhibit ,4, and a summary of the statements made at the public hearing is attached as Exhibit B. The City of Virginia Beach Development Authority's (the "Authority") resolution recommending Council's approval ~s attached as Exhibit C. (2) The Disclosure Statement is attached as Exhibit D. (3) The statement of the Authority's reasons for its approval as a benefit for the City of Virginia Beach and its recommendation that City Council approve the modification of the bonds described above is attached as Exhibit E. The Honorable Meyera E. Obemdorf, Mayor Members of City Council Page 2 April 20, 1999 (4) The Fiscal Impact Statement is attached as Exhibit F. (5) Attached as Exhibff G is a summary sheet setting forth the type of issue, and identifying the Project and the principals. (6) Attached as Exhibit H is a letter from the appropriate City department commenting on the Project. FDF/GLF/rab Enclosures Very truly yours,.z_~ ~ , ' Chairman EXHIBIT A THE VIRGINIAN-PILOT NORFOLK, VIRGINIA AFFIDAVIT OF PUBLICATION The Virginian-Pilot HOFHEIMER NUSBAUM P.C. 999 WATERSIDE DRIVE DOMINION TOWER, STE 1700 NORFOLK, VA 23510 REFERENCE: 00042747 H David Embr 428604209 DEVELOPMENT AUT State of Virginia City of Norfolk This day, D. Johnson personally appeared before me and after being duly sworn, made oath that: 1) She is affidavit clerk of The Virginian-Pilot, a newspaper published by Landmark Communications Inc., in the cities of Norfolk, Portsmouth, Chesapeake, Suffolk, and Virginia Beach, State of Virginia. 2) That the advertisement hereto annexed has been published in said newspaper on the date stated. PUBLISHED ON: 04/04 04/11 TOTAL COST: 264.96 FILED ON: 04/16/99 AD SPACE: 92 LINE Thm~cilit~ mey .l~r ~t !~ he~n~ and ~ ha ~ ~ ~lli~ ~ ~ fl~ ~, ~ ~ ~ ~1~ ~ ~ ~ $6,~,~ ~ ~ ~Wnm ~ ~~t ~ ~ 3.a~, ~P, ~ w~mm .m~ ~ip (~e "A~I~'), ~ ' m a 120 unit multi ~m~ ~nl~l ~1 ~ a~ m~t~ l~dll~ (the "P~'), ~t~ m 23 7 ~ ~ b~ ~ ~ ~ s,de ~ ~ 20~ b~k ~ ~m~l~.~, V~nm ~. Vl~nm 234~ The P~ b ~ m~ ~t~ ~ ~, w~ pH~l ~ ~ ~i~ m ~ ~ ~8 N~ R~d. V~nm ~h, Vi~n~ 23462 ~mm a~ ~t ~ t~ ~~ ~ Vi~i~, ~ C~ ~ m ;~1 tax ~nu~ ~, ~ ~ w~ll ~ I~i~ ~i~t~ ~ ~e Au~, ~yab~ ~ly ~ ~ ~ ~ ~ ~fl- ca~ ~ ~ ~s ~t~ a~ A ~ ~ ~ ~s ~t~ b m f,b a~ ~n ~ im~t~ at ~ A~¥s ~. ~ ~ ~1~ ~n~er, State 300, V~m~/ ~, V~mm 23462, duri~ ~ ~ Per- ~m w?snm~ to a~ ~ Cl~ ~ V,~in~ ~ ~1o~ ~e are ~u~t~ ~ ~ ~ ~i~ at 437~, ~ mg ~he ~t,nE F D~IW Ful~n, C~r, v~ ~ 41~ ~nl ]1, ]999 Subscribed and swornVto before~me ~n my city and state on the day and year aforesaid t~is ~0 I~ day of~ ~, I · Notary: v _ ~ My commission expires October 31, 2000 EXHIBIT~ NOTICE OF PUBLIC HEARING OF THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY TUESDAY, APRIL 20, 1999 All persons interested in the proposed issuance of the below-mentioned bonds by the City of Virginia Beach Development Authority (the "Authority") should take notice that the Authority will hold a public hearing on the subject of such bonds and the related plan of financing on April 20, 1999, at 8:30 a.m., in the offices of the City of Virginia Beach Development Authority at One Columbus Center, Suite 300, Virginia Beach, Virginia, which hearing may be adjourned or continued without further notice. Any persons interested in the issuance of the bonds or the location or nature of the proposed facilities may appear at the hearing and present his or her views. The maximum amount, initial owner or operator of the facility to be financed thereby, location of the facility to be financed thereby and purpose of the bonds being considered are as follows: $6,500,000 City of Virginia Beach Development Authority 1999 Housing Revenue Bonds (Tallwood L.P. Project), to be issued pursuant to the Virginia Housing Authorities Law, for the benefit ofTallwood, L. P., a Virginia limited partnership (the "Applicant"), for the purpose of financing the acquisition, constmction and equipping of a 120 unit multi-family residential rental project and related facilities (the "Project"), located on 23.7 acres of land on the north side of the 2000 block of Kempsville Road, Virginia Beach, Virginia 23464. The Project is owned and operated by the Applicant, whose principal place of business is located at 808 Newtown Road, Virginia Beach, Virginia 23462. Said proposed bonds, if issued, will not create a debt or pledge of the faith and credit of the Commonwealth of Virginia, the City of Virginia Beach or the Authority, and will not be payable from state or local tax revenues. Rather, such bonds will be limited obligations 224474 I of the Authority, payable solely from funds provided by the beneficiary of the bonds identified above. A copy of the Applicant's application is on file and open for inspection at the Authority's office, at One Columbus Center, Suite 300, Virginia Beach, Virginia 23462, during business hours. Persons wishing to address the City of Virginia Beach Development Authority at the public hearing on the subject of the above bond issue are requested to notify the undersigned at 437-6464, preceding the meeting. F. Dudley Fulton, Chair, City Development Authority _ L,~ vv~ ~ -"'"-I I Beach 224474 EXHIBIT B CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY RECORD OF PUBLIC HEARING APRIL 20, 1999, AT 8:30 A.M. (Tallwood, L.P. Project) The Chairman of the City of Virginia Beach Development Authority (the "Authority") announced the commencement of a public hearing on the request of Tallwood, L.P., a Virginia limited partnership (the "Borrower"), and that a notice of the public hearing was published once a week for two consecutive weeks in a newspaper having general circulation in the City of Virginia Beach, Virginia, the first publication being not less than 14 days prior to the heating and the second publication being not more than 21 days prior to the hearing. The Chairman indicated that a copy of the notice and a certificate of publication of such notice were being filed with the records of the City Council of the City of Virginia Beach. The following individuals appeared and addressed the Authority: Mr. William L. Nusbaum appeared as bond counsel on behalf of the Borrower. Mr. Nusbaum gave a brief description of the Project (defined below). He explained that the proposed issuance of the Authority's Housing Revenue Bonds (Tallwood, L.P. Project), Series 1999 (the "Bonds") would fund the acquisition, construction and equipping of a 120-unit multi-family residential rental housing project on the north side of the 2000 block of Kempsville Road (the "Project") in the City of Virginia Beach. Mr. Nusbaum then introduced two of the principals of the Borrower, Ronald C. Ripley and F. Andrew Heatwole. Mr. Heatwole then described the Project in greater detail, confirmed that no rezoning was required, that site plan approval had been obtained, and indicated that it would address the public purpose of providing safe, attractive and sanitary housing for low and moderate income families within the City of Virginia Beach. No other persons appeared to address the Authority, and the Chairman closed the public hearing. Following the closing of the public hearing, a resoultion entitled "Resolution Evidencing the Official Intent of the City of Virginia Beach Development Authority to Issue its Housing Revenue Bonds for Tallwood, L.P. in the Principal Amount Not to Exceed $6,500,000" was moved, seconded and unanimously adopted by the Authority. 226343 I The Authority hereby recommends that the City Council of the City of Virginia Beach, Virginia approve the proposed financing for state law and federal tax law purposes, transmits the Fiscal Impact Statement to the City Council of the City of Virginia Beach, and asks that this recommendation be received at the next regular or special City Council meeting at which this matter can be properly placed on the agenda for hearing. 226343 ! EXHIBIT C RESOLUTION EVIDENCING THE OFFICIAL INTENT OF THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY TO ISSUE ITS HOUSING REVENUE BONDS FOR TALLWOOD, L. P. IN THE PRINCIPAL AMOUNT NOT TO EXCEED $6,500,000.00 WHEREAS, the City of Virginia Beach Development Authority (the "Authority"), was created pursuant to Chapter 643 of the Virginia Acts of Assembly of 1964, as amended (the "Act"), and is now existing and operating as a public body corporate and politic; and WHEREAS, the Authority was created to promote the public interest and the safety, health, welfare, convenience and prosperity of the inhabitants of the City of Virginia Beach, Virginia (the "City"), and the Act empowers the Authority to issue its revenue bonds in accordance therewith to pay all or any part of the cost of the planning, development, acquisition, construction, repair or rehabilitation of multi-family residential rental property meeting the requirements of the Internal Revenue Code for individuals and families of low and moderate income; and WHEREAS, representatives of Tallwood, L. P. (the "Company") have held discussions with representatives of the City and the Authority with respect to its acquisition, construction and equipping of a 120 unit multi-family residential rental project and related facilities (the "Project"), located on 23.7 acres of land on the north side of the 2000 block of Kempsville Road, Virginia Beach, Virginia 23464 and constituting "a residential rental project" as the term is used in Section 1.103-8(b) of the Treasury Regulations; and WHEREAS, the Authority, at~er due notice, has on this date conducted a public hearing on the application of the Company for revenue bond financing of the Project in compliance with the requirements of Section 147(f) of the Code and Va. Code Section 15.1-1378.1; 224614 I I WHEREAS, the Company has requested that the Authority (a) determine that there is a significant shortage of affordable, sanitary and safe residential rental property in the City for individuals and families of low and moderate income, (b) take official action authorizing the financing of its acquisition, construction and equipping of the Project and (c) agree in principle to issue not to exceed $6,500,000 of its housing revenue bonds (the "Bonds") therefor, as proposed by the Company; NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY: 1. It is hereby found and determined that the undertaking of the Project in the City will in part redress the shortage in the City, Southeastern Virginia and the Commonwealth of affordable, sanitary and safe residential rental property for individuals and families of low and moderate income. 2. Upon the recommendation of the Company, the Authority hereby appoints Hofheimer Nusbaum, P. C., as bond counsel with respect to the financing of the Project. 3. To assist the Company to undertake the Project, the Authority hereby agrees in principle to issue its Bonds in an amount not to exceed $6,500,000.00 upon terms and conditions to be mutually agreed upon by the Authority, the Company and the purchaser of the Bonds. The Bonds shall be issued pursuant to an installment sale or loan agreement with the Company, a bond purchase agreement with a lender or underwriter, and if not privately placed, a trust indenture. 4. The Company has represented to the Authority that interest on the Bonds financing the Project is intended to be excluded from the gross income of the holders thereof for federal and state income tax purposes, and that the Authority shall receive an administrative fee for issuing and carrying the Bonds equal to one-eighth of 1% per annum calculated and payable in monthly 224614 I 2 installments on the outstanding principal balance of the Bonds on the first day of each calendar month. 5. The Company having represented to the Authority that it is necessary for the Company to proceed immediately with the design, acquisition, construction and equipping of the Project, the Authority hereby agrees that the Company may proceed with the plans for the Project, enter into contracts for the design, acquisition, construction and equipping thereof, and take such other steps as it may deem appropriate in connection therewith, provided that nothing herein shall be deemed to authorize the Company to obligate the Authority without its consent in each instance to the payment of any monies or the performance of any actions in connection with the Project. The Authority agrees that the Company may be reimbursed from the proceeds of the Bonds, if and when issued, to the extent permitted by law for all costs so incurred by it. This resolution constitutes a declaration of"official intent" for purposes of Treasury Reg. § 1.150-2. 6. All costs and expenses in connection with the Bonds and the design, acquisition, construction, equipping and operation of the Project, including but not limited to the fees and expenses of Bond Counsel, shall be paid from the proceeds of the Bonds to the extent permitted by law or else from funds of the Company. If for any reason the Bonds are not issued, it is understood that all such expenses shall be paid by the Company and that the Authority shall have no responsibility therefor. 7. Neither the Bonds nor the premium, if any, nor the interest payable thereon shall be a general obligation debt of the Commonwealth of Virginia or any political subdivision thereof, including the Authority and the City, and neither the Commonwealth of Virginia, nor any political subdivision thereof, including the Authority and the City, and the officials, officers, directors and/or 224614 ! 3 employees, past, present or future, of any or all, are or shall be personally liable thereon. The Bonds, together with the premium, if any, and the interest payable thereon, shall be a limited obligation of the Authority payable solely pursuant to the terms of the Bonds and the related documents. 8. The Authority hereby recommends that the Council of the City of Virginia Beach (the "Council") approve the issuance of the proposed Bonds, and directs the Chairman of the Authority to transmit to the Council the Fiscal Impact Statement, a copy of this resolution and a reasonably detailed summary of the Authority's public hearing held this date. 9. The Authority hereby agrees, upon approval of the Bonds by Council, if granted, promptly to make application, on Form HB, to the Virginia Small Business Financing Authority, as the administrative authority for the Commonwealth's private activity bond program, for an allocation of $6,500,000 of the Commonwealth's private activity bond limit set aside for housing projects being financed by "local housing authorities" (an "Allocation"). Such application shall be submitted with all attachments required by the Virginia Private Activity Bond Allocation Guidelines. 10. The Authority, including its commissioners, officers, employees or agents, past, present or future, shall not be liable to any person or entity, including the Company or anyone claiming through it, for any damages or losses, direct or consequential, resulting from the failure of the Authority to recommend the Project for an Allocation, the recommendation by the Authority that another project receive an Allocation ahead of the Project, the failure of the Bonds to receive an Allocation even if recommended by the Authority, the execution and delivery of the Bonds and the documents relating thereto, or the failure or to approve, execute and deliver any such documents or to issue any such Bonds. 224614 i 4 11. The provisions of this resolution are hereby declared to be separable, and if any section, phrase or provision of this resolution shall be declared invalid, such invalidity shall not affect the validity of the remainder of the sections, phrases and provisions of this resolution. 12. The Authority shall perform such other acts and adopt such further resolutions as may be required to implement its undertakings hereinabove set forth. 13. This resolution shall take effect immediately upon its adoption. ADOPTED: April 20, 1999 CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY By The undersigned Secretary of the Authority hereby certifies that the foregoing is a true, correct and complete copy of a resolution adopted by the Authority's Board of Commissioners at a meeting duly called and held on April 20, 1999, in accordance with law; that the following members, constituting a quorum of the Authority, were present and voting regarding the foregoing resolution: that the foregoing resolution was duly adopted by the Authority by the following vote: Affirmative: Negative: Abstentions: and that such resolution has not been repealed, revoked, rescinded or amended and is in full force and effect on the date hereofi (Corporate Seal) 224614 I 5 ATTEST: Secretary 2246141 6 DISCLOSURE 3 iAIi~MEN i Date: April 14, 1999 Applicant's Name: TALLWQOD, L,P, All Owners (if different from Applicant): Type of Allocation: Rezoning from Conditional Use Permit: Street Closure: to Subdivision Variance: Other: Housing Bond Issue The following is to be completed by or for the Applicant: 1. If the Applicant is a CORPORATION, list all the officers of the Corporation: e If the Applicant is as PARTNERSHIP, FIRM or other Unincorporated Organization, list all members or parmers in the organization: TALLWOOD GP, L.L.C., general patter SAR. L.L.C,, limited partner The following is to be completed by or for the Owner (if different from the Applicant): 1. If the Owner is a CORPORATION, list all the officers of the Corporation: o If the Owner is a PARTNERSHIP, FIRM or other Unincorporated Organization, list all members or partners in the organization: TALLWOOD, L.P. By: TALLWOOD GP, L.L.C., General Partner Manager 225708 ! VIRGINIA Developmen! Authority One Columbus Center. Suite 300 Virginia Beach, VA 23462 (757) 437-6464 FAX (757) 499-9894 F Dudley Fulton. Chair Stephen W Burke. Vtce-Chatr W. Brantlcy Basmght ill. Secretary Kenneth D Barefoot. Treasurer Elizabeth A "Betsy" Duke Robert F. Hasans. Jr. Robert 13. Jones EXHIBIT E CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY HOUSING REVENUE BONDS (TALLWOOD, L.P. PROJECT), SERIES 1999 The Authority recommends approval of the captioned financing. A public heating was held by the Authority on April 20, 1999, following which the Authority adopted a resolution approving the financing of the proposed 120-unit multi-family residential rental project (the "Project"). The Project will provide benefits to the City of Virginia Beach in the form of the provision of safe, attractive and sanitary housing for low and moderate income families within the City of Virginia Beach. It will also generate construction and permanent jobs and substantial tax revenues during the construction of the Project and its subsequent useful life. EXHIBIT F FISCAL IMPACT STATEMENT SUBMITTED TO THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY The undersigned applicant, to permit the Chairman of the City of Virginia Beach Development Authority to submit the following information in compliance with Section 15.2-4907, Code of Virginia of 1950, states: Name of Applicant: Tallwood, L. P. Facility: 120 unit multi-family residential rental project on 23.7 acres on the north side of 2000 block of Kempsville Road, Virginia Beach, Virginia 23464 1. Maximum amount of financing sought $ 6.500.000 e Estimated taxable value of the facility's real property to be constructed in the City of Virginia Beach $ 6,500,000 3. Estimated real property tax per year using present tax rates $ 57,000 4. Estimated personal property tax per year using present tax rates $ 370 5. Estimated business license tax per year using present tax rates $ 1 ,ooo 6. a. Estimated dollar value per year of goods that will be purchased from Virginia companies within the locality $ 114,000 b. Estimated dollar value per year of goods that will be purchased from non-Virginia companies within the locality $ 50,700 c. Estimated dollar value per year of services that will be purchased from Virginia companies within the locality $ 49,000 d. Estimated dollar value per year of services that will be purchased from non-Virginia companies within the locality $ 12,600 7. Estimated number of regular employees on year round basis 8. Average annual salary per employee $ 21.000 APPROVED: CITY OF VIRGINIA BEACH DEVELOPMENT AUT~I-I~ By: ~~~~~..~o~/f ~ F. D~dley ~to'nl C~a[rman 226326 I EXHIBIT G SUMMARY SHEET CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY HOUSING REVENUE BOND le 2. 3. 4. 5. . PROJECT NAME: LOCATION: DESCRIPTION OF PROJECT: AMOUNT OF BOND ISSUE: PRINCIPALS: ZONING CLASSIFICATION: a. Present zoning classification of the Property b. Is rezoning proposed? c. If so, to what zoning classification? Tallwood, L.P. North Side of 2000 Block of Kempsville Road 120-unit multi-family residential rental project not to exceed $6,500,000 Ronald C. Ripley F. Scott Ripley F. Andrew Heatwole R-5D with a PD-H2 Overlay Yes No X N/A 226355 I EXHIBIT H City of Virginia Beach INTER-OFFICE CORRESPONDENCE DATE: April 14, 1999 TO: FROM: SUBJECT: F. Dudley Fulton, Chairman Andrew M. Friedman, Directo~~\/[/ll]/~ Department of Housing and h PYeservation Tallwood ApartmentslRipley-Heatwole Based on the information provided by Ripley Heatwole Company, the construction and operation of this housing development will provide new affordable housing opportunities in Virginia Beach. Therefore, the provision of the requested financing is in the public Interest. Please contact me if you have any questions. AMF:jap Attachment c: Gary Fentress; City Attorney f:\users\jponder\memos\tallwood Item VI-J.2. - 26- RESOLUTIONS ITEM # 44942 Upon motion by Vtce Mayor Sessoms, seconded by Councilman Harrison, Ctty Counctl ADOPTED: Resolution re the proposed merger of the Tidewater Transportation District Commission and the Peninsula Transportation District Commission; and, authortze the City Manager to execute the Defintttve Agreement and Cost Allocatton Agreement Section It, Article IX of Cost Allocation Agreement shall be Amended Vottng 6-3 Counctl Members Voting Aye Ltnwood O. Branch, III, Margaret L Eure, Wtlham W Harrtson, Jr, Louts R Jones, Mayor Meyera E Oberndorf and Vtce Mayor Wtlham D Sessoms, Jr Council Members Voting Nay. Barbara M Henley, Reba S McClanan and A M "Don" Weeks Counctl Members Absent Harold Hetschober and Nancy K Parker May 4, 1999 A RESOLUTION APPROVING THE DEFINITIVE AGREEMENT FOR THE PROPOSED MERGER OF THE TIDEWATER TRANSPORTATION DISTRICT COMMISSION AND THE PENINSULA TRANSPORTATION DISTRICT COMMISSION WHEREAS, the Tidewater Transportation District Commission 8 ("TTDC") was previously created by its member cities, in accordance 9 with the Transportation District Act of 1964 (the "Act"), to 10 provide public transit services to the cities of Chesapeake, 11 Norfolk, Portsmouth, Suffolk, and Virginia Beach; and 12 WHEREAS, the Peninsula Transportation District Commission 13 (~Pentran") was previously created by its member cities, in 14 accordance with provisions of the Act, to provide public transit 15 services to the cities of Hampton and Newport News; and 16 WHEREAS, TTDC, Pentran, and the cities of Chesapeake, 17 Hampton, Newport News, Norfolk, Portsmouth, Suffolk, and Virginia 18 Beach have been considering the potential benefits of merging TTDC 19 and Pentran to create a new single transportation district 20 commission, to be known as the Hampton Roads Transportation 21 District Commission ("HRTDC"), to provide transportation services 22 to the region encompassing such cities; and 23 WHEREAS, the purposes of such merger are to (i) achieve 24 economies of scale, (ii) have a stronger voice in federal and state 25 government affairs, (iii) reduce the number and increase the 26 efficiency of local government agencies in delivering transit 27 services, and (iv) begin the process of creating a strong regional 28 identity for the Hampton Roads Area; and 29 WHEREAS, TTDC, Pentran, and the cities of Chesapeake, 30 Hampton, Newport News, Norfolk, Portsmouth, Suffolk, and Virginia 31 Beach have been negotiating an Agreement to govern the transfer and 32 assumption of assets and liabilities, the management and financial 33 structure of HRTDC, the handling of personnel, business, financial, 34 governance, and other necessary and desirable matters relating to 35 the proposed merger; and 36 WHEREAS, prior to entering into a final Agreement, each 37 of the cities of Chesapeake, Hampton, Newport News, Norfolk, 38 Portsmouth, Suffolk, and Virginia Beach must, in accordance with 39 the Act, adopt an ordinance creating the Hampton Roads 40 Transportation District; 41 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY 42 OF VIRGINIA BEACH, VIRGINIA: 43 That the Draft Agreement dated March 22, 1999, entitled 44 "AGREEMENT among PENINSULA TRANSPORTATION DISTRICT COMMISSION and 45 TIDEWATER TRANSPORTATION DISTRICT COMMISSION and THE CITY OF 46 CHESAPEAKE and THE CITY OF HAMPTON and THE CITY OF NEWPORT NEWS and 47 THE CITY OF NORFOLK and THE CITY OF PORTSMOUTH and THE CITY OF 48 SUFFOLK and THE CITY OF VIRGINIA BEACH (the "Definitive 49 Agreement")" is hereby approved by the City of Virginia Beach,upon 50 the condition that the Cost Allocation Agreement (Exhibit D to the 51 Definitive Agreement) is amended by the deletion of Paragraph H of 52 Article IX of the Cost Allocation Agreement and the substitution of 53 a new paragraph H in the form set forth in the attached document 54 entitled "HAMPTON ROADS TR3LNSPORTATION DISTRICT COMMISSION, COST 55 ALLOCATION AGREEMENT (EXHIBIT D), ARTICLE IX - ALLOCATION OF 56 REVENUES." 57 BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF 58 VIRGINIA BEACH, VIRGINIA: 59 That the City Manager be, and hereby is, authorized and 60 directed, upon completion of the due diligence review of the 61 proposed merger, and upon the fulfillment of the aforesaid 62 condition, to execute on behalf of the City the Definitive 63 64 Agreement and Cost Allocation Agreement in substantially the same form and substance as the Draft Agreement dated March 22, 1999, 65 previously presented to the City Council. 66 67 68 Adopted by the Council of the City of Virginia Beach, Virginia, on the 4 day of May , 1999. 69 70 71 72 CA-7358 WMM/ORDRES ~MERGERTRTPENTRAN . RES R-1 PREPARED: April 28, 1999 73 74 75 APPROVED AS TO CONTENT: Finance 76 77 78 79 APPROVED AS TO LEGAL Department of Law HAMPTON ROADS TRANSPORTATION DISTRICT COMMISSION COST ALLOCATION AGREEMENT (EXHIBIT D) ARTICLE IX - ALLOCATION OF REVENUES H. To the extent permitted by law, dedicated revenues generated in each Participating City shall be allocated to that Part~clpat~ng C~ty, unless the governing body thereof authonzes an alternative allocation based upon a finding that such alternative allocation encourages the most effective and efficient operation of the regional transportation system. The Commission shall request the General Assembly, in any legislation it may enact which estabhshes a source of dedicated revenues, to permit the Commission to allocate such dedicated revenues in a manner consistent with this provision. Item VI-K. 1. -27- ORDINANCES ITEM # 44943 Upon motton by Vtce Mayor Sessoms, seconded by Councdman Branch, City Counctl ADOPTED Ordtnance to AMEND Sectton 6-120.1 of the Ctty Code re restricttons on the operation of personal watercraft Voting: 9-0 (By ConsenO Council Members Vottng Aye' Linwood 0 Branch, III, Margaret L Eure, Wilham W Harrison, Jr, Barbara M. Henley, Louts R Jones, Reba S. McClanan, Mayor Meyera E Oberndorf, Vice Mayor Wtlham D Sessoms, Jr and A M "Don" Weeks Councd Members Vottng Nay' None Counctl Members Absent. Harold Hetschober and Nancy K Parker May 4, 1999 AN ORDINANCE TO AMEND SECTION 6-120.1 OF THE CITY CODE PERTAINING TO RESTRICTIONS ON THE OPERATION OF PERSONAL WATERCRAFT SECTION AMENDED: § 6-120.1 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That Section 6-120.1 of the City Code is hereby amended and 8 reordained to read as follows: 9 10 11 Sec. 6-120.1. Restrictions on operation of ~Dersonal watercraft~ 12 (a) No person shall, in any waters of the city, including the 13 marginal adjacent ocean: 14 (1) Operate a personal watercraft unless a~ each person 15 riding on or being towed behind the personal watercraft 16 is wearing a type I, type II, type III or type V personal 17 flotation device of a typo approved by the United States 18 Coast Guard; 19 (2) Operate a personal watercraft at any time between sunset 20 and sunrise; 21 (3) Operate a personal watercraft at a distancc of loss than 22 in excess of the slowest possible speed required to 23 maintain steeraqe and headway within fifty (50) feet from 24 of (i) any shore, dock, pier~ boathouse, boat ramp, or 25 bulkheadl (ii) any vessel other than a personal 26 27 (iii) the boundary of any designated swimming areaTl or 28 ( ) pt '"~ ~ ....... ~ ..... iv any person in the water~ cxcc 29 30 ~ -'-~ ~ - -"' -~t-~ -tad provided however that 31 this subsection shall not be deemed to prohibit a 32 personal watercraft from towing a person who, by virtue 33 of the length of the tow rope, is less than fifty (50) 34 feet from the personal watercraft; 35 (4) Operate a personal watercraft unless hc/shc he or she ms 36 at least fourt CCh ( 14 ) sixteen ( 16 ) years of age; 37 provided, however, that any person fourteen (14) or 38 fifteen (15) years of aqe shall be allowed to operate a 39 personal watercraft if he or she (i) has successfully 40 completed a boatinq safety education course approved by 41 the Director of the Virginia Department of Game and 42 Inland Fisheries and (ii) carries on his or her person, 43 while operatinq a personal watercraft, proof of 44 successful completion of such course. Upon the request 45 of any law-enforcement officer, such person shall provide 46 proof of havinq successfully completed an approved 47 course; 48 (5) Operate a personal watercraft unless the lanyard is 49 attached to his or her person, clothing, or personal 50 flotation device, if the personal watercraft is equipped 51 with a lanyard-type engine cut-off switch; 52 (6) Operate a personal watercraft while carrying a number of 53 passengers in excess of the number for which the craft 54 was designed by the manufacturer; or 55 (7) When launching or landing a personal watercraft, approach 56 or depart from any beach at other than an angle 57 perpendicular to the shoreline or proceed at a speed 58 greater than that which is necessary to maintain control 59 of such watcrcraft steeraqe and headway. 60 (b) No owner or person having control of a personal 61 watercraft shall authorize or knowingly permit a person under the 62 age of fourtccn (14) sixteen (16) to operate the personal 63 watercraft unless the person is fourteen (14) or fifteen (15) years 64 of age and has successfully completed a boatinq safety education 65 course as required by subsection (a) (4) of this section. 66 (c) For the purposes of this section_ "personal watercraft" 68 or motor boat less than sixteen (16) feet in lenqth which uses an 69 inboard motor powering a jet pump~ as its primary sourcc cf motive 70 power and which is dcsignatcd desiqned to be operated by a person 71 sitting, standing, or kneeling on, ....... ~ ................. 72 vcsscl, rather than in the conventional manner of sitting or 73 standing inside, the vessel. 74 (d) ~ V~iolation of this section shall constitute a Class 4 75 misdemeanors_ p ....... , ......... 76 (e) The provisions of this section shall not apply to 77 participants in any regatta, race, marine parade, tournament or 78 exhibition which is approved by the Virginia Board of Game and 79 Inland Fisheries or the United States Coast Guard. 8O (f) A violation of this section shall not constitute 81 neqligence, be considered in mitigation of damaqes of whatever 82 nature, be admissible in evidence or be the subject of comment by 83 counsel in any action for the recovery of damaqes arising out of 84 the operation, ownership, or maintenance of a personal watercraft, 85 nor shall anythinq in this section change any existinq law, rule, 86 or procedure pertaininq to any such civil action, nor shall this 87 section bar any claim which otherwise exists. 88 Adopted by the City Council of the City of Virginia Beach, 89 Virginia, on this 4th day of May , 1999. 90 91 92 CA-7260 DATA/OD IN/PROPOSED / 06 - 120 - 1. ORD R5 PREPARED: April 26, 1999 Item VI-K. 2. - 28 - ORDINANCES ITEM # 44944 Upon motion by Vice Mayor Sessoms, seconded by Councdman Branch, City Counctl DEFERRED UNTIL CITY COUNCIL SESSION OF MA Y 25, 1999: Ordtnance to AMEND Sections 35-182, 35-186 and REPEAL Sectton 35-183 of the Ctty Code clartfytng and limiting the tax on free admissions and providing exemptions for events benefitttng charities. Vottng 9-0 (By ConsenO Councd Members Vottng Aye. Ltnwood 0 Branch, III, Margaret L Eure, Wilham W Harrison, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Mayor Meyera E Oberndorf Vtce Mayor Wtlham D Sessoms, Jr and A M. "Don" Weeks Counctl Members Vottng Nay None Council Members Absent' Harold Hetschober and Nancy K Parker May 4, 1999 Item VI-K.$. - 29- ORDINANCES ITEM # 44945 Upon motion by Vice Mayor Sessoms, seconded by Counctlman Branch, Ctty Counctl ADOPTED: Ordinance to APPROPRIATE $6,492,088 from the State Department of Emergency Servtces and the General Fund to a newly-created FEMA Special Revenue Fund re costs assoctated wtth clean-up acttvtties necessitated by Hurricane Bonnie; and, esttmated revenues from the Commonwealth be tncreased accordingly. Vottng' 9-0 (By ConsenO Counctl Members Voting Aye: Ltnwood 0 Branch, III, Margaret L Eure, Wilham W Harrtson, Jr, Barbara M. Henley, Louts R. Jones, Reba S McClanan, Mayor Meyera E. Oberndorf Vtce Mayor Wtlham D. Sessoms, Jr and A M "Don" Weeks Council Members Vottng Nay' None Council Members Absent Harold Hetschober and Nancy K. Parker May 4, 1999 1 2 3 4 5 6 7 8 9 10 11 12 13 AN ORDINANCE TO APPROPRIATE $6,492,088 TO THE FEMA SPECIAL REVENUE FUND, SUPPORTED BY AN ESTIMATED $6,232,404 REIMBURSEMENT FROM THE STATE DEPARTMENT OF EMERGENCY SERVICES AND $259,556 OF FUND BALANCE FROM THE GENERAL FUND, FOR THE CITY'S COSTS TO CLEAN UP DAMAGE CAUSED BY HURRICANE BONNIE 14 WHEREAS, on August 25, 1998, Hurricane Bonnie brought 15 sustained winds of 70 miles-per-hour and heavy rain to the City, 16 producing significant damage; 17 WHEREAS, the City of Virginia Beach responded swiftly in 18 coordinating and conducting clean-up operations, including removing 19 75% of the debris within 10 days and clearing, in total, over 20 400,000 tons of debris, which cost the City $6,492,088; and 21 WHEREAS, 96% of the City's costs (i.e., $6,232,404) will 22 be reimbursed by the Federal Emergency Management Agency ("FEMA") 23 via the State Department of Emergency Services, with additional 24 funds in the amount of $259,684 being available from fund balance 25 in the General Fund to cover the remainder of the City's costs. 26 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY 27 OF VIRGINIA BEACH, VIRGINIA: 28 1. That $6,492,088 is hereby appropriated to a newly- 29 created FEMA Special Revenue Fund for reimbursement of costs 30 associated with clean-up activities necessitated by Hurricane 31 Bonnie, with $6,232,404 of these funds consisting of estimated 32 revenue from the State Department of Emergency Services and the 33 remaining $259,684 from fund balance in the General Fund. 34 2. That estimated revenues from the Commonwealth are 35 hereby increased in the amount of $6,232,404. 36 Adopted by the Council of the City of Virginia Beach, Virginia, on the 4 day of May , 1999. Requires an affirmative vote by the majority of the members of City Council. CA-7356 ORD IN\NONCODE\ HURRBON. ORD APRIL 27, 1999 R2 APPROVED AS TO CONTENT Management Services APPROVED AS TO LEGAL SUFFICIENCY 23-Apr-99 HURRICANE BONNIE APPROPRIATION CODES BUDGET UNIT REIMBURSEMENTS DEPARTMENT DEPT. TOTAL ,, PUBLIC INFORM $1 ,O55 HUMAN RESOURCES $2,018 SOCIAL SERVICES $16,055 POLICE DEPARTMENT $23,948 PUBLIC WORKS $5,789,471 PARKS & REC $31,172 LIBRARIES $148 PLANN. & COMM. DEV $9,495 ECONOMIC DEVEL $1,461 GENERAL SERVICES $322,286 FIRE $7,217 PUBLIC UTILITIES EMERGENCY MED SER $75,105 $7,218 HOUSING $3,834 SCHOOLS $100,OO0 RISK MGMT. $101,605 $6,492,088 Item VI-K. 4. - 30- ORDINANCES ITEM # 44946 The following registered tn SUPPORT Admtral Dtck Dunleavy, 2220 Sandp~per Road, Phone 721-3644, represented the Sandbrtdge Ctvtc League Stewart Powers, Jr, 328 Teal Crescent,, Phone, 721-3173 The following regtstered to speak their concerns relative environment John P. Stasko, 405 Sandpiper, Phone 721-2412, represented US. Fish and Wtldlife Service John B. Gallegos, represented Back Bay National Wtldhfe Refuge, Phone. 721-2412 Richard Whtttemore, 3104 Arctic Avenue, Phone. 425-5900, represented the Back Bay Restoratton Foundation The following regtstered in OPPOSITION: Professor Rob &mpson, 1932 E Refuge Church Road, Stephens City, Vtrgima 2265, Phone (540) 869-2051, Lord Fatrfax Communtty College Upon motton by Councd Lady McClanan, seconded by Councdman Weeks, Ctty Counctl ADOPTED: Or&nance to TRANSFER $100,000 from the Tourism and Growth Investment Fund (TGIF) Reserve for Conttngenctes to the FY 1998-1999 Operattng Budget of the Department of Economtc Development re purchase of an Assignable Option on approximately five acres of oceanfront property adjacent to Little Island Park at Sandbridge; and, to authorize the City Manager to execute the Option Agreement. Voting. 8-1 Council Members Voting Aye Ltnwood 0 Branch, III, Margaret L. Eure, Wtlham W Harrtson, Jr, Louis R Jones, Reba S McClanan, Mayor Meyera E. Oberndorf Vtce Mayor Wtlliam D Sessoms, Jr and A M "Don" Weeks Counctl Members Vottng Nay Barbara M Henley Counctl Members Absent HaroM Hetschober and Nancy K Parker May 4, 1999 1 2 3 4 5 6 7 8 9 10 11 AN ORDINANCE TO TRANSFER FUNDS IN THE AMOUNT OF $ 100,000 FROM THE TOURISM AND GROWTH INVESTMENT FUND RESERVE FOR CONTINGENCIES TO THE FY 1998-99 OPERATING BUDGET OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT FOR THE PURCHASE OF AN ASSIGNABLE OPTION ON APPROXIMATELY FIVE ACRES OF OCEANFRONT PROPERTY ADJACENT TO LITTLE ISLAND PARK AT SANDBRIDGE AND TO AUTHORIZE THE CITY MANAGER TO EXECUTE THE OPTION AGREEMENT 12 WHEREAS, the City Council's objectives include 13 encouraging the development of world-class tourism amenities and 14 facilities; 15 WHEREAS, one such possibility involves the development of 16 a lodging facility located on the southern portion of Little Island 17 Park at Sandbridge; and 18 WHEREAS, to facilitate this project,S100,000 is available 19 to be transferred from the Tourism and Growth Investment Fund to 20 allow the City to purchase an assignable option on approximately 21 five acres of oceanfront property adjacent to Little Island Park at 22 Sandbridge. 23 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY 24 OF VIRGINIA BEACH, VIRGINIA: 25 1. That funds in the amount of $ 100,000 are hereby 26 transferred from the Tourism and Growth Investment Fund Reserve for 27 Contingencies to the FY 1998-99 Operating Budget of the Department 28 of Economic Development to provide funds needed to purchase an 29 assignable option on approximately five acres of oceanfront 30 property adjacent to Little Island Park at Sandbridge (the "Option 31 Property" ) . 32 2. That the City Manager, or his designee, acting on 33 behalf of the City, is authorized and directed to execute and enter 34 into an Option Agreement with Kenneth D. Wilkins and D. Stewart 35 Precythe for the purchase of the Option Property on the terms set 36 forth in the attached term sheet and such other terms as may be 37 38 39 agreed to by the City Manager and approved by the City Attorney. Adopted by the Council of the City of Virginia Beach, Virginia, on the 4th day of May, 1999. 40 41 42 43 CA-7357 ORDIN[NONCODE~FALSE CAPE HENRY.ORD APRIL 28, 1999 R3 44 45 46 47 48 49 50 51 52 53 54 55 APPROVED AS TO CONTENT: Management Servic~'~ APPROVED AS TO LEGAL SUFFICIENCY: TERM SHEET FOR OPTION AGREEMENT FOR FIVE ACRES + OF OCEANFRONT PROPERTY ADJACENT TO LITTLE ISLAND PARK AT SANDBRIDGE OWNERS' Kenneth D. Wflkins & D. Stewart Precythe OPTIONEE: City of Virginia Beach PROPERTY: 54- acres located adjacent to and north of the City's property at Little Island Park (the "Optmn Proeprty") OPTION TERMS: $25,000 for 3 month option period Extension for 1 month at no additional cost 3 one month extensions at $25,000 / month PURCHASE PRICE:S7,000,000 (option fees paid will apply to purchase price) SETTLEMENT: Within 1 month following exercise of the Option OTHER SIGNIFICANT TERMS: · Owners to rmmburse City at Settlement $42,500 cost of feas~b~hty study prepared by Cayuga Hospitality Advisors. Owners intend to donate to the City 54- acres of wetlands located to the west of Sandpiper Road and may reserve marine access rights and dredging rights, such rights and the location of such access being subject to City approval. On or before Settlement, Owners must record a Declaration of Restrictions applicable to other property owned by Owners and located on the west side of Sandpiper Road prohibiting certain uses of the property and establishing certain quality standards and limitations for its development. In the process of negotiations with a developer of the False Cape Lodge property (7 acres located on the southern part of Little Island Park), if the City negotiates a sale price in excess of $7,000,000, any excess sales proceeds over $7,000,000 (after deducting non-staffCity expenses related to such sale) shall be paid to Owners as an increase in the purchase price of the Option Property. · Option ~s fully assignable by the City. F \Users\MGavle\WP\WORK\wfikms precythe termsheet WlXi Item VI-K.$. - 31 - ORDINANCES ITEM # 4494 7 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinance to A WARD a lease of city-owned property at 1848 Pleasant Ridge Road to NEXTEL COMMUNICATIONS re constructing, maintaining and operating wireless telecommunications facih'ties; and, to authorize the City Manager to execute said lease. Voting: 9-0 (By Consent) Council Members Voting Aye Ltnwood 0 Branch, III, Margaret L. Eure, William W. Harrison, Jr, Barbara M. Henley, Louis R. Jones, Reba S McClanan, Mayor Meyera E. Oberndorf Vice Mayor William D Sessoms, Jr. and A M "Don" Weeks Council Members Voting Nay. None Council Members Absent: Harold Heischober and Nancy K Parker May 4, 1999 AN ORDINANCE TO AWARD A LEASE OF A PORTION OF THE CITY PROPERTY LOCATED AT 1848 PLEASANT RIDGE ROAD, IN THE PRINCESS ANNE DISTRICT, TO NEXTEL COMMUNICATIONS, FOR THE PURPOSE OF CONSTRUCTING, MAINTAINING AND OPERATING WIRELESS TELECOMMUNICATIONS FACILITIES WHEREAS, the Clerk has laid before the City Council, at 10 its first regular session held after the completion of the 11 publication thereof, an ordinance adopted September 22, 1998, 12 entitled, "AN ORDINANCE TO PROVIDE FOR THE LEASE OF A PORTION OF 13 THE CITY PROPERTY LOCATED AT 1848 PLEASANT RIDGE ROAD, IN THE 14 PRINCESS ANNE DISTRICT, FOR THE PURPOSE OF CONSTRUCTING, 15 MAINTAINING AND OPERATING WIRELESS TELECOMMUNICATIONS FACILITIES," 16 together with a certificate of due publication of the same once per 17 week for four successive weeks in a newspaper of general 18 circulation in the City, in the manner prescribed by law; and 19 WHEREAS, Nextel Communications of the Mid-Atlantic, Inc., 20 d/b/a Nextel Communications (hereinafter "Nextel Communicatmons") 21 has submitted the highest bid for the award of such lease, which 22 bid was delivered to the Mayor in open session on the day and hour 23 named in the advertisement and was read aloud; and 24 WHEREAS, the Mayor then and there inquired for any 25 further bids, and none were submitted; and 26 WHEREAS, in the opinion of the City Council, it is 27 expedient and in the best interests of the City that the said lease 28 should be granted to Nextel; 29 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY 30 OF VIRGINIA BEACH, VIRGINIA: 31 1. That the bid of Nextel Communications be, and hereby 32 is, accepted, and that the aforesaid lease be, and hereby is, 33 awarded to Nextel Communications, upon the conditions set forth in 34 such lease. 35 2. That the name of Nextel Communications shall be 36 37 38 39 inserted in the aforesaid lease, and that the City Manager shall execute, on behalf of the City, the lease entitled, "Communication Tower Lease Agreement, City of Virginia Beach, Lessor, and Nextel Communications, Lessee," a true copy of which is on file in the 40 Office of the City Clerk. 41 42 Adopted by the Council of the City of Virginia Beach, Virginia, on the 4 day of may , 1999. 43 44 45 46 CA-98-7152 wmm\ordreskpungo2, ord R-3 April 20, 1999 47 48 49 50 51 52 APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Law Department 53 COMMUNICATION TOWER LEASE AGREEMENT PLEASANT RIDGE TOWER SITE SUMMARY OF TERMS Location: 1848 Pleasant Ridge Road, Princess Anne District Lessor: City of Virginia Beach Lessee: Nextel Communications of the Mid-Atlantic, Inc., d/b/a Nextel Communications Ten (10) years with Lessee having option to renew for 2 add'l five (5) year periods Rent: $18,000 (first year) Additional rent in the amount of $1,200 for each additional antenna added later Escalator: Yearly increase equal to rise in CPI, with maximum of 5% Other: Lessee to pay all additional costs of maintaining premises caused by Lessee's use Leased space 1s for one (1) antenna array at a height between 200' and 215' Lessee must have City's express permission to access its facilities on tower Lessee required to carry $1,000,000 comprehensive insurance, plus other insurances Lessee required to indemnify City for injuries, etc., caused by Lessee's negligence, etc. Lessee must remove antennas and building and restore premises to original condition upon expiration or termination of lease Lessee must stop using facilities if use causes material interference with City's use for emergency communications (in sole judgment of City) Item VI-K. 6. - 32 - ORDINANCES ITEM # 44948 Upon motion by Vice Mayor Sessoms, seconded by Counctlman Branch, City Counctl DEFERRED INDEFINITEL Y: Ordinance to AUTHORIZE temporary encroachments tnto a portion of the Ctty's rtght-of-way at Mechterranean Avenue, 14tn Street and 16tn Street by VIRGINIA BEACH PENTECOSTAL CHURCH OF CHRIST re erectton and matntenance of four directional signs (BEA CH- DISTRICT 6) (Deferred Aprtl 13, 1999 and Aprt127, 1999) Voting' 9-0 (By Consent) Counctl Members Voting Aye Linwood O. Branch, III, Margaret L Eure, Wilham W. Harrtson, Jr, Barbara M Henley, Louts R. Jones, Reba S McClanan, Mayor Meyera E Oberndorf Vice Mayor Wdham D. Sessoms, Jr. and A M "Don" Weeks Counctl Members Vottng Nay' None Counctl Members Absent Harold Hetschober and Nancy K Parker May 4, 1999 Item VI-K. 7. - 33 - ORDINANCES ITEM # 44949 Upon motton by Vice Mayor Sessoms, seconded by Councdman Branch, Ctty Council APPROVED: License Refunds - $83,291.23 Voting: 9-0 (By ConsenO Councd Members Vottng Aye' Ltnwood 0 Branch, III, Margaret L. Eure, Wtlham W. Harrison, Jr, Barbara M Henley, Louts R Jones, Reba S McClanan, Mayor Meyera E Oberndorf Vice Mayor Wtlham D. Sessoms, Jr and A M "Don" Weeks Councd Members Voting Nay. None Council Members Absent Harold Hetschober and Nancy K Parker May 4, 1999 FOF~4 NO C A. 8 REV 3/~ AN ORDINANCE AUTHORIZING LICENSE REFUNDS UPON APPLICATION OF CERTAIN PERSONS AND UPON CERTIFICATION OF THE COMMISSIONER OF THE REVENUE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA That the following apphcabons for hcense refunds, upon cert~flcabon of the Commissioner of the Revenue are hereby approved NAME LICENSE DATE BASE INTEREST TOTAL YEAR PAID ADAMS OUTDOOR LIMITED PTNSHP ARCHEBELLE MELISSA GARNER DKD ELS TRUCKING INC EXXON CORP IV HARRIS & ASSOC INC KAVANAUGH EDWARD ET ALS KUPPERSMITH PHILIP G MURPHY WILLIAM M JR NETWORK INDUSTRIES LTD NEW JACK SWING PRODUCTIONS PARADISE PERFECTIONS LTD PREMIER SYSTEMS CORPORATION RAYTHEON SERVICE CO RESCOM INC SAWYER PAUL W SOLID GOLD ENTERTAINMENT INC TARMAC VIRGINIA INC TIDEWATER SURVEYING ENGINEER VA BEACH CINEMA INC W R HALL WARNER JIM E WHITEHURST JERRY C WILSON GARY E Y NOT CORP Y NOT HMA CORP 1997-1998 AU DIT 4,727 21 660 22 5,387 43 1997-1999 AUDIT 40 00 0 00 40 00 1997-1999 AUDIT 296 93 0 00 296 93 1996-1998 AUDIT 476 02 45 49 521 51 1997-1999 AUDIT 4,989 37 328 71 5,318 08 1996 AUDIT 3,518 53 996 52 4,515 05 1996-1999 AUDIT 1,246 26 74 01 1,320 27 1995-1999 AUDIT 1,050 91 65 06 1,115 97 1996-1997 AUDIT 24 00 0 00 24 00 1998-1999 AUDIT 690 75 17 95 708 70 1995-1999 AUDIT 2,405 58 0 00 2,405 58 1997-1998 AUDIT I 67 0 15 1 82 1996-1997 AUDIT 42 00 0 00 42 00 1998 AUDIT 31,212 31 3,119 98 34,332 29 1997-1998 AUDIT 79 25 10 78 90 03 1995-1998 AUDIT 2 30 0 00 2 30 1997-1998 AUDIT 10 00 0 00 10 00 1995-1998 AUDIT 6,453 23 1,701 42 8,154 65 1996-1998 AUDIT 32 77 0 00 32 77 1996-1998 AUDIT 567 61 130 51 698 12 1995-1997 AUDIT 92 96 0 00 92 96 1996-1997 AUDIT 8 91 1 60 10 51 1996-1999 AUDIT 78 00 0 00 78 00 1996-1999 AUDIT 17 55 0 00 17 55 1996-1998 AUDIT 4,184 60 518 89 4,703 49 1996-1999 AUDIT 7 91 0 00 7 91 Th~s ordinance shall be effective from date of adoption. The above abatement(s) totahng City of Virginia Beach on the $69,927.92 Phd~p ,I' Kella-m'- - - Commissioner of the Revenue "'Ceshe'E'- Ldley C~ty Attorney were approved by the Council of the Nay 99 day of ,19 Ruth Hodges Smith C~ty Clerk AN ORDINANCE AUTHORIZING LICENSE REFUNDS UPON APPLICATION OF CERTAIN PERSONS AND UPON CERTIFICATION OF THE COMMISSIONER OF THE REVENUE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA That the following apphcabons for hcense refunds, upon cert~flcabon of the Commissioner of the Revenue are hereby approved NAME LICENSE DATE BASE INTEREST TOTAL YEAR PAID ACME HEATING & AIR CONDITIONING AIKEN JOHN A AIRINGTON KEVIN A ATC GROUP SERVICES INC EISCHEN DAWN W HEGWOOD JEFFREY W HILL-ROM COMPANY INC SERVPRO OF SUFFOLK SMITHFIELD SKAMAGOS NICKOLAS SOUTHLAND CORP THE TIDEWATER CONSTRUCTION CORP WINSTON YORK E MD PC 04/19/99 AUDIT 279 05 72 47 351 52 04/16/99 AUDIT 33 73 0 28 34 01 04/09/99 AUDIT 79 58 0 00 79 58 04/19/99 AUDIT 439 48 0 00 439 46 04/16/99 AUDIT 10 00 0 08 10 08 04/20/99 AUDIT 10 00 0 00 10 00 04/19/99 AUDIT 5,919 21 1,440 47 7,359 68 04/09/99 AUDIT 10 36 0 00 10 36 04/09/99 AUDIT 10 00 0 00 10 00 04/20/99 AUDIT 1,805 68 180 50 1,986 18 04/21/99 AUDIT 173 95 53 47 227 42 04/22/99 AUDIT 1,451 36 144 50 1 595 86 Th~s ordinance shall be effecbve from date of adoption. The above abatement(s) totaling City of Virginia Beach on the $12,114 15 /~i~ed as~o ~~ Commissioner of the Revenue '~e s I, e"L L,fley C~ty Attorney were approved by the Council of the day of Nay ,19 99 Ruth Hedges Smith C~ty Clerk FORM NO C AN ORDINANCE AUTHORIZING LICENSE REFUNDS UPON APPLICATION OF CERTAIN PERSONS AND UPON CERTIFICATION OF THE COMMISSIONER OF THE REVENUE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA That the following apphcations for hcense refunds, upon certification of the Commissioner of the Revenue are hereby approved NAME LICENSE DATE BASE INTEREST TOTAL YEAR PAID ANDERSON WILLIAM F MARLIN CONTRACTING INC SYCAMORE VIRGINIA CORP VIDEO SELECT INC WILSON ROSEMARY 04112/99 AUDIT 10 00 0 00 10 00 04/13/99 AUDIT 28 00 I 00 29 00 04/15/99 AUDIT 93 50 9 35 102 85 04/13/99 AUDIT 928 98 157 61 1,086 59 04/12/99 AUDIT 20 72 0 00 20 72 Th~s ordinance shall be effective from date of adoption. The above abatement(s) totaling City of Virg~ma Beach on the $1,249 16 Commissioner of the Revenue C~ty Attorney were approved by the Council of the day of May ,19 99 Ruth Hodges Smith C~ty Clerk Item VI-L. 1. - 34- APPOINTMENTS ITEM # 44950 BY CONSENSUS, City Councd RESCHEDULED APPOINTMENTS WETLANDS BOARD May 4, 1999 Item VI-L.2. - 35- APPOINTMENTS ITEM # 44951 Upon NOMINATION by Vice Mayor Sessoms, Ctty Counctl APPOINTED: Barbara J. Ferguson Unexpired Term to 12/31/2001 FRANCIS LAND HOUSE BOARD OF GOVERNORS Voting: 9-0 Council Members Voting Aye' Ltnwood O. Branch, III, Margaret L. Eure, Wdham W Harrison, Jr, Barbara M. Henley, Louts R. Jones, Reba S McClanan, Mayor Meyera E. Oberndorf Vtce Mayor Wdham D. Sessoms, Jr and A M "Don" Weeks Counctl Members Voting Nay None Counctl Members Absent Harold Heischober and Nancy K. Parker May 4, 1999 Item VI-M. - 36- AD JO URNMENT ITEM # 44952 Mayor Meyera E Oberndorf DECLARED the Ctty Councd Meeting ADJOURNED at 4:10 P.M. Chtef Deputy Ctty Clerk Ruth Hodges Smith, CMC/AAE Ctty Clerk Meyera E Oberndorf Mayor Ctty of Vtrgtma Beach Virginta May 4, 1999