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HomeMy WebLinkAboutDECEMBER 4, 2001 MINUTESCi CITY COUNCIL MAYOR MEYERA E OBERNDORE At-Large VICE MAYOR WILLIAM D SESSOMS, JR, At-Large LINWOOD 0 BRANCH, III, Beach -Dtstrtct 6 MARGARET L EURE, Centervtlle -Dtstrtct 1 WILLIAM W HARRISON, JR, Lynnhaven - Dtstrlct 5 BARBARA M HENLEY, Prtncess Anne -Dtstrtct 7 LOUIS R JONES, Baystde -Dtstrtct 4 REBA S McCLANAN, Rose Hall -Dtstrtct 3 ROBERT C MANDIGO, JR, Kempsvtlle -Dtstrtct 2 NANCY K PARKER, At-Large ROSEMARY WILSON, At-Large JAMES K SPORE, Ctty Manager LESLIE L LILLEY, City Attorney RUTH HODGES-SMITH, MMC, Cay Clerk of Vir inia Beach "COMMUNITY FOR A LIFETIME" CITY COUNCIL AGENDA CITY HALL BUILDING I 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINIA 23456-9005 PHONE (757) 427-4304 FAX (757) 426-5669 EMAIL Ctycncl@ctty wrg~nta-beach va us December 4, 2001 I CITY MANAGER'S BRIEFINGS - Conference Room - 3:00 PM Ao Bo TOWN CENTER PHASE II MASTER PLAN/TERM SHEET Peter Kane, Attorney, Hunton and Williams TECHNOLOGY ZONE ORDINANCE Jerry W. Stewart, Business Manager, Department of Economic Development II. REVIEW OF AGENDA ITEMS m. CITY COUNCIL COMMENTS IV INFORMAL SESSION - Conference Room- 5:00 PM A. CALL TO ORDER- Mayor Meyera E. Obemdorf B. ROLL CALL OF CITY COUNCIL C. RECESS TO CLOSED SESSION V. FORMAL SESSION - Council Chamber- 6:00 PM A. CALL TO ORDER - Mayor Meyera E. Obemdorf B. INVOCATION: Reverend Walter Whltehurst United Methodist Church (Retired) C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF CITY COUNCIL E CERTIFICATION OF CLOSED SESSION F MINUTES November 27, 2001 G. AGENDA FOR FORMAL SESSION Ctttzens may regtster to address Ctty Counctl for a hmtted ttme on any ttem on the Formal Council Agenda Speakers may register immediately prior to the meettng or, tn advance, by calhng the Ctty Clerk's Office at 427-4303 H. PUBLIC COMMENT . TIDEWATER COMMUNITY COLLEGE (TCC) - Campus Expansion Plan THEATER SITE LOCATION I. PUBLIC HEARINGS 1. TAX EXEMPTIONS (Requested) a. United Cerebral Palsy of Southern & Central Virginia, Inc. Chinese Community Association of Hampton Roads, Inc. CAMG-J, Inc J. RESOLUTIONS/ORDINANCES Resolutions to support General Assembly legislation designating the following benevolent corporations EXEMPT re real and personal property state and local tax: ao United Cerebral Palsy of Southern & Central Virgima, Inc. Chinese Community Association of Hampton Roads, Inc. CAMG-J, Inc. , Resolution re issuance of the Development Authority's Industrial Development Revenue Bonds: Virginia Lutheran Homes - Zion Place/Luther Manor 350 Mahbu Drive (DISTRICT 3 - ROSE HALL) Not to exceed $35,000,000 o Ordinance to AMEND § 35-7.1 of the City Code to ADD a new section re personal property taxation codtfytng a TAX EXEMPTION for farm animals, grains, farm machinery, implements and agricultural products. Ordinance to declare EXCESS PROPERTY on Lot 1 lA acquired by the City for Harbor Point Road Extended and exchange said property to F. WAYNE and CHERYL P. McLESKEY for which they will convey Parcel B and C to the City; and, AUTHORIZE the City Manager to execute an agreement for the exchange of said property. o Ordinance to ACCEPT and APPROPRIATE a $23,105 grant from the Virginia Rehabilitative Services to the FY 2001-2002 operating budget of the Department of Museums and Cultural Arts re purchasing a closed captioning system for the IMAX Theater to assist citizens with disabilities. CITY OF VIRGINIA BEACH SUMMARY OF COUNCIL ACTIONS 0 H M B A C M E S DATE December 4, 2001 B R H C A R P E W PAGE 1 R R E J L N N A S I A E I N O A D D R S L N U S L N N I O K O S AGENDA C R O E E A G R E M O ITEM # SUBJECT MOTION VOTE H E N Y S N O F R S N I CITY MANAGER'S BRIEFINGS A TOWN CENTER PHASE II MASTER Peter Kane, PLAN/TERM SHEET Attorney, Hunton and Wflhams Mark Wawner, Economic Dev B TECHNOLOGY ZONE ORDINANCE Jerry W Stewart, Business Manager, Department of Economic Development II/III/I CERTIFICATION OF CLOSED CERTIFIED 8-0 Y A A Y Y A Y Y Y Y Y V/V/ SESSION E F MINUTES - November 27, 2001 APPROVED 8-0 Y A A Y Y A Y Y Y Y Y G/H PUBLIC COMMENT: 1 TCC - Campus Expansion Plan No Speakers 2 THEATER SITE LOCATION Two Speakers I PUBLIC HEARINGS: No Speakers I TAX EXEMPTIONS a United Cerebral Palsy of Southern & Central Virginia, Inc b Chinese Community Association of Hampton Roads, Inc c CAMG-J, Inc J/1 Resolutions to support General Assembly ADOPTED BY 8-0 Y A A Y Y A Y Y Y Y Y legislation designating corporations CONSENT EXEMPT re real/personal property state/local tax: a United Cerebral Palsy of Southern & Central Virginia, Inc b Chinese Community Association of Hampton Roads, Inc c CAMG-J, Inc 2 Resolution re issuance of Development ADOPTED BY 8-0 Y A A Y Y A Y Y Y Y Y Authority's Revenue Bonds: CONSENT Luther Manor Not to exceed 350 Mahbu Drive $35,000,000 (DISTRICT 3 - ROSE HALL) 3 Ordinance to AMEND § 35-7 1 of C~ty ADOPTED BY 8-0 Y A A Y Y A Y Y Y Y Y Code to ADD section re personal CONSENT property taxation codtfytng a TAX EXEMPTION for farm animals/ grains/farm machinery/implements & agricultural products CITY OF VIRGINIA BEACH SUMMARY OF COUNCIL ACTIONS 0 H M B A C M E S DATE December 4, 2001 B R H C A R P E W PAGE 2 R R E J L N N A S I A E I N O A D D R S L N U S L N N I O K O S AGENDA C R O E E A G R E M O ITEM # SUBJECT MOTION VOTE H E N Y S N O F R S N 4 Ordinance to declare EXCESS REMOVED B Y C O N S E N S U S PROPERTY Harbor Point Rd Ext FROM AGENDA exchange property to F. WAYNE/ DUE TO LACK OF CHERYL P. McLESKEY/they will APPROPRIATE convey Parcel B/C to the City/ ADVERTISING AUTHORIZE agreement for the & WILL BE exchange RESCHEDULED 5 Ordinance to ACCEPT / ADOPTED BY 8-0 Y A A Y Y A Y Y Y Y Y APPROPRIATE a $23,105 grant from CONSENT Va Rehabilitative Services Museums and Cultural Arts re closed captioning system for the IMAX to assist citizens with disabilities K APPOINTMENTS 8-0 Y A A Y Y A Y Y Y Y Y COMMUNITY SERVICES BOARD Nominated for (CSB) reappomtment on December Dolores N Bartel - Family Member l 1,2001 Martha McClees - Consumer J Henry McCoy, Jr, DDS Stanley Whltfield D Sawyer HISTORICAL REVIEW BOARD Rescheduled B Y C O N S E N S U S PLANNING COMMISSION 4 years 8-0 Y A A Y Y A Y Y Y Y Y Appointed 1 / 1/2002- Eugene F Crabtree - Rose Hall 12/31/2005 Reappointed 4 years William W Din Kempsvflle 1/1/2002- Donald H Horsle At large 12/31/2005 Robert S Miller, III At large PRINCESS ANNE BALLFIELDS Rescheduled B Y C O N S E N S U S RELOCATION ADVISORY COMMITTEE VIRGINIA BEACH COMMUNITY 8-0 Y A A Y Y A Y Y Y Y Y DEVELOPMENT CORPORATION (VBCDC) Appointed Denise M Howard Unexpired thru 12/31/03 Glen A Huff Alex T Paragas 4 years 1 / 1/2002- 12/31/2005 Reappointed 4 years Douglas W Huston 1 / 1/2002- 12/31/2005 L/M/ ABSTRACT OF CIVIL CASES CITY CLERK TO B Y C O N S E N S U S I RESOLVED - October 2001 RECORD N ADJOURNMENT 6 30 PM CITY COUNCIL SESSIONS (December 2001) December 11 December 18 Administrative & Planning Administrative & Planning o~ OUR N~ MINUTES VIRGINIA BEACH CITY COUNCIL V~rg~n~a Beach, V~rg~n~a December 4, 2001 Mayor Meyera E Oberndorf called to order the Ctty Manager's Briefing TOWN CENTER PHASE H MASTER PLAN/TERM SHEET tn the Ctty Counctl Conference Room, Ctty Hall Butldtng, on Tuesday, December 4, 2001, at 3 O0 P M Counctl Members Present Ltnwood 0 Branch, III,, Barbara M Henley, Louts R Jones, Robert C Mandtgo, Jr, MayorMeyeraE Oberndorf Nancy K Parker, Vtce Mayor Wtlhams D Sessoms, Jr and Rosemary Wtlson Counctl Members Absent Margaret L Eure Wtlham W Harrtson, Jr [Attendtng National League of Ctttes 78th Congress of ctttes and Exposttton tn Atlanta, Georgta] lin Chtcago attending Nattonal Assoctatton of Bond Lawyers Annual Meettng] Reba S McClanan [Fhght schedule changed and had to leave today rather than tomorrow/Attendtng Nattonal League of Ctttes 78'h Congress of ctttes and Exposltton tn Atlanta, Georgta] -2- CITY MANA GER 'S BRIEFING TOWN CENTER PHASE H MASTER PLAN~ERM SHEET 3:00 P.M. ITEM # 48996 The Ctty Manager introduced Mark Wawner, Project Manager Phase I and Phase H -Economtc Development, who presented the proposals of Phase H - Town Center and a status report of the constructton Mark Wawner advtsed Block 4 ss currently under constructton, bounded by Vtrgtnta Beach Boulevard, Town Center Drtve, a new Matn Street through Town Center and Central Park Avenue Thts Block 4 constttutes the Phase I development for Town Center It tncludes a 1338 space, 9-1evel parking structure, a 250,000 square foot office tower, which will sit atop the 9-1evel parking structure and an additional 100, 000 square feet of office and retail, whtch wtll "wrap" the block and create a streetscape envtronment The parktng structure ts essenttally constructed (approxtmately 85% complete) The contractors are on the 10th level and have fimshed pourmg concrete for thts structure Rematmng ss complettng the tnstallatton of the precast members on the outstde sktn, the glass, elevators, patnttng and strtptng of the spaces as well as all the safety measures The contractors are now on the 16th floor of the entire structure, which is the 7~ Floor of the office tower The columns and beams are erected to the l Y~ level Approxtmately one floor of thts office tower ts betng completedper week The steel erectton ss anticipated to be completed to the 23rd Floor by March 15, 2002, and then the office towers will be glazed. The towers will be ready for tenant improvements by May 1, 2002, for an August 1, 2002, occupancy The tower crane, whtch is the mechantsm utthzed to construct the large office butldtngs, ss currently 220 feet tn height On about December 17, 2001, thts crane wtll be jacked up an addtttonal lOO feet to conttnue verttcally wtth the office tower Approxtmately February 1, 2002, the crane wtll again be jacked up lOO feet Thts wtll be 400feet "up tn the air" Thts wtll become the icon for the Town Center of Virginia Beach A wonderful Chtnese restaurant, P F Chang's, ss to be located on the corner of Vtrgtma Beach Boulevard and Central Park Avenue, almost dtrectly across from the Pembroke Mall entrance Foundatton constructton ss anttctpated by the end of thts month The Pender and Coward five-story office butldtng approxtmately 45, 000 square feet tn hetght, ss on the western face of the garage Currently, constructton ss undergotng on the second and thtrd floor of the office steel erectton- completton should be tn early February and ready for occupancy August 1, 2002 Constructton wtll commence the end of December on the south retatl butldtng, factng the southern exposure on Main Street The retatl butldtng, wtll also be ready for occupancy on August 1, 2002 All of the underground utthttes, paving on the street grid, base asphalt, have been installed. The only acttvtty currently relattve the infrastructure ss the connection between Constitution Drive and Town Center Drive through the parktng lot of the One Columbus Center butldtng, whtch ss now tn stone and wtll be paved by the end of the month This wtll create the "grid system "for the Town Center Thts Sprtng, the contractors will come back to complete all of the above grade construction (pavers, landscaping, street lighting, benches, etc.) Relattve Phase lI, Mr Wawnerpresented a mtnor modtficatton to the Master Plan Street Grid System Wtth the new Master Plan, the contractors are taktng advantage of extsttng Ctty rtght-of-ways, which allow the creatton of a dtfferent configuratton of the retatl blocks with more corner opportuntttes for retatl space These corner sites are crtttcal, as they are the most destrable One of the benefits of revtstng the Master Plan ss st creates a much more marketable element On the ortgtnal plan, the Pedestrian Plaza was on an east/west ortentatton, tn effect surrounded by roads Thts has been changed to a north/south ortentatton, tn effect at the same location, but more of a focalpotnt for the enttre development, a hard scaped development, as opposed to a grass and landscaped treed area A water fountain wtll be sttuated tn the mtddle of the Plaza There wtll be four (4) addtttonal blocks to the projects (Blocks 3, 8, 10 and 12) Thcs comprtses approximately 2 76,000 square feet of commerctal space whtch wtll posstbly be retatl, restaurants and some offices, as well as a 334-unit residential apartment tower and two parktng garages Mr Wawner dtsplayed (on the stte map tn "purple "), thepotenttal locatton tn Block 9for theproposed Performing Arts Theatre This ss anchored by the Plaza, surrounded by retad restaurants Parktng would beprovtded tn one of the three (3) parktng structures Attorney Peter Kane, Hunton and Wtlhams, outhned the DRAFTMemorandum of Understanchng for Phase H ofthe Town Center A Memorandum of Understandmg ts a staement ofprtnctples and an expresston of tntent to attempt to negottate a transaction By entering into a Memorandum of Understandtng, the Ctty ts not stgntng a "btnchng" contract The MOU will outhne the basts under whtch the CtO~ can negottate a btnchng agreement Changes to Phase I Scope of Phase I tnfrastructure modtfied wtth respect to locatton of streets and pubhc plaza and certatn m tnor destgn features Decrease tn Phase I mfrastructure budget from $6,35 7, 628 to $5,52 7, 856 No "early"purchase of Phase I parktng facthty December 4, 2001 -3- CITY MANA GER 'S BRIEFING TOWN CENTER PHASE H MASTER PLAN/TERM SHEET ITEM # 48996 (Continued) Basically, the Ctty ts deahng with the same developer's structure an affihate of the Armada/Hoffler group, and an affihated company of Gerald Dtvarts There ts the potenttal for a thtrd party tnvestor, who may purchase all, or part, of an tnterest tn the restdenttal component, but that has not been determtned nor confirmed Principles of Proposed Phase H The prtnctples of the proposed Phase H rematn generally the same as for the ortgtnal project Investment partnershtp between Developer and Authortty for a mtxed-use commerctal development utthztng the strucure of an economic development park Authortty obhgattons secured by a Support Agreement between the Ctty and Authortty Authortty obhgattons supported by Ctty are structured to be pard by the avatlable revenue from the TIF Dtstrtct and a Spectal Tax Dtstrtct Tradtttonal pubhc infrastructure (streets, streetscapes, traffic stgnals, utthttes, stormwater tmprovemenO wtll be funded through CIP and Authority EDIP TIF ts destgned to accumulate funds to payfor the purchase of the parktng garages In addttton, mechantsm to requtre developer to pay for any projected shortfalls tn TIF Spectal Tax Dtstrtct pays for operatton and matntenance costs of Authortty tn operattng parktng garages Projectpatd for by TIF revenues wtth addtttonal mechantsm for Developerpayment of shortfalls tn TIF bond projectton The Elements of Phase H as outhned by Mr Wawner, comprise a multt-block, multt-facthty mtxed-use of two pubhc parktng garages wtth 1,130 parktng spaces, commercial space of 190,000 square feet, a spectahty anchor retad space of 86, 000 square feet, and a multt-story restdenttal apartment complex of 334 untts (387,180 square feet) Obligations of Authority as to Phase II, Construct tradtttonal pubhc tnfrastructure (pubhc streets, streetscapes and landscaping) at an estimated cost of $6,383,173 Sell developer land for Phase H under extsttng optton agreement between Authortty and Developer Purchase the approxtmate 830-space garage on Block 10forpubhc parktng at a prtce to be agreed upon based upon the actual constructton costs wtth a guaranteed maxtmum prtce (whtch prtce wtll tnclude a prorated cost of the land for the streets surroundtng Block 10), provtded that the Ctty's forecast of TIF revenues plus any shortfalls to be pard by the Developer must amorttze over a 20-year pertod the anttctpated agreed purchase price for the Block 10 parktng facthty Purchase the parktng garage on Block 12(wtth a mtntmum of 3OO parktng spaces) for pubhc parktng at a prtce to be agreed upon based upon the actual construction costs wtth a guaranteed maxtmum prtce (whtch prtce wtll tnclude a prorated cost of the land for the streets surroundtng Block 12), provtded that the Ctty 's forecast of TIF revenues plus any shorrtfalls to be patd by the Developer must amortize over a 20-year pertod the anttctpated agreed purchase prtce for the Block 12 parktng facthty Muntctpal tnvestment for Phase II (tncluchng tnfrastructure) ts esttmated to be $20 2-MILLION December 4, 2001 -4- CITYMANAGER'S BRIEFING TOWN CENTER PHASE H MASTER PLAN/TERM SHEET ITEM # 48996 (Continued) Obligations of Developer Purchase land requtred for development and constructton of Phase II ./rom Authority Dedtcate land necessary for pubhc infrastructure Invest between $80- and $90-MILLION tn Phase II At city's optton, sell to Ctty thts land tt needs to construct a communtty theatre at Developer's cost, plus Developer's cost of carry, tf any Pay any TIF shortfall to Authortty Paym en t of TIF Sh o rtfall Developer obhgated to pay to Authortty, tn five annual installments, the amount of any projected TIF shortfall based upon tmprovements actually constructed and occupted tn the TIF (or to be constructed and occupted wtthtn 6 months) at the time of the Authortty's purchase of each parktng garage Payment to be secured by Letter Of Credtt, bond or other securtty sattsfactory to the Authortty tn all respects Developer and Authortty agree to a true-up of TIF shortfall payment tn event the actual TIF shortfall for the hfe of the bonds ts less than the projected TIF shortfall Treatment of Reimbursement Amount Developer obhgated to pay retmbursement amount as tdenttfied tn ortgtnal Developer Agreement (payment obhgatton to pay $2 5-MILLION over 5 years to butld commercial space generating equtvalent tax revenue stream pursuant to formula tn ortgtnal Development AgreemenO Retmbursement obhgatton re-cast tnto proposed Phase H transactton Developer permttted to use payments (or butld commercial space generating equtvalent tax revenue stream) to offset TIF shortfall It ts anttctpated the Developer wtll make apphcatton for amendments to the current B-3-A zomng dtstrtct Relattve Parking, the Authortty wtll make avatlable, on short-term leases, a certatn amount of parktng Other than this short term leasing, there ts a commttment to provtde free pubhc parktngfor at least 20years Patrtcta Phtlhps, Director of Finance, wtth the utthzatton of Power Potnt, presented tnformatton relattve the financtng of Town Center Summary of Financial Structure - Phase I and Phase H Proposed (mdlions) ProJect Element Phase I Phase II** Total Pubhc Investment Pubhc Parking Garage - TIF Dlstrtct Funded $ 22 5 $14 6 $ 37 I Plaza Land TIF funded 7 0 7 Infrastructure- CIP/EDIP funded 6 3 5 6 11 9 ,, Total Garage and Infrastructure $29 5 $ 20 2 $ 49 7 Residual land (to be retmbursed)* 6 2 5 6 7 Totals by phase Public $35 7 $ 20 7 $ 56 4 Less Future Sales/Reimbursements 6 2 5 6 7 Net Ctty Investment $29 5 $ 20 2 $ 49 7 Total Private Investment $50 0 $ 80 0-90 0 $130-140 0 Estimated Completion Dates 9-02 2~'~ quarter 04 December 4, 2001 -5- CITY M/tNA GER 'S BRIEFING TOWN CENTER PHASE H MASTER PLAN/TERM SHEET ITEM # 48996 (Continued) *May acqutre addtttonal land t. f owners voluntartly agree to sell, esttmated at $1-2 MILLION more **Reflects current proposal which dtffers from earher prodecttons from ortgmal Phase II SUMMA R Y TOWN CENTER FINANCING December 2001 Phase I Bonds Developer pays Present Value of proJected TIF shortfall, ¢~any ($242, 000) over 5 equal annual payments Developer responstble for "Reimbursementpayment' ($2 6-MILLION) tn 5 equal annual payments or butld up to 99,000 square feet (est) of commerctal space (tn heu of hoteO Phase I or combtnatton thereof Payments or value of commerctal space wtll be used to offset TIF shortfall If no shortfalls, developer payments accumulate tn TIF Phase H bonds Developerpays present value of projected TIF shortfall ($2 8-$3 8 MILLION) over 5 equal annual payments Pertochc true-ups based on actual TIF numbers (to be regularly scheduled) Although not contemplated, tf shortfalls occur beyond TIF shortfall mechantsm Spectal Tax Dtstrtct to cover shortfall SUMMARY OF PROPOSED PUBLIC PARTICIPATION Garages Phase I $ 22 5-MILLION Phase H $14 6-MILLION Plaza Land $ 7-MILLION Infrastructure Phase I $ 6 3-MILLION Phase II $ $ 6-MILLION Operattons& Matntenance of Garage All Phases Restdual Land $6 5-MILLION (May be greater tf addtttonal land ts acqutred) VBDA tssues a Revenue Bond, secured by a support agreement from the Ctty Source of Ctty support ts the TIF Dtstrtct incremental real estate revenues and prtvate developer contrtbuttons VBDA to construct Source of funds wtll be VBDA's EDIP and Ctty CIP Addtttonal real estate taxes tn the Spectal Tax Dtstrtct VBDA obtatned bank loan, wtth mtntmum or no prmctpal due for 6years (by 12/01/06) Developer provides optton performance bond to guarantee purchase of land wtthtn 6years Land would be purchased at VBDA 's ortgtnal prtce, carrytng costs Fiscal and Economic Impacts of Phase I and H Year 1 Year 7* Economtc Output $45-MILLION $128-MILLION Employment (dtrect and 800 2, 300 tndtrecO Income (wages) $22-MILLION $ 56-MILLION * l st year of full tmpacts December 4, 2001 -6- CITY M/IN/I GER 'S BRIEFING TOWN CENTER PHASE H M/ISTER PL/INffERM SHEET ITEM # 48996 (Continued) Fiscal Impacts Net Fiscal lmpact ts the tncrease tn taxes and other revenue to the City of Vtrgtnta Beach, less expenses incurred as a result of the Town Center Over the first l O years, the net fiscal tmpact to the Ctty ts projected at about $13- MILLION Over 20 years, the net fiscal tmpact mcreases to approximately $35-MILLION The School Board ts expected to benefit extensively addtttonal benefits of $6 9- MILLION tn the first 10 years, $18 I-MILLION over the first 20 years State would benefit Other Benefits Incremental real estate taxes projected to be generated over 20 years wtll pay bonds Phase I is $43.8-MILLION Phase H is $17-MILLION I'Vhen the bonds are rettred and TIF ts ended VBDA wtll conttnue to own the pubhc parktng garages whtch wtll sttll have many years of servtce left Ctty tmpacts over $5-MILLION net fiscal tmpacts each year Schools would benefit by $4 7-MILLION annually (as provtded tn the Formula) Summary of Investments Public: Decreased from $52.6-MILLION to now $49.7-MILLION Private Increased from $122-MILLION to now $130-$140-MILLION S CHED UL E Council recetves pubhc comment December 11, 2001 Authortze the Ctty Manger to proceed wtth the development of ProJect Documents necessary to pursue the constructton of Town Center Phase II Counctl constders rezomng tncluchng a pubhc heartng to recetve pubhc comment Ctty Manager returns final project to Ctty Council for authortzatton to execute December 18, 2001 Late February - early March 2002 Late March - early Aprtl 2002 The Ctty Manager beheves the aforementtoned schedule, concermng the rezontng and final project, mtght be earher than projected December 4, 2001 _ CITYMANAGER'S BRIEFING TOWN CENTER PHASE H MASTER PLAN/TERM SHEET ITEM # 48996 (Continued) Relattve the 800 employees in Year 1 and 2,300 Year 7, Mrs Phtlhps advtsed Counctlman Man&go, many wtll be employed at Town Center and others wtll be m&rect (jobs resulttngfrom the Town Center), whtch may be located tn other porttons of the Ctty Examples would be prmters, cleanmg, archttectural, bookkeeping servtces Counctlman Man&go advised the Town Center ts tncreastng the per captta mcome of Vtrgtnta Beach Counctl Lady Wtlson tnqutred concernmg parktng and tf free, by what method would there be leased parktng9 The Ctty Manager advtsed the parktng would be free If one were a tenant tn the restdenttal or had an office tn the bud&ng next door and wanted a reserved space, some spaces would be avatlable The Ctty Attorney advtsed there wtll be a certatn number of spaces that wtll be leased on a short term basts (first come/first served, open to the pubhc) Relattve Counctl Lady Parker's concern, Mr Wawner advtsed re Block 10 and Block 12, parking wtll be stgntficantly less expensive than Block 4. They are anttctpated to be a precast parktng structure, manufactured off stte and brought tn on a truck to be erected The esttmated cost for Block 10 is approximately $13,000per space in comparison to $16,800 a space in Block 4. Block 12 will be even less expensive and in the $10,000 per space range If ad&ttonal parkmg ts necessary, there ts land on Independence Boulevard, whtch would support a significant amount of surface parkmg for a short term solutton When Phase 3, 4 or 5 ts developed wtth future parktng garages, the developer would increase the number of spaces tn those garages, which would make up any potenttal shortfall These parktng garages wtll be utthzed 24-hours a day, 7 days a week The Ctty Manager advtsed, regar&ng the parktng structure on Block 12, thts ts being designed and constructed tn a way that other levels can be added later Relattve Page 15, Section 6.3 (a) (iii) "Upon the Authority's request, the Developer wtll release tts optton rtght as to Block 9 or that portton of Block 9 that may be the location of a commumty theatre Such release wtll be made tn constderatton of payment to the Developer of an amount equal to the developer's actual cost of carry for such parcel (which wtll be comprtsed of the amount of real estate taxes as to such parcel actually pard by the Developer, the proporttonate share of the Developer's premtum for the Option Performance Bond, the proportionate share of the Developer's design costs for Phase II, "The Ctty Attorney advtsed tt ts aproporttonate share of the Developer's destgn costs for Phase II, Block 9 only Thts wtll be corrected tn the Memorandum of Understan&ng The City Manager advised a press brtefing was scheduled prtor to the Ctty Counctl Sesston Thts ts the type of story where the Ctty wtll rely on the prtnt me&a for many of the detatls The Ctty Manager's office advtsed coptes of the agreement are avadable for review and the Ctty staff would be pleased to meet one-on- one to respond to questtons The Memorandum of Understanding wtll be on the Ctty 's Webstte on Wednesday, December 5, 2001 Mayor Oberndorf referenced the magnificent shopptng area tn Charlotte One of thetr store areas was provtded wtth concepts of the proposed center and the pubhc was allowed to vtstt and revtew the concepts The Mayor suggested etther Mr Wawner or a staff person be avatlable tn the lobby of Columbus One with tnformatton The Ctty Manager advtsed durtng Phase I thts process was followed These matertals wtll be avatlable at the Columbus One butl&ng tn Mr Wawner 's office Mr Wawner advtsed he and hts staff would be pleased to respond to the pubhc and wtll be avatlable at thetr conventence Mayor Oberndorf expressed apprectatton to Mr Haddad, Mr Dtvarts, and the Armada-Hoffler group for nurturtng thts project and havtng confidence tn Vtrgtnta Beach for the last twenty years The Ctty has stgned an agreement wtth the other ctttes at the Economtc Development Alhance that Vtrgtnta Beach would not go out and recrutt bustnesses from any of our area stster ctttes Only if that bustness contacts this City and denotes thetr tnterest, then we are obhgated to contact the Economtc Development Authortty of the City tn whtch they are currently located The Ctty has no tntentton of caustng harm to any locahty tn the regton Louts Haddad, Chtef Executtve Officer - Armada Hoffler, advtsed there have not been any public or private incentives involved in leasing the spaces at the Town Center. The office tower ts approxtmately 70% leased The Ctty ts leastng the first floor of the office tower Thetr rent ts 10% less than the next lowest rent of any of the office users Thts space rented at $24.00 plus, which is by far the highest rent being offered in Hampton Roads. December 4, 2001 -8- CITY M/INA GER 'S BRIEFING TE CHNOL OG Y ZONE ORDIN/INCE 4:30 P.M. ITEM # 4899 7 Mayor Oberndorf advtsed the Technology Zone ts an extraordtnary opportuntty, espectally wtth the tnfrastructure betng invested with the Advanced Technology Center and the Technology Academy tn the new Landstown Htgh School as well as the workforce tratmng Jerry W Stewart, Bustness Manager Department of Economtc Development, provtded an update concernmg the concept of Technology Zones As a revtew of the mtttal brtefing on September 25, 2001, Mr Stewart advtsed this ts enabhng legtslatton from the Commonwealth of Vtrgtnta Commonwealth of Virginia Technology Zone Legislation §$s.l-3sso Any ctty, county or town may estabhsh, by ordtnance, one or more Technology Zones. Each locahty may grant tax tncenttves and provtde certam regulatory flextbthty tn a Technology Zone The tax tncenttves may be provtded up to ten years and may tnclude, but not be hmtted to (t) reductton tn permtt fees (to reductton of user fees (ttO reductton of any type of gross receipts tax Considerations School Board formula Marketing advantage Ahgnment wtth the Ctty's and the Economtc Development Department's Strategy Equttable for all compantes Stakeholders Compettttveness Value from company perspecttve Stnce the Brtefing on September 25th, the staff has conferred wtth all the stakeholders (Ctty Attorney's Office, Management Servtces, Pubhc Utthttes and Plannmg) to assure them of the value of thts Or&nance Mr Stewart retterated htghhghts of the defimttve definttton of a technology company "dertves tts gross recetpts from the design, development, or other creation, for lease, sale of hcense of technology based products, processes or related servtces In no case shall the use of computers or telecommumcattons servtces by a bustness tn tts tnternal operattons constitute quahfytng the bustness as a technology bustness" Qualification Criteria Mtntmum Capttal Investment of $20, 000, 000 Or Creatton of 300 New Jobs Compensatton tn Excess of $50, 000 Business Tax Rebate Rebate of Bustness, Professtonal and Occupattonal Ltcense (BPOL) taxes Rebate patd from General Fund 5 Years Maxtmum 100%, 80%, 60%, 40%, 20% December 4, 2001 -9- CITY MANA GER 'S BRIEFING TECHNOLOGY ZONE ORDINANCE ITEM # 4899 7 (Continued) Fee Reimbursements Bmldtng Code Fees Zomng Or&nance Fees Subdtvtston Regulattons and Stte Plan Ordtnance Water and Sewer Connectton Fees Financial Impact Assumptions Project A Project B 250, 000 sq fi 160, 000 Real estate value of $20-MILLION Extsttng Butldtng New constructton Lease $55-MILLION tn Sales $35-MILLION tn Sa[es Financial Impact Direct Tax Revenue Year 1 ProJect A Project B Real Estate $ 244, 000 Extsttng Butldtng Personal Property $125,800 $ 72,224 BPOL $ 316,1 O0 $ 202, 304 Rebate $ 316,100 $ 202,304 Net Gatn $ 369,800 $ 72,224 Financial Impact Direct Tax Revenue Year 5 Project A Project B Real Estate $ 2 74, 624 Extstmg Butldtng Personal Property $125,800 $ 72,224 BPOL $ 355, 773 $ 227, 695 Rebate $ 71,155 $ 45,539 Net Gam $ 685, 042 $ 254,380 Development Fees and Permits 250, O00 sq fi office buddtng One-ttme expense for new constructton Fees wtll be patd by the developer and then rebated from the General Fund Pubhc Utthty fees and permtts of $89,500 Constructton fees and permtts of $6,1 O0 The legtslatton does state a Technology Zone can be designated Economtc Development ts propostng the Ordtnance be created, but a Zone not be destgnated at the present ttme When a company comes forward whtch could posstbly quahfy, then a fiscal analysts can be performed and staff will schedule destgnatton of a parttcular area as a Technology Zone for Ctty Counctl's actton Ifa zone ts created now, tt ts only vahd for ten (10)years Mr Stewart beheves the State will acttvely promote these zones throughout the regton December 4, 2001 - 10- CITY MANA GER 'S BRIEFING TECHNOLOGY ZONE ORDINANCE ITEM # 4899 7 (Contmued) Donald Maxwell, Dtrector of Economtc Development, advtsed he has spoken wtth the Governor, thts Ordtnance ts targettng certatn tndustrtes as a htgh prtortty not only for our locahty and the region, but also for the State The State has promtsed even though there has been an tnflux of technology, as tn Northern Vtrgtnta, they wtll emphastze more of the htgh tech development down tnto the Hampton Roads regton Economtc Development ts co-ordtnattng wtth the staff of the Hampton Roads Economtc Development Alhance The State ts not provtdtng any of the financtal tncenttves offered Thts ts strtctly the responstbthty of the locahty A new markettngplan "Virginia Beach and You ", the perfect match type of campatgn, has gone tnto effect Wtth the assistance of experts, further breakdown of these target markets wtll develop The majortty of leads for thts type of bustness comes from extsttng businesses Economtc Development will vtstt approxtmately 400 local compantes commenctng the first week tn January Hampton Roads Economic Development Alliance wtll be dotng a specific market trtp ortented toward the Ctty's targeted htgh technology markets Concerntng venture capital the City has to obtain a stronger conglomeratton of htgh tech compantes As addtttonal compames locate, there wtll be addtttonal tnvestment There ts extsttng venture capital but tt ts not attracttve enough The State ts co-ordtnattng wtth the Ctty on the development of venture capttal It wtll take ttme A few successes are needed "Success breeds success" Mayor Oberndorf advtsed the prtvate sector does donate venture capttal Mr Stewart advtsed tn 1994 the legtslatton relative local technology zones was created for one project tn Northern Vtrgtnta, the Manassas ProJect The legtslatton was not utthzed for thts project and the legtslatton sat dormant and then went through changes At one ttme, under the regulattons, there were only two ctttes or counttes throughout the state which quahfied BY CONSENSUS, the Ordtnance to AMEND the City Code by ADDING § 35.2 to estabhsh technology zones, wtll be SCHEDULED for the Ctty Counctl Sesston of December 11, 2001 December 4, 2001 -Il- AGENDA RE VIEW SESSION 4:55 P.M. ITEM # 48998 `1 40r&nance to declare EXCESS PROPERTY on Lot 1 IA acquired by the Ctty for Harbor Potnt Road Extended and exchange satd property to F. WA YNE and CHERYL P. McLESKEY for whtch they will convey Parcel B and C to the City, and, AUTHORIZE the Ctty Manager to execute an agreement for the exchange of satd property Ordmance to AMEND Ctty Code Sectton 23-8 2 by prohtbtttng certatn uses of tmttatton tnfecttous btologtcal, toxtc or radtoacttve substances Thts ttem wall be REMOVED FROM THE AGENDA, (DUE TO LACK OF APPROPRIATE AD VER TISING) Thts Ordtnance wtll be RES CHED ULED. ITEM # 48999 BY CONSENSUS, the followtng shall compose the CONSENT A GENDA: RES OL UTIONS/ORDINANCES J1 Resoluttons to support General Assembly legtslatton destgnattng the followtng benevolent corporattons EXEMPT re real and personal property state and local tax: a Umted Cerebral Palsy of Southern & Central Vtrgmta, Inc b Chtnese Communtty Assoctatton of Hampton Roads, Inc c CAMG-J, Inc ,12 Resolutton re tssuance of the Development Authority's Industrial Development Revenue Bonds: Vtrgtnta Lutheran Homes -Zton Place/Luther Manor Not to exceed 350 Mahbu Drtve $35,000,000 (DISTRICT 3 - ROSE HALL) ,13 Ordtnance to AMEND 3g 35- 7 1 of the Ctty Code to ADD a new sectton re personal property taxatton codtfytng a TAX EXEMPTION for farm animals, grains, farm machinery, implements and agricultural products ,15 Or&nance to ACCEPT and APPROPRIATE a $23,105 grant from the Vtrgtma Rehabthtattve Servtces to the FY 2001-2002 operattng budget of the Department of Museums and Cultural Arts re purchastng a closed captioning system for the IMAX Theater to asstst ctttzens wtth dtsabthttes December 4, 2001 - 12- CITY COUNCIL COMMENTS 5:00 P.M. ITEM # 49000 Mayor Oberndorf referenced the "strawberrtes ", whtch had just been harvested from Counct l Lady Henley's farm She requested all to partake They are beauttful, sweet and most unusual durtng this time of year ITEM # 49001 Mayor Oberndorf referenced the current Agenda process Ctty Counctl destres there be a presentatton on any major project scheduled for one week, with Pubhc Comment at the next Sesston The thtrd Sesston would be for Counctl actton and vote The Mayor referenced the quotatton prtnted tn the Agenda "Ctttzens may regtster to address Ctty Counctl for a hmtted tzme on any ttem on the Formal Counctl Agenda Speakers may register tmmedtately prtor to the meeting or, tn advance, by calhng the Ctty Clerk's Office at 42 7-4303" The pubhc beheves they can continually appear and speak every ttme an item ts on the Agenda The City Manager, Ctty Attorney, and Ctty Clerk met and are worktng on a "draft "proposal, which they wtll present to Ctty Counctl The New Year wtll commence wtth the new procedure ITEM # 49002 Branch lauded Prtsctlla Beede who charred the Christmas Parade on Saturday, December First Thts was the best parade he had ever wttnessed Counctlman Branch had hts 20 month old son sttttng on hts lap durtng the parade It was a beautiful ntght and a great way to start the Hohday Season Prtsctlla advtsed 35, O00 people were tn attendance Mayor Oberndorf and Counctl Members concurred that Prtsctlla always does a magntficentjob ITEM # 49003 Counctlman Man&go advtsed the Hampton Roads Girls Soccer Association had their "tce breaker" tournament thts past weekend tn the new Soccer complex His daughterplayed agatnst State champtons from Pennsylvanta, as well as a team from Fatrfax County Teams from all across the eastern portton of the State parttctpated The tournament went excepttonally well Counctlman Man&go referenced the comphmentary remarks from the vtstttng parents They loved comtng here and were pleased wtth the weather ITEM # 49004 Councd Lady Henley referenced correspondence from Carl Wright, requestmg revtew of the BMP behtnd hts home tn Holland Farms Thts complatnt dates back to 1997 when Counctl Lady McClanan was the elected representattve of this area and has conttnued now that Counctl Lady Henley ts servtng A meettng has been scheduled wtth Mr Wrtght and his netghbors for December 13, 2001, at 7 O0 P M tn the Ctty Council Chamber to dtscuss the Ctty 's pohcy regardtng BMP's and parttcularly the BMP tn hts area Ctty staff wtll also attend Previous meettngs scheduled had been cancelled by the communtty Mr Wrtght beheves the BMP should be fenced by the Cttyfor safety purposes The Ctty 's pohcyfor tnland, lakes, ponds and canals clearly states the ulttmate responstbthty for the matntenance of prtvate property hes wtth the property owner If the BMP ts on pubhc property, then the City wtll provtde the aesthettcs However, on prtvate property, tt ts the responstbthty of the property owner(s) to perform aesthettc and safety matntenance Thts parttcular commumty ts very dense wtth many chtldren In the majority of communtttes whtch have BMPs, Homeowner Assoctattons handle the responstbthty However, when it falls tojust one or two property owners, tt ts dtfficult If the BMP were to become a stormwater drainage problem, then the City would provtde asststance ITEM # 49005 The Ctty Manager referenced an mvttatton from Dr Jenney, Supermtendent of Schools, relattve the School Board celebrattng the Schools having Achieved the Standards of Learning The Vtrgtnta Beach Ctty Schools are now fully accredtted Unfortunately, thts celebration wtth a receptton at 5 O0 P M ts durtng a Ctty Councd Sesston, Tuesday, December 18, 2001 Counctl Lady Wtlson advtsed, as the Mayor had potnted out, the Ctty Counctl should take the ttme to celebrate thetr successes As the Ctty Counctl has been generous wtth the financing of the School system, many of these accomphshments have become a reahty The Agenda for the December 18. whtch ts the last meettng of the year, wtll probably be fatrly stgntficant The Ctty Counctl wtll "play tt by ear" Mayor Oberndorf advtsed many of the ctttzens do not reahze the Ctty Counctl has all the Formal Sessions commenctng at 6 O0 P M tn the evening December 4, 2001 - 13- ITEM # 49006 Mayor Meyera E Oberndorf called to order the INFORM,IL SESSION of the VIRGINI.4 BE.4CH CITY COUNCIL tn the Ctty Counctl Conference Room, Ctty Hall Butldtng, on Tuesday, December 4, 2001, at5 12PM Counctl Members Present Ltnwood 0 Branch, III, Barbara M Henley, Louts R Jones, Robert C Man&go, Jr, Mayor Meyera E Oberndorf, Nancy K Parker, Vice Mayor Wtlham D Sessoms, Jr and Rosemary Wtlson Council Members Absent Margaret L Eure, I/Vtlham ~ Harrtson, dr and Reba S McClanan December 4, 2001 - 14- ITEM # 4900 7 Mayor Meyera E Oberndorf entertamed a motton to permtt Ctty Councd to conduct tts CLOSED SESSION, pursuant to Sectton 2 2-3711(A), Code of Vtrgmta, as amended, for the followmg purpose PERSONNEL MA TTERS Dtscusston, constderatton or tntervtews of prospecttve can&dates for employment, asstgnment, appotntment, promotton, performance, demotton, salartes, &sctphntng, or restgnatton of spectfic pubhc officers, appointees, or employees pursuant to Section 2 2-3 77 (A) (1) To Wtt Appotntments Boards and Commtsstons Commumty Servtces Board Htstortcal Revtew Board Planmng Commtsston Prtncess Anne Ballfields Relocatton Advtsory Committee Vtrgtnta Beach Commumty Development Corporatton PUBLICLY-HELD PROPERTY Dtscusston or constderatton of the acqutsttton of real propertyfor a pubhc purpose, or of the &sposttton of pubhcly-held real property, where &scusston tn an open meeting would adversely affect the bargatntng posttton or negottattng strategy of the pubhc body pursuant to Section 2 2-3711(A)(3) Town Center LEG,'IL M/I TTERS Consultatton wtth legal counsel or brtefings by staff members, consultants, or attorneys pertatntng to actual or probable httgatton, or other spectfic legal matters requesttng the provtston of legal advtce by counsel pursuant to Sectton 2 2- 3711(A)(7) Contractual Negottatton- Norfolk I/Vater Servtces Contract Upon motton by Vtce Mayor Sessoms, seconded by Councdman Branch, Ctty Councd voted toproceed tnto CLOSED SESSION. I"ottng 8-0 Councd Members Voting Aye Ltnwood 0 Branch, III, Barbara M Henley, Louts R Jones, Robert C Man&go, ,Ir, MayorMeyeraE Oberndorf, Nancy K Parker, I/tce Mayor Wtlham D Sessoms, ,Ir and Rosemary ~tlson Counctl Members Vottng Nay None Councd Members Absent Margaret L Eure, Wdham W Harrtson, Jr and Reba S McClanan (Time of Closed Session: 5:15 P.M. to 6:00 P.M.) December 4, 2001 - 15- FORMAL SESSION VIRGINIA BEA CH CITY CO UNCIL December 4, 2001 6:04 P.M. Mayor Meyera E Oberndorf called to order the FORMAL SESSION of the VIRGINIA BE,ICH CITY COUNCIL tn the Counctl Chamber, Ctty Hall Bmldtng, on Tuesday, December 4, 2001, at 6 04 P M Counctl Members Present Ltnwood 0 Branch, III,, Barbara M Henley, Louts R Jones, Robert C Mandtgo, Jr, Mayor Meyera E Oberndorf, Nancy K Parker, Vtce Mayor Wtlhams D Sessoms, Jr and Rosemary Wtlson Counctl Members Absent Margaret L Eure Wtlham W Harrtson, Jr [Attending Nattonal League of Ctttes 78th Congress of ctttes and Exposttton tn Atlanta, Georgia] lin Chtcago attendtng Nattonal Assoctatton of Bond Lawyers Annual Meettng] Reba S McClanan [Fhght schedule changed and had to leave today rather than tomorrow/Attendtng Nattonal League of Ctttes 78th Congress of ctttes and Exposttton tn Atlanta, Georgta] INVOCATION Reverend Walter Whttehurst (Rettred) Umted Methodtst Church PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Vtce Mayor Sessoms, betng 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, etther tndtvtdually or tn hts capactty as an officer of Wachovta Bank whtch recently merged wtth Ftrst Unton Nattonal Bank The Vtce Mayor regularly makes thts Dtsclosure as he may not know of the Bank's interest tn any apphcatton that may come before Ctty Counctl Vtce Mayor Sessoms' letter January 2, 2001, ts hereby made apart of the record December 4, 2001 Item V-E -16- CER TIFICA TION OF CLOSED SESSION ITEM # 49008 Upon motton by Vtce Mayor Sessoms, seconded by Counctlman Branch, Ctty Counctl CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS. Only pubhc bustness matters lawfully exempted from Open Meeting requtrements by Vtrgtnta law were dtscussed tn Closed Sesston to which thts certtficatton resolutton apphes, AND, Only such pubhc bustness matters as were tdenttfied tn the motton convemng the Closed Sesston were heard, dtscussed or constdered by Vtrgtnta Beach Ctty Counctl Vottng 8-0 Counctl Members Vottng Aye Ltnwood 0 Branch, III, Barbara M Henley, Louts R clones, Robert C Man&go, dr, Mayor Meyera E Oberndorf, Nancy K Parker, Vtce Mayor Wtlham D Sessoms, dr and Rosemary l, Vtlson Counctl Members Vottng Nay None Counctl Members Absent Margaret L Eure, Wtlham W Harrtson, Jr and Reba S McClanan December 4, 2001 CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded in ITEM # 49007, page 14, and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3711(A) of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virgima law. NOW, THEREFORE, BE IT RESOLVED: That the Virginia Beach City Council hereby certifies that, to the best of each member's knowledge, (a) only public business matters lawfully exempted from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Closed Session were heard, discussed or considered by Virginia Beach City Council. th Hodge~'Smith, MMC City Clerk December 4, 2001 Item V-F. 1. -17- MINUTES ITEM # 49009 Upon motion by Vice Mayor Sessoms, seconded by Counctlman Branch, Ctty Counctl APPROVED, the Mtnutes of the INFORMAL AND FORMAl, SESSIONS of November 27, 2001. Vottng 8-0 Counctl Members Vottng Aye Ltnwood 0 Branch, III, Barbara M Henley, Louts R Jones, Robert C Man&go, Jr, Mayor Meyera E Oberndorf, Nancy K Parker, Vtce Mayor Wtlham D Sessoms, Jr and Rosemary Wtlson Counctl Members Vottng Nay None Counctl Members Absent Margaret L Eure, Wtlham W Harrtson, Jr and Reba S McClanan December 4, 2001 - 18- Item V-G. 1. ADOPT AGENDA FOR FORMAL SESSION ITEM # 49010 BY CONSENSUS, Ctty Counctl ADOPTED: AGENDA FOR THE FORMAL SESSION December 4, 2001 - 19- Item V-H. 1. PUBLIC COMMENT ITEM # 49011 Mayor Oberndorf tnvtted PUBLIC COMMENT: TIDEWATER COMMUNITY COLLEGE (TCC) Campus Expansion Plan There were no speakers December 4, 2001 - 20- Item V-H.2. PUBLIC COMMENT ITEM # 49012 Mayor Oberndorf tnvtted PUBLIC COMMENT: THEATRE SITE LOCATION The followtng spoke tn SUPPORT of locating the Performtng Arts Theatre wtthtn the Town Center Attorney Glen Huff, founder of Huff, Poole and Mahoney, 2133 Wtndward Shore Drtve, Phone 481-0589, supported the theatre to be located wtthtn the Town Center Attorney R ,1 Nutter, 4425 Corporatton Lanes, represented the law firm of Troutman, Sanders, Mays and Valenttne LLP deffMeredtth, Founder and Executtve Productng Dtrector of the Vtrgtnta Musical Theatre, Phone 340-5446 Sanford Cotten, 1 Columbus Center #700, President - Central Bustness District Assoctatton The representative from the Chamber of Commerce was unable to attend, but has presented each Counctl Member wtth a letter of endorsement Mr Cotten noted the Ctty Counctl had recetved several pettttons contatmng over 1,000 stgnatures supporttng the locatton of the Performtng Arts Theatre tn the Town Center December 4, 2001 - 21 - Item V-I. l afo/c PUBLIC HEARING ITEM # 49013 Mayor Oberndorf DECLARED A PUBLIC HEARING: TAX EXEMPTIONS (Requested) a. United Cerebral Palsy of Southern & Central Virginia, Inc. b. Chinese Community Association of Hampton Roads, Inc. c. CAMG-J, Inc. There betng no speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING December 4, 2001 - 22 - Item V-J. ORDINANCES/RESOL UTIONS ITEM # 49014 Upon motton by Vtce Mayor Sessoms, seconded by Counctlman Branch, Csty Counctl APPROVED IN ONE MOTION, Resoluttons/Or&nances la/b/c, 2, 3, and 5 of the CONSENT AGENDA. Item 4 was REMOVED FROM THE AGENDA, (DUE TO LACK OF APPR OPRIA TE AD VER TISING) Vottng 8-0 (By Consent) Councd Members Voting Aye Ltnwood 0 Branch, III, Barbara M Henley, Louts R clones, Robert C Man&go, ,Ir, Mayor Meyera E Oberndorf, Nancy K Parker, Vtce Mayor Wtlham D Sessoms, .Ir and Rosemary Wtlson Counctl Members Vottng Nay None Counctl Members Absent Margaret L Eure, Wtlham W Harrtson, ,Ir and Reba S McClanan December 4, 2001 Item V-J. 1/a/b/c - 23 - ORDINANCES/RES OL UTIONS ITEM # 49015 Upon motton by Vtce Mayor Sessoms, seconded by Councilman Branch, Ctty Council ADOPTED: Resoluttons to support General Assembly legtslatton destgnattng the followtng benevolent corporattons EXEMPTre real andpersonal properO, state and local tax a Umted Cerebral Palsy of Southern & Central Vtrgtnta, Inc b Chtnese Communtty Assoctatton of Hampton Roads, Inc c CAMG-.I, Inc Voting 8-0 (By ConsenO Counctl Members Vottng Aye Ltnwood 0 Branch, III, Barbara M Henley, Louts R Jones, Robert C Man&go, Jr, Mayor Meyera E Oberndorf Nancy K Parker, Vtce Mayor Wtlham D Sessoms, Jr and Rosemary Wtlson Counctl Members Vottng Nay None Counctl Members Absent Margaret L Eure, Wtlham W Harrtson, dr and Reba S McClanan December 4, 2001 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 A RESOLUTION SUPPORTING LEGISLATION WHICH WILL DESIGNATE REAL AND PERSONAL PROPERTY OWNED BY UNITED CEREBRAL PALSY OF SOUTHERN & CENTRAL VIRGINIA, INC., AS BEING EXEMPT FROM STATE AND LOCAL REAL AND PERSONAL PROPERTY TAXATION WHEREAS, United Cerebral Palsy of Southern & Central Virginia, Inc., has requested the Council of the City of Virginia Beach to adopt a resolution in support of its request that the General Assembly act in accordance with Article X, ~ 6(a) (6) of the Constitution of Virginia to designate the real and personal property of United Cerebral Palsy of Southern & Central Virginia, Inc., as being exempt from state and local real and personal property taxation; WHEREAS, United Cerebral Palsy of Southern & Central Virginia, Inc., owns real property in the City of Virginia Beach assessed at $212,500 in tax year 2001-02; taxes on this property in tax year 2001-2002 are $2,592.50; WHEREAS, United Cerebral Palsy of Southern & Central Virginia, Inc., owns personal property in the City of Virginia Beach with an assessed value of approximately $15,197; taxes on this property would be $562.28 in tax year 2001; WHEREAS, pursuant to ~ 30-19.04(B) of the Code of Virginia, the Council of the City of Virginia Beach has properly advertised and conducted a public hearing prior to the adoption of this resolution, giving all citizens an opportunity to be heard; WHEREAS, the provisions of ~ 30-19.04(B) of the Code of Virginia have been examined and considered by the Council of the City of Virginia Beach; and WHEREAS, the Council of the City of Virginia Beach is of the opinion that United Cerebral Palsy of Southern & Central Virginia, Inc., should be designated as a benevolent organization within the context of ~ 6(a) (6) of Article X of the Constitution 36 37 38 of Virginia and that real and personal property located in the City of Virginia Beach owned by United Cerebral Palsy of Southern & Central Virginia, Inc., and used by it exclusively for 39 benevolent purposes on a nonprofit basis should be exempt from 40 state and local real and personal property taxation. 41 42 NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA- 43 44 That the Council of the City of Virginia Beach, Virginia, hereby supports the enactment of legislation 45 designating United Cerebral Palsy of Southern & Central Virginia, 46 Inc., as a benevolent organization within the context of ~ 47 48 6(a) (6) of Article X of the Constitution of Virginia and exempting from state and local property taxation all real and 49 50 51 52 personal property owned by United Cerebral Palsy of Southern & Central Virginia, Inc., that is located within the City of Virginia Beach and used exclusively for benevolent purposes on a nonprofit basis. 53 54 Adopted by the Council of the City of Virginia Beach, Virginia, on the 4 day of D~cember , 2001. CA8289 OrdinkNONCODEkUnitedCerebralPalsy.res.wpd October 24, 2001 RI APPROVED AS TO LEGAL SUFFICIENCY- ~/f{y -i~t~o]~ney' ~ OffJ~c~e A RESOLUTION SUPPORTING LEGISLATION WHICH WILL DESIGNATE REAL AND PERSONAL PROPERTY OWNED BY THE CHINESE COMMUNITY ASSOCIATION OF HAMPTON ROADS, INC., AS BEING EXEMPT FROM STATE AND LOCAL REAL AND PERSONAL PROPERTY TAXATION 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 WHEREAS, the Chinese Community Association of Hampton Roads, Inc., has requested that the Council of the City of Virginia Beach adopt a resolution in support of its request that the General Assembly act in accordance with Article X, ~ 6(a) (6) of the Constitution of Virginia to designate the real and personal property of the Chinese Community Association of Hampton Roads, Inc., as being exempt from local real and personal property taxation; WHEREAS, the Chinese Community Association of Hampton Roads, Inc., owns real property located in the City of Virginia Beach (the "City"), with an assessed value of $597,063 in tax year 2001-02; taxes on this property in tax year 2001-02 are $7,284.18; WHEREAS, the Chinese Community Association .of Hampton Roads, Inc., owns personal property in the City with an assessed value of approximately $4,000; taxes on this property would be approximately $148.00 in tax year 2001; WHEREAS, pursuant to ~ 30-19.04(B) of the Code of Virginia, the Council of the City of Virginia Beach has properly advertised and conducted a public hearing prior to the adoption of this resolution, giving all citizens an opportunity to be heard; WHEREAS, the provisions of ~ 30-19.04(B) of the Code of Virginia have been examined and considered by the Council of the City of Virginia Beach; and WHEREAS, the Council of the City of Virginia Beach is of the opinion that the Chinese Community Association of Hampton Roads, Inc., should be designated as a cultural organization 36 37 38 39 4O 41 42 4B 44 45 46 47 48 49 5O 51 52 within the context of ~ 6(a) (6) of Article X of the Constitution of Virginia and that real and personal property located in the City of Virginia Beach owned by the Chinese Community Association of Hampton Roads, Inc., and used by it exclusively for cultural purposes on a nonprofit basis should be exempt from local real and personal property taxation. NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That the Council of the City of Virginia Beach, Virginia hereby supports the enactment of legislation designating the Chinese Community Association of Hampton Roads, Inc., as a cultural organization within the context of ~ 6(a) (6) of Article X of the Constitution of Virginia and exempting from local property taxation all real and personal property owned by the Chinese Community Association of Hampton Roads, Inc., that is located within the City of Virginia Beach and used exclusively for cultural purposes on a nonprofit basis. 53 54 Adopted by the Council of the City of Virginia Beach, Virginia, on the 4 day of December , 2001. CA8203 OrdinkNONCODEkChineseCom.res.wpd November 27, 2001 R2 APPROVED AS TO LEGAL SUFFICIENCY: City Attorney s Offics 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 A RESOLUTION SUPPORTING LEGISLATION WHICH WILL DESIGNATE REAL AND PERSONAL PROPERTY OWNED BY CAMG-J, INC., AS BEING EXEMPT FROM STATE AND LOCAL REAL AND PERSONAL PROPERTY TAXATION WHEREAS, CAMG-J, Inc., has requested the Council of the City of Virginia Beach to adopt a resolution in support of its request that the General Assembly act in accordance with Article X, ~ 6(a) (6) of the Constitution of Virginia to designate the real and personal property of CAMG-J, Inc., as being exempt from state and local real and personal property taxation; WHEREAS, CAMG-J, Inc., owns real property in the City of Virginia Beach assessed at $93,936 in tax year 2001-02; taxes on this property in tax year 2001-2002 are $1,146.02; WHEREAS, CAMG-J, Inc., owns no personal property in the City of Virginia Beach, and thus no personal property taxes have been assessed against or paid by this organization in recent years; WHEREAS, pursuant to ~ 30-19.04(B) of the Code of Virginia, the Council of the City of Virginia Beach has properly advertised and conducted a public hearing prior to the adoption of this resolutmon, giving all citizens an opportunity to be heard; WHEREAS, the provisions of ~ 30-19.04(B) of the Code of Virginia have been examined and considered by the Council of the City of Virginia Beach; and WHEREAS, the Council of the City of Virginia Beach is of the opinion that CAMG-J, Inc., should be designated as a benevolent organization within the context of ~ 6(a) (6) of Article X of the Constitution of Virginia and that real and personal property located mn the City of Virginia Beach owned by CAMG-J, Inc., and used by it exclusively for benevolent purposes on a nonprofit basis should be exempt from state and local real and personal property taxation. 36 37 NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 38 That the Council of the City of Virginia Beach, 39 4O Virginia hereby supports the enactment of legislation designating CAMG-J, Inc., as a benevolent organization within the context of 41 ~ 6(a) (6) of Article X of the Constitution of Virginza and 42 43 exempting from state and local property taxation all real and personal property owned by CAMG-J, Inc., that as located within 44 the City of Virginia Beach and used exclusively for benevolent 45 purposes on a nonprofit basis. 46 47 Adopted by the Council of the City of Virginia Beach, Virginia, on the 4 day of Deember , 2001. CA8288 OrdinkNONCODEkCAMG-Jres. wpd October 24, 2001 R-1 APPROVED AS TO LEGAL SUFFICIENCY' - 24- Item V-d. 2. ORDINANCES/RES OL UTIONS ITEM # 49016 Upon motion by Vtce Mayor Sessoms, seconded by Counctlman Branch, Ctty Counctl ADOPTED: Resolutton re issuance of the Development Authority's Industrial Development Revenue Bonds: Vtrgtma Lutheran Homes -Zton Place/Luther Manor 350 Mahbu Drtve Not to Exceed $35,000,000 (DISTRICT 3 - ROSE HALL) Vottng 8-0 (By Consent) Counctl Members Voting Aye Lmwood 0 Branch, III, Barbara M Henley, Louts R Jones, Robert C Mandtgo, Jr, Mayor Meyera E Oberndorf Nancy K Parker, Vtce Mayor Wtlham D Sessoms, Jr and Rosemary Wtlson Councd Members Vottng Nay None Counctl Members Absent Margaret L Eure, Wdham W Harrtson, Jr and Reba S McClanan December 4, 2001 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA WHEREAS, the City of Virginia Beach Development Authority ("Authority"), has been asked by Virginia Lutheran Homes-Charlottesville, L.L.C, ("VLHC"), Shenandoah Valley Lutheran Housing, Inc ("Shenandoah"), and Zion Place, Inc ("Zion Place"), all 501(c)(3) organizations organized or incorporated in Virginia which are affiliates of Virginia Lutheran Ho~nes, Inc, a V~rgmia non-stock, non-profit corporation (collectively, the "Borrowers"), to approve the plan of financing and issuance of revenue bonds by the Industrial Development Authority of Albemarle County, Virgnua, ("Albemarle Authority"), in an amount not to exceed $35,000,000 ("Bonds") a portion of which which w~ll be used to refinance the outstanding balance of an approximately $4,200,000 mortgage loan by the United States Department of Housing and Urban Development to Zion Place, the proceeds of which Zion Place used to finance its construction of a low-income residential care facility for the aged containing 123 residential units known as Luther Manor, located at 350 Malibu Drive, Virginia Beach, Virginia 23452 m the City of V~rglma Beach, Vlrglma ("Project"), and has held a pubhc hearing on November 20, 2001; WHEREAS, Section 147(0 of the Internal Revenue Code of 1986, as amended (the "Code"), provides that the govermnental unit having jurisdiction over the issuer of private activity bonds and over the area m which any faclhty financed w~th the proceeds of private activity bonds is located must approve the issuance of the bonds and Section 15.2-4906 of the Industrial Development and Revenue Bond Act, Chapter 49, Title 15.2, Code of Virginia of 1950, as amended ("Act") sets forth the procedure for such approval, WHEREAS, Section 15 2-4905 of the Act provides that if a locality has created an industrial development authority, no industrial development authority created by a second locality may finance a facility located in the first locality unless the governing body of such first locality concurs with the inducement created by the second locality, WHEREAS, a portion of the ProJect consists of the refinancing of a mortgage loan used to construct a residential care facility in the City of Virginia Beach, Virginia ("City") and the City Counc;l of the City of Virginia Beach, Virginia ("City Council") constitutes the highest elected governmental unit of the City, WHEREAS, the Authority has recommended that the City Council approve the plan of financing and the issuance of the Bonds, and WHEREAS, a copy of the Authonty's resolution approving the issuance of the Bonds pursuant to the plan of financing, subject to the terms to be agreed upon, a certificate of the public hearing m~d a Fiscal hnpact Statement have been filed with the City Council. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRG1NIA 1 The C~ty Council concurs in the recommendation of and approves the plan of financing and the issuance of the Bonds by the Albemarle Authority for the benefit of the Borrowers, as required by Sectmn 147(0 of the Code and Sectmns 15 2-4905 and 15 2-4906 of the Act to penmt the Authority to assist m the financing 2 The approval of the plan of financing and the issuance of the Bonds do not constitute an endorsement to a prospective purchaser of the Bonds or the creditworthiness of the plan of financing or the Borrowers 3 This resolution shall take effect ~mmedlately upon ~ts adoption. Adopted by the City Council of the C~ty of Virg~ma Beach, Virg~ma th~s 4th day of December, 2001 [SEAL] Clerk, City Council of the City of V~rg~ma Beach, V~rg~ma -2- CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY APPROVAL OF THE ISSUANCE BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF ALBEMARLE COUNTY, VIRGINIA OF ITS REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $35,000,000 FOR VIRGINIA LUTHERAN HOMES - CHARLOTTESVILLE, L.L.C., SHENANDOAH VALLEY LUTHERAN HOUSING, INC. AND ZION PLACE, INC., ALL AFFILIATES OF VIRGINIA LUTHERAN HOMES, INC. LOCATION MAP FOR LUTHER MANOR 350 MALIBU DR, VIRGINIA BEACH, VA 23452-3600, US \\FIN\63361 I VIRGINIA V~rg~ma Beach Development AuthorIty One Columbus Center, Suite 300 V~rg~ma Beach, VA 23462 (757) 437-6464 FAX (757) 499-9894 Webstte www v~rglma-beach va us/dept/econdev P.-matl ecdevCa)c~tyv~rgm~a-beach va us November 20, 2001 The Honorable Meyera E. Oberndorf, Mayor Members of C~ty Council Mumclpal Center V~rg~ma Beach, VA 23456 Dear Mayor Oberndorf and Members of C~ty Council. We submit the following ~n connection w~th project for V~rg~ma Lutheran Homes Inc, located at 1300 Branchlands Drive, Charlottesville, V~rgima 22901, 9138 Congress Street, New Market, Virginia 22844, 350 Mahbu Drive, Virginia Beach, V~rg~ma 23452. (1) Ewdence of pubhcat~on of the not,ce of heanng are attached as Exhibits A and B, and a summary of the statements made at the pubhc heanng ~s attached as Exhibit C The C~ty of V~rg~ma Beach Development Authonty's (the "Authority") resolution recommending Council's approval ~s attached as Exhibit D (2) The D~sclosure Statement ~s attached as Exhibit E. (3) The F~scal Impact Statement ~s attached as Exhibit F (4) Attached as Exhibit G ~s a summary sheet setting forth the type of~ssue, and ~dent~f3nng the ProJect and the pnnc~pals (5) Attached as Exhibit H ~s a letter from the appropriate C~ty department commenting on the ProJect RGJ/GLF/rab Enclosures EXHIBIT A AND EXHiBiT B THE VIRGINIAN-PILOT NORFOLK, VIRGINIA AFFIDAVIT OF PUBLICATION The Virginian-Pilot MCGUIRE WOODS LLP 901 F~%ST CARY STREET ON~ JAMES CENTER RICh~4OND VA 23219 REFERENCE: 10165384 1108S90 NOTICE. OF PUBLIC HEA 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 CommunicationG Inc., in the cities of Norfolk, Portsmouth, Chesapeake, Suffolk, and Virginia Beach, Common- wealth of Virginia and in the ~tate of North Carolina 2)That the advertisement hereto annexed has been published in said newspaper on the date stated. PUBLIS~D ON: 11/06 11/13 350 Mel,~ Crlye. ~,~ ~. Vi,i~a ~452'm the Cl~ ~ ~ The ~..~ (5) ~ m~ f~ ml~l. ~i~K ~1~ ~ any ~l~caL $u~l~ m~ ~1 ~ ~l~O~ ~ t~e ~ Of s~ ~ , . , , , n~ or h~ v~wS, -Inf~lo~,~m~ ~ ~' 9~ ~ 9n fll¢ ~fl~ is open ~, ~e~ec~lon e~ ~A~o~'s oflmee, e~ b~SS ~ . , ' ', --,. TOTAL COST: 776.44 AD SPACE: 120 LINE .1 ....... .,... _ - Legal Affiant:_ · /o Subscr~-~nd sworn, to be r~ ~e in my.city and state on the day and year a 'o -e,.iid, t 4i, I day TOTAL PA[i~ EXHIBIT C CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY RECORD OF PUBLIC HEARING ON NOVEMBER 20, 2001 (Virginia Lutheran Homes Affiliates) The Chmr of the City of Virginia Beach Development Authority (the "Authority") announced the commencement of a public hearing on the request of Virginia Lutheran Homes - Charlottesville, L L C, Shenandoah Valley Lutheran Housing, Inc and Zion Place, Inc, all affiliates of V~rginla Lutheran Homes, Inc (collectively, the "Borrowers"), and that a Notice of Public Hearing was published once a week for two consecutive weeks In The Vlrglman-Pdot, a newspaper having general circulation in the City of Virginia Beach, V~rgmia (the "City") Such public hearing was held not less than six days and not more than 21 days a~er the second notice appeared in The ?~rglman-Pdo! 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 hearing The following individual appeared and addressed the Authority at such public Richard Hall, Chief Financial Officer of Vlrglma Lutheran Homes, Inc, appeared on behalf of the Borrowers Mr Hall gave a brief description of the proposed financing and explained that the Borrowers are seeking approval by the Authority and the City Council of the City of the issuance by the Industrial Development Authority of Albemarle County, Virginia ("Albemarle Authority") of up to $35,000,000 of the Albemarle Authonty's revenue bonds at one time or from time to time to assist the Borrowers in their plan of financing, which includes the refinancing of an outstanding balance of approximately $4,200,000 on a mortgage loan by the United States Depamnent of Housing and Urban Development to Zion Place, Inc the proceeds of which Zion Place, Inc used to finance Its construction of a low-Income resldentml care facility for the aged containing 123 residential units known as Luther Manor, located at 350 Mahbu Drive, Virginia Beach, Virginia 23452 in the City of Virginia Beach, Vlrglma (the "Project") Mr Hall explained the rationale behind the selection of the Albemarle Authority as the issuer of the bonds, including the fact that the portion of the project to be financed m Albemarle County is substantially larger than the ProJect in the C~ty or the portion of the project in Shenandoah County Mr Hall also outlined certain benefits inuring to the City and its citizens, Including providing affordable housing to low-income elderly residents of the City No other persons appeared to address the Authority, and the Chair 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 by the Albemarle Authority in support of the proposed financing and hereby transmits the Fiscal Impact Statement to the City Council of the City of Vlrglma Beach and asks that this recommendation be received at its next regular meeting at which this matter can be properly placed on the Council's agenda for hearing \LFIN\63323 1 EXHIBIT D RESOLUTION OF THE CITY OF VIRGINA BEACH DEVELOPMENT AUTHORITY RECOMMENDING APPROVAL BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA OF A PROPOSED ISSUE OF REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $35,000,000 FOR THE BENEFIT OF ZION PLACE, INC., VIRGINIA LUTHERAN HOMES-CHARLOTTESVILLE, L.L.C., AND SHENANDOAH VALLEY LUTHERAN HOUSING, INC. WHEREAS, Vlrglma Lutheran Holnes-Charlottesvflle, L.L.C, ("VLHC"), Shenandoah Valley Lutheran Housing, Inc ("Shenandoah"), and Zion Place, Inc. ("Zmn Place"), all 501(c)(3) organizations organized or incorporated in Vlrg~ma which are affiliates of Virginia Lutheran Homes, Inc, a Vlrgnua non-stock, non-profit corporation (collectively, the "Borrowers"), have requested that the City of Virginia Beach Development Authority ("Authority"), approve the plan of financing and issuance of up to $35,000,000 ~n revenue bonds by the Industrial Development Authority of Albemarle County, V~rglma, (the "Albemarle Authority"), a portion of the proceeds of which will be used to refinance an outstanding balance of approxunately $4,200,000 on a mortgage loan by the United States Department of Housing and Urban Development to Zion Place, the proceeds of which Zion Place used to finance its construction of a low-lncolne residential care facility for the aged containing 123 resident~al units known as Luther Manor, located at 350 Mahbu Drive, Vlrg~ma Beach, Virginia 23452 in the C~ty of Vlrglma Beach, Virginia ("Project"); WHEREAS, a pubhc hearing has been held by the Authority regarding the Borrowers' request, and the Authority desires to recommend approval of the Project, the plan of financing and the proposed bond issue to the C~ty Council of the C~ty of Vlrglma Beach, V~rg~ma, with respect to the port,on of the Project to be located ~n the City of Virginia Beach, WHEREAS, (a) no member of the Board of D~rectors of the Authority is an officer or employee of the City of Vlrgnua Beach, Virglma, (b) each melnber has, before entering upon h~s duties dunng his or her present term of office, taken and subscribed to the oath prescribed by Section 49-1 of the Code of Vlrg~ma of 1950, as amended and (c) at the t~me of their appointments and at all times thereafter, ~ncludlng the date hereof, all of the members of the Board of Directors of the Authority have satisfied the residency requirements of the Act, and WHEREAS, no member of the Board of Directors of the Authority has any personal ~nterest or business interest in the Borrowers, the bonds, or any of the transactions contemplated there~n or has otherwise engaged in conduct prohibited under the Conflict of h~terests Act, Chapter 40 1, T~tle 2 1 of the Code of Vlrglma of 1950, as amended in connection w~th th~s resolution or any other official action of the Authority in connection therewith NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY 1 The Authority concurs m the Inducement and recommendation of approval of the Albemarle Authority for the Project, the plan of financing and proposed bond issue and recommends approval and concurrence thereof by the C~ty Council of the C~ty of V~rg~ma Beach, V~rglma 2 All costs and expenses recurred by the Authority ~n connection w~th the Project, including but not limited to the fees and expenses of Authority counsel, shall be pald by the Borrowers, together w~th other charges customarily payable to the Authority. If for any reason such bonds are not ~ssued, ~t ~s understood that all such expenses shall be paid by the Borrowers and that the Authority shall have no responsibility therefor. 3. Th~s resolution shall take effect immediately upon ~ts adoption. Adopted th~s 20th day of November, 2001 [SEAL] Secretary, C~ty of V~rglmkBeach Development Authority 11/16/2001 FRI 16.07 FAX 540 776 2621 VIRGINIA LUTHERAN HOMES ~002/009 EXHIBIT E i~ich~d L I~fti Chv4 ~n~, t,~ ,a~ Of~ er DISCLOSURE STATEMENT Date. November 15,2001 Applicants: All Owners (if different from Applicants) T3~e of Application: Virginia Lutherm~ Homes - Charlottesville, L L.C., Shenandoah Valley Lutheran Housing. Inc. and Zion Place, Inc., all affiliates of Vn'ginia Lutheran Homes, Inc. None Concurring resolution approving 1be issuance of up to $35,000,000 of revenue bonds by the Industrial Development Auflmrity of Albemarle County, Virgima to asstst Applicants in financing, with respect to the City of Virginia Beach, the refinancing of ,'tn outstanding balance of approximately $4,200,000 on a mortgage loan by the Umted States Department of l:toushag and Urban Development to Zion Place, Inc, the proceeds of which Zion Place, Inc. used to finance its construction ora low- income ~esidential care facility tbr the aged contahfing 123 residentml units 'known as Luther Manor, located at 350 Malibu Drive, Virgima Beach, Virginia 23452 in the City of Virginia Beach, Vtrginia (the "Project") 1. Zion Place, Inc, flxe owner of the facility known as Luther Manor being refinanced by the Project' and one of the Applicants, is a non-profit, non-stock V~rginia FIN 63938x t (540~776-26~3 Fax (b40) 7f6-2621 v,~Nwvihnet org E4n,~d thMl~vlhnet or9 11/16/2001 FRI 16:08 FAX 540 776 2621 VIRGINIA LU'DIER~ HOMES ~003/009 corporation which lms a determination letter trom the Internal Revenue Service granting it charitable organization status under Section 501(¢)(3) of the Internal Revenue Code. See attached Exhibit A for the list of its officers and Board members. 2. Zion Place, Inc. ts the owner of the Project 3. Virginia Lutheran Homes, Inc. is an affiliate of ail of the Applicants, including Zion Place, Inc, and is a non-profit, non-stock Virginia corporation which has a determumtion Letter from the lntemat Revenue Service granting it charitable organization status under Section 501(c)(3) of the Internal Revenue Code. See attached Exhibit A for tl~e list of ~ts officers and Board members. VIRGINIA LUTHERAN HOMES, 1NC By. Richard Hall. Chief Financial Officer 11/16/2001 FRI 16:10 FAX 540 776 2621 VIRGINIA LUTHER~ HOMES ~004/009 EXHIB~ A Zion Place. Inc. Officers and Board Members [List] Virginia Lutherm~ Homes, Itxc Officers and Board Members [List] 11/16/2001 FRI 16:10 FAX 540 776 2621 VIRGINIA LUTHERAN HOMES ~005/009 oO~ 11/16/2001 FRI 16:11 FAX 540 776 2621 VIRGINIA LUTHERAN HOMES ~006/009 11/16/2001 FRI 16.11 FAX 540 776 2621 VIRGINIA LUTHERAN HO~ES ~007/009 $oz __.m OP-- 11/16/2001 FRI 16.12 FAX 540 776 2621 VIRGINIA LUTHERAN H0)IES ~008/009 E ~ E 8 o 8 0 ~ o o ~ ~ UJ 0 o 11/16/2001 FRI 16.13 FAX 540 776 2621 VIRGINIA LUTHERAN HOMES ~009/009 E o o o ~ C) 0 VIRGiNiA Vtrglma Beach Development Authority One Columbus Center, State 300 V~rgm~a Beach, VA 23462 (757) 437-6464 FAX (757) 499-9894 Webstte www v~rglma-beach va us/dept/econdev E-mad ecdev(~c~ty vlrglma-beach va us EXHIBIT F CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY APPROVAL OF THE ISSUANCE BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF ALBEMARLE COUNTY, VIRGINIA OF ITS REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $35,000,000 AND VIRGINIA LUTHERAN HOMES - CHARLOTTESVILLE, L L C., SHENANDOAH VALLEY LUTHERAN HOUSING, INC. AND ZION PLACE, INC , ALL AFFILIATES OF VIRGINIA LUTHERAN HOMES, INC. The Development Authority recommends approval of the above referenced financing. The benefits of the ProJect to the C~ty ~nclude continuation of housing avmlabfl~ty for low- income elderly residents of the C~ty and continued employment opportumt~es in connection w~th the facility ~HII:Jl I tJ FISCAL IMPACT STATEMENT FOR PROPOSED BOND FINANCING Date November 20, 2001 To the City Councd of the City of Virginia Beach, V~rg~ma Applicant Facility 1 Maximum amount of financing sought Vlrgima Lutheran Homes-Challottesvflle, L L.C CVLHC"), Shenandoah Valley Lutheran Housing, Inc ("Shenandoah") and Zion Place, Inc ("Zion Place"), all affihates of V~rgmia Lutheran Homes, Inc Financing/refinancing residential care facd~t~es fm the aged, capital m~provements and additions $35,000,000 VLHC Shenandoah 2 Estimated taxable value of the facility's real $8,500,000 N/A property to be constructed m the locahty * 3 Estimated real property tax per year using present $50,000 N/A tax rates 4 Estimated personal property tax per yeal using $5,000 N/A plesent tax rates 5 Esmnated merchants' capital tax per year using N/A N/A p~esent tax rates 6 (a) Estimated dollm value per year of goods $110,000 $40,000 that will be purchased fiom Vlrg~ma companies within the locality ' Zion Place N/A N/A N/A N/A $90,000 (b) Estimated dollar value pe~ year of goods $1,000 $500 $1,000 that wdl be purchased from no.n-Vlrgnna companies within the locality (c) Estimated dollar value per year of services $209,000 $54,000 $184,000 that will be purchased from V~.rgmia companies within the locality (d) Estimated dollar value per year of serwces $41,000 $1,000 $1,000 that wall be purchased from no.n-Vlrgm~a companies w~thln the locality 7 Esmnated number of regular employees on yem 18 3 ~ound basis 8 Average annual salary per employee $17,400 $13,600 Chalrmm~~e~hTn Authority W~th respect to each facd~ty, 'hn/w~thin the locality" lefets to the locahty ~n whtch the facility ts located 15 $18,500 SUMMARY SHEET CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORiTY INDUSTRiAL DEVELOPMENT REVENUE BOND PROJECT NAME LOCATION DESCRiPTION OF PROJECT AMOUNT OF BOND ISSUE PRINCIPALS ZONING CLASSIFICATION a Present zoning classification of the Property b Is rezonlng proposed? c If so, to what zoning classification9 Luther Manor - owned by Zion Place, Inc 350 Mahbu Drive, Virginia Beach 23452 Lynnhaven District HUD 202 low income elderly housing- 123 units - GPIN 1487 65 8516 0000 built and operated by Virginia Lutheran Homes, Inc (!982) Up to $35,000,000 to be issued by the Industrial Development Authority of Albemarle County, Virginia, with a port,on of such funds to be used to refinance an outstanding balance of approximately $4,200,000 on a loan by United States Department of Housing and Urban Development used to construct Luther Manor, described above Virginia Lutheran Homes, Inc - affiliate Dale Ankney - President/CEO Richard Hall - CFO R75/R6 Yes__ No [X] \\FIN\63358 I DEPARTMENT OF HOUSING AND NEIGHBORHOOD PRESERVATION (757) 426 5750 FAX (757) 426 5766 TDD (757) 426 5794 CODE ENFORCEMENT DIVISION (757) 427 4421 Novemberl 4, 2001 MUNICIPAL CENTER BUILDING 18A 2424 COURTHOUSE DRIVE VIRGINIA BEACH VA 23456 9083 Chairman, Virginia Beach, Development Authority One Columbus Center, State 300 Virglma Beach, VA 23462 FAX# 499-9894 Gary Fentress, Esq Office of the City Attorney Municipal Center FAX# 563-1167 RE: Evaluation of Public Benefit Luther Manor Refinancing ( Ziou Place, Inc.) Multi-Family Rental Housing Bond Application 123 unit Iow income elderly housing VBDA Agenda November 20, 2001 I have reviewed the information provided regarding the above ~efelenced project In my op~mon a public benefit is achieved by th~s facility providing affordable housing tbr low income elderly We have been advised by the applicant's counsel that the HUD income requirements (income at 50% of median or below) and rent limits (30% of income plus other reasonable mandatory fees for meals) will continue to stay ~n place for this project, ensuring that ~t remains aflbrdable for Iow income elderly residents. Please let me know if you need anything further regarding this issue Thank you Sincerely, ~iO,leL MF$/ledma'n ---X,,,..~_ Director Proud Rectptent of the 1998 U S Senate Medalhon of Excellence for Producttwty and ~tahty tn the Pubhc Sector - 25 - Item V-J. 3. ORDINANCES/RESOL UTIONS ITEM # 49017 Upon motton by Vtce Mayor Sessoms, seconded by Counctlman Branch, Ctty Counctl ADOPTED Or&nance to AMEND 3g 35- 7 1 of the Ctty Code to ADD a new sectton re personal property taxatton co&fymg a TAX EXEMPTION for farm animals, grains, farm machinery, implements and agricultural products Vottng 8-0 (By Consent) Counctl Members Vottng Aye Ltnwood 0 Branch, III, Barbara M Henley, Louts R Jones, Robert C Man&go, Jr, Mayor Meyera E Oberndorf, Nancy K Parker, Vtce Mayor Wtlham D Sessoms, Jr and Rosemary Wtlson Counctl Members Vottng Nay None Counctl Members Absent Margaret L Eure, Wtlham W Harrtson, Jr and Reba S McClanan December 4, 2001 9 10 11 12 AN ORDINANCE TO AMEND THE CITY CODE BY ADDING A NEW SECTION PERTAINING TO PERSONAL PROPERTY TAXATION BY CODIFYING A TAX EXEMPTION FOR FARM ANIMALS, GRAINS, FARM MACHINERY AND IMPLEMENTS, AND AGRICULTURAL PRODUCTS SECTION ADDED' § 35-7.1 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That Section 35-7.1 of the Code of the City of Virginia Beach, Virginia is hereby added to read as follows- 13 14 15 16 17 18 Sec. 35-7.1. Exemption of farm animals, grains, farm machinery and implements, and agrxcultural products Farm animals, qrains, farm machinery and implements, and agricultural products, as described in 58.1-3505 (A) and (C) of the Code of Virginia, are hereby exempt from personal property taxation and shall not be assessed for that purpose. 19 20 Adopted by the City Council of the City of Virginia Beach, Virginia, on this 4th day of December, 2001. 21 22 23 24 25 CA-8224 OrdinkNONCODEk35-007-1ord.wpd RI August 10, 2001 - 26- Item V-J. 4. ORD INANCES/RES OL U TIONS ITEM # 49018 B Y CONSENSUS, Ctty Counctl REMOVED FROM the AGENDA, DUE TO LA CK OFAPPROPRIA TE AD VER TISING : Ordtnance to declare EXCESS PROPERTY on Lot 1 IA acqutred by the Ctty for Harbor Point Road Extended and exchange satd property to F. WA lOVE and CHERYL P. McLESKEY for whtch they wtll convey Parcel B and C to the Ctty, and, AUTHORIZE the Ctty Manager to execute an agreement for the exchange of satd property Thts ordinance wtll be rescheduled December 4, 2001 -27- Item V-J. 5. ORDINANCES/RES OL UTIONS ITEM # 49019 Upon motton by Vtce Mayor Sessoms, seconded by Counctlman Branch, City Counctl ADOPTED Or&nance to ACCEPT and APPROPRIATE a $23,105 grant from the Vtrgtnta Rehabthtattve Servtces to the FY 2001-2002 operattng budget of the Department of Museums and Cultural Arts re purchastng a closed captioning system for the IMAX Theater to asstst ctttzens wlth dtsabthttes Vottng 8-0 (By Consent) Counctl Members Vottng Aye Ltnwood 0 Branch, III, Barbara M Henley, Louts R Jones, Robert C Man&go, Jr, Mayor Meyera E Oberndorf, Nancy K Parker, Vtce Mayor Wtlham D Sessoms, dr and Rosemary Wtlson Counctl Members Vottng Nay None Counctl Members Absent Margaret L Eure, Wtlham W Harrtson, Jr and Reba S McClanan December 4, 2001 AN ORDINANCE TO ACCEPT AND APPROPRIATE A $23,105 GRANT FROM THE DEPARTMENT OF REHABILITATIVE SERVICES TO THE FY 2001- 2002 OPERATING BUDGET OF THE DEPARTMENT OF MUSEUMS AND CULTURAL ARTS FOR THE PURCHASE OF A CLOSED CAPTIONING SYSTEM FOR THE IMAX THEATER WHEREAS, the City of Virginia Beach has been awarded a $23,105 grant from the Department of Rehabilitative Servzces. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That a $23,105 grant is hereby accepted and appropriated to the FY 2001-02 Operating Budget of the Department of Museums and Cultural Arts for the purchase of a closed captioning system for the 3D IMAX theater, and estimated revenue from the Commonwealth in the FY 2001-02 Operating Budget is increased accordingly. l0 Accepted by the Council of the City of Virginia Beach, Virginia on the 4 day of D~c~mher , 2001. CA-8332 Ordin~NONCODE%3DImaxord.wpd November 20, 2001 RI Approved as to Content Management Ser Approved as to Legal Sufficiency ~ep~tment-~f Law ,COMMONYVHALTPI o/VIRiC ,INIA H Gray Brot~ghton, CRC, CCM COMMISSIONER VOICE (804) 662-7000 TTY (804) 662 904(~ VOICE - TOLL FREE 800-552-501~1 }-l-Y- TOLL FREE 800-46,J,-9950 FAX (80,1) 662 9532 September 7, 2001 Marian Sanders, Chairperson South Hampton Roads Disab~l~ty Servsces Board 3797 Lake Tahoe Tra~l V~rg~n~a Beach. VA 23456 Dear Ms Sanders, Thank you for submitting your proposals for the Rehabilitative Services Incentive Fund (RSIF) Compebbve Process for Fiscal Year 2002. All proposals were carefully considered using the compebbve review process as defined ~n the Rehabilitative Services Incentive Fund Guidelines The Disability Services Boards requested $534,522 in funds through their 25 separate proposals to compete for the $96,117 available in the Compebbve Fund The DIsabdlty Services Council met on September 6, 2001, and conducted a final review of proposals submitted for funding Based on their decisions, this letter ~s to inform you that the appl~cabon submitted by the South Hampton Roads Disability Services Board was approved for funding The proposal is for the Virginia Marine Science Museum to purchase a closed capbon~ng system for the museums IMAX® 3D Theater The grant award ~s for $23,105 with a required local match of $2,567 Funding is available for your grant to begin on October 1,2001 Dina Zanetb wdl be developing the grants over the next month and will be ~n touch w~th you ~f she needs add~bonal information If you have any questions regarding the information in this letter or the grant review process, p~ease contact Dina at 80zt-662-7289 \/olceFI-TY, 800-552-5019 Voice or 800-4R4-9950 TTY Sincerely, Mark Hawkins Program Manager Pc Patncla Phdl~ps, F~scal Agent Lynn Clements, Virginia Marine Science Museum AIz Equal Opportuttttv / A[[trmattve Ar ttolt Entpl¢,vc¢ City of Virginia Beach INTER-OFFICE CORRESPONDENCE I)A I F.' luly 12, 2001 TO: FR.O~I. Chatl~c H, urd - Marine Sc~cncc Museum David N! Gtochmai, D~rector- General Scrv~ces,~~L/' SUBJECT: Funds for Rear W~ndow Captioning System This ts to verify tliat thc Virginia Marine Science Museum has been given $2.500 O0 flora CIP 3-()20 towmds the purcl~ase o['a Rear Windoxv Captioning System [bt thc IMAX 3D Thcatei DMG/ndd - 28- Item VI-K. 1 APPOINTMENTS ITEM ii 49020 BY CONSENSUS, Ctty Counctl RESCHEDULED the followtng APPOINTMENTS PRINCESS ANNE BALLFIELDS RELOCATION AD VISOR Y COMMITTEE HISTORICAL REVIEW BOARD December 4, 2001 - 29- Item V-K.2. APPOINTMENTS ITEM # 49021 Upon motton by Vtce Mayor Sessoms, Ctty Council NOMINA TED: Dolores N. Bartel - Family Member Martha McClees - Consumer J. Henry McCoy, Jr., DDS Stanley Whitfield D. Sawyer COMMUNITY SER VICES BOARD (to be appointed 12/11/01) [In accordance with Virginia State Code, Section 37.1-195, information on the above proposed appointees is available in the Office of the City Clerk] December 4, 2001 Item V-K. $. - 30- APPOINTMENTS ITEM # 49022 Upon NOMINATION by Vtce Mayor Sessoms, Ctty Counctl APPOINTED: Eugene F. Crabtree - Rose Hall 4years 1/1/2002-12/31/2005 AND, REAPPOINTED William W. Din Donald H. Horsley Robert S. Miller, III Kempsville At large At large 4years 1/1/2002-12/31/2005 PLANNING COMMISSION Vottng 7-0 (By Consent) Counctl Members Vottng Aye Barbara M Henley, Louts R Jones, Robert C Man&go, Jr, Mayo~ Meyera E Oberndorf, Nancy K Parker, Vtce Mayor Wtlham D Sessoms, Jr and Rosemary Wtlson Counctl Members Vottng Nay None Counctl Members Absent Ltnwood 0 Branch, III, Margaret L Eure, Wtlham W Harrison, Jr and Reba S McClanan Mayor Oberndorf and Counctl Lady Parker advtsed Cheryl Avery-Hargrove, who has been representing Rose Hall, could not be reappotnted as she had served her hmtted two consecuttve 4-year terms She ts an attorney and was a very capable member who served admtrably December 4, 2001 -31 - Item V-K 4 APPOINTMENTS ITEM # 49023 Upon NOMINATION by Vtce Mayor Sessoms, Ctty Counctl APPOINTED: Denise M. Howard Unexpired term thru 12/31/03 Glen A. Huff Alex T. Paragas 4 years 1/1/2002 - 12/31/2005 AND, REAPPOINTED Douglas W. Huston 4 years 1/1/2002-12/31/2005 VIRGINIA BEA CH COMMUNITY DEVELOPMENT CORPORA TION (VB CDC) Vottng 7-0 (By Consent) Council Members Vottng Aye Barbara M Henley, Louts R clones, Robert C Man&go, dr, Mayor Meyera E Oberndorf, Nancy K Parker, Vtce Mayor Wtlham D Sessoms, dr and Rosemary Wtlson Counctl Members Vottng Nay None Counctl Members Absent Ltnwood 0 Branch, III, Margaret L Eure, Wtlham W Harrtson, dr and Reba S McClanan December 4, 2001 - 32 - Item V-M. 1. NE IV BUSINESS ITEM ii 49024 B Y CONSENSUS, Ctty Clerk to Record ABSTRA CT OF CIVIL CASES RESOLVED - October 2001 December 4, 2001 - 33 - Item V-N. ADJOURNMENT ITEM # 49025 Mayor Meyera E Oberndorf DECLARED the Ctty Counctl Formal Sesston ADJOURNED at 6:32 p.m. Chtef Deputy Ctty Clerk Ctty Clerk Meyera E Oberndorf Mayor Ctty of Vtrgtnta Beach Vtrgtnta December 4, 2001