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HomeMy WebLinkAboutMAY 27, 1997 MINUTESCity of Virginia Beach "WORLD'S LARGEST RESORT CITY" CITY COUNCIL MAYOR ~EYERA E OBERNDORF At Large VICE ~AYOR WILLIAM D SESSOMS IR Al Large JOHN A BAUM Blackwater Borough LINWOOD 0 BRA&ICH III V~r~mza Brat h Borm~h WILLIAM W HARRISON JR Lvnnhaven Borough HAROLD HEISCHOBER At Large BARBARA M HENLEY Pungo Borough LOUIS R JONES Bavslde Borough REBA S McCI ANAN Pr~ntess 4nne Borough NANCY K PARKER At Large LOUISA k4 STRAYHORN Kempswlle Borough JAMES K SPORE C~ty Manager LESLIE L LILLEY City Attorney RUTH HODGES SMITH CMC / AAE, C~ty Cle?k CITY COUNCIL AGENDA .OF' 0 U R~N ~k'~ lO CITY HALL BUILDING 2401 COURTHOUSE DRIVE VIRGINIA BEACH VIRGINIA 23456 9005 f7$D 427 4303 May 27, 1997 I . CITY MANAGER'S BRIEFING - Conference Room - 3:30 PM A. ANNUAL TOURISM James B. Ricketts, Director, Convention & Visitor Development II. REVIEW OF AGENDA ITEMS III. CITY COUNCIL CONCERNS IV. INFORMAL SESSION - Conference Room - 5:00 PM A. CALL TO ORDER - Mayor Meyera E. Oberndorf B. ROLL CALL OF CITY COUNCIL C. RECESS TO EXECUTIVE SESSION V. FORMAL SESSION - Council Chamber - 6:00 PM A. CALL TO ORDER - Mayor Meyera E. Oberndorf B. INVOCATION: Reverend Harvey Turner Kempsville Church of God 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 - May 13, 1997 G. AGENDA FOR FORMAL SESSION H® CONSENT AGENDA The Consent ~tgenda will be determined during the ~4genda Review Session and considered in the ordinary course of business by City Council to be enacted by one motion. I · MAYOR'S PRESENTATIONS~ 1. MISS VIRGINIA BEACH - Meghan Shanley 2. PLAZA MIDDLE SCHOOL - Operation Smile Students James W. Walker, Jr., Principal 3. ROTARY FOUNDATION - Israeli Study Exchange Team Je PUBLIC HEARING 1. AGRICULTURAL PRESERVATION PROGRAM (ARP) Thomas C. and Judith C. Kay - 24.75 Acres Pungo Clyde W. Sr. and Janet G. Simons - 25.91 Acres Pungo Ke ORDINANCES i · Ordinances to authorize the acquisition of Agricultural Land Preservation Easements (ARP) and the issuance by the City of its contract obligations (PUNGO BOROUGH): a , Thomas C. Kay and Judith C. Kay - 24.75 Acres Installment Purchase Agreement No. 1997-8 - $ 126,956 be Clyde W. Simons, Sr. and Janet G. Simons - 25.91 Acres Installment Purchase Agreement No. 1997-9 - $ 23,156 · Ordinance to AMEND Section 6 - 10 of the City Code by prohibiting the use of skateboards in the resort area year- round. (Sponsored by Vice Mayor William D. Sessoms, Jr. and Councilman Linwood O. Branch, III) · Ordinance to ACCEPT and APPROPRIATE a $4,900 National Oceanic Atmospheric Administration Grant from the Virginia Department of Environmental Quality to the Marine Science Museum's FY 1996-1997 Operating Budget to research sea turtle and marine mammal strandings; and, estimated revenues from the Federal Government within the Marine Science Museum Fund be increased accordingly. , Ordinance to TRANSFER $50,000 from CIP Project #2-165 Laskin Road-Phase II to CIP Project #2-305 Ferre11 Parkway-Phase II re additional preliminary right-of-way acquisition costs. 5. Ordinances to authorize temporary encroachments~ a · Into a portion of the City's drainage easement at 920 Raton Court to Bruce L. and Karen S. Rodgers re constructing and maintaining a bulkhead and dock (PRINCESS ANNE BOROUGH). be Into a portion of the City's right-of-way at 83rd Street to Edward F. and Carol Anne Ross re maintaining a wooden trellis (LYNNHAVEN BOROUGH). C · Into a portion of the City's right-of-way at 716 Vanderbilt Avenue to John Barbarian re maintaining a chain link fence (LYNNHAVEN BOROUGH). · · · · Ordinance to authorize the City Manager execute a Deed o£ Easement for the Vacation of portions of a City-owned 20' drainage on property of Berkshire Associates, L.P. (LYNNHAVEN BOROUGH). Ordinance appointing viewers in the petition of The Runnymede Corporation for the closure of portions of rights-of-way known as Pine Street and Poplar Street, West of Rosemont Road and South of the Virginia Beach Expressway (Rt. 44) (LYNNHAVEN BOROUGH). Ordinance to authorize License Refunds in the amount of $48,433.53. Ordinance to authorize Tax Refunds in the amount of $2,298.94. L· RESOLUTIONS I · Resolution to authorize the issuance and sale of $56,700,000 General Obligation Public Improvement Bonds, Series of 1997, of the City of Virginia Beach, heretofore authorized and providing for the form, details and payment thereof to finance, in part, the cost of the various public, school road and highway improvements. ' · Resolution to adopt the Ridge Property Land Use (PRINCESS ANNE BOROUGH)· Princess Anne Corridor Plan: Lake Plan (Approximately 2,000 Acres), · · Resolution to authorize the City Manager and City Attorney to execute an agreement with the Tournament Players Club (TPC) re a golf facility proposed at Lake Ridge; establish CIP #9-004 Lake Ridge Golf Facilities, transfer $3,550,000 from CIP #9- 260, Economic and Tourism Development Partnerships; and, authorize acquisition of an access point along Princess Anne Road for the proposed project. Resolution to authorize the City Manager to execute a Coordination Agreement, Ground Lease and related project documents for the establishment of the Multi-Purpose Sports Stadium. Mo PUBLZC HEARING - PLANNING PLANNING BY CONSENT - To be determined during tie Agenda R~iew Sfs$ion. 6t30 PM I · · NO ACTION ITEM - DEFERRED BY PLANNZNG COMMZBSZON a® Application of. JOSEPH OVERHOLT, TRUSTE f__or a C d~nal ~ ..... E OVERHOLT TRUST 'o southwest corner of Lv--~ ....... ss D_~ ~c~ at L:.~ ~e z---.~-=n ~arKway and Salem Road re 12/17/96 - Referred Back to Planning Recommendation: APPROVAL beginning at the Southern bound-- po~t}o~ of Sydnor Street ~n a Southerly direction a disUt~nrYc~£ ~th Street and running sastern boundary of S'--dor ..... .o£ ~05.10 feet alon feet (LYNNHA~ ..... !~- ~creec ana con~-~-~- - 9 the ,v~,~ uuKOUGH). ~=~xng 4,102 square · Applications for PAUL D. ROWAN on the West side of South Birdneck Road, North of Bells Road, containing 15 acres more or less (LYNNHAVEN BOROUGH): a · Re: Animal Hospital West of South Birdneck Road, North of Bells Road. (1) COZ from I-1 Light Industrial District to Conditional B-1 Neighborhood Business District on 4.58 acres more or less· (2) COZ from I-1 Light Industrial District to Conditional AG-1 Agricultural District on 5.01 acres more or less. (3) CUP: Animal Hospital. b · Change of Zoning District Classification from I -__1 Industrial District to Conditional I - 1 Industrial District re light industrial land use beginning at a point 1175 feet more or less North of Bells Road. Deferred: April 8, 1997 Recommenda t ion: APPROVAl, · Application of ZIMMER DEVELOPMENT CO. OF VIRGINIA, L.P., for a Change of Zoning District Classification from R-7.5 Residential District and B-2 Community Business District to Conditional B-1 Neighborhood Business District at the Northwest corner of Princess Anne Road and South Parliament Drive, containing 1.6 acres (KEMPSVILLE BOROUGH)· Recommendation: APPROVAL · Application of CMSS ARCHITECTS for Change of Zoning District Classifications, containing 2.72 acres (KEMPSVILLE BOROUGH): Parcel 1: From R-10 Residential District to Conditional A-18 Apartment District, 180 feet more or less North of Princess Anne Road beginning at a point 700 feet more or less East of South Parliament Drive. Parcel 2: From B-2 Community Business District to Conditional A-18 Apartment District, North side of Princess Anne Road beginning at a point 730 feet more or less East of South Parliament Drive. Recommendation: APPROVAL · Applications of the City of Virginia Beach: a . Change of Zoning District Classification from 0-2 Office District, B-2 Community Business District, R-10 Residential District, P-1 Preservation District and H-1 Hotel District to AG-1 Agricultural District 2,000 feet more or less Southeast of the intersection of Princess Anne Road and Dam Neck Road, containing 1,112 acres (PRINCESS ANNE BOROUGH). b . Conditional Use Permit for a recreational facility of an outdoor nature (golf course, clubhouse and associated facilities) 2500 feet more or less Southwest of the intersection of Princess Anne Road and Judicial Boulevard, containing 310 acres more or less (PRINCESS ANNE BOROUGH). C · Conditional Use.permit for a regreational facility of an outdoor nature (multi-purpose stadium and associated facilities) 2000 feet Southeast of the intersection of Princess Anne and Dam Neck Road, containing 153 acres more or less (PRINCESS ANNE BOROUGH). de AMEND and REORDAIN Section 1521 of the City Zoning Ordinance re drive-thru facilities in a portion of the RT-3 Resort Tourist District at Arctic Avenue, Winston Salem Avenue and 4th Street, North of 35th Street (VIRGINIA BEACH BOROUGH). Recommenda t ions: APPROVAL N. APPOIN~ENTB COMMUNITY DEVELOPMENT CITIZENS ADVISORY COMMITTEE (CAC) HAMPTON ROADS PIJUNNING DISTRICT COMMISSION MEDICAL COLLEGE OF HAMPTON ROADS SOCIAL SERVICES BOARD TIDEWATER COMMUNITY COLLEGE BOARD TIDEWATER REGIONAL GROUP HOME COMMISSION VIRGINIA BEACH TOWING ADVISORY BOARD O. UNFINISHED BUSINESS P. NEW BUSINES~ Q. ADJOURNMENT If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITE CLERK'S OFFICE at 427-4303 Hearing /mpaired, call: TDD only 427-4305 (iDD - Telephonic Device for the Deaf) )5/20/97BAP ~GENDA\ 05-27- 97. PLN www. virginia-beach, va. us MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia May 27, 1997 Mayor Meyera E. Oberndorf called to order the CITY MANAGER'S BRIEFING RE ANNUAL TOURISM in the Council Conference Room, City Hall Building, on Tuesday, May 27, 1997, at 3:30 P.M. Council Members Present: John A. Baum, Linwood O. Branch, III, HaroM Heischober, Barbara M Henley, Louis R. Jones, Mayor Meyera E. Oberndorf, Nancy K Parker and Vice Mayor William D. Sessoms, Jr. Council Members Absent: William W. Harrison, Jr. Reba S. McClanan [ENTERED: 3:40 P.M.] [ENTERED: 3:42 P.M.] Louisa M. Strayhorn [ENTERED: 3:50 P.M.] -2- CITY MANAGER'S BRIEFING ANNUAL TOURISM 3:30 P.M. ITEM # 42126 James B. Ricketts, Director - Convention and Visitor Development, advised of past accomplishments of Tourism, the 1997 Spring/Summer Advertising Campaign and the future accomplishments. The Summer 1996 room nights reached an all time high The amount of Canadian visitation was doubled. Repeat visitation has risen. The New Virginia Beach won the Travel Tourism Research Association's J. Desmond Slattery Award. The 1996 Virginia Beach Tourism Economic Impact Study, prepared by Gilbert R. Yochum, Ph.D. and Vinod B. Agarwal, Ph.D. - Bureau of Research - College of Business and Public `4dminsitration - OM Dominion University, was distributed to City Council. This report estimated 2.2 Million visitors arrived in the City in 1996. Visitor expenditures generated $38.7-MILLION in direct City revenue and cost the City $22.9-MILLION in visitor related expenditures. The net direct dollar return generated by these visitors to the City was $1$.8-MILLION before consideration of any multiplier effects. The average rate of return is 69% ,4. Palmer Farley, Barker, Campbell, Farley and Mansfield, described the present campaign The program is divided into two parts: Branding (sell the quality experience) and Retailing (,4dd value variety and quality to the brand). The Spring Program comprised of February thru March was targeted to couples with the focus being less crowds, natural beauty and good value. The April thru June Summer Program will focus on families, with the Good/Clean/Fun message being still broadcast and packaging. Mr. Farley displayed samples of ads and brochures. The Virginia Marine Science Museum is supported with Whale Watching packages in the December, January and February time frame. Dolphin watching is supported in the Summer ,4n additional SI-MILLION in incremental spending has been generated from co-op partners and the State of Virginia to boost the program. Mr. Farley outlined the various packages. FAMILY FUN PA CKA GE Includes a partnership role with: Busch Gardens, Williamsburg Hampton Norfolk Virginia Tourism Council Virginia Beach Virginia Marine Science museum Water Country, USA The Family Fun Package is approximately a $700,000 program in terms of total expenditure. The City's investment is $150,000. The Family Fun Package starts at just $599 for 4 days/3 nights, for a family o f four. SURF S UN RE VOL UTIONAR Y FUN PA CKA GE First time partnership with Colonial Williamsburg: Busch Gardens, Williamsburg Colonial Williamsburg Virginia Tourism Council Virginia Beach Water Country, USA Yorktown/Jamestown Foundation Mr. Farley presented the video of the Television advertising currently running on a nationwide basis both in English and French. May 27, 1997 -3- CITY MANAGER'S BRIEFING ANNUAL TOURISM ITEM # 42126 (Continued) Mr. Farley introduced the Sun Splash Fun Package (Canadian Package), which runs in a French version and has a partnership through CA,4. The Fun N Sun Package is connected with the Hotel/Motel Association and utilizes the 1-800-BEACH phone number. Joan Prescott, Public Relations Director - Barker, Campbell, Farley and Mansfield, advised the public relations campaign was opened with the goal of integrating the program with advertising to raise awareness, broaden the reach and boost the credibility of the marketing methods. Public relations utilized in this manner can create 'year round awareness for Virginia Beach. Over the last year, public relations has returned $6-MILLION in additional exposure and awareness for the City's marketing program. This translates to a 24 to 1 return on investment. Miss Prescott displayed an article in the New York Times Sunday travel section and exemplified how public relations can be utilized to help build brand image and positioning. This article provides tremendous credibility for the new Virginia Beach marketing message. In addition to the New York Times, the article is synchcated to newspapers and major markets around the Country. These placements would have cost $90,000, if they were purchased at standard advertising rates. In television, the same techniques are used to create this sort of awareness. Miss Prescott presented a video of the Today Show - Saturday, depicting an author discussing his novel "Best Beaches through the Mid Atlantic Coast". Virginia Beach was the first beach mentioned in this program. Public relations was utilized to redefine the Virginia Beach Shamrock Marathon. The Marathon was classified as a National cahber event. This event has been televised for the past two years on ESPN. This year, CNN also utilized the Shamrock Marathon as part of its Saint Patrick's Day coverage. Burt Wolf, Television Travel Journalist, was invited to produce his international syndicated program, "A Taste for Travel", here in Virginia Beach in order to showcase the City's terrific cuisine, history of the area and attractions. As a result, Burt is producingfour 'half hour programs on Virginia Beach: two for the travel channel and two for PBS. The firstprogram will air this week, Thursday May 29, 1997, on the Travel Channel. The second will debut in July. Two PBS shows will commence this Fall. Burt's programs are extremely popular and have a combined audience of 190-MILLION viewers worldwide. The advertistng equivalency of these programs would be $5-MILLION. Ron Kuhlman, Director of Marketing Sales- Convention and Visttor Development, referenced facets relative Ecotourism: Fastest growing segment of travel industry. Ecotravelers stay longer and spend more Creates local business opportunities Builds shoulder season. WHERE WE ARE GOING (ROMANCING THE BRAND) Virginia Marine Science Museum Entertainment Sports (soccer, golf, etc.) Boardwalk Bruce Mansfield, Creative Director and Partner- Barker, Campbell, Farley and Mansfield, reiterated the creativity in the Boardwalk segment. NEW CREATIVE Extend the Good Clean Fun position to showcase variety Unveil the newly expanded boardwalk Craft a consistent image for all season Mr. Mansfield displayed various ads designed for the summer and the shoulder season market. May 27, 1997 -4- CITY MANAGER'S BRIEFING ANNUAL TOURISM ITEM # 42126 (Continued) Mr. Kuhlman referenced: KEY CAMPAIGN OPPORTUNITIES National television programs: Good Morning America, Today, etcetera Boardwalk exhibitions, parades, festivals Displays off vintage boardwalk, photographs and memorabilia A 1940's style Big Band concert Return of the "tea dance" 90s styles. OTHER OPPORTUNITIES Target: Chicago New UA W golf tournament Capital Region USA Outdoor recreation event Sports marketing Electronic media Mr. Kuhlman advised, in terms of Sports Marketing, a special emphasis is being placed on the Virginia Beach Sports Complex in Lake Ridg~ The Columbus Day Soccer Tournament brings in approximately 7,000 and 8,000 room nights. Mr Kuhlman referenced a forthcoming announcement concerning the award of approximately $600,000 in State Cooperative Marketing Funds. Mr. Kuhlman advised the Golf Package Program features all of Virginia Beach's golf courses and extends to Cyprus Point, Hells Point and encompasses two courses in Williamsburg. The survey indicates the City is not getting the repeat visitation, but rather new golfers. The new Tournament Players Club golf facility and Heron Ridge will bring top quality mid price golf courses into the equation. The advertising is also being fine tuned. Mr. Ricketts advised the City's goal, relative the international effort in southeast tourism, is to raise between $5 and $10-MILLION. Approximately $300,000 has been raised. Realistically, the City must cut back its vision until a program can be butlt. This was to be based more on consumer advertising. There are several organizations which conduct trade based advertising for the travel agents and consumer wholesalers. Mr. Ricketts said the City's representatives visit Europe two or three times a year and take a place in trade shows. Even with the Olympic competition last year, the City's hotel receipts in the Summer increased 6. 6 % There are 684,000 Executive level positions in the tourtsm industry. The average salary for the General Manager of a hotel is between $48,000 and $94,000. 48% of all restaurants are owned by those who began their professions as waiters, waitresses or dishwashers. The tourism job market ranges shall be provided to Members of City Council. May 27, 1997 -5- AGENDA RE VIEW SESSION 4:35 P.M. ITEM # 42127 Council Lady McClanan advised a VERBAL NA Y: K. 1 Ordinances to authorize the acquisition of Agricultural Land Preservation Easements (ARP) and the issuance by the City of its contract obligations (PUNGO BOROUGH): ao Thomas C. Kay and Judith C. Kay - 24. 75 Acres Installment Purchase Agreement No. 1997-8 $126,956 b. Clyde W. Simons, Sr. and Janet G. Simons - 25.91 Acres Installment Purchase Agreement No. 1997-9 $ 23,156 ITEM # 42128 Council Lady Parker inquired relative: K. 6 Ordinance to authorize the City Manager execute a Deed of Easement for the Vacation of portions of a City-owned 20' drainage on property of Berkshire Associates, L.P.,north side of Vtrginia Beach Boulevard contiguous to West Lane. (L YNNHA YEN B OR O UGH). The City Staff recommended adoption. It is subject to appropriate conditions or provisions of law that may be determined by the Director of Public Works and/or the City Attorney. ITEM # 42129 Councilman Baum referenced the tax refund to the City of Virginia Beach ($776.50. K. 9 Ordinance to authorize Tax Refunds in the amount of $2,298.94. The City Attorney advised this is not a tax refund payment to the City The underlying taxpayer owes money to the City; therefore, when the check is drawn, the refund is made payable to the City of Virginia Beach. ITEM # 42130 BY CONSENSUS, the following items shah compose the ORDINANCE CONSENT AGENDA: ORDINANCES K. 1 Ordinances to authorize the acquisition of Agricultural Land Preservation Easements (ARP) and the issuance by the City of its contract obligations (PUNGO BOROUGH): a, Thomas C. Kay and Judith C. Kay - 24. 75 Acres Installment Purchase Agreement No. 1997-8 - $126,956 Clyde W. Simons, Sr. and Janet G. Simons - 25.91 Acres Installment Purchase Agreement No. 1997-9 - $ 23,156 May 27, 1997 -6- AGENDA RE VIEW SESSION ITEM # 42130 (Continued) K. 2 Ordinance to AMEND Section 6-10 of the City Code by prohibiting the use of skateboards in the resort area year- round (Sponsored by Vice Mayor William D. Sessoms, Jr. and Councilman Linwood O. Branch, III) K. 3 Ordinance to ACCEPT and APPROPRIATE a $4,900 National Oceanic Atmospheric Administration Grant from the Virginia Department of Environmental Quality to the Virginia Marine Science Museum's FY 1996-1997 Operattng Budget to research sea turtle and marine mammal strandings, and, estimated revenues from the Federal Government within the Virginia Marine Science Museum Fund be increased accordingly. K. 4 Ordinance to TRANSFER $50,000 from CIP Project #2-165 Laskin Road-Phase H to CIP Project #2-305 Ferrell Parkway- Phase II re additional preliminary right-of-way acquisition costs. K. 5 Ordinances to authorize temporary encroachments: a. Into a portion of the City's drainage easement at 920 Raton Court to Bruce L. and Karen S. Rodgers re constructing and maintaining a bulkhead and dock (PRINCESS ANNE BOROUGH). bo Into a portion of the City's right-of-way at 83rd Street to Edward F. and Carol Anne Ross re maintaining a wooden trellis (L YNNHA VEN BOROUGH). Into a portion of the City's right-of-way at 716 Vanderbilt Avenue to John Barbarian re maintaining a chain link fence (L YNNHA VEN BOROUGH). K. 6 Ordinance to authorize the City Manager execute a Deed of Easement for the Vacation of portions of a City-owned 20' drainage on property of Berkshire Associates, L.P., north side of Virginia Beach Boulevard contiguous to West Lane. (L YNNHA VEN B OR O UGH). K. 7 Ordinance appointing viewers in the petition of The Runnymede Corporation for the closure of portions of rights- of-way known as Pine Street and Poplar Street, West of Rosemont Road and South of the Virginia Beach Expressway (Rt 44) (L YNNHA VEN BOROUGH). K. 8 Ordinance to authorize License Refunds in the amount of $48,433.53. K. 9. Ordinance to authorize Tax Refunds in the amount of $2,298.94. May 27, 1997 -7- AGENDA RE VIEW SESSION ITEM # 42131 Council Lady McClanan wished to discuss during the Formal Sesston' RESOLUTIONS L.2. Resolution to adopt the Princess Anne Corridor Plan: Lake Ridge Land Use Plan (~4pproximately 2,000 Acres), (PRINCESS ANNE BOROUGH). L. 4 Resolution to authorize the City Manager to execute a Coordination Agreement, Ground Lease and related project documents for the establishment of the Multi-Purpose Sports Stadium. ITEM # 42132 BY CONSENSUS, the following items shall compose the RESOLUTIONS CONSENT AGENDA: RESOLUTIONS L. 1 Resolution to authorize the issuance and sale of $56,700,000 General Obligation Public Improvement Bonds, Series of 1997, of the City of Yirgtnia Beach, heretofore authortzed and providing for the form, details and payment thereof to finance, in part, the cost of the various public, school, road and highway improvements. L. 3 Resolution to authorize the City Manager and City Attorney to execute an agreement with the Tournament Players Club (TPC) re a golf facility proposed at Lake Ridge; establish CIP #9-004 Lake Ridge Golf Facilities, transfer $3,550,000 from CIP #9-260, Economic and Tourism Development Partnerships; and, authorize acquisition of an access point along Princess Anne Road for the proposed project. May 27, 1997 -8- AGENDA RE VIEW SESSION ITEM # 42133 Council Members Harrison and Heischober advised the applicant had conformed to the request of EXCLUDING BOARDING OF HORSES: M. 3 Applications for PAUL D. ROWAN on the West side of South Birdneck Road, North of Bells Road, containing 15 acres more or less (L YNNHA VEN BOROUGH) : a. Re: West of South Birdneck Road, North of Bells Road. (1) COZ from bi Light Industrial District to Conditional B-1 Neighborhood Business District on 4. 58 acres more or less. (2) COZ from I-I Light Industrial District to Conditional AG-1 Agricultural District on 5. O1 acres more or less. (3) CUP: Animal Hospital. b. Change of Zoning District Classification from l-1 Industrial District to Conditional I-1 Industrial District re light industrial land use beginning at a point 1175feet more or less North of Bells Road. Vice Mayor Sessoms advised the applicant had contacted members of the Seatack Civic League. If there are representatives of the Community who wish to speak in OPPOSITION, this item will not be placed on the Consent Agenda, but discussed during the Formal Session. ITEM # 42134 Mayor Oberndorf expressed concern relative the proposed Change of Zoning signs: M. 4 Application of ZIMMER DEVELOPMENT CO. OF VIRGINIA, LP., for a Change of Zoning District Classification from R-7.5 Residential District and B-2 CommunitF Business District to Conditional B-I Neighborhood Business Dtstrict at the Northwest corner of Princess Anne Road and South Parliament Drive, containing 1.6 acres (KEMPSVILLE BOROUGH). The sign is mounted on a pole, so it is virtually impossible to read the sign. Mayor Oberndorf advised they did not post this sign until Monday. Council Lady Henley inquired when the signs changed from the big orange ones to the smaller signs that blended into the landscape. Council Lady Strayhorn expressed concern relative visibility of signs and concerns from citizens. Karen Lasley, Planning Coordinator, advised due to the budget constraints, the signs were changed approximately three years ago. The small plastic signs are less expensive to manufacture. By law, the signs must be erected fifteen (15) days prior to the Planning Commission hearing. The Planning Commission checks almost every sign. Council Lady McClanan said the cost of the signs should be paid for through the fees to the applicant. Les Lilley, City Attorney, advised a complaint was raised during the Planning Commtssion hearing relative this sign not being posted. This application can be DEFERRED by City Council, with a request the applicant post the szgn. The sign ordinance is general in nature, and if City Council desires, concerns can be addressed and the Ordinance amended. May 27, 1997 -9- AGENDA RE VIEW SESSION ITEM # 42135 Counctl Lady McClanan expressed concern relative lack of addressing standards for landscape, utilittes, right-of-ways, scenic easements etc. Councilman Harrison believed these concerns were addressed in the Lake Ridge Plan. With reference to Councilman Heischober's concerns, the City Attorney advised when the Lake Ridge property was purchased by the City, tt was encumbered by a series of proffers of a completely dt. fferent scope than the Ctty is now pursuing The proffers, currently in place, must be alleviated. M. 6 Applications of the City of Virginia Beach: a. Change of Zoning District Classification from 0-2 Office District, B-2 Community Business District, R-lO Residential District, P-1 Preservation District and H-1 Hotel District to AG-I Agricultural District 2,000feet more or less Southeast of the intersection of Princess Anne Road and Dam Neck Road, containing I,I 12 acres (PRINCESS ANNE BOROUGH). b. Conditional Use Permit for a recreational facility of an outdoor nature (golf course, clubhouse and associated facilities) 2500 feet more or less Southwest of the intersection of Princess Anne Road and Judicial Boulevard, containing 310 acres more or less (PRINCESS ANNE BOROUGH). Condttional Use Permit for a recreational facility of an outdoor nature (multi-purpose stadium and associated facilities) 2000 feet Southeast of the intersection of Princess Anne and Dam Neck Road, contatning 153 acres more or less (PRINCESS ANNE BOROUGH). ITEM # 42136 BY CONSENSUS, the following items shall compose the PLANNING BY CONSENT AGENDA: PLANNING M. 2 Petition of MARKR. LICHTENSTEINfor the discontinuance, closure and abandonment of a portion of Sydnor Street beginning at the Southern boundary of 55th Street and running in a Southerly direction a distance of 105.10 feet along the Eastern boundary of Syndor Street and containing 4,102 square feet (L YNNHA VEN BOROUGH). M. 5 Application of CMSS ARCHITECTS for Chanyze of Zonin~ -- District Classtfications, containing 2. 72 acres (KEMPSVILLE BOROUGH): Parcel 1: From R-10 Residential District to Conditional A-18 Apartment District, 180 feet more or less North of Princess Anne Road beginning at a point 700feet more or less East of South Parliament Drive. Parcel 2: From B-2 Community Business Dtstrict to Condittonal A-18 Apartment District, North side of Princess Anne Road beginning at a point 730 feet more or less East of South Parliament Drtve. M. 6 Applications of the City of Virginia Beach: d. ~4MEND and REORD.4IN Section 1521 of the City Zoning Ordinance re drive-thru facilities in a portion of the RT-3 Resort Tourist District at Arctic Avenue, Winston Salem Avenue and 4th Street, North of 35th Street (VIRGINIA BEACH BOROUGH). May 27, 1997 - 10- CITY COUNCIL CONCERNS 5:07 P.M. ITEM # 42137 Mayor Oberndorf referenced concern of Mrs. Morgan of Burton Station, who had received an appraisal of her land. Mayor Oberndorf advised Mrs. Morgan said her one acre lot has only been appraised at $115,000. Mrs. Morgan wishes to know when the City Council will offer her the value her land is worth. Mrs. Morgan wishes a letter be sent stating the City Council does not intend to do anything to upset her neighborhood, so they could go forth and improve their homes. The residents wish their TARGET neighborhood reconstructed like Gracetown, Ne~light and the others with water and se~er to live a more wholesome light. Mrs. Morgan said Councilman Jones had been of great assistance with her Aunt. Jim Lawson, Real Estate, advised Mrs. Morgan's property is not the one the City is looking to acquire. Mr. Lawson spoke to her about three weeks ago. Mr. Lawson believes Mr. Scott, with the Airport Authority, has contact her on a couple of occasions. Councilman Branch believed that due to the proximity of the Burton Station neighborhood to the airport, it was not eligible for the Federal funds as other Target neighborhoods. The City Manager advised if her property is in the airport acquisition area, the City can contact the Norfolk Airport Authority and have them work with Mrs. Morgan. ITEM # 42138 Councilman Baum distributed the Proposed PUNGOfBLACKWATER PLANNING AI~EA, being considered by the Planning Commission. Information relative the McGinnis Realty and Development Company for a Change of Zoning and Conditional Use Permit in the Princess Anne Borough, scheduled for the June 24, 1997, City Council Session has been distributed to City Council. Councilman Baum expressed concern relative moving forward with this zoning, when the Comprehensive Plan is not dear. The issue of Transition Area III has not been resolved and shouM be prior to zoning considerations. This proposed Pungo~lackwater Planing area states effective and affirmative agricultural preservation strategies must be put into place; however, the Agricultural Reserve Program (ARP) is not even mentioned. Councilman Baum believed this was a step backward. This Plan might not be presented to City Council until October. Councilman Baum cited the paragraph relative Alternative Land Use Considerations: "In the area south of Indian River Road, applications such as golf courses with housing, retirement communities or equestrian communities that are tax neutral or positive to the citizens can be considered positively if they are an economic asset, enhance the quality of life in Virginia Beach and are not a detriment to the agricultural industry." Robert J. Scott, Director of Planning, advised relative Transition Area III, proposed guidelines have been established and these are presently being reviewed by the Planning Commission. They have come to the point of view that only one Transition Area is needed. The location and role of the Green Line should stay the same. Conditions have changed in the City; however, there are many things pushing the improvement of capital facilities north of the Green Line. Programs could not be recommended which would result in commitment by the City for installing new capital facilities, except where they are related to a conscious effort by the City Council to promote economic development, such as the Amphitheater. These positions are being reviewed by the Planning Commission. As far as residential density, guidelines have been proposed and are dependent on the facilities present today. Council Lady Henley believed a strong commitment was made to the public last Spring that this Comprehensive Plan was to have much public tnput. Mr. Scott advised there will be open workshops for the public. The Planning Commission will consider the plan during the second week of August. May 27, 1997 - 11 - CITY COUNCIL CONCERNS ITEM # 42139 Council Lady Parker referenced meeting with Members of the School Board and Joe Buchanan of Tidwater Community College, pertaining to the Technical Educational School, which has been proposed in the Bayside area by former Councilman John Moss. Due to lack of funds, the school was unable to be completed. The plan has resurrected itself with Superintendent Jenney, Dan Arris and Rosemary Wilson, who are interested in developing the same proposal in the form of a technical training center in conjunction with Tidewater Community College. The members are requesting a member of City Council serve on the Steering Committee as a representative. Council Lady Parker volunteered to be the Council representative. City Council concurred. ITEM # 42140 Council Lady Henley referenced a proposed date for City Council's Retreat, and requested same in be scheduled as soon as possible. Council Lady Henley is concerned relative some items discussed during the Budget cycle. ITEM # 42141 Council Lady Henley referenced correspondence relative False Cape Lodge with Council Lady Henley as the City Council Project Team Member. Council Lady Henley said this was incorrect. The City Manager advised the individuals involved in this project have requested to be SCHEDULED for the City Council Session of June 10, 1997, to brief City Council relative the False Cape Lodge. May 27, 1997 - 12- ITEM # 42142 Mayor Meyera E. Oberndorf called to order the INFORMAL SESSION of the VIRGINIA BEA CH CITY COUNCIL in the City Council Conference Room, City Hall Budding, on Tuesday, May 27, 1997, at 5'30 P.M. Council Members Present: John A Baum, Lmwood O. Branch, III, William W Harrison, Jr, Harold Heischober, Barbara M. Henley, Louis R Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Nancy K Parker, Vtce Mayor Wtlliam D. Sessoms, Jr and Loutsa M. Strayhorn Council Members Absent: None May 27, 1997 - 13- ITEM # 42145 Mayor Meyera E. Oberndorf, entertained a motion to permit City Council to conduct its EXECUTIVE SESSION, pursuant to Section 2.1-344, Code of Virginia, as amended, for the following purpose: PERSONNEL MA TTERS: Discussion or consideration of or intervtews of prospective candidates for employment, assignment, appointment, promotion, performance, demotion, salaries, disciplining, or resignation of specific public officers, appointees, or employees pursuant to Section 2.1-344 (A) (1). Appointments - Boards and Commissions. Advertising Advisory Committee Hampton Roads Planning District Commtssion Medical College of Hampton Roads Social Services Board Tidewater Community College Board Tidewater Regional Group Home Commission Virginia Beach Towing Advisory Board PUBLICLY-HELD PROPERTY: Discussion or consideration of the condition, acquisition, or use of real property for pubhc purpose, or of the disposition of publicly-held property, or of plans for the future of an institution which could affect the value of property owned or desirable for ownership by such institution pursuant to Section 2.1-344(A)(3). To- Wit: Acquisition of Property Virginia Beach Borough LEGAL MA TTERS' Consultation with legal counsel or briefings by staff members, consultants, or attorneys pertaining to actual or probable littgation, or other specific legal matters requesting the provision of legal advice by counsel pursuant to Section 2.1-344(A)(7). To-Wit: The Endependence Center, Inc., et al v. City of Virignia Beach, et al Upon motion by Vice Mayor Sessoms, seconded by Councd Lady Strayhorn, City Council voted to proceed into EXECUTIVE SESSION (5:32 P.M.) Voting: 11-0 Council Members Voting Aye: John A. Baum, Linwood O. Branch, III, William ~ Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E Oberndorf Nancy K. Parker, Vice Mayor William D Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent: None May 27, 1997 - 14- FORMAL SESSION VIRGINIA BEACH CITY COUNCIL May 27, 1997 6:50 P.M. Mayor Meyera E. Oberndorf called to order the FORMAL SESSION of the VIRGINIA BEACH CITY · COUNCIL in the Council Chamber, City Hall Building, on Tuesday, May 27, 1997, at 6:50 P.M. Council Members Present: John ~4. Baum, Linwood O. Branch, III, William W. Harrison, Jr, Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndo~ Nancy K. Parker, Vice Mayor Wilham D. Sessoms, Jr. and Louisa M. Strayhorn Council Members ~4bsent: None INVOCATION.. The Reverend Harvey Turner Kempsville Church of God PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Vice Mayor Sessoms, being a Corporate Officer of Central Fidelity Bank, disclosed there were no matters on the agenda in which he has a "personal interest", as defined in the .4ct, either individually or in his capacity as an officer of Central Fidelity Bank. The Vice Mayor regularly makes this Disclosure as he may or may not know of the Bank's interest in any application that may come before City Council. Vice Mayor Sessoms' letter of January 1, 1997, is hereby made a part of the record. May 27, 1997 - 15- Item V-E. CER TIFICA TION OF EXECUTIVE SESSION ITEM # 42144 Upon motion by Vice Mayor Sessoms, seconded by Councd Lady Parker, City Council CERTIFIED THE EXECUTIVE SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS. 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, Only such public business matters as were identified in the motion convening the Executive Session were heard, discussed or constdered by Virginia Beach City Council. Voting: 11-0 Council Members Voting Aye: John A Baum, Ltnwood O. Branch, III, William W. Harrison, Jr., HaroM Heischober, Barbara M Henley, Louis R Jones, Reba S McClanan, Mayor Meyera E. Oberndo~ Nancy K Parker, Vice Mayor William D Sessoms, Jr and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent' None May 27, 1997 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 # 42143 Page No. 13 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 winch tins certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Executive Session were heard, discussed or considered by Virginia Beach City Council. R~ H~ CMC/AAE City Clerk May 27, 1997 - 16- Item V-F. 1. MINUTES ITEM # 42145 Upon motion by Vice Mayor Sessoms, seconded by Councilman Baum, City Council APPROVED the Minutes of the INFORMAL AND FORMAL SESSIONS of May 13, 1997. Council Lady Parker referenced: ITEM # 42107 Ordinance to TRANSFER $366,040from the Tourism Growth Investment Fund (TGIF) Reserve for Contingencies to the FY 1996-1997 Operating Budget to implement the Resort Area Trolley Pilot Program for the upcoming tourist season: a. $296,040 to the Department of Planning b. $ 70,000 to the Department of Public Works Council Lady Parker had registered a VERBAL NAY; however, after receiving all the information and report concerning the Trolley Pilot Program, she believes the City Council voted correctly. Council Lady Parker is aware she is unable to change her vote; however, her concerns have been alleviated and she wtshed to make the statement for the record. Voting: 10-0 Council Members Voting Aye: John A. Baum, Ltnwood O. Branch, III, William W. Harrison, Jr, Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker and Vice Mayor Wdliam D. Sessoms, Jr. Council Members Voting Nay: None Council Members Absent: Louisa M. Strayhorn May 27, 1997 -17- Item V-G. ADOPT A GENDA FOR FORMAL SESSION ITEM # 42146 BY CONSENSUS, City Council ADOPTED: AGENDA FOR THE FORMAL SESSION May 27, 1997 - 18- Item V-I. 1. MA YOR 'S PRESENTATIONS ITEM # 4214 7 Mayor O berndorf RECOGNIZED : MISS VIR GINL4 BE~4 CH Meghan Elizabeth Shanley Meghan Shanley is a 1997 graduate of Princess ~4nne High School and will attend Elon College with a major in Broadcast Journalism. Meghan was a Member of the 1996 Regional Champion Softball Team, named WTKR Channel 3 Top Gun of the Week and was 1 of 10 girls chosen to cheer at the 1996 Hula Bowl. Mayor Oberndorf PRESENTED Meghan with a Pewter Cup bearing the City Seal. May 27, 1997 - 19- Item V-I. l.a. MA YOR 'S PRESENT,4 TION ITEM # 42148 Mayor Oberndorf RECOGNIZED : KELLAM HIGH SCHOOL STUDENTS Jenna Heidler Kendrick Jacobs Ryan Clukey These students were attending the City Council Session as a requirement for their Government Class. May 27, 1997 - 20 - Item VoI. 2. MA YOR 'S PRESENTATIONS ITEM # 42149 Mayor O berndorf PR OCLAIMED : May 27, 1997 PLAZA MIDDLE SCHOOL DA Y Students at Plaza Middle School raised a total of $5,229.00 for Operation Smile. The funds were used to bring Maureen Chemeli to Norfolk from Kenya by Operation Smile for reconstructive surgery. Maureen was operated on earlier this month at Children's Hospital of the King's Daughters and is progressing well in her recovery. The students raised the most money for Operation Smile than that raised by any Middle School tn the country. A token of apprectation bearing the City Seal was presented to the Nurse, Josephine Nyakiti. Mayor Oberndorf RECOGNIZED: PLAZA MIDDLE SCHOOL Operation Smile James W. Walker, Jr. Principal Students: Jessica Lawheed Jessica Hosang Jessica McElligott Ben Engstrand Leann Fare Teachers: Mike Rawls Eighth Grade Social Students Barbara Wynn Eighth Grade English Teacher Patient: Maureen Chemeli Nurse from Kenya: Josephine Nyakiti May 27, 1997 - 21 - Item V-L3. MA YOR 'S PRESENTATIONS ITEM # 42150 Mayor Oberndorf recognized the Rotary Foundation - Group Study Exchange Team from Israel. This team arrived in Virginia on April 30, 1997, and began a four week tour of the Rotary District of Southeast Virginia. The team is led by a Rotarian Medical doctor and consists of four young Israeli professional and business persons. The Group Study Exchange ts an educational program of The Rotary Foundation, which began in 1965 to promote peace and understanding through exchange visits. It began as a Cold War effort and continues to serve a very worthwhile purpose in a troubled world. Donald J. Meyer, District GSE Chairman - Rotary International, introduced the Team Leader and members of the Group Study Exchange Team. Team Leader Dr. Dan Schiller Team Members Shay Hilel- Israel Air Force, Flight Test Engineer Ephraim Rosenblatt- Instrumentation & Process Control Engineer Ayelet Cohen - Managing Administrator- Jerusalem College Joana Stamate - Software Engineer Dr. Joseph Goring, Dean of Business School at Norfolk State University, has been coordinating the program. Dr Schiller presented Flags of the cities and the Emblems of Jerusalem and Haiti to the Mayor. Mayor Oberndorf presented mementoes to each members of the Team. May 27, 1997 - 22 - Item V-L 3. PUBLIC HEARING ITEM # 42151 Mayor Oberndorf DECLARED A PUBLIC HEARING: A GRICUL TURAL PRESER VA TIONPROGRAM (ARP) Thomas C. and Judith C. Kay - 24. 75 Acres Pungo Clyde W. Sr. and Janet G. Simons - 25.91 Acres Pungo There being no speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING. May 27, 1997 - 23 - Item V-K. ORDINANCES ITEM # 42152 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council APPROVED BY CONSENT in ONE MOTION Ordinances 1, 2, 3, 4, 5, 6, 7, 8 and 9. Voting: 11-0 Council Members Voting Aye: John A. Baum, Linwood 0 Branch, III, William W. Harrison, Jr. *, Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan**, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent: None **Council Lady McClanan voted a VERBAL NAY on Item 1. a. b. *Counctlman Harrison ABSTAINED on Item 6, as hts law firm has provided legal servtces to Berkshire Associates. May 27, 1997 - 24 - Item V-K. 1. ORDINANCES ITEM # 42153 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinances to authorize the acquisition of Agricultural Land Preservation Easements (ARP) and the issuance by the City of its contract obligations (PUNGO BOROUGH): a. Thomas C. Kay and Judith C. Kay - 24. 75,4cres Installment Purchase ,4greement No. 1997-8 - $126,956 b. Clyde W. Simons, Sr. and Janet G. Simons - 25 91 Acres Installment Purchase Agreement No. 1997-9 - $ 23,156 Voting: 10-1 (By ConsenO Council Members Voting Aye: John A. Baum, Linwood O. Branch, III, William W. Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Mayor Meyera E Oberndo~ Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: Reba S. McClanan Council Members .4bsent. None May 27, 1997 AN ORDINANCE AUTHORIZING THE ACQUISITION OF AN AGRICULTURAL LAND PRESERVATION EASEMENT AND THE ISSUANCE BY THE CITY OF ITS CONTRACT OBLIGATIONS IN THE MAXIMUM PRINCIPAL AMOUNT OF $126,956. 5 6 7 8 9 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 36 37 38 WHEREAS, pursuant to the Agricultural Lands Preservation Ordinance (the "Ordinance"), Appendix J of the Code of the City of Virginia Beach, there has been presented to the City Council for approval an Installment Purchase Agreement for the acquisition of the Development Rights (as defined in the Installment Purchase Agreement, a true copy of which is hereto affixed) on certain property located in the City and more fully described in Exhibit B of the Installment Purchase Agreement for a purchase price of $126,956; and WHEREAS, the aforesaid Development Rights shall be acquired through the acquisition of a perpetual agricultural land preservation easement, as defined in, and in compliance with, the requirements of the Ordinance; and WHEREAS, the City Council has reviewed the proposed terms and conditions of the purchase as evidenced by the Installment Purchase Agreement; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. The City Council hereby determines and finds that the proposed terms and conditions of the purchase of the Development Rights pursuant to the Installment Purchase Agreement, including the purchase price and manner of payment, are fair and reasonable and in furtherance of the purposes of the Ordinance, and the City Manager is hereby authorized to approve, upon or before the execution and delivery of the Installment Purchase Agreement, the rate of interest to accrue on the unpaid principal balance of the purchase price set forth hereinabove as the greater of six per cent (6%) per annum or the per annum rate which is equal to the yield on United States Treasury STRIPS purchased by the City to fund such unpaid principal balance; provided, however, that such rate of interest shall not exceed 7.50% unless the approval of the City Council by resolution duly adopted is first obtained. 2. The City Council hereby further determines that funding is available for the acquisition of the Development Rights pursuant 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 6O 61 62 63 64 65 66 67 68 69 70 71 72 73 74 to the Installment Purchase Agreement on the terms and conditions set forth therein. 3. The City Council hereby expressly approves the Installment Purchase Agreement in the form and substance presented at this meeting and, subject to the determination of the City Attorney that there are no defects in title to the property or other restrictions or encumbrances thereon which may, in the opinion of the City Attorney, adversely affect the City's interests, authorizes the City Manager to execute and deliver the Installment Purchase Agreement in substantially the same form and substance as presented at this meeting with such minor modifications, insertions, completions or omissions which do not materially alter the purchase price or manner of payment, as the City Manager shall approve. The City Council further directs the City Clerk to affix the seal of the City to, and attest same on, the Installment Purchase Agreement. The City Council expressly authorizes the incurrence of the indebtedness represented by the issuance and delivery of the Installment Purchase Agreement. 4. The City Council hereby elects to issue the indebtedness under the Charter of the City rather than pursuant to the Public Finance Act of 1991 and hereby constitutes the indebtedness a contractual obligation bearing the full faith and credit of the City. Adopted by the Council of the City of Virginia Beach, 27 Virginia, on this day of May , 1997. Adoption requires an affirmative vote of a majority of all members of the City Council. CA-97-6646 ARP \purchase \ kay \ a cquis, orn May 7, 1997 R-1 APPROVED AS TO CONTENT: F~riuulture APPROVED AS TO LEGAL ~aw Department 75 76 77 CERTIF~IED AS TO -AVAILABILITY OF FUNDS: D r Ct-or-~-Finance , THOMAS C. KAY and JUDITH C. KAY, the "Seller" and CITY OF VIRGINIA BEACH, VIRGINIA the "City" INSTALLMENT PURCHASE AGREEMENT (Agreement No. 1997-8) TABLE OF CONTENTS (This Table of Contents is not part of the Installment Purchase Agreement and is only for convenience of reference) REC~ALS ........................................... 1 AGREEMENTS ........................................ I ARTICLE 1 DEFINITIONS SECTION 1.1 SECTION 1.2 Definitions ............................... 1 Rules of Construction ....................... 4 ARTICLE 2 SALE AND PURCHASE OF DEVELOPMENT RIGHTS SECTION 2.1 SECTION 2.2 Agreement to Sell and Purchase Development Rights .... 4 Delivery of Deed of Easement .................. 4 ARTICLE 3 PAYMENT OF PURCHASE PRICE SECTION 3.1 SECTION 3.2 SECTION 3.3 Payment of Purchase Price ..................... 4 Registration and Transfer of this Agreement ......... 5 Mutilated, Lost, Stolen or Destroyed Agreement ....... 6 ARTICLE 4 REPRESENTATIONS AND WARRANTIES SECTION 4.1 SECTION 4.2 Representations and Warranties of the City .......... 7 Representations and Warranties of the Seller ......... 7 ARTICLE 5 PROVISIONS RELATING TO EXCLUSION OF INTEREST FROM INCOME FOR FEDERAL INCOME TAXATION SECTION 5.1 Intent of City and Tax Covenant of City ............. 8 SEC-~ON 5.2 Acknowledgment of Seller with Regard to Tax Consequences of Transaction ............................ 9 ARTICLE 6 THE REGISTRAR SECTION 6.1 SECTION 6.2 SECTION 6.3 SECtiON 6.4 SECTION 6.5 Appointment of Registrar ..................... 9 Ownership of Agreement ..................... 9 Removal of Registrar and Appointment of Successor Registrar ......................... 9 Qualifications of Successor Registrar .............. 10 Successor by Merger or Consolidation ............. 10 ARTICLE 7 MISCELLANEOUS SECTION 7.1 SECTION 7.2 SECTION 7.3 SECTION 7.4 SECTION 7.5 SECTION 7.6 SECTION 7.7 SECTION 7.8 SECTION 7.9 SECTION 7.10 Successors of City ......................... 10 Parties in Interest .......................... 10 Binding Effect ............................ l0 Severability ............................. 11 Prior Agreements Cancelled; No Merger ........... 11 Amendments, Changes and Modifications ........... 11 No Personal Liability of City Officials ............. 11 Governing Law ........................... 11 Notices ................................ 11 Holidays ............................... 12 Signatures and Seals ..................................... 12 F_2CHIBIT A- EXHIBIT B - EXHIBIT C - EXHIBIT D - EXHIBIT E - Form of Deed of Easement Description of Land Permitted Encumbrances Form of Assignment Transfer of Agreement - Schedule of Transferees ii INSTALLMENT PURCHASE AGREEMENT (Agreement No. 1997-8) THIS INSTANT PURCHASE AGREEMENT (this 'Agreement") is made as of the day of , 199_ between Thomas C. Kay and Judith C. Kay (collectively, the "Seller") and CITY OF VIRGINIA BEACH, VIRGINIA, a body politic and corporate of the Commonwealth of Virginia (the 'City'). RECITALS A. Pursuant to the authority granted by the Open-Space Land Act, Chapter 17, Title 10.1 of the Code of Virginia of 1950, as mended (the "Act"), the City adopted the Ordinance (hereinafter defined in Section 1.1) to promote and encourage the preservation of agricultural land in designated areas within the southern portion of the City. B. In furtherance of the purposes of the Act and the Ordinance, the City has established the Agricultural Reserve Program of the City which provides for the acquisition of Development Rights (hereinafter defined in Section 1.1) through the purchase of agricultural land preservation easements with respect to property located in the portions of the City covered by the Ordinance. C. The Seller is the owner in fee simple of Land (hereinafter defined in Section 1.1) which is located in that portion of the City subject to the Ordinance and meets the eligibility criteria of Section 7 of the Ordinance. D. The Seller has agreed to sell, and the City has agreed to purchase, Seller's Development Rights in the Land on and subject to the terms and conditions hereinafter set forth. AGREEMENTS NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency whereof are hereby acknowledged, the Seller and the City hereby agree as follows: ARTICLE 1 DEFINITIONS SECTION 1.1 Definitions. As used in this Agreement, the following terms have the following meanings, unless the context clearly indicates a different meaning: "Agricultural Use" means (i) the bona fide production of crops, animal or fowl, including, but not limited to, the production of fruits, vegetables, honey, grains, meat, poultry and dairy products, the raising of livestock and poultry, and the production and harvest of products from horticultural, silvicultural or aquaeultural activity, (ii) the repair, expansion or replacement of no more than one (1) bona fide dwelling occupied by the landowner or tenant as of the date of application for entry in the Agricultural Reserve Program and no more than one freestanding mobile home, as permitted by Section 19-19 of the Virginia Beach City Code, and (iii) accessory uses directly related to agricultural activities conducted on the same property, including the sale of agricultural products as permitted by Section 401 of the Virginia Beach City Zoning Ordinance. The term does not include the processing of agricultural, silvicultural, horticultural or aquacultural products, except as an accessory use. 'Business Day' or 'business day' means a day on which (a) banks located in the City and in the city in which the principal office of the Registrar is located are not required or authorized by law or executive order to close for business, and Co) The New York Stock Exchange is not closed. 'City" means the City of Virginia Beach, Virginia, a body politic and corporate and a political subdivision created and existing under and by virtue of the Constitution and laws of the State, its successors and assigns. 'City Council' means the Council of the City. 'City Manager' means the City Manager of the City. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to the Code herein shall be deemed to include the United States Treasury Regulations in effect or proposed from time to time with respect thereto. 'Deed of Easement' means the Deed of Easement of even date herewith from the Seller to the City, which shall convey the Development Rights to the City in perpetuity. The Deed of Easement shall be substantially in the form attached hereto as Exhibit A and made a part hereof. 'Development Rights" mean the rights of the Seller in the Land to develop the Land for any use other than an Agricultural Use. Development Rights shall include, but not be limited to, the right to develop the Land for any commercial, industrial or residential use except as expressly permitted by the Ordinance. 'Enabling Legislation" means, collectively, (1) the Open Space Land Act, Chapter 17 of Title 10.1 of the Code of Virginia of 1950, as amended, and (2) the Ordinance. "Estate Settlement Transfer" means the transfer by the legal representative of the estate of a deceased Seller of such Seller's rights in and to this Agreement in connection with the distribution of the deceased Seller's estate or other settlement of such decedent Seller's estate. "Interest Payment Date" means June 1 and December 1 in each year, commencing , 199 . "Land" means the tract or tracts of land located in Virginia Beach, Virginia, containing approximately 24.75 acres, and more particularly described in Exhibit B attached hereto and made a part hereof. "Ordinance" means the Agricultural Lands Preservation Ordinance adopted by the City Council on May 9, 1995, as Appendix J to the City Code, as the same may be amended or modified from time to time. "Permitted Encumbrances" mean the encumbrances listed on Exhibit C attached hereto and made a part hereof and any encumbrances on or with respect to the Land or any portion thereof hereafter approved, in writing, by the City. "Person" or "person" means any natural person, firm, association, corporation, company, trust, partnership, public body or other entity. "Purchase Price" means $126,956, the purchase price to be paid by the City to the Registered Owner in accordance with this Agreement. "Record Date" means the fifteenth (15th) day (whether or not a Business Day) of the calendar month immediately preceding each Interest Payment Date and the principal payment date. "Registered Owner" means the registered owner of this Agreement as shown on the registration books maintained by the Registrar. "Registrar" means First Union National Bank of Virginia or any other person hereat~ appointed by the City to act as Registrar and paying agent for this Agreement. "Seller" means, collectively, Thomas C. Kay and Judith C. Kay. "State" means the Commonwealth of Virginia. SECTION 1.2 Rules of Construction. (a) The words "hereof,N Nherein,' *hereunder,' 'hereto,' and other words of similar import refer to this Agreement in its entirety. (b) The texms "agree" and "agreements' contained herein are intended to include and mean 'covenant" and 'covenants. ' (c) References to Articles, Sections, and other subdivisions of this Agreement are to the designated Articles, Sections, and other subdivisions of this Agreement. (d) The heo_._dings of this Agreement are for convenience only and shall not define or limit the provisions hereof. (e) All references made (i) in the neuter, rnaseuline or feminine gender shall be deemed to have been made in all such genders, and (ii) in the singular or plural number shall be deemed to have been made, respectively, in the plural or singular number as well. ARTICLE 2 SALE AND PURCHASE OF DEVELOPMENT RIGHTS SECTION 2.1 Agreement to Sell and Purchase Development Rights. The Seller agrees to sell the Development Rights in the Land to the City and the City agrees to purchase the Development Rights in the Land from the Seller on the date hereof for the Purchase Price. SECTION 2.2 Delivery of Deed of Easement. In order to evidence the sale of the Development Rights to the City, the Seller shall execute and deliver to the City on the date hereof the Deed of Easement in the form attached hereto as Exhibit A and made a part hereof. The Deed of Easement shall be recorded in the Clerk's Office of the Circuit Court of the City. ARTICLE 3 PAYMENT OF PURCHASE PRICE SECTION 3.1 Payment of Purchase Price. (a) The City shall pay the principal portion of the Purchase Price to the Registered Owner in a single installment on , 202_ [25-year maturity date]. The Purchase Price is $126,956. (b) Interest on the unpaid principal balance of the Purchase Price shall accrue from the date of recordation of the Deed of Easement and shall be payable to the Registered Owner on ., 199_, and semiannually thereafter on June 1 and December 1 in each year to and including ,202_, at the rate of 55 per annum. Interest shall be calculated on the basis of a 360-day year of twelve 30-day months. (c) Both the single installment of principal of the Purchase Price and the interest on the unpaid balance thereof are payable in lawful money of the United States of America at the time of payment. (d) Payment of interest on the unpaid balance of the Purchase Price shall be made by the City on each Interest Payment Date to the Registrar. The Registrar shall forward all such interest payments by check or draft mailed to the person(s) appearing on the registration books of the City maintained by the Registrar as the Registered Owner on the Record Date, at the address of such Registered Owner as it appears on such registration books. The single installment of principal of the Purchase Price shall be paid on the principal payment date set forth in Subsection (a) above by the Registrar to the Registered Owner as of tl~ Record Date upon presentation and surrender of this Agreement at the office of the Registrar. (e) The City's obligation to pay the Purchase Price hereunder and to pay interest on the unpaid balance of the Purchase Price is a general obligation of the City, and the full faith and credit and the unlimited taxing power of the City are irrevocably pledged to the punctual payment of the Purchase Price and the interest on the unpaid principal balance of the Purchase Price as and when the same respectively become due and payable. SECTION 3.2 R~gistration and Transfer of this Agreement. (a) Until the Purchase Price and all interest thereon have been paid in full, the City shall maintain and keep at the offices of the Registrar, registration books for the registration and transfer of this Agreement; and upon presentation of this Agreement for such purpose at the offices of the Registrar, the Registrar shall register or cause to be registered on such registration books, and permit to be transferred thereon, under such reasonable regulations as the City or the Registrar may prescribe, the ownership of this Agreement. The Registrar, however, shall not be required to make any such registration and transfer during the period from the Record Date to the next succeeding Interest Payment Date or final principal payment date. (b) Except for an Estate SeRlement Transfer, this Agreement may not be transferred by the Registered Owner prior to the expiration of a one (1) year period from the date this Agreement has been fully executed, delivered and become effective, and any such attempted transfer shall be null and void. The Registrar shall be instructed not to make any such transfers (other than an Estate Settlement Transfer) on its registration books kept for the purpose of registering the transfer of this Agreement prior to the expiration of said one (1) year period. (c) The Seller is the original Registered Owner. This Agreement shall be transferable only upon the books of the City maintained for such purpose by the Registrar, at the written request of the Registered Owner as then shown on such registration books or his attorney duly authorized in writing, upon presentation and surrender of this Agreement, together with a written instrument of transfer substantially in the form attached hereto as Exhibit D, or as may otherwise be satisfactory to and approved by the Registrar in writing, duly executed by the Registered Owner or his attorney duly authorized in writing. Upon the surrender for transfer of this Agreement, the Registrar shall complete the Schedule of Transferees attached hereto as Exhibit E with the name, address and tax identification number of the transferee Registered Owner, and the date of the transfer; provided, however, that if there is any conflict between the information set forth in Exhibit E hereto and the registration books maintained by the Registrar, the information shown on such registration books shall control. The City and the Registrar may deem and treat the person in whose name this Agreement is registered upon the books of the City maintained by the Registrar as the absolute owner of this Agreement, whether any payments hereunder shall be overdue or not, for the purpose of receiving payment of, or on account of, the Purchase Price and interest thereon and for all other purposes, and all such payments so made to any such Registered Owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon this Agreement to the extent of the sum or sums so paid, and neither the City nor the Registrar shall be affected by any notice to thc contrary. For every registration of transfer of this Agreement, the City or the Registrar may make a charge sufficient to reimburse themselves for any tax or other governmental charge required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such transfer as a condition precedent to the exercise of the privilege of registering such transfer. SECTION 3.3 Mutilated. Lost. Stolen or Destroyed Agreem~r~l. In the event that this Agreement is mutilated, lost, stolen or destroyed, the City and the Registered Owner (as then shown on the registration books maintained by the Registrar) shall execute and deliver a substitute agreement having the same terms and provisions as the mutilated, lost, stolen or destroyed Agreement; provided that, in the ease of any mutilated Agreement, such mutilated Agreement shall first be surrendered to the Registrar, and, in the case of any lost, stolen or destroyed Agreement there shall be first furnished to the City and the Registrar evidence of such loss, theft or destruction satisfactory to the City and the Registrar, together with indemnity satisfactory to each of them in their sole discretion. The City and the Registrar may charge the Registered Owner requesting such new Agreement their expenses and reasonable fees, if any, in this connection. If after the delivery of such substitute Agreement, a bona fide purchaser of the original Agreement (in lieu of which such substitute Agreement was issued) presents for payment such original Agreement, the City and the Registrar shall be entitled to recover such substitute Agreement from the person to whom it was delivered or any other person who receives delivery thereof, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor or otherwise to the extent of any loss, damage, cost or expense incurred by the City and the Registrar in connection therewith. ARTICLE 4 KEP~~ATIONS AND WARRANTIES SECTION 4.1 Representations and Warranties of the City. The City makes the following representations and warranties: of the State. (a) The City is a body politic and corporate and a political subdivision (b) The City has the necessary power and authority to acquire the Development Rights, to enter into this Agreement, to perform and observe the covenants and agreements on its part contained in this Agreement and to carry out and consummate all transactions contemplated hereby. By proper action, the City has duly authorized the execution and delivery of this Agreement. (c) This Agreement has been duly and properly authorized, executed, sealed and delivered by the City, constitutes the valid and legally binding obligation of the City, and is enforceable against the City in accordance with its terms. (d) There are no proceedings pending or, to the knowledge of the City, threatened before any court or administrative agency which may affect the authority of the City to enter into this Agreement. SECTION 4.2 Ret~resentafions and Warranties of the Seller. -- makes the following representations and warranties: The Seller (a) The Seller has full power and authority to execute and deliver this Agreement and the Deed of Easement, and to incur and perform the obligations provided for herein and therein. No consent or approval of any person or public authority or regulatory body is required as a condition to the validity or enforceability of this Agreement or the Deed of Easement, or, if required, the same has been duly obtained. (b) This Agreement and the Deed of Easement have been duly and properly executed by the Seller, constitute valid and legally binding obligations of the Seller, and are fully enforceable against the Seller in accordance with their respective terms. (c) There is no litigation or proceeding pending or, so far as the Seller knows, threatened before any court or administrative agency which, in the opinion of the Seller, will materially adversely affect the authority of the Seller to enter into, or the validity or enforceability of, this Agreement or the Deed of Easement. (d) There is (i) no provision of any existing mortgage, indenture, contract or agreement binding on the Seller or affecting the Land, and (ii) to the knowledge of the Seller, no provision of law or order of court binding upon the Seller or affecting the Land, which would conflict with or in any way prevent the execution, delivery, or performance of the terms of this Agreement or the Deed of Easement, or which would be in default or violated as a result of such execution, delivery or performance, or for which adequate consents, waivers or, if necessary, releases or subordinations, have not been obtained. (e) There exist no liens, security interests or other encumbrances on or with respect to the Land (other than Permitted Encumbrances), and at the time of execution and delivery of the Deed of Easement there will be no liens, security interests or other encumbrances of the Development Rights to be conveyed thereby. (f) The Seller is not a nonresident alien of the United States of America for purposes of federal income taxation. (g) The Social Security Number(s) of the Seller are 205-24-4508 (for Thomas C. Kay) and 184-30-5106 (for Judith C. Kay). The representations in subsections (f) and (g) above are made under penalties of perjury and the information contained therein may be disclosed by the City to the Internal Revenue Service. The Seller acknowledges that any false statement in such subsections could be punished by fine, imprisonment or both. (h) To the best of the knowledge, information and belief of the Seller, the Land has not been used for the manufacture, storage, treatment, disposal or release of any hazardous waste or substance. ARTICLE 5 PROVISIONS RELATING TO EXCLUSION OF IlqTF_R~T FROM INCOME FOR FEDERAL INCOME TAXATION SECTION 5.1 Intent of City_ and Tax Covenant of City.. The City intends that the interest payable under this Agreement shall not be includable in the gross income of the Registered Owner for purpo~ of federal income taxation pursuant to Section 103 of the Code. Accordingly, the City shall not knowingly take or permit to be taken any other action or actions or omit or fail to take any action, which would cause this Agreement to be an "arbitrage bond" within the meaning of Section 148 of the Code, or which would othexwise cause interest payable under this Agreement to become includable in the gross income of any Registered Owner for purposes of federal income taxation. SF.L"rION 5.2 Acknowledgment of Seller with Regard to Tax (~onseo_ilences of Transaction. The Seller has received an opinion from Kaufman & Canoles, P.C., Bond Counsel, dated the date hereof, to the effect that under existing laws, regulations, rulings and decisions, interest payable under this Agreement is not includable in the gross income of the Seller for federal income tax purposes, which opinion assumes continuous compliance with certain covenants in the Tax Certificate and Compliance Agreement to be executed and delivered by the City on the date of delivery of this Agreement and is otherwise limited in accordance with its terms. The Seller acknowledges that Seller has made Seller's own independent investigation and has consulted with such attorneys, accoun~ts and others as the Seller shall have selected in the Seller's sole discretion to advise the Seller with respect to all other tax considerations related to the transaction contemplated hereby (including, but not limited to, installment sales treatment under Section 453 of the Code, charitable contribution deductions under Section 170 of the Code, and federal estate tax implications); and the Seller certifies that the Seller has not looked to or relied upon the City or any of its officials, agents or employees, or to Bond Counsel, with respect to any of such matters. ARTICLE 6 THE REGISTRAR SECTION 6.1 Aooointment of Reeistrar. First Union National Bank of Virginia is hereby designated and appointed to act as Registrar for this Agreement. SECTION 6.2 Ownership of Agreement. The Registrar, in its individual capacity or as trustee for holders of participation interests in this Agreement, may in good faith buy, sell, own and hold this Agreement, and may join in any action which any Registered owner may be entitled to take with like effect as if it did not act as Registrar hereunder. The Registrar, in its individual capacity, either as principal or agent, may also engage, or have an interest, in any financial or other transaction with the City, and may act as depository, trustee or agent for other obligations of the City as freely as if it did not act in any capacity hereunder. SECTION 6.3 Removal of Reeistrax and Am~ointment of Successor -- ]~gilll~. The City shall have the right, subject to the terms of any agreement with the Registrar, to remove the Registrar any time by filing with such Registrar to be removed, and with the Registered Owner, an instrument in writing. Notwithstanding the foregoing, such removal shall not be effective until a successor Registrar has assumed the Registrar's duties hereunder. The City shall have the sole fight to select a successor Registrar. SECTION 6.4 Oualifications 9t' Sugcessor Registrar. Any successor Registrar shall be either (a) the Department of Finance of the City, Co) an officer or employee of the City, or (c) a bank, trust company or other financial institution duly organized under the laws of the United States or any state or territory thereof which is authorized by law and permitted under the laws of the State to perform all the duties imposed upon it as Registrar by this Agreement. SECTION 6.5 Sucqessor by Merger or Consolidation. If the Registrar is a bank, trust company or other financial institution, any institution or corporation into which the Registrar hereunder may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger or consolidation to which the Registrar hereunder shall be a party or any institution or corporation succeeding to the corporate trust business (if any) of the Registrar, shall be the successor Registrar under this Agreement, without the execution or filing of any paper or any further act on the part of the parties hereto, anything in this Agreement to the contrary notwithstanding. ARTICLE 7 MISCELLANEOUS SECTION 7.1 Successors of City. In the event of the dissolution of the City, all the covenants, stipulations, promises and agreements in this Agreement contained, by or on behalf of, or for the benefit of, the City, the Seller, any other Registered Owner and the Registrar, shall bind or inure to the benefit of the successors of the City from time to time and any entity, officer, board, commission, agency or instrumentality to whom or to which any power or duty of the City shall be transferred. SECTION 7.2 Parties in Interest. Except as herein otherwise specifically provided, nothing in this Agreement expressed or implied is intended or shall be construed to confer upon any person, firm or corporation, other than the City, the Seller, any other Registered Owner and the Registrar, any fight, remedy or claim under or by reason of this Agreement, this Agreement being intended to be for the sole and exclusive benefit of the City, the Seller, any other Registered Owner from time to time of this Agreement and the Registrar. SECTION 7.3 Binding Effe~[. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, personal representatives, successors and assigns, including, without limitation, all Registered Owners from time to time of this Agreement. 10 SECTION 7.4 ~~l~i~t. In case any one or more of the provisions of this Agreement shall, for any reason, be held to be illegal or invalid, such illegality or invalidity shall not affect any other provisions of this Agreement and this Agreement shall be construed and enforced as if such illegal or invalid provisions had not been contained herein or therein. SECTION 7.5 Prior Agreements Cancelled: No Merger. This Agreement shall completely and fully supersede all other prior agreements, both written and oral, between the City and the Seller relating to the acquisition of the Development Rights. Neither the City nor the Seller shall hereafter have any rights under such prior agreements but shall look solely to this Agreement and the Deed of Easement for definitions and determination of all of their respective fights, liabilities and responsibilities relating to the Land, the Development Rights and the payment for the Development Rights. In addition, this Agreement shall survive the execution and recording of the Deed of Easement in all respects and shall not be merged therein. SECTION 7.6 Alll~rglments. Changes and Modifications. This Agreement may not be amended, changed, modified, altered or terminated except by an agreement in writing between the City and the then Registered Owner. An executed counterpart of any such amendment shall be attached to this Agreement and shall be binding upon such Registered Owner and all successor Registered Owners. SECTION 7.7 No Personal Liability of City Officials. No covenant or agreement contained in this Agreement shall be deemed to be the covenant or agreement of any official, officer, agent or employee of the City in his or her individual capacity, and neither the officers or employees of the City nor any official executing this Agreement shall be liable personally on this Agreement or be subject to any personal liability or accountability by reason of the issuance thereof. SECTION 7.8 Governing Law. The laws of the State shall govern the construction and enforcement of this Agreement. SECTION 7.9 Notices. Except as otherwise provided in this Agreement, all notices, demands, requests, consents, approvals, certificates or other communications required under this Agreement to be in writing shall be sufficiently given and shall be deemed to have been properly given three Business Days after the same is mailed by certified mail, postage prepaid, return receipt requested, addressed to the person to whom any such notice, demand, request, approval, certificate or other communication is to be given, at the address for such person designated below: City: City Manager Municipal Center Virginia Beach, VA 23456 11 with a copy to: Seller: City Attorney Municipal Center Virginia Beach, VA 23456 Thomas C. Kay and ludith C. Kay 1641 Princess Anne Road Virginia Beach, Virginia 23457 Registrar: First Union National Bank of Virginia Corporate Trust Department 2nd Floor 901 East Cary Street Richmond, Virginia 23219 Any of the foregoing may, by notice given hereunder to each of the others, designate any further or different addresses to which subsequent notices, demands, requests, consents, approvals, certificates or other communications shall be sent hereunder. SECTION 7.10 Holidays. If the date for making any payment or the last date for performance of any act or the exercising of any right, as provided in this Agreement, shall not be a Business Day, such payment may, unless otherwise provided in this Agreement, be made or act performed or right exercised on the next succeeding Business Day with the same force and effect as if done on the nominal date provided in this Agreement, and in the case of payment no interest shall accrue for the period after such nominal date. WITNESS the signatures and seals of the parties hereto as of the date first above written. [CITY'S SEAL] CITY OF VIRGINIA BEACH, VIRGINIA ATTEST: By: James K. Spore, City Manager City Clerk 12 Thomas C. Kay (SEAL) Judith C. Kay (SEAL) Approved as to Legal Sufficiency: Approved as to Sufficiency of Funds: Deputy City Attorney Director, Department of Finance COMMONWEALTH OF VIRGINIA AT LARGE, to-wit: The foregoing instrument was acknowledged before me in the City of Virginia Beach, Virginia, this ~___ day of , 19 , by James K. Spore, City Manager of the City of Virginia Beach, Virginia, and attested to by , City Clerk of the City of Virginia Beach, Virginia, on its behalf. (SEAL) My Commission Expires: Notary Public 13 COMMONWEALTH OF VIRGINIA AT LARGE, to-wit: The foregoing instrument was acknowledged before , Virginia, this , 19 , by Thomas C. Kay. me in the City of day of (SEAL) My Commission Expires: Notary Public COMMONWEALTH OF VIRGINIA AT LARGE, to-wit: The foregoing instrument , 19 was acknowledged before , Virginia, this , by Judith C. Kay. me in the City of day of (SEAL) My Commission Expires: Notary Public 14 Th~s ~nstrument was prepared by V~rg~ma Beach City Attorney's Office Exemptxon Clmmed' § 58 1-81 l(A)(3) § 58.1-811 (C)(4) DEED OF EASEMENT Exhibit A THIS DEED OF EASEMENT is made th~s . day of ,1997, by and between THOMAS C. KAY and JUDITH C. KAY, husband and w~fe (collectively, the "Grantor"), and CITY OF VIRGINIA BEACH, VIRGINIA, a body politic and corporate of the Commonwealth of V~rg~ma (the "C~ty") whose address ~s Municipal Center, V~rg~ma Beach, V~rgima 23456, Grantee. RECITALS WHEREAS, pursuant to the authority granted by the Open-Space Land Act, Chapter 17, Title 10.1 of the Code of V~rg~ma of 1950, as amended (the "Act"), the C~ty adopted the Agricultural Lands Preservation Ordinance (the "Ordinance") as Appendix J to the Code of the C~ty of V~rg~ma Beach, Vlrg~ma, as amended (the "C~ty Code"), to promote and encourage the preservatmn of agricultural land in designated areas w~thin the southern port~on of the City; and WHEREAS, in furtherance of the purposes of the Act and the Ordinance, the City has estabhshed the Agricultural Reserve Program of the City wtuch provides for the acqms~t~on of development rights through the purchase of agricultural land preservation easements with respect to property located ~n the portmns of the C~ty covered by the Ordinance, and WHEREAS, the Grantor ~s the owner ~n fee s~mple of certmn agricultural real property located ~n the C~ty and more particularly described ~n Exhibit A hereto (the "Land"), and · WHEREAS, the Land ~s located in that portion of the City subject to the Ordinance and meets the ehg~bflity criteria of Section 7 of the Ordinance, and WHEREAS, the Grantor has agreed to sell to the City the Grantor's Development Pughts (hereinafter defined) in the Land by executing and dehvenng th~s Deed of Easement and thereby restrict the use of the Land as described herein; and GPIN 2402-87-5347 WHEREAS, the City has agreed to purchase the Grantor's Development R~ghts in the Land to fulfill the pohcy and purposes of the City as set forth in the Act and the Ordinance, and WHEREAS, the transfer by the Grantor of the Development Pdghts in the Land shall be in perpetuity, and WHEREAS, ~n order to provide for the payment of the purchase price for the rights in the Land created hereby, the Grantor and the City have entered into an Installment Purchase Agreement of even date herewith (the "Installment Purchase Agreement"), GRANT NOW, THEREFORE, for and in consideration of the sum of TEN DOLLARS ($1000), the covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor, for Grantor, Grantor's heirs, personal representatives, devisees, successors and assigns, and for any subsequent owner of the Land does hereby grant and convey, with general warranty and English covenants of title, unto the City, and its successors and assigns, forever and in perpetuity, an agricultural land preservation easement In, on, over and with respect to the Land restricting the Land to Agricultural Use and in furtherance thereof, does hereby grant and convey, with general warranty and English covenants of title, to the City, and 1ts successors and assigns, forever and in perpetuity, all of the Development Pdghts with respect to the Land TERMS, COVENANTS, CONDITIONS AND AGREEMENTS A. The Grantor for Grantor, Grantor's heirs, personal representatives, devisees, successors and assigns covenants with the City, (1) to refrain from engaging in any act or activity, or permitting to occur or suffenng to exist any act or activity upon the Land which would constitute the exercise of a Development Right or a use other than an Agricultural Use, it being the intention of t. he parties that the Land shall be preserved for Agricultural Use in accordance wlth the provisions of the Ordinance; and (2) that this Deed of Easement shall create a perpetual easement, running with the Land and all portions thereof as an incorporeal and nonpossessory ~nterest therein, enforceable against the Grantor and upon any purchaser, grantee, lessee, owner or other transferee of all or any portion of the Land and any other person or entity having any right, title or interest therein and upon their respective heirs, personal representatives, devisees, successors and assigns; and (3) that the covenants, conditions, hmltatlons and restrictions contained herein are Intended to limit the use of the Land as herein set forth. B. The parties, for themselves, their heirs, personal representatives, devisees, successors and assigns, further covenant and agree as follows. (1) As used in this Deed of Easement the term "Development Rights" shall mean the right to develop the Land for any use, including without limitation, any commercial, industrial or residential use, other than for Agricultural Use. (2) As used in this Deed of Easement the term "Agricultural Use" means (i) the bona fide production of crops, animal or fowl, including, but not limited to, the production of fruits, vegetables, honey, grains, meat, poultry and dairy products, the raising of livestock and poultry, and the production and harvest of products from horticultural, silvicultural or aquacultural activity, (ii) the repair, expansion or replacement of no more than one (1) bona fide dwelling occupied by the landowner or tenant as of the date of application for entry in the Agricultural Reserve Program and no more than one freestanding mobile home, as permitted by Section 19-19 of the City Code, and (iii) accessory uses directly related to agricultural activities conducted on the same property, including the sale of agricultural products as permitted by Section 401 of the City Zoning Ordinance. The term does not include the processing of agricultural, silvicultural, horticultural or aquacultural products, except as an accessory use (3) This Deed of Easement does not grant the public any right of entry or access or any rights of use of the Land. (4) THIS EASEMENT SHALL EXIST IN PERPETUITY AND RUN WITH THE ENTIRE ACREAGE OF THE LAND. (5) The purpose of this Deed of Easement shall be to (i) promote and encourage the preservation of farmland, and promote and enhance agriculture as an important industry within the City, (ii) preserve the rural character of the southern part of the City, (iii) conserve and protect environmentally sensitive lands, waters and other resources, (iv) reduce and defer the need for major infrastructure improvements in the southern part of the City and the expenditure of public funds for such improvements, (v) preserve open spaces, and (vi) assist in shaping the character, direction and timing of community development. (6) In th~ event of a violation or attempted violation of any of the provisions hereof, the City and its successors and assigns, may institute and prosecute any proceeding at law or in equity to enforce the provisions hereof or to abate, prevent or enjoin any such violation or attempted violation. WITNESS, the hand and seal of the Grantor as of the date first above written. GRANTOR: Thomas C. Kay (SEAL) Judith C. Kay (SEAL) COMMONWEALTH OF VIRGINIA AT LARGE, to-w~t The foregoing instrument was acknowledged before me ~n the Ctty of V~rglma Beach, Vlrglma, this day of , 1997, by Thomas C. Kay and Judith C. Kay, Grantor. (SEAL) My Commission Expires: Notary Pubhc EXHIBIT A ALL THAT certatn tract, piece or parcel of land, with the buildings and improvements thereon, situate and being m the City of Virginia Beach, Virginia and designated as "71.31 Acres +", as shown on the plat entitled "Survey of Property of Willie W. Bell Est, W. B. 8 P. 233 and D. B. 61 P. 15, Pungo Borough, Virginia Beach, VA., Scale: 1"=200', 1 June 1977" made by Gallup Surveying, Ltd., and recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia in Deed Book 2645, at page 836, reference to which is hereby made for a more particular description thereof. LESS AND EXCEPT that portion of the above described property conveyed to Matthew B. Slate and Michael E. Lee, dated September 7, 1994, and recorded in the aforesaid Clerk's Office in Deed Book 3432, at page 186, as shown in Map Book 231, at page 100, and amended in Map Book 245, at page 57. LESS AND EXCEPT that portion of the above described property designated "Cemetery" as shown on the aforesaid plat recorded in the aforesaid Clerk's Office in Map Book 2645, at page 836 LESS AND EXCEPT all portions of the above-described property, if any, which contain any of the following soil types: (1) Back Bay Mucky Peat; (2) Dorovan Mucky Peat; (3) Nawney Silt Loam; or (4) Pamlico Mucky Peat, Ponded. [LESS AND EXCEPT that certain tract, piece or parcel being a portion of the above described property designated and described as "#" as shown on that certain plat entitled: "#", Scale #" = #', dated #, prepared by #, which plat is attached hereto and recorded simultaneously herewith.] IT BEING a part of the same property conveyed to Thomas C Kay, et ux, from Thomas C. Kay, et ux, by deed of gift dated March 6, 1989, duly recorded in the aforesaid Clerk's Office in Deed Book 2813, at page 947. EXHIBIT B ALL THAT certain tract, piece or parcel of land, with the buildings and improvements thereon, situate and being in the City of Virginia Beach, Virginia and designated as "71.31 Acres +", as shown on the plat entitled "Survey of Property of Willie W. Bell Est., W. B. 8 P. 233 and D. B. 61 P. 15, Pungo Borough, Virginia Beach, VA., Scale: 1"--200', 1 June 1977" made by Gallup Surveying, Ltd., and recorded in the Clerk's Office of the Circuit Court of the C~ty of Vlrglma Beach, Virginia in Deed Book 2645, at page 836, reference to which ~s hereby made for a more particular description thereof. LESS AND EXCEPT that portion of the above described property conveyed to Matthew B. Slate and Michael E. Lee, dated September 7, 1994, and recorded in the aforesaid Clerk's Office in Deed Book 3432, at page 186, as shown in Map Book 231, at page 100, and amended in Map Book 245, at page 57. LESS AND EXCEPT that portion of the above described property designated "Cemetery" as shown on the aforesaid plat recorded in the aforesaid Clerk's Office in Map Book 2645, at page 836. LESS AND EXCEPT all portions of the above-described property, if any, which contain any of the following soil types: (1) Back Bay Mucky Peat; (2) Dorovan Mucky Peat; (3) Nawney Silt Loam; or (4) Pamlico Mucky Peat, Ponded. [LESS AND EXCEPT that certain tract, piece or parcel being a port~on of the above described property designated and described as "#" as shown on tl~at certain plat entitled: "#", Scale #" = #', dated #, prepared by #, which plat is attached hereto and recorded simultaneously herewith ] IT BEING a part of the same property conveyed to Thomas C. Kay, et ux, from Thomas C. Kay, et ux, by deed of gift dated March 6, 1989, duly recorded in the aforesaid Clerk's Office in Deed Book 2813, at page 947. EXHIBIT "C" PERMITTED ENCUMBRANCES , Taxes for the fiscal year 1996/1997 and any/all Stormwater fees, which are liens not yet due and payable, and taxes and stormwater fees for all subsequent billing periods. 2. Roll Back Taxes. 3, Easement granted Virginia Electric and Power Company over the subject property, as established by instrument recorded in the Clerk's Office of the Circuit Court of the City of V~rgima Beach in Deed Book 412, at page 121. , Easement granted Virgima Electric and Power Company over the subject property, as established by instrument recorded in the aforesaid Clerk's Office in Deed Book 424, at page 213. , Easement granted Virginia Electric and Power Company over the subject property, as established by instrument recorded in the aforesaid Clerk's Office in Deed Book 2925, Page 830. , Easement granted to Princess Anne Telephone over the subject property, as established by instrument recorded in the aforesaid Clerk's Office in Deed Book 243, Page 321. , Such other restrictions and encumbrances which, in the opinion of the City Attorney, do not adversely affect the interest of the City of Virginia Beach in and to the agricultural land preservation easement and the rights granted to the City in the Deed of Easement. ASSIGNMENT EXHIBIT D FOR VALUE RECEIVED, and ([collectively,] the "Registered Owner") hereby sell[s], assign[s] and transfer[s] unto , without recourse, all of the Registered Owner's right, title and interest in and to the Installment Purchase Agreement to which this Assignment is attached; and the Registered Owner hereby irrevocably directs the Registrar (as defined in such Agreemen0 to transfer such Agreement on the books kept for registration thereof. The Registered Owner hereby represents, warrants and certifies that there have been no amendments to such Agreement [except 1. Date: Signature guaranteed: NOTICE: Signature must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. NOTICE: The signature on this Assignment must correspond with the name of the Registered Owner as it appears on the registration books for the Installment Purchase Agreement referred to herein in every paxticular, without alteration or enlargement or any change whatever. 18 EXHIBIT E TRANSFER OF AGREEMENT - SCHEDULE OF TRANSFEREES The transfer of this Installment Purchase Agreement may be registered only by the Registered Owner under such Agreement in person or by its duly authorized officer or attorney upon presentation hereof to the Registrar, who shall make note thereof in the books kept for such purpose and in the registration blank below. , Date of Registration of Transfer Name and Address of Transferee Registered Seller Tax I.D. No. of Transferee Signature of Registrar e ge e 19 AN ORDINANCE AUTHORIZING THE ACQUISITION OF AN AGRICULTURAL LAND PRESERVATION EASEMENT AND THE ISSUANCE BY THE CITY OF ITS CONTRACT OBLIGATIONS IN THE MAXIMUM PRINCIPAL AMOUNT OF $23,156 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3O 31 32 33 34 35 36 37 38 WHEREAS, pursuant to the Agricultural Lands Preservation Ordinance (the "Ordinance"), Appendix J of the Code of the City of Virginia Beach, there has been presented to the City Council for approval an Installment Purchase Agreement for the acquisition of the Development Rights (as defined in the Installment Purchase Agreement, a true copy of which is hereto affixed) on certain property located in the City and more fully described in Exhibit B of the Installment Purchase Agreement for a purchase price of $23,156; and WHEREAS, the aforesaid Development Rights shall be acquired through the acquisition of a perpetual agricultural land preservation easement, as defined in, and in compliance with, the requirements of the Ordinance; and WHEREAS, the City Council has reviewed the proposed terms and conditions of the purchase as evidenced by the Installment Purchase Agreement; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. The City Council hereby determines and finds that the proposed terms and conditions of the purchase of the Development Rights pursuant to the Installment Purchase Agreement, including the purchase price and manner of payment, are fair and reasonable and in furtherance of the purposes of the Ordinance, and the City Manager is hereby authorized to approve, upon or before the execution and delivery of the Installment Purchase Agreement, the rate of interest to accrue on the unpaid principal balance of the purchase price set forth hereinabove as the greater of six per cent (6%) per annum or the per annum rate which is equal to the yield on United States Treasury STRIPS purchased by the City to fund such unpaid principal balance; provided, however, that such rate of interest shall not exceed 7.50% unless the approval of the City Council by resolution duly adopted is first obtained. 2. The City Council hereby further determines that funding is available for the acquisition of the Development Rights pursuant 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 to the Installment Purchase Agreement on the terms and conditions set forth therein. 3. The City Council hereby expressly approves the Installment Purchase Agreement in the form and substance presented at this meeting and, subject to the determination of the City Attorney that there are no defects in title to the property or other restrictions or encumbrances thereon which may, in the opinion of the City Attorney, adversely affect the City's interests, authorizes the City Manager to execute and deliver the Installment Purchase Agreement in substantially the same form and substance as presented at this meeting with such minor modifications, insertions, completions or omissions which do not materially alter the purchase price or manner of payment, as the City Manager shall approve. The City Council further directs the City Clerk to affix the seal of the City to, and attest same on, the Installment Purchase Agreement. The City Council expressly authorizes the incurrence of the indebtedness represented by the issuance and delivery of the Installment Purchase Agreement. 4. The City Council hereby elects to issue the indebtedness under the Charter of the City rather than pursuant to the Public Finance Act of 1991 and hereby constitutes the indebtedness a contractual obligation bearing the full faith and credit of the City. 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 Adopted by the Council of the City of Virginia Beach, Virginia, on this 27 day of May . , 1997 Adoption requires an affirmative vote of a majority of all members of the City Council. CA-97-6645 ARP \purchase \ simons \ acquis, orn May 7, 1997 R-1 APPROVED AS TO CONTENT: ~riculture Depar~4~ent APPROVED AS TO LEGAL SUFFICIENCY: ~ ,4 Law D6partment' CERTIFIED AS TO ~A~AILABILITY OF FUNDS: Director ~t* Fihance - ~ [/ Clyde W. Simons, Sr. and Janet G. Simons the "Seller" and CITY OF VIRGINIA BEACH, VIRGINIA the "City" INSTALLMENT PURCHASE AGREEMENT (Agreement No. 1997-9) TABLE OF CONTENTS (This Table of Contents is not part of the Installment Purchase Agreement and is only for convenience of reference) Section P. ECITALS ........................................... 1 AGReeMENTS ........................................ 1 ARTICLE 1 DEFINITIONS SECTION 1.1 SECTION 1.2 Definitions ............................... 1 Rules of Construction ........................ 3 ARTICLE 2 SALE AND PURCHASE OF DEVELOPMENT RIGHTS SECTION 2.1 SECTION 2.2 Agreement to Sell and Purchase Development Rights .... 4 Delivery of Deed of Easement .................. 4 ARTICLE 3 PAYMENT OF PURCHASE PRICE SECTION 3.1 SECTION 3.2 SECTION 3.3 Payment of Purchase Price ..................... 4 Registration and Transfer of this Agreement ......... 5 Mutilated, Lost, Stolen or Destroyed Agreement ....... 6 ARTICLE 4 REPRESENTATIONS AND WARRANTIES SECTION 4.1 SECTION 4.2 Representations and Warranties of the City .......... 7 Representations and Warranties of the Seller ......... 7 ARTICLE PROVISIONS RELATING TO EXCLUSION OF INTERF~T FROM INCOME FOR FEDERAL INCOME TAXATION SECTION 5.1 Intent of City and Tax Covenant of City ............. 8 SECTION 5.2 Acknowledgment of Seller with Regard to Tax Consequences of Transaction ............................ 9 ARTICLE 6 THE REGISTRAR SECTION 6.1 SECTION 6.2 SECTION 6.3 SECTION 6.4 SECTION 6.5 Appointment of Registrar ..................... 9 Ownership of Agreement ..................... 9 Removal of Registrar and Appointment of Successor Registrar ......................... 9 Qualifications of Successor Registrar .............. 10 Successor by Merger or Consolidation ............. 10 ARTICLE 7 MISCELLANEOUS S~ON 7.1 SECTION 7.2 SECTION 7.3 SECTION 7.4 SECTION 7.5 SECTION 7.6 SECTION 7.7 SECTION 7.8 SECTION 7.9 SECTION 7.10 Successors of City ......................... 10 Parties in Interest .......................... 10 Binding Effect ............................ 10 Severability ............................. 10 Prior Agreements Cancelled; No Merger ........... 11 Amendments, Changes and Modifications ........... 11 No Personal Liability of City Officials ............. 11 Governing Law ........................... 11 Notices ................................ 11 Holidays ............................... 12 Signatures and Seals ..................................... 12 EXHIB~ A - EXH~ B - EXHIBIT C - EXHIBIT D - EXHIBIT E - Form of Deed of Easement Description of Land Permitted Encumbrances Form of Assignment Transfer of Agreement - Schedule of Transferees ii INSTALLMENT PURCHASE AGREEMENT (Agreement No. 1997-9) THIS INSTALL~ PURCHASE AGREEMENT (this "Agreement") is made as of the ~ day of , 199_ between Clyde W. Simons, Sr. and Janet G. Simons (collectively, the "Seller") and CITY OF VIRGINIA BEACH, VIRGINIA, a body politic and corporate of the Commonwealth of Virginia (the "City"). RECITALS A. Pursuant to the authority granted by the Open-Space Land Act, Chapter 17, Title 10.1 of the Code of Virginia of 1950, as amended (the "Act"), the City adopted the Ordinance (hereinafter defined in Section 1.1) to promote and encourage the preservation of agricultural land in designated areas within the southern portion of the City. B. In furtherance of the purposes of the Act and the Ordinance, the City has established the Agricultural Reserve Program of the City which provides for the acquisition of Development Rights (hereinafter defined in Section 1.1) through the purchase of agricultural land preservation easements with respect to property located in the portions of the City covered by the Ordinance. C. The Seller is the owner in fee simple of Land (hereinafter defined in Section 1.1) which is located in that portion of the City subject to the Ordinance and meets the eligibility criteria of Section 7 of the Ordinance. D. The Seller has agreed to sell, and the City has agreed to purchase, Seller's Development Rights in the Land on and subject to the terms and conditions hereinafter set forth. AGREEMENTS NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency whereof are hereby acknowledged, the Seller and the City hereby agree as follows: ARTICLE 1 DEFINITIONS SECTION 1.1 12e, flgil;iPl~. As used in this Agreement, the following terms have the following meanings, unless the context clearly indicates a different meaning: / "Agricultural Use" means (I) the bona fide production of crops, animal or fowl, including, but not limited to, the production of fruits, vegetables, honey, grains, meet, poultry and dairy products, the raising of livestock and poultry, and the production and harvest of products from horticultural, silvicultural or aquacultural activity, (ii) the repair, expansion or replacement of no more than one (1) bona fide dwelling occupied by the landowner or tenant as of the date of application for entry in the Agricultural Reserve Program and no more than one freestanding mobile home, as permitted by Section 19-19 of the Virginia Beach City Code, and (iii) accessory uses directly related to agricultural activities conducted on the same property, including the sale of agricultural products as permitted by Section 401 of the Virginia Beach City Zoning Ordinance. The term does not include the processing of agricultural, silvicultural, horticultural or aquacultural products, except as an accessory use. "Business Day" or "business day" means a day on which (a) banks located in the City and in the city in which the principal office of the Registrar is located are not required or authorized by law or executive order to close for business, and Co) The New York Stock Exchange is not closed. "City" means the City of Virginia Beach, Virginia, a body politic and corporate and a political subdivision created and existing under and by virtue of the Constitution and laws of the State, its successors and assigns. "City Council" means the Council of the City. "City Manager' means the City Manager of the City. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to the Code herein shall be deemed to include the United States Treasury Regulations in effect or proposed from time to time with respect thereto. "Deed of Easement" means the Deed of Easement of even date herewith from the Seller to the City, which shall convey the Development Rights to the City in perpetuity. The Deed of Easement shall be substantially in the form attached hereto as Exhibit A and made a part hereof. "Development Rights" mean the rights of the Seller in the Land to develop the Land for any use other than an Agricultural Use. Development Rights shall include, but not be limited to, the right to develop the Land for any commercial, industrial or residential use except as expressly permitted by the Ordinance. "Enabling Legislation" means, collectively, (1) the Open Space Land Act, Chapter 17 of Title 10.1 of the Code of Virginia of 1950, as amended, and (2) the Ordinance. "Estate Settlement Transfer" means the transfer by the legal representative of the estate of a deceased Seller of such Seller's fights in and to this Agreement in connection with the distribution of the deceased Seller's estate or other settlement of such decedent Seller's estate. "Interest Payment Date" means June 1 and December 1 in each year, commencing ,199_. "Land" means the tract or tracts of land located in Virginia Beach, Virginia, containing approximately 25.91 acres, and more particularly described in Exhibit B attached hereto and made a part hereof. "Ordinance" means the Agricultural Lands Preservation Ordinance adopted by the City Council on May 9, 1995, as Appendix J to the City Code, as the same may be amended or modified from time to time. "Permitted Encumbrances" mean the encumbrances listed on Exhibit C attached hereto and made a part hereof and any encumbrances on or with respect to the Land or any portion thereof hereafter approved, in writing, by the City. "Person" or "person" means any natural person, firm, association, corporation, company, trust, partnership, public body or other entity. "Purchase Price" means $23,156, the purchase price to be paid by the City to the Registered Owner in accordance with this Agreement. "Record Date" means the fifteenth (15th) day (whether or not a Business Day) of the calendar month immediately preceding each Interest Payment Date and the principal payment date. "Registered Owner" means the registered owner of this Agreement as shown on the registration books maintained by the Registrar. "Registrar" means First Union National Bank of Virginia or any other person hereafter appointed by the City to act as Registrar and paying agent for this Agreement. "Seller" means, collectively, Clyde W. Simons, Sr. and Janet G. Simons. "State" means the Commonwealth of Virginia. SECTION 1.2 Rules of Constr~ction. (a) The words "hereof," "herein,* "hereunder," "hereto," and other words of similar import refer to this Agreement in its entirety. (b) The terms *agree* and *agreements' contained herein are intended to include and mean *covenant" and 'covenants.' (c) References to Articles, Sections, and other subdivisions of this Agreement are to the designated Articles, Sections, and other subdivisions of this Agreement. (d) The headings of this Agreement are for convenience only and shall not define or limit the provisions hereof. (e) All references made (I) in the neuter, masculine or feminine gender shall be deemed to have been made in all such genders, and (ii) in the singular or plural number shall be deemed to have been made, respectively, in the plural or singular number as well. ARTICLE 2 SALE AND PURCHASE OF DEVELOPMENT RIGHTS SECTION 2.1 Agreement to Sell and Purchase Developnlcnt Rights. The Seller agrees to sell the Development Rights in the Land to the City and the City agrees to purchase the Development Rights in the Land from the Seller on the date hereof for the Purchase Price. SECTION 2.2 Delivery_ of Deed of Easemerlt. In order to evidence the sale of the Development Rights to the City, the Seller shall execute and deliver to the City on the date hereof the Deed of Easement in the form attached hereto as Exhibit A and made a part hereof. The Deed of Easement shall be recorded in the Clerk's Office of the Circuit Court of the City. ARTICLE 3 PAYMENT OF PURCHASE PRICE SECTION 3.1 Payment of Purchase Price. (a) The City shall pay the principal portion of the Purchase Price to the Registered Owner in a single installment on , 202_ [25-year maturity date]. The Purchase Price is $23,156. Co) Interest on the unpaid principal balance of the Purchase Price shall accrue from the date of recordation of the Deed of Easement and shall be payable to the Registered Owner on ... , 199_, and semiannually thereafter on June 1 and December 1 in each year to and including ,202_, at the rate of % per annum. Interest shall be calculated on the basis of a 360-day year of twelve 30-day months. (c) Both the single installment of principal of the Purchase Price and the interest on the unpaid balance thereof are payable in lawful money of the United States of America at the time of payment. (d) Payment of interest on the unpaid balance of the Purchase Price shall be made by the City on each Interest Payment Date to the Registrar. The Registrar shall forward all such interest payments by check or draft mailed to the person(s) appearing on the registration books of the City maintained by the Registrar as the Registered Owner on the Record Date, at the address of such Registered Owner as it appears on such registration books. The single installment of principal of the Purchase Price shall be paid on the principal payment date set forth in Subsection (a) above by the Registrar to the Registered Owner as of the Record Date upon presentation and surrender of this Agreement at the office of the Registrar. (e) The City's obligation to pay the Purchase Price hereunder and to pay interest on the unpaid balance of the Purchase Price is a general obligation of the City, and the full faith and credit and the unlimited taxing power of the City are irrevocably pledged to the punctual payment of the Purchase Price and the interest on the unpaid principal balance of the Purchase Price as and when the same respectively become due and payable. SECTION 3.2 Registration and Tr'0.nsfer of this Agreement. (a) Until the Purchase Price and all interest thereon have been paid in full, the City shall maintain and keep at the offices of the Registrar, registration books for the registration and transfer of this Agreement; and upon presentation of this Agreement for such purpose at the offices of the Registrar, the Registrar shall register or cause to be registered on such registration books, and permit to be transferred thereon, under such reasonable regulations as the City or the Registrar may prescribe, the ownership of this Agreement. The Registrar, however, shall not be required to make any such registration and transfer during the period from the Record Date to the next succeeding Interest Payment Date or final principal payment date. Cu) Except for an Estate Settlement Transfer, this Agreement may not be transferred by the Registered Owner prior to the expiration of a one (1) year period from the date this Agreement has been fully executed, delivered and become effective, and any such attempted transfer shall be null mad void. The Registrar shall be instructed not to make any such transfers (other than an Estate Settlement Transfer) on its registration books kept for the purpose of registering the transfer of this Agreement prior to the expiration of said one (1) year period. (c) The Seller is the original Registered Owner. This Agreement shall be transferable only upon the books of the City maintained for such purpose by the Registrar, at the written request of the Registered Owner as then shown on such registration books or his attorney duly authorized in writing, upon presentation and surrender of this Agreement, together with a written instrument of transfer substantially in the form attached hereto as Exhibit D, or as may otherwise be satisfactory to and approved by the Registrar in writing, duly executed by the Registered Owner or his attorney duly authorized in writing. Upon the surrender for transfer of this Agreement, the Registrar shall complete the Schedule of Transferees attached hereto as Exhibit E with the name, address and tax identification number of the transferee Registered Owner, and the date of the transfer; provided, however, that if there is any conflict between the information set forth in Exhibit E hereto and the registration books maintained by the Registrar, the information shown on such registration books shall control. The City and the Registrar may deem and treat the person in whose name this Agreement is registered upon the books of the City maintained by the Registrar as the absolute owner of this Agreement, whether any payments hereunder shall be overdue or not, for the purpose of receiving payment of, or on account of, the Purchase Price and interest thereon and for all other purposes, and all such payments so made to any such Registered Owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon this Agreement to the extent of the sum or sums so paid, and neither the City nor the Registrar shall be affected by any notice to the contrary. For every registration of transfer of this Agreement, the City or the Registrar may make a charge sufficient to reimburse themselves for any tax or other governmental charge required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such transfer as a condition precedent to the exercise of the privilege of registering such transfer. SECTION 3.3 Mutilated. Lost. Stolen or Destroyed Agreement. In the event that this Agreement is mutilated, lost, stolen or destroyed, the City and the Registered Owner (as then shown on the registration books maintained by the Registrar) shall execute and deliver a substitute agreement having the same terms and provisions as the mutilated, lost, stolen or destroyed Agreement; provided that, in the ease of any mutilated Agreement, such mutilated Agreement shall first be surrendered to the Registrar, and, in the ease of any lost, stolen or destroyed Agreement there shall be first furnished to the City and the Registrar evidence of such loss, theft or destruction satisfactory to the City and the Registrar, together with indemnity satisfactory to each of them in their sole discretion. The City and the Registrar may charge the Registered Owner requesting such new Agreement their expenses and reasonable fees, if any, in this connection. If after the delivery of such substitute Agreement, a bona fide purchaser of the original Agreement (in lieu of which such substitute Agreement was issued) presents for payment such original Agreement, the City and the Registrar shall be entitled to recover such substitute Agreement from the person to whom it was delivered or any other person who receives delivery thereof, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor or otherwise to the extent of any loss, damage, cost or expense incurred by the City and the Registrar in connection therewith. ARTICLE 4 REPRESENTATIONS AND WARRANTIES SECTION 4.1 l~resentations and Warranties of the Ci _ry. The City makes the following representations and warranties: (a) The City is a body politic and corporate and a political subdivision of the State. (b) The City has the necessary power and authority to acquire the Development Rights, to enter into this Agreement, to perform and observe the covenants and agreements on its part contained in this Agreement and to carry out and consummate all transactions contemplated hereby. By proper action, the City has duly authorized the execution and delivery of this Agreement. (c) This Agreement has been duly and properly authorized, executed, sealed and delivered by the City, constitutes the valid and legally binding obligation of the City, and is enforceable against the City in accordance with its terms. (d) There are no proceedings pending or, to the knowledge of the City, threatened before any court or administrative agency which may affect the authority of the City to enter into this Agreement. SECTION 4.2 Reoresentations and Warranties of the Seller. -- makes the following representations and warranties: The Seller (a) The Seller has full power and authority to execute and deliver this Agreement and the Deed of Easement, and to incur and perform the obligations provided for herein and therein. No consent or approval of any person or public authority or regulatory body is required as a condition to the validity or enforceability of this Agreement or the Deed of Easement, or, if required, the same has been duly obtained. (b) This Agreement and the Deed of Easement have been duly and properly executed by the Seller, constitute valid and legally binding obligations of the Seller, and are fully enforceable against the Seller in accordance with their respective terms. (c) There is no litigation or proceeding pending or, so fax as the Seller knows, threatened before any eom or administrative agency which, in the opinion of the Seller, will materially adversely affect the authority of the Seller to enter into, or the validity or enforceability of, this Agreement or the Deed of Easement. (d) There is (I) no provision of any existing mortgage, indenture, contract or agreement binding on the Seller or affecting the Land, and (ii) to the knowledge of the Seller, no provision of law or order of court binding upon the Seller or affecting the I. and, which would conflict with or in any way prevent the execution, delivery, or performance of the terms of this Agreement or the Deed of Easement, or which would be in default or violated as a result of such execution, delivery or performance, or for which adequate consents, waivers or, if necessary, releases or subordinations, have not been obtained. (e) There exist no liens, security interests or other encumbrances on or with respect to the Land (other than Permitted Encumbrances), and at the time of execution and delivery of the Deed of Easement there will be no liens, security interests or other encumbrances of the Development Rights to be conveyed thereby. (f) The Seller is not a nonresident alien of the United States of America for purposes of federal income taxation. (g) The Social Security Numbers of the Seller axe 223-56-0127 (for Clyde W. Simons, Sr.) and 227-72-2982 (for Janet G. Simons). The representations in subsections (f) and (g) above axe made under penalties of perjury and the information contained therein may be disclosed by the City to the Internal Revenue Service. The Seller acknowledges that any false statement in such subsections could be punished by fine, imprisonment or both. (h) To the best of the knowledge, information and belief of the Seller, the Land has not been used for the manufacture, storage, treatment, disposal or release of any hazardous waste or substance. ARTICLE 5 PROVISIONS RELATING TO EXCLUSION OF INTEREST FROM INCOME FOR FEDERAL INCOME TAXATION SECTION 5.1 Intent of City_ and Tax Covenant of City. The City intends that the interest payable under this Agreement shall not be includable in the gross income of the Registered Owner for purposes of federal income taxation pursuant to Section 103 of the Code. Accordingly, the City shall not knowingly take or permit to be taken any other action or actions or omit or fail to take any action, which would cause this Agreement to be an "arbitrage bond" within the meaning of Section 148 of the Code, or which would otherwise cause interest payable under this Agreement to become includable in the gross income of any Registered Owner for purposes of federal income taxation. SECTION 5.2 Acknowledgment of Seller with Regard to Tax Consequences of Transaction. The Seller has received an opinion from Kaufman & Canoles, P.C., Bond Counsel, dated the date hereof, to the effect that under existing laws, regulations, rulings and decisions, interest payable under this Agreement is not includable in the gross income of the Seller for federal income tax purposes, which opinion assumes continuous compliance with certain covenants in the Tax Certificate and Compliance Agreement to be executed and delivered by the City on the date of delivery of this Agreement and is otherwise limited in accordance with its terms. The Seller acknowledges that Seller has made Seller's own independent investigation and has consulted with such attorneys, accountants and others as the Seller shall have selected in the Seller's sole discretion to advise the Seller with respect to all other tax considerations related to the transaction contemplated hereby (including, but not limited to, installment sales treatment under Section 453 of the Code, charitable contribution deductions under Section 170 of the Code, and federal estate tax implications); and the Seller certifies that the Seller has not looked to or relied upon the City or any of its officials, agents or employees, or to Bond Counsel, with respect to any of such matters. ARTICLE 6 THE REGISTRAR SECTION 6.1 Aooointment of Registrar. First Union National Bank of Virginia is hereby designated and appointed to act as Registrar for this Agreement. SECTION 6.2 Ownership of Agreement. The Registrar, in its individual capacity or as trustee for holders of participation interests in this Agreement, may in good faith buy, sell, own and hold this Agreement, and may join in any action which any Registered owner may be entitled to take with like effect as if it did not act as Registrar hereunder. The Registrar, in its individual capacity, either as principal or agent, may also engage, or have an interest, in any financial or other transaction with the City, and may a~t as depository, trustee or agent for other obligations of the City as freely as if it did not act in any capacity hereunder. SECTION 6.3 Removal of Registrar and Aoc~intment of Successor -- __ ~. The City shall have the right, subject to the terms of any agreement with the Registrar, to remove the Registrar any time by filing with such Registrar to be removed, and with the Registered Owner, an instrument in writing. Notwithstanding the foregoing, such removal shall not be effective until a successor Registrar has assumed the Registrar's duties hereunder. The City shall have the sole right to select a successor Registrar. SECTION 6.4 Qualifications of Successor Registrar. Any successor Registrar shall be either (a) the Department of Finance of the City, (b) an officer or employee of the City, or (c) a bank, trust company or other financial institution duly organized under the laws of the United States or any state or territory thereof which is authorized by law and permitted under the laws of the State to perform all the duties imposed upon it as Registrar by this Agreement. SECTION 6.5 Suo:e~sor bv Mer~er or Consolidation. If the Registrar is a bank, trust company or other financial institution, any institution or corporation into which the Registrar hereunder may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger or consolidation to which the Registrar hereunder shall be a party or any institution or corporation succeeding to the corporate trust business (if any) of the Registrar, shall be the successor Registrar under this Agreement, without the execution or filing of any paper or any further act on the part of the parties hereto, anything in this Agreement to the contrary notwithstanding. ARTICLE 7 MISCF~LANEOUS SECTION 7.1 Successors of City. In the event of the dissolution of the City, all the covenants, stipulations, promises and agreements in this Agreement contained, by or on behalf of, or for the benefit of, the City, the Seller, any other Registered Owner and the Registrar, shall bind or inure to the benefit of the successors of the City from time to time and any entity, officer, board, commission, agency or instrumentality to whom or to which any power or duty of the City shall be transferred. SECTION 7.2 Parties in Interest. Except as herein otherwise specifically provided, nothing in this Agreement expressed or implied is intended or shall be construed to confer upon any person, firm or corporation, other than the City, the Seller, any other Registered Owner and the Registrar, any right, remedy or claim under or by reason of this Agreement, this Agreement being intended to be for the sole and exclusive benefit of the City, the Seller, any other Registered Owner from time to time of this Agreement and the Registrar. SECTION 7.3 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, personal representatives, successors and assigns, including, without limitation, all Registered Owners from time to time of this Agreement. SECTION 7.4 ~gY. grlhil~. In case any one or more of the provisions of this Agreement shall, for any reason, be held to be illegal or invalid, such illegality or invalidity shall not affect any other provisions of this Agreement and this Agreement 10 shall be construed and enforced as if such illegal or invalid provisions had not been contained herein or therein. SECTION 7.5 Prior A~eements Cancelled: No Merger. This Agreement shall completely and fully supersede all other prior agreements, both written and oral, between the City and the Seller relating to the acquisition of the Development Rights. Neither the City nor the Seller shall hereafter have any rights under such prior agreements but shall look solely to this Agreement and the Deed of Easement for definitions and determination of all of their respective rights, liabilities and responsibilities relating to the Land, the Development Rights and the payment for the Development Rights. In addition, this Agreement shall survive the execution and recording of the Deed of Easement in all respects and shall not be merged therein. SECTION 7.6 Amendments. Changes and Modifications. This Agreement may not be amended, changed, modified, altered or terminated except by an agreement in writing between the City and the then Registered Owner. An executed counterpart of any such amendment shall be attached to this Agreement and shall be binding upon such Registered Owner and all successor Registered Owners. SECTION 7.7 No Personal Liability of City Officials. No covenant or agreement contained in this Agreement shall be deemed to be the covenant or agreement of any official, officer, agent or employee of the City in his or her individual capacity, and neither the officers or employees of the City nor any official executing this Agreement shall be liable personally on this Agreement or be subject to any personal liability or accountability by reason of the issuance thereof. SECTION 7.8 Governing Law. The laws of the State shall govern the construction and enforcement of this Agreement. SECTION 7.9 Notices. Except as otherwise provided in this Agreement, all notices, demands, requests, consents, approvals, certificates or other communications required under this Agreement to be in writing shall be sufficiently given and shall be deemed to have been properly given three Business Days after the same is mailed by certified mail, postage prepaid, remm receipt requested, addressed to the person to whom any such notice, demand, request, approval, certificate or other communication is to be given, at the address for such person designated below: City: City Manager Municipal Center Virginia Beach, VA 23456 with a copy to: City Attorney Municipal Center Virginia Beach, VA 23456 11 Seller: Registrar: Clyde W. Simons, Sr. and Janet G. Simons 2744 North Landing Road Virginia Beach, Virginia 23456 First Union National Bank of Virginia Corporate Trust Department 2nd Floor 901 East Car), Street Richmond, Virginia 23219 Any of the foregoing may, by notice given hereunder to each of the others, designate any further or different addresses to which subsequent notices, demands, requests, consents, approvals, certificates or other communications shall be sent hereunder. SECTION 7.10 Holidays. If the date for making any payment or the last date for performance of any act or the exercising of any right, as provided in this Agreement, shall not be a Business Day, such payment may, unless otherwise provided in this Agreement, be made or act performed or right exercised on the next succeeding Business Day with the same force and effect as if done on the nominal date provided in this Agreement, and in the case of payment no interest shall accrue for the period after such nominal date. W/TNF_.SS the signatures and seals of the parties hereto as of the date first above written. CITY: [CITY'S SEAL] CITY OF VIRGINIA BEACH, VIRGINIA A~T: By: James K. Spore, City Manager City Clerk SELLER: Clyde W. Simons, Sr. (SEAL) 12 Janet G. Simons Approved as to Legal Sufficiency: Approved as to Sufficiency of Funds: Deputy City Attorney Director, Department of Finance COMMONWEALTH OF VIRGINIA AT LARGE, to-wit: The foregoing instrument was acknowledged before me in the City of Virginia Beach, Virginia, this ~ day of , 19 , by James K. Spore, City Manager of the City of Virginia Beach, Virginia, and attested to by , City Clerk of the City of Virginia Beach, Virginia, on its behalf. (SEAL) My Commission Expires: Notary Public 13 COMMONWEALTH OF VIRGINIA AT LARGE, to-wit: The foregoing instrument was acknowledged before , Virginia, this , 19 , by Clyde W. Simons, Sr. me in the City of day of (SEAL) My Commission Expires: Notary Public COMMONWEALTH OF VIRGINIA AT LARGE, to-wit: The foregoing instrument was acknowledged ., Virginia, , 19 , by Janet G. Simons. before me in the City of this day of (SEAL) My Commission Expires: Notary Public 14 Th~s instrument was prepared by V~rg~ma Beach C~ty Attorney's Office Exemption Claimed: § 58.1-81 l(A)(3) § 58.1-811(C)(4) DEED OF EASEMENT EXHIBIT A THIS DEED OF EASEMENT is made this day of ,1997, by and between CLYDE W. SIMONS, SR. and JANET G. SIMONS, husband and wife (collectively, the "Grantor"), and CITY OF VIRGINIA BEACH, VIRGINIA, a body politic and corporate of the Commonwealth of Virginia (the "City") whose address is Municipal Center, Virginia Beach, Virginia 23456, Grantee. RECITALS WHEREAS, pursuant to the authority granted by the Open-Space Land Act, Chapter 17, Title 10.1 of the Code of Virginia of 1950, as amended (the "Act"), the City adopted the Agricultural Lands Preservation Ordinance (the "Ordinance") as Appendix J to the Code of the City of Virginia Beach, Virginia, as amended (the "City Code"), to promote and encourage the preservation of agricultural land in designated areas within the southern portion of the City; and WHEREAS, in furtherance ofthe purposes of the Act and the Ordinance, the City has established the Agricultural Reserve Program of the City which provides for the acquisition of development rights through the purchase of agricultural land preservation easements with respect to property located in the portions of the City covered by the Ordinance; and WHEREAS, the Grantor is the owner in fee simple of certain agricultural real property located in the City and more particularly described in Exhibit A hereto (the "Land"); and · WHEREAS, the Land is located in that portion of the City subject to the Ordinance and meets the eligibility criteria of Section 7 of the Ordinance; and WHEREAS, the Grantor has agreed to sell to the City the Grantor's Development Rights (hereinafter defined) in the Land by executing and delivering this Deed of Easement and thereby restrict the use of the Land as described herein; and GPIN 2317-76-2143 and 2317-75-6606 WHEREAS, the City has agreed to purchase the Grantor's Development Rights in the Land to fulfill the policy and purposes of the City as set forth in the Act and the Ordinance; and WHEREAS, the transfer by the Grantor of the Development Rights in the Land shall be ~n perpetuity; and WHEREAS, in order to provide for the payment of the purchase price for the rights in the Land created hereby, the Grantor and the City have entered into an Installment Purchase Agreement of even date herewith (the "Installment Purchase Agreement"); GRANT NOW, THEREFORE, for and in consideration of the sum of TEN DOLLARS ($10.00), the covenants and promises contained here~n and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor, for Grantor, Grantor's heirs, personal representatives, devisees, successors and assigns, and for any subsequent owner of the Land does hereby grant and convey, with general warranty and English covenants of title, unto the City, and its successors and assigns, forever and in perpetuity, an agricultural land preservation easement in, on, over and with respect to the Land restricting the Land to Agricultural Use and in furtherance thereof, does hereby grant and convey, with general warranty and English covenants of t~tle, to the City, and its successors and assigns, forever and in perpetuity, all of the Development Rights with respect to the Land. TERMS. COV~ENANTS. CONDITIONS AND AGREEMENTS A. The Grantor for Grantor, Grantor's heirs, personal representatives, devisees, successors and assigns covenants with the City, (1) to refrmn fi.om engaging in any act or activity, or permitting to occur or suffering to exist any act or activity upon the Land which would constitute the exercise of a Development Right or a use other than an Agricultural Use, it being the intention of the part,es that the Land shall be preserved for Agricultural Use in accordance with the provisions of the Ordinance; and (2) that this Deed of Easement shall create a perpetual easement, running with the Land and all portions thereof as an incorporeal and nonpossessory interest therein, enforceable against the Grantor and upon any purchaser, grantee, lessee, owner or other transferee of all or any portion of the Land and any other person or entity having any right, title or interest therein and upon their respective heirs, personal representatives, devisees, successors and assigns; and (3) that the covenants, conditions, limitations and restrictions contained here~n are ~ntended to limit the use of the Land as herein set forth. B. The parties, for themselves, their he~rs, personal representatives, devisees, successors and assigns, further covenant and agree as follows: (1) As used in this Deed of Easement the term "Development Rights" shall mean the fight to develop the Land for any use, including without limitation, any commercial, industrial or residential use, other than for Agricultural Use. (2) As used in this Deed of Easement the term "Agricultural Use" means (i) the bona fide production of crops, animal or fowl, including, but not limited to, the production of fruits, vegetables, honey, grains, meat, poultry and dairy products, the raising of livestock and poultry, and the production and harvest of products from horticultural, silvicultural or aquacultural activity, (ii) the repair, expansion or replacement of no more than one (1) bona fide dwelling occupied by the landowner or tenant as of the date of application for entry in the Agricultural Reserve Program and no more than one freestanding mobile home, as permitted by Section 19-19 of the City Code, and (iii) accessory uses directly related to agricultural activities conducted on the same property, including the sale of agricultural products as permitted by Section 401 of the City Zoning Ordinance. The term does not include the processing of agricultural, silvicultural, horticultural or aquacultural products, except as an accessory use. (3) This Deed of Easement does not grant the public any right of entry or access or any rights of use of the Land. (4) THIS EASEMENT SHALL EXIST IN PERPETUITY AND RUN WITH THE ENTIRE ACREAGE OF THE LAND. (5) The purpose of this Deed of Easement shall be to (i) promote and encourage the preservation of farmland, and promote and enhance agriculture as an important industry within the City, (ii) preserve the rural character of the southern part of the City, (iii) conserve and protect environmentally sensitive lands, waters and other resources, (iv) reduce and defer the need for major infrastructure improvements in the southern part of the City and the expenditure of public funds for such improvements, (v) preserve open spaces, and (vi) assist in shaping the character, direction and timing of commumty development. (6) In the' event of a violation or attempted violation of any of the provisions hereof, the City and its successors and assigns, may institute and prosecute any proceeding at law or in equity to enforce the provisions hereof or to abate, prevent or enjoin any such violation or attempted violatmn. WITNESS, the hand and seal of the Grantor as of the date first above written. GRANTOR: Clyde W. Simons, Sr. (SEAL) Janet G. Simons (SEAL) COMMONWEALTH OF VIRGINIA AT LARGE, to-wit: The foregoing instrument was acknowledged before me in the City of Virginia Beach, Virginia, this day of ,1997, by Clyde W. Simons, Sr., Grantor. Notary Public (SEAL) My Commission Expires: COMMONWEALTH OF VIRGINIA AT LARGE, to-wit: The foregoing instrument was acknowledged before me in the City of Virginia · Beach, Virginia, this day of , 1997, by Janet G. Simons, Grantor. Notary Public (SEAL) My Commission Expires: EXItIBIT A PARCEL 1 ALL THAT certain lot, piece or parcel of land with the buildings and improvements thereon, situated in the City of Virginia Beach, Virginia, in Pungo District, being 23.910 acres more or less as shown on that certain plat entitled "Survey of Property of William A. Grimstead and Janet G. Simons", made by Gallup Surveyors and Engineers, Ltd., dated March 11, 1982, and being more particularly described as follows: BEGINNING at a point on the south side of Public Landing Road which point is 1923.75 feet from the intersection of Public Landing Road and Kaden Lane; thence south 10 degrees, 15 minutes, 0 seconds west, a distance of 854.57 feet to a pin; thence north 83 degrees, 36 minutes, 58 seconds west, a distance of 1608.93 feet to a monument; thence north 44 degrees, 26 minutes, 49 seconds east, a distance of 210.39 feet to a pin; thence north 30 degrees, 52 minutes, 23 seconds west, a distance of 51.69 feet to a point; thence north 44 degrees, 25 minutes, 08 seconds east, a distance of 415.99 feet to a pin; thence south 86 degrees, 12 minutes, 41 seconds east, a distance of 618.42 feet to a point; thence north 12 degrees, 42 minutes, 57 seconds east, a distance of 414 feet to a point on the south side of Public Landing Road; thence along the south s~de of Public Landing Road south 74 degrees, 20 minutes, 03 seconds east, a distance of 1.48 feet to a point, thence along the arc of a curve (radius 7974.49') to the fight, a distance of 206.92 feet; thence south 72 degrees, 50 minutes, 51 seconds east, a distance of 451.08 feet to the point of beginning. LESS AND EXCEPT that portion of the above described property described as one acre conveye.d to Robert W. Dixon, et ux, by deed of gif~ dated October 11, 1982, from William L. Grimstead, et al, duly recorded in the aforesaid Clerk's Office in Deed Book 2223, at page 451, more particularly shown in Map Book 160, at page 9. PARCEL II; ALL THAT certain lot, piece or parcel of land with the buildings and improvements thereon, situated in the City of Virginia Beach, Virginia, in Pungo District, being 5.973 acres more or less as shown on that certain plat entitled, "Survey of Property of William A. Gfimstead and Janet G. Simons", made by Gallup Surveyors and Engineers, Ltd., dated March 11, 1982, and being more particularly described as follows: BEGINNING at a pin on the south side of Public Landing Road which said point is a distance of 864.27 feet from the intersection of Public Landing Road and Kaden Lane; thence along the south side of Public Landing Road south 74 degrees, 20 minutes, 03 seconds east, a distance of 400 feet to a point; thence south 12 degrees, 42 minutes 57 seconds west, a distance of 414 feet to a point; thence north 86 degrees, 12 minutes, 41 seconds east, a distance of 722.55 feet to a point; thence north 42 degrees, 36 minutes, 44 seconds east, a distance of 630.63 feet to a pin, the point of beginning. LESS AND EXCEPT all portions of the above-described property, if any, which contain any of the following soil types: (1) Back Bay Mucky Peat; (2) Dorovan Mucky Peat; (3) Nawney Silt Loam; or (4) Pamlico Mucky Peat, Ponded. [LESS AND EXCEPT that certain tract, piece or parcel being a portion of the above described property designated and described as "#" as shown on that certain plat entitled: "#", Scale #" = #', dated #, prepared by #, which plat is attached hereto and recorded simultaneously herewith.] IT BEING as to PARCEL I, a part of the same property conveyed to Janet G. Simons and Clyde W. Simons, Sr., from William L. Grimstead, et al, by deed of gift dated May 14, 1982, duly recorded in the aforesaid Clerk's Office in Deed Book 2200, at page 1931, and by corrected deed of gift dated July 28, 1982, duly recorded in the aforesaid Clerk's Office in Deed Book 2212, at page 1469. Upon the death of William L. Grimstead on June 30, 1992, as evidenced by his Will duly recorded in the aforesaid Clerk's Office in Will Book 82, at page 670, his life estate interest in said property reserved in the aforesaid deeds of gift was extinguished. IT BEING as to PARCEL II, the same property conveyed to Janet G. Simons and Clyde W. Simons, Sr., from William L. Grimstead, et al, by deed of gift dated May 14, 1982, duly recorded in the aforesaid Clerk's Office in Deed Book 2200 at page 1929, and by corrected deed of gift dated July 28, 1982, duly recorded in the aforesaid Clerk's Office in Deed Book 2212, at page 1471. Upon the death of William L. Grimstead on June 30, 1992, as evidenced by his Will duly recorded in the aforesaid Clerk's Office in Will Book 82, at page 670, his life estate interest in said property reserved in the aforesaid deeds of gift was extinguished. EXHIBIT B PARCEL 1 ALL THAT certain lot, piece or parcel of land with the buildings and improvements thereon, situated in the City of Virginia Beach, Virginia, in Pungo District, being 23.910 acres more or less as shown on that certain plat entitled "Survey of Property of William A. Grimstead and Janet G. Simons", made by Gallup Surveyors and Engineers, Ltd., dated March 11, 1982, and being more particularly described as follows: BEGINNING at a point on the south side of Public Landing Road which point is 1923.75 feet from the intersection of Public Landing Road and Kaden Lane; thence south l0 degrees, 15 minutes, 0 seconds west, a distance of 854.57 feet to a pin; thence north 83 degrees, 36 minutes, 58 seconds west, a distance of 1608.93 feet to a monument; thence north 44 degrees, 26 minutes, 49 seconds east, a distance of 210.39 feet to a pin; thence north 30 degrees, 52 minutes, 23 seconds west, a distance of 51.69 feet to a point; thence north 44 degrees, 25 minutes, 08 seconds east, a distance of 415.99 feet to a pin; thence south 86 degrees, 12 minutes, 41 seconds east, a distance of 618.42 feet to a point; thence north 12 degrees, 42 minutes, 57 seconds east, a distance of 414 feet to a point on the south side of Public Landing Road; thence along the south side of Public Landing Road south 74 degrees, 20 minutes, 03 seconds east, a distance of 1.48 feet to a point, thence along the arc of a curve (radius 7974.49') to the right, a distance of 206.92 feet; thence south 72 degrees, 50 minutes, 51 seconds east, a distance of 451.08 feet to the point of beginning. LESS AND EXCEPT that portion of the above described property described as one acre conveyed to Robert W. Dixon, et ux, by deed of gift dated October 11, 1982, from William L. Grim.stead, et al, duly recorded in the aforesaid Clerk's Office in Deed Book 2223, at page 451, more particularly shown in Map Book 160, at page 9. PARCEL II: ALL THAT certain lot, piece or parcel of land with the buildings and improvements thereon, situated in the City of Virginia Beach, Virginia, in Pungo District, being 5.973 acres more or less as shown on that certain plat entitled, "Survey of Property of William A. Gnmstead and Janet G. Simons", made by Gallup Surveyors and Engineers, Ltd., dated March 11, 1982, and being more particularly described as follows: BEGINNING at a pin on the south side of Public Landihg Road which said point is a distance of 864.27 feet fi.om the intersection of Public Landing Road and Kaden Lane; thence along the south side of Public Landing Road south 74 degrees, 20 minutes, 03 seconds east, a distance of 400 feet to a point; thence south 12 degrees, 42 minutes 57 seconds west, a distance of 414 feet to a point; thence north 86 degrees, 12 minutes, 41 seconds east, a distance of 722.55 feet to a point; thence north 42 degrees, 36 minutes, 44 seconds east, a distance of 630.63 feet to a pin, the point of beginning. LESS AND EXCEPT all portions of the above-described property, if any, which contain any of the following soil types: (1) Back Bay Mucky Peat; (2) Dorovan Mucky Peat; (3) Nawney Silt Loam; or (4) Pamlico Mucky Peat, Ponded. [LESS AND EXCEPT that certain tract, piece or parcel being a portion of the above described property designated and described as "#" as shown on that certain plat entitled: "It", Scale #" = #', dated #, prepared by #, which plat is attached hereto and recorded simultaneously herewith.] IT BEING as to PARCEL I, a part of the same property conveyed to Janet G. Simons and Clyde W. Simons, Sr., from William L. Grimstead, et al, by deed of gift dated May 14, 1982, duly recorded in the aforesaid Clerk's Office in Deed Book 2200, at page 1931, and by corrected deed of gift dated July 28, 1982, duly recorded in the aforesaid Clerk's Office-in Deed Book 2212, at page 1469. Upon the death of William L. Grimstead on June 30, 1992, as evidenced by his Will duly recorded in the aforesaid Clerk's Office in Will Book 82, at page 670, his life estate interest in said property reserved in the aforesaid deeds of gift was extinguished. IT BEING as to PARCEL II, the same property conveyed to Janet G. Simons and Clyde W. Simons, Sr., from William L. Grimstead, et al, by deed of gift dated May 14, 1982, duly recorded in the aforesaid Clerk's Office in Deed Book 2200 at page 1929, and by corrected deed of gift dated July 28, 1982, duly recorded in the aforesaid Clerk's Office in Deed Book 2212, at page 1471. Upon the death of William L. Grimstead on Jur~e 30, 1992, as evidenced by his Will duly recorded in the aforesaid Clerk's Office in Will Book 82, at page 670, his life estate interest in said property reserved in the aforesaid deeds of gift was extinguished. EXHIBIT "C" PERMITTED ENCUMBRANCES Taxes for the accruing form the beginning of the second half fiscal year 1996/1997 and any/all Stormwater fees, which are liens not yet due and payable, and taxes and stormwater fees for all subsequent billing periods. 2. Roll Back Taxes. , Easement granted Virginia Electric and Power Company over the subject property, as established by instrument recorded in Deed Book 271, at page 511, no width given. (As to Parcel II) , Easement granted Virginia Electric and Power Company over the subject property, as established by instrument recorded in Deed Book 271, at page 513, no width given.(As to Parcel II) , Such other restrictions and encumbrances which, in the opinion of the City Attorney, do not adversely affect the interest of the City of Virginia Beach in and to the agricultural land preservation easement and the rights granted to the City in the Deed of Easement. ASSIGNMENT EXHIBIT D FOR VALUE RECEIVED, and ([collectively,] the 'Registered Owner') hereby sell[s], assign[s] and transfer[s] unto , without recourse, all of the Registered Owner's right, title and interest in and to the Installment Purchase Agreement to which this Assignment is attached; and the Registered Owner hereby irrevocably directs the Registrar (as defined in such Agreement) to transfer such Agreement on the books kept for registration thereof. The Registered Owner hereby represents, warrants and certifies that there have been no amendments to such Agreement [except e Date: Signature guaranteed: NOTICE: Signature must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. NOTICE: The signature on this Assignment must correspond with the name of the Registered Owner as it appears on the registration books for the Installment Purchase Agreement referred to herein in every particular, without alteration or enlargement or any change whatever. 18 EXHIBIT E TRANSFER OF AGREEMENT - SCHEDULE OF TRANSFEREES The transfer of this Installment Purchase Agreement may be registered only by the Registered Owner under such Agreement in person or by its duly authorized officer or attorney upon presentation hereof to the Registrar, who shall make note thereof in the books kept for such purpose and in the registration blank below. Date of Registration of Transfer Name and Address of Transferee Registered Seller Tax I.D. No. of Transferee Signature of Registrar le 1 , , 19 - 25 - Item V-K. 2. ORDINANCES ITEM # 42154 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinance to AMEND Section 6-10 of the City Code by prohibiting the use of skateboards in the resort area year-round. (Sponsored by Vice Mayor William D. Sessoms, Jr. and Councilman Linwood O. Branch, III) ~ting: 11-0 (By ConsenO Council Members Voting Aye: John A Baum, Linwood O. Branch, IIL William W. Harrison, Jr, Harold Heischober, Barbara M. Henley, Louis R Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent: None May 27, 1997 Requested by Vice-Mayor William D. Sessoms, Jr. and Councilmember Linwood O. Branch, III. AN ORDINANCE TO AMEND SECTION 6-10 OF THE CITY CODE BY PROHIBITING THE USE OF SKATEBOARDS IN THE RESORT AREA YEAR-ROUND 10 11 12 13 14 15 16 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That Section 6-10 of the Code of the City of Virginia Beach, Virginia, is hereby amended and reordained to read as follows: Bec. 6-10. Use of roller skates, skateboards, etc., on boardwalk or grassy area, bioyole path, ooeanfront parks and plazas, publio restrooms, and sidewalks adjaoent thereto. (a) It shall be unlawful for any person to use a skateboard or any similar device at any time in the area from, and including, the sidewalk on the west side of Pacific Avenue to the Atlantic 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Ocean, between Rudee Inlet and 42nd Street. +a+ Cb) It shall be unlawful for any person to use roller skates, roller blades, ............ , -vz- or any similar devicee on wheels or runners on the grassy area adjacent to the boardwalk, or on the bicycle path, oceanfront parks and plazas, public restrooms, and sidewalks adjacent thereto at any time. ~4~ (c) It shall be unlawful for any person to use roller skates, roller blades, ~ or any similar devicee on wheels or runners on any sidewalk along and east of Pacific Avenue from Rudee Inlet to 42nd Street from 6:00 p.m. on the Friday before Memorial Day Weekend to 6:00 p.m. Labor Day; ~ ....... , ........ , ................. (d) It shall be unlawful for any person to use roller skates, roller blades, ~ skateboarde, ~ or any similar devic~ on wheels 38 39 40 41 42 43 44 45 46 47 .~.~A~ ~ ..... ~~- whether such use is permitted or not, or runners, ................ recklessly or at a speed faster than is reasonably proper, or in a manner so as to interfere with pedestrians or to endanger the life, limb or property of the rider or any other person. (e) The provisions of this section shall not be applicable to the use of wheelchairs for the transportation of disabled persons or the use of baby carriages, strollers or related modes of transportation for infants. Adopted by the City Council of the City of Virginia Beach on this 27 day of May 1997. 48 49 5O 51 CA-6565 DATA/ORDIN/PROPOSED/6-10. Ord MARCH 13, 1997 R4 - 26- Item V-K. 3. ORDINANCES ITEM # 42155 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinance to ACCEPT and APPROPRIATE a $4,900 National Oceanic Atmospheric Administration Grant from the Virginia Department of Environmental Quality to the Virginia Marine Science Museum's FY 1996-1997 Operating Budget to research sea turtle and marine mammal strandings; and, estimated revenues from the Federal Government within the Virginia Marine Science Museum Fund be increased accordingly. Voting: 11-0 (By ConsenO Council Members Voting Aye: John A. Baum, Linwood 0 Branch, III, Wilham W Harrtson, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndo~ Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent: None May 27, 1997 AN ORDINANCE TO ACCEPT AND APPROPRIATE A $4,900 NATIONAL OCEANIC ATMOSPHERIC ADMINISTRATION GRANT FROM THE VIRGINIA DEPARTMENT OF ENVIRONMENTAL QUALITY TO THE MARINE SCIENCE MUSEUM'S FY 1996-97 OPERATING BUDGET TO RESEARCH SEA TURTLE AND MARINE MAMMAL STRANDINGS WHEREAS, the Manne Science Museum apphed for and received a $4,900 Nabonal Oceamc Atmospheric Admm~strabon (NOAA) grant to research sea turtle and mammal strandings through the analys~s of stranding data and spacml and temporal maps of areas where strandings and mteracbons have occurred, and WHEREAS, th~s grant requires a $6,275 match of ~n-k~nd services ~n the form of personnel and equipment to be prowded by the Marine Science Museum from w~thm ~ts FY 1996-97 Operahng Budget 7 8 9 10 NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA, that the $4,900 grant from the Nahonal Oceamc Atmospheric Adm~n~strahon through the V~rg~n~a Department of Environmental Quahty be accepted and appropriated to the Manne Science Museum's FY 1996- 97 Operahng Budget and that the Manne Science Museum prowde the services and equipment necessary for the reqmred match from w~thm ~ts emstmg resources 11 12 BE IT FURTHER ORDAINED, that esbmated revenues from the Federal Government w~th~n the Manne Science Museum Fund be ~ncreased to reflect receipt of th~s grant 13 Adopted by the Councd of the C~ty of V~rg~ma Beach, V~rg~ma on the 27 day of May ,1997 APPROVED AS TO LEGAL SUFFICIENCY Approved as to Content - Wal-ter C Kr~r, Jr Management and Budget CRW-C \OB97\DeptsWluseum~grant2 ord - 27- Item V-K. 4. ORDINANCES ITEM # 42156 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinance to TRANSFER $50,000 from CIP Project #2-165 Laskin Road-Phase II to CIP Project #2-305 Ferrell Parkway-Phase H re additional preliminary right-of-way acquisition costs. Voting: 11-0 (By ConsenO Council Members Voting Aye: John A. Baum, Linwood O. Branch, III, William W. Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent: None May 27, 1997 AN ORDINANCE TO TRANSFER $50,000 FROM CIP PROJECT #2-165 LASKIN ROAD - PHASE H TO CIP PROJECT #2-:305 FERRELL PARKWAY- PHASE H TO ADDRESS ADDITIONAL PRELIMINARY RIGHT-OF-WAY ACQUISITION COSTS WHEREAS, CIP Project #2-305 Ferrell Parkway - Phase II is a VDOT project which will widen Princess Anne Road, from two lanes to four lanes, from Dam Neck Road to Ferrell Parkway - Phase V, the intersection at Judicial Boulevard, WHEREAS, it is in the best interest of the City to acquire sufficient right-of-way along Princess Anne Road to ensure the highest quality highway with access control on adjacent parcels, 10 11 WHEREAS, the estimated cost to provide all necessary title work, plats, appraisals, and environmental assessments is $50,000, 12 13 WHEREAS, funds are not currently available in CIP Project #2-305 Ferrell Parkway - Phase II to address these costs, and 14 15 WHEREAS, there is $50,000 of surplus appropriations currently available for transfer from CIP Project #2-165 Laskin Road - Phase II; 16 17 18 19 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, that $50,000 be transferred from CIP Project #2-165 Laskin Road - Phase II to CIP Project #2-305 Ferrell Parkway - Phase II to address additional preliminary fight-of-way acquisition costs 20 21 BE IT FURTHER ORDAINED that the FY 1997-98 Capital Improvement Program be amended to reflect this change 22 This ordinance shall be in effect from the date of its adoption 23 24 Adopted the~ Beach, Virginia SWACouncflX2305row ord 27 day of May ,1997, by the Council of the City of Virginia Dep~rffia~n! o"f Management Services APPROVED AS TO LEGAL SUFFICIENCY - 28 - Item V-K. J.a. ORDINANCES ITEM # 42157 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinance to authorize temporary encroachment Into a portion of the City's drainage easement at 920 Raton Court to Bruce L. and Karen $. Rodgers re constructing and maintaining a bulkhead and dock (PRINCESS ANNE BOROUGH) The following conditions shall be required: That said temporary encroachment will be constructed and maintained in accordance with the laws of the Commonwealth of Virginia and the City of Virginia Beach and in accordance with the City of Virginia Beach Pubhc Works Department's specifications and approval as to size, alignment and location. o This temporary encroachment shall terminate upon nottce by the City of Virginia Beach to the party of the second part and that withtn thirty (30) days after such notice is given, such temporary encroachment shall be removed from the Ctty's drainage easement over a lake in Ocean Lakes subdivtsion by the party of the second part, and that the party of the second part shall bear all costs and expenses of such removal. o The party of the second part shall indemmfy and hold harmless the City of Vtrginia Beach, its agents and employees from and against all claims, damages, losses and expenses includtng reasonable attorney's fees tn case it shall be necessary to file or defend an action arising out of the location or existence of such temporary encroachment. . Nothing in the agreement shall be construed to enlarge such permission and authority to permit the maintenance or construction of any encroachment other than that the specked and to the limited extent specified, nor to permtt the maintenance and construction of any encroachment by anyone other than the party of the second part. 5. The party of the second part agrees to maintain said encroachment so as not to become unsightly or a hazard. 6. The party of the second part must obtain a permit from either the Development Services Center or Waterfront Operations, whichever is applicable, prior to commencing any construction within the City's drainage easement. The City of Virginia Beach, upon revocation of authority and permission granted, may remove any such encroachment and charge the cost thereof to the party of the second part and collect the cost in any manner provided by law for the collection of local or state taxes, or request the party of the second part to remove such encroachment and if such removal shall not be made within the time ordered, the City shall impose a penalty in the sum of One Hundred Dollars per day for each and every day that such encroachment is allowed to continue. May 27, 1997 - 29 - Item V-K. 5. a. ORDINANCES ITEM # 421 $ 7 (Continued) Voting: 11-0 (By ConsenO Council Members Voting Aye: John A. Baum, Linwood 0 Branch, III, William W. Harrison, Jr, Harold Heischober, Barbara M. Henley, Louts R. Jones, Reba S McClanan, Mayor Meyera E Oberndorf Nancy K. Parker, Vice Mayor Wilham D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay' None Council Members Absent: None May 27, 1997 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 29 3O 31 32 33 34 35 36 37 Requested by Department of Public Works AN ORDINANCE TO AUTHORIZE TEMPORARY ENCROACHMENTS INTO A PORTION OF THE CITYtS DRAINAGE EASEMENT BY BRUCE L. RODGERS AND KAREN S. RODGERS, THEIR HEIRS, ASSIGNS AND SUCCESSORS IN TITLE WHEREAS, Bruce L. Rodgers and Karen S. Rodgers, desire to construct and maintain a bulkhead and dock into the Cityts drainage easement located at 920 Raton Court. WHEREAS, City Council is authorized pursuant to §§ 15.1- 316 and 15.1-893, Code of Virginia, 1950, as amended, to authorize a temporary encroachment upon the Cityts drainage easement subject 'to such terms and conditions as Council may prescribe. NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA~ That pursuant to the authority and to the extent thereof contained in §§ 15.1-316 and 15.1-893, Code of. Virginia, 1950, as amended Bruce L. Rodgers and Karen S. Rodgers their heirs, assigns and successors in title are authorized to construct and maintain a temporary encroachment for a bulkhead and dock in the City's drainage easement as shown on the map entitled= "PROPOSED BULKHEAD & DOCK, IN= Lake, AT= 920 Raton Court CITY OF VIRGINIA BEACH, STATE OF VIRGINIA, APPLICATION BY= K. Rodgers," a copy of which is on file in the Department of Public Works and to which reference is made for a more particular description~ and BE IT FURTHER ORDAINED, that the temporary encroachments are expressly subject to those terms, conditions and criteria contained in the Agreement between the City of Virginia Beach and Bruce L. Rodgers and Karen S. Rodgers, (the ~'Agreement") which is attached hereto and incorporated by reference~ and BE IT FURTHER ORDAINED that the City Manager or his authorized designee is hereby authorized to execute the Agreement. BE IT FURTHER ORDAINED, that this Ordinance shall not be in effect until such time as Bruce L. Rodgers and Karen S. Rodgers 38 39 4O 41 and the City Manager or his authorized designee execute the Agreement. Adopted by the Council of the City of Virginia Beach, Virginia, on the 27 day of May , 1997. 42 43 44 45 CA-# ORDIN\NONCODE\KENNEDY\RATON . ORD R-1 PREPARED: TK\pw VED AS TO CONTENTS U sx~ ,~ DEPARTMENT APPROVED AS TO LE~%L SUFFICIENC~ AND SCALE 1"-2400' SITE LOCATION Ii,lAP 'SIT LOCATION MAP ENCROACHMENT EASEMENT IN BULKHEAD & DOCK F O~ BRUCE & SHOWING PROPOSED INTO CITY DRAINAGE OCEAN LAKES FOR AT 920 RATON KAREN RODGERS CT CHJ'Gh/ELL CT. PREPARED BY P/W ENG. DRAFT. ~/q/q7 PREPARED BY VIRGINIA BEACH CITY ATTORNEY'S OFFICE EXEMPTED FROM RECORDATION TAXES UNDER SECTIONS 58.1-811(a)(3) AND 58.1-811(c)(4) REIMBURSEMENT AUTHORIZED UNDER SECTION 25-249 THIS AGREEMENT, made this ~--/'3 day of ~ ~ , 19 ~ , by and between the CITY OF VIRGINIA BEACH, VIRGINIA, a municipal corporation, Grantor, party of the first part, and BRUCE L. RODGERS and KAREN S. RODGERS, husband and wife, THEIR HEIRS, ASSIGNS AND SUCCESSORS IN TITLE, Grantee, party of the second part (even though more than one). W I TN E S S E TH: That, WHEREAS, it is proposed by the party of the second part to construct and maintain a bulkhead and dock in the City of Virginia Beach; and WHEREAS, in constructing and maintaining such bulkhead and dock, it is necessary that the said party of the second part encroach into a portion of an existing City drainage easement over a lake in Ocean Lakes subdivision; and said party of the second part has requested that the party of the first part grant a temporary encroachment to facilitate such bulkhead and dock within a portion of the City's drainage easement over a lake in Ocean Lakes subdivision. NOW, THEREFORE, for and in consideration of the premises and of the benefits accruing or to accrue to the party of the second part and for the further consideration of One Dollar ($1.00), in hand paid, to the said party of the first GPIN 2414 68 8712 part, receipt of which is hereby acknowledged, the party of the first part doth grant to the party of the second part a temporary encroachment to use a portion of the City's drainage easement over a lake in Ocean Lakes subdivision for the purpose of constructing and maintaining such bulkhead and dock. It is expressly understood and agreed that such temporary encroachment will be constructed and maintained in accordance with the laws of the Commonwealth of Virginia and the City of Virginia Beach, and in accordance with the City of Virginia Beach Public Works Department's specifications and approval as to size, alignment and location and is more particularly described as follows, to wit: An area of encroachment into a portion of the City's drainage easement over a lake in Ocean Lakes subdivision described as prop. 6' return wall, prop. 6' x 16' dock, prop. bulkhead and prop. 8' return wall as shown on that certain plat entitled: "PROPOSED BULKHEAD & DOCK IN: LAKE AT: 920RATON COURT CITY OF VIRGINIA BEACH STATE OF VIRGINIA APPLICATION BY: K. RODGERS," Site Plan sheet 2 of 6 drawn by M.J. Lewis, Jr., dated 9-18- 96, a copy of which is attached hereto as Exhibit "A" and to which reference is made for a more particular description. It is further expressly understood and agreed that the temporary encroachment herein authorized shall terminate upon notice by the City of Virginia Beach to the party of the second part, and that within thirty (30) days after such notice is given, such temporary encroachment shall be removed from the City's drainage easement over a lake in Ocean Lakes subdivision by the party of the second part; and that the party of the second part shall bear all costs and expenses of such removal. It is further expressly understood and agreed that the party of the second part shall indemnify and hold harmless the City of Virginia Beach, its agents and employees, from and against all claims, damages, losses and expenses including reasonable attorney's fees in case it shall be necessary to file or defend an action arising out of the location or existence of such temporary encroachment. It is further expressly understood and agreed that nothing herein contained shall be construed to enlarge such permission and authority to permit the maintenance or construction of any encroachment other than that specified herein and to the limited extent specified herein, nor to permit the maintenance and construction of any encroachment by anyone other than the party of the second part. It is further expressly understood and agreed that the party of the second part agrees to maintain said encroachment so as not to become unsightly or a hazard. It is further expressly understood and agreed that the party of the second part must obtain a permit from either the Development Services Center or Waterfront Operations, whichever is applicable, prior to commencing any construction within the City's drainage easement. It is further expressly understood and agreed that the party of the first part, upon revocation of such authority and permission so granted, may remove any such encroachment and charge the cost thereof to the party of the second part, and collect the cost in any manner provided by law for the collection of local or state taxes; may require the party of the second part to remove such temporary encroachment; and pending such removal, the party of the first part may charge the party of the second part compensation for the use of such portion of the City's drainage easement encroached upon the equivalent of what would be the real property tax upon the land so occupied if it were owned by the party of the second part; and if such removal shall not be made within the time ordered hereinabove by this Agreement, the City shall impose a penalty in the sum of One Hundred Dollars ($100.00) per day for each and every day that such encroachment is allowed to continue thereafter, and shall collect such compensation and penalties in any manner provided by law for the collection of local or state taxes. IN WITNESS WHEREOF, BRUCE L. RODGERS and KAREN S. RODGERS, husband and wife, the said party of the second part has caused this Agreement to be executed by their signatures and seals duly affixed. Further, that the City of Virginia Beach has caused this Agreement to be executed in its name and on its behalf by its City Manager and its seal be hereunto affixed and attested by its City Clerk. CITY OF VIRGINIA BEACH City Manager/Authorized Designee of the City Manager ( SEAL ) ATTEST: City Clerk Bruce L. Rodge~ Karen S. Rodge~ STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this day of , 19 , by , CITY MANAGER/AUTHORIZED DESIGNEE OF THE CITY MANAGER. My Commission Expires: Notary Public STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this day of , 19 , by RUTH HODGES SMITH, City Clerk for the CITY OF VIRGINIA BEACH. My Commission Expires: Notary Public STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this ,~---~ day of ~..~ , 19 ~7 , by Bruce L. Rodgers and Karen S. Rodgers, husband and wife. My Commission Expires: / ~/~1/ ~o~( Notary Public NO TES. THIS DRAWING MA Y ONLY BE USED FOR THE EXCLUSIVE PURPOSE OF OBTAINING PERMITS FOR TAlE CONSTRUCTION WORK SHOWN NO TREES WILL BE REMOVED DURING THE COURSE OF TAILS PROJECT ALL VEGETATION DISTURBED SH,4LL BE RESTORED lAW THE SEGUENCE OF EVENTS ON SHEEr 8 OF 8. LAKE E att O~mOro in~vMuoi prop Y __ ~,~ ote~ Prop. Bulkhoad Approx. ONW Prop. il' Return Wall \ \ \ \ \ \ ADJA,CENT PROPERTY OWNERS /. ,4. G. ~0~, --~% \ \ \ \ \, / , ,/ A-J4.$O' RA TON COURT SCALE I'. PURPOSE: Erosion Prevention And Access o^ru~ OHW ADJACENT PROPERTY OWNERS: 1. See Sheet 2 OAr~ 18 September 1996 RgFITRT? PROPOSED BULKHEAD & DOCK I.= Lake AT 920 Raton Court CITY OF VIRGINIA BEACH STATE OF VIRGINIA APPLICATION BY' K. Rodgers SHEET 2 OF 6 - 30 - Item V-K. 5. b ORDINANCES ITEM # 42158 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinance to authorize temporary encroachment into a portion of the City's right-of-way at 83rd Street to Edward F. and Carol Anne Ross re maintaining a wooden trellis (LYNNHA VEN BOROUGH). The following conditions shall be required: , That said temporary encroachment will be constructed and maintained in accordance with the laws of the Commonwealth of Virginia and the City of Virginia Beach and in accordance with the City of Virginia Beach Public Works Department's specifications and approval as to size, alignment and location. . This temporary encroachment shall terminate upon notice by the City of Virginia Beach to the party of the second part and that within thirty (30) days after such notice is given, such temporary encroachment shall be removed from the City's right-of-way at 83rd Street by the party of the second part; and that the party of the second part shall bear all costs and expenses of such removal. . The party of the second part shall indemnify and hold harmless the City of Virginia Beach, its agents and employees from and against all claims, damages, losses and expenses including reasonable attorney's fees in case it shall be necessary to file or defend an action arising out of the location or existence of such temporary encroachment. , Nothing in the agreement shall be construed to enlarge such permission and authority to permit the maintenance or construction of any encroachment other than that specified and to the limited extent specified, nor to permtt the matntenance and construction of any encroachment by anyone other than the party of the second part. 5 The party of the second part agrees to matntain said encroachment so as not to become unsightly or a hazard. 6. The party of the second part must submit and have approved a traffic control plan before commencing work in the City's right- of-way. The party of the second part agrees that no open cut of the public roadway shall be allowed except under extreme circumstances, having been submitted to the Highway Division, Department of Public Works for final approval. . The party of the second part must obtain a permit from the Development Services Center prior to commencing any construction withtn the City 's right-of-way. May 27, 1997 1 Requested by Department of Public Works 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 36 AN ORDINANCE TO AUTHORIZE A TEMPORARY ENCROACHMENT INTO A PORTION OF CITY'S RIGHT- OF-WAY AT 83RD STREET TO EDWARD F. ROSS, JR. AND CAROL ANN ROSS, HUSBAND AND WIFE, THEIR HEIRS, ASSIGNS AND SUCCESSORS IN TITLE WHEREAS, Edward F. Ross, Jr. and Carol Ann Ross wish to maintain a temporary encroachment into the City's right-of-way at 83rd Street to construct and maintain a wooden trellis. WHEREAS, City Council is authorized pursuant to §~ 15.1- 316 and 15.1-893, Code of Virginia, 1950, as amended, to authorize temporary encroachments into the City's rights-of-way and easements subject to such terms and conditions as Council may prescribe. NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That pursuant to the authority and to the extent thereof contained in §§ 15.1-316 and 15.1-893, Code of Virginia, 1950, as amended, Edward F. Ross, Jr. and Carol Ann Ross, husband and wife, their heirs, assigns and successors in title are authorized to encroach into a portion of the City's right-of-way in order to maintain a wooden trellis into that portion of the City's right-of- way as shown on the plat entitled: "PHYSICAL SURVEY OF LOT 6, BLK. 9, CAPE HENRY SYNDICATE, SECTION D, VIRGINIA BEACH, VA. FOR EDWARD F. ROSS AND CAROL ANN ROSS," a copy of which is on file in the Department of Public Works and to which reference is made for a more particular description; and BE IT FURTHER ORDAINED, that the temporary encroachment is expressly subject to those terms, conditions and criteria contained in the Agreement between the City of Virginia Beach and Edward F. Ross, Jr. and Carol Ann Ross, (the "Agreement") which is attached hereto and incorporated by reference; and BE IT FURTHER ORDAINED that the City Manager or his authorized designee is hereby authorized to execute the Agreement. 36 37 38 39 40 41 BE IT FURTHER ORDAINED, that this Ordinance shall not be in effect until such time as Edward F. Ross, Jr. and Carol Ann Ross and the City Manager or his authorized designee execute the Agreement. Adopted by the Council of the City of Virginia Beach, 27 Virginia, on the day of May , 1997. 42 43 44 45 CA-6623 ORDIN\NONCODE\ROSS. ORD R-1 PREPARED: 4/23/97 OVED AS ,TO CONTENTS DEPARTMENT APPROVED AS TO LEGAL SUFFICIENCY AND FORM CITY PREPARED BY VIRGINIA BEACH CITY ATTORNEY'S OFFICE EXEMPTED FROM RECORDATION TA~ES UNDER SF~'~IONS 58 AND 58.1-811(C)(4) REIMBURSEMENT AUTHORIZED UNDER SECTION 25-249 THIS AGREEMENT made this ~ day of ~-~2~~ , .... / ' 19 ~ ~ , by and between the CITY OF VIRGINIA BEACH, VIRGINIA, a municipal corporation, Grantor, party of the first part, and EDWARD F. ROSS, JR. AND CAROL ANN ROSS, HUSBAND AND WIFE, ITS/HIS/THEIR/HER HEIRS, ASSIGNS AND SUCCESSORS IN TITLE, Grantee, party of the second part. WITN~SSETH: That, WHEREAS, the party of the second part is the owner of that certain lot, tract, or parcel of land designated and described as "Lot 6, Block 9, Cape Henry Syndicate, Section D" and being further designated and described as "8300 Ocean Front Avenue, Virginia Beach, Virginia 23451 GPIN 2419-69- 1916" and That, WHEREAS, it is proposed by the party of the second part to construct and maintain a wooden trellis in the City of Virginia Beach; and WHEREAS, in constructing and maintaining such wooden trellis, it is necessary that the said party of the second part encroach into a portion of an existing City right-of-way known as $3rd Street; and said party of the second part has requested that the party of the first part grant a temporary encroachment to facilitate such wooden trellis within a portion of the City's right-of-way known as 83rd Street. NOW, THEREFORE, for and in consideration of the premises and of the benefits accruing or to accrue to the party of the second part and for the further consideration of One Dollar ($1.00), in hand paid, to the said party of the first part, receipt of which is hereby acknowledged, the party of the first part doth grant to the party of the second part a temporary encroachment to use a portion of the City's right-of-way known as 83rd Street for the purpose of constructing and maintaining such wooden trellis. It is expressly understood and agreed that such temporary encroachment will be constructed and maintained in accordance with the laws of the Commonwealth of Virginia and the City of Virginia Beach, and in accordance with the City of Virginia Beach Public Works Department's specifications and approval as to size, alignment and location and is more particularly described as follows, to wit: An area of temporary encroachment into a portion of the City's right-of-way known as 83rd Street as shown on that certain plat entitled: "PHYSICAL SURVEY OF LOT 6, BLK. 9, CAPE HENRY SYNDICATE, SECTION D, VIRGINIA BEACH, VA. FOR EDWARD F. ROSS AND CAROL ANN ROSS," a copy of which is attached hereto as Exhibit "A" and to which reference is made for a more particular description. It is further expressly understood and agreed that the temporary encroachment herein authorized shall terminate upon notice by the City of Virginia Beach to the party of the second part, and that within thirty (30) days after such notice is given, such temporary encroachment shall be removed from the City's right-of-way known as 83rd Street by the party of the second part; and that the party of the second part shall bear all costs and expenses of such removal. It is further expressly understood and agreed that the party of the second part shall indemnify and hold harmless the City of Virginia Beach, its agents and employees, from and against all claims, damages, losses and expenses including reasonable attorney's fees in case it shall be necessary to file or defend an action arising out of the location or existence of such temporary encroachment. It is further expressly understood and agreed that nothing herein contained shall be construed to enlarge such permission and authority to permit the maintenance or construction of any encroachment other than that specified herein and to the limited extent specified herein, nor to permit the maintenance and construction of any encroachment by anyone other than the party of the second part. It is further expressly understood and agreed that the party of the second part agrees to maintain said temporary encroachment so as not to become unsightly or a hazard. It is further expressly understood and agreed that the party of the second part must submit and have approved a traffic control plan before commencing work in the City's right-of-way. It is further expressly understood and agreed that the party of the second part agrees that no open cut of the public roadway shall be allowed except under extreme circumstances. Such exceptions shall be submitted to the Highway Division, Department of Public Works, for final approval. It is further expressly understood and agreed that the party of the second part must obtain a permit from the Development Services Center prior to commencing any construction within the City's right-of-way. It is further expressly understood and agreed that the party of the second part shall obtain and keep in force All Risk Property Insurance and General Liability or such insurance as is deemed necesSary by the party of the first part, and all insurance policies must name the party of the first part as additional named insured or loss payee, as applicable. The party of the second part also agrees to carry Comprehensive General Liability Insurance in an amount not less than $500,000.00, combined single limits of such insurance policy or policies. The party of the second part will provide endorsements providing at least thirty (30) days written notice to the party of the first part prior to the cancellation or termination of, or material change to, any of the insurance policies. The party of the second part assumes all responsibilities and liabilities, vested or contingent, with relation to the temporary encroachment. It is further expressly understood and agreed that the party of the first part, upon revocation of such authority and permission so granted, may remove any such temporary encroachment and charge the cost thereof to the party of the second part, and collect the cost in any manner provided by law for the collection of local or state taxes; may require the party of the second part to remove such temporary encroachment; and pending such removal, the party of the first part may charge the party of the second part compensation for the use of such portion of the City's right-of-way encroached upon the equivalent of what would be the real property tax upon the land so occupied if it were owned by the party of the second part; and if such removal shall not be made within the time ordered hereinabove by this Agreement, the City shall impose a penalty in the sum of One Hundred Dollars ($100.00) per day for each and every day that such temporary encroachment is allowed to continue thereafter, andshall collect such compensation and penalties in any manner provided by law for the collection of local or state taxes. IN WITNESS WHEREOF, Edward F. Ross, Jr. and Carol Ann Ross, the said party of the second part has caused this Agreement to be executed by his signature and seal duly affixed. Further, that the City of Virginia Beach has caused this Agreement to be executed in its name and on its behalf by its City Manager and its seal be hereunto affixed and attested by its City Clerk. ( SEAL ) ATTEST: City Clerk CITY OF VIRGINIA BEACH City Manager/Authorized Designee of the City Manager ~ PP[-~C: ;rD ?~' LEE::&!_ ,7,'j'~ ,','., ~ ' Edward F. Ross~-Jr./~ Carol Ann Ross ~ STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this day of , 19 , by , CITY MANAGER/AUTHORIZED DESIGNEE OF THE CITY MANAGER. My Commission Expires: Notary Public STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this day of , 19 , by RUTH HODGES SMITH, City Clerk for the CITY OF VIRGINIA BEACH. My Commission Expires: Notary Public CITY/COUNTY OF! ~/,~ ~ o ~d ~- , to-wit: The foregoing instrument was acknowledged before me this/~ ~ '~.~(~ . . day of ._ ~/~ , 19 ~ , by Edward F. Ross, / Jr.. Notary P~{bl ic My Commission Expires: ~ ~, /?~,,:7 STATE OF ~'A~ ,'/W,'~ CITY/COUNTY O~ A/~nr~ ~d ~ to-wit' this / ~ ~-' The foregoing instrument was acknowledged before me day of z~~ , 19 ~ , by Carol Ann Ross. × / -z/- Notar~/ Public My Commission Expires: /~ ?~/ /~'~ 7 THIS IS TO CERTIFY THAT I. ON SEPT. 25, 1980 SURVEYED THE PROPERTY SHOWN ON THIS PLAT. AND THAT THE TITLE LINES AND THE WALLS OF THE BUILDINGS ARE SHOWN ON THIS PLAT. THE BUILDINGS STAND STRICTLY WITHIN THE TITLE LINES AND THERE ARE NO ENCROACHMENTS OR VISIBLE EASEMENTS. EXCEPT AS SHOWN. ,,~/. //_~f~_~.<~ PHYSICAL SURVEY OF LOT 6, BLK. 9, CAPE HENRY SYNDICATE, VIRGINIA BEACH, VA. FOR EDWARD F. ROSS & CAROL ANN ROSS ALTON M. BUTLER LAND SURVEYOR, P ~ VIRGINIA BEACH, VA. SCALE: 1" = 20' SEPT. 25, 1980 ttANSON & STALLINGS 37579 SEC~,ION D 286/159 Edward Ross, Jr. 8300 Ocean Front - Virginia Beach I, as a neighbor in the vicinity of 8300 Ocean Front, do NOT object to the recently constructed outdoor garden trellis on the above named property. NAME ADDRESS 15 ~.L~ ~~ 21. 22. 23. 24. 25. ' - 32 - Item V-K. 5. c. ORDINANCES ITEM # 42159 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinance to authorize temporary encroachment into a portion of the Ctty's right-of-way at 716 Vanderbilt Avenue to John Barbarian re maintaining a chain link fence (L YNNHA VENBOROUGH) The following conditions shall be required: That said temporary encroachment will be constructed and maintained in accordance with the laws of the Commonwealth of Virginia and the City of Virginia Beach and in accordance with the City of Virginia Beach Public Works Department's specifications and approval as to size, alignment and location. This temporary encroachment shall terminate upon nottce by the City of Virginia Beach to the party of the second part and that within thirty (30) days after such notice is given, such temporary encroachment shah be removed from the City's right-of-way at 716 Vanderbilt Avenue by the party of the second part; and that the party of the second part shall bear all costs and expenses of such removal. . The party of the second part shah indemnify and hold harmless the City of Virginia Beach, its agents and employees from and against all claims, damages, losses and expenses tncluding reasonable attorney 's fees in case it shall be necessary to file or defend an action arising out of the location or existence of such temporary encroachment. . Nothing in the agreement shah be construed to enlarge such permission and authority to permit the maintenance or construction of any encroachment other than that specified and to the limited extent specified, nor to permit the maintenance and construction of any encroachment by anyone other than the party of the second part. 5. The party of the second part agrees to maintain satd encroachment so as not to become unsightly or a hazard. 6. The party of the second part must submit and have approved a traffic control plan before commencing work in the City's right- of-way The party of the second part agrees that no open cut of the public roadway shall be allowed except under extreme circumstances, having been submitted to the Highway Division, Department of Public Works for final approval. The party of the second part must obtain a permit from the Development Services Center prior to commencing any construction within the City's right-of-way. The party of the second part must post a Performance Bond in the amount of Five Hundred Dollars prior to issuance of a Highway permit. May 27, 1997 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 Requested by Department of Public Works AN ORDINANCE TO AUTHORIZE A TEMPORARY ENCROACHMENT INTO A PORTION OF CITY'S RIGHT- OF-WAY AT 716 VANDERBILT AVENUE TO JOHN BARBARIAN, HIS HEIRS, ASSIGNS AND SUCCESSORS IN TITLE WHEREAS, John Barbarian wishes to maintain a temporary encroachment into the City's right-of-way at 716 Vanderbilt Avenue to construct and maintain a chain link fence (height 4'). WHEREAS, City Council is authorized pursuant to §§ 15.1- 316 and 15.1-893, Code of Virginia, 1950, as amended, to authorize temporary encroachments into the City's rights-of-way and easements subject to such terms and conditions as Council may prescribe. NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That pursuant to the authority and to the extent thereof contained in §§ 15.1-316 and 15.1-893, Code of Virginia, 1950, as amended, John Barbarian, his heirs, assigns and successors in title are authorized to encroach into a portion of the City's right-of- way in order to maintain a chain link fence into that portion of the City's right-of-way as shown on the plat entitled: "SITE PLAN LOT 6 BLOCK 17 & 1/2 OF ALLEY CROATAN BEACH MB. 24 P. 37 LYNNHAVEN BOROUGH VIRGINIA BEACH, VIRGINIA SCALE 1"=20' 5 JULY 1995 MADE FOR JOHN BARBARIAN," a copy of which is on file in the Department of Public Works and to which reference is made for a more particular description; and BE IT FURTHER ORDAINED, that the temporary encroachment is expressly subject to those terms, conditions and criteria contained in the Agreement between the City of Virginia Beach and John Barbarian, (the "Agreement") which is attached hereto and incorporated by reference; and BE IT FURTHER ORDAINED that the City Manager or his authorized designee is hereby authorized to execute the Agreement. 36 37 38 39 40 BE IT FURTHER ORDAINED, that this Ordinance shall not be in effect until such time as John Barbarian and the City Manager or his authorized designee execute the Agreement. Adopted by the Council of the City of Virginia Beach, Virginia, on the 27 day of May , 1997. 41 42 43 44 CA-6624 ORDIN\NONCODE\Barbarian. ORD R-1 PREPARED: 4/23/97 OVED AS TO CONTENTS SIGNATURE , , DEPARTM~N~ ' ~PPROVED ~S TO LEG&L SUFFICZENCYAND FOI~I: - CITY ATT~~Y PREPARED BY VIRGIN~'A BEACH CITY ATTORNEY'S OFFICE EXEMPTED FROM RECORDATION TAXES UNDER SECTIONS 58 1-811(a)(3) AND 58 1-811(c)(4) REIMBURSEMENT AUTHORIZED UNDER SECTION 25-249 THIS AGREEMENT, made this -- day of~ ~'~ ~ ~r~,,~ , 19 ~, by and between the CITY OF VIRGINIA BEACH, VIRGINIA, a municipal corporation, Grantor, party of the first part, and JOHN BARBARIAN, WIDOWER, ITS/HIS/THEIR/HER HEIRS, ASSIGNS AND SUCCESSORS IN TITLE, Grantee, party of the second part. W I T N E S S E T H: That, WHEREAS, the party of the second part is the owner of that certain lot, tract, or parcel of land designated and described as "Lot 6, Block 17 & 1/2 of Alley, Croatan Beach, Lynnhaven Borough" and being further designated and described as "716 Vanderbilt Avenue, Virginia Beach, Virginia 23451 GPIN 2426-38-7127" and That, WHEREAS, it is proposed by the party of the second part to construct and maintain a chain link fence (height 4'), hereinafter referred to as "fence" in the City of Virginia Beach; and WHEREAS, in constructing and maintaining such "fence," it is necessary that the said party of the second part encroach into a portion of an existing City right-of-way known as Vanderbilt Avenue; and said party of the second part has requested that the party of the first part grant a temporary encroachment to facilitate such "fence" within a portion of the City's right-of-way known as Vanderbilt Avenue. NOW THEREFORE, for and in consideration of the premises and of the benefits accruing or to accrue to the party of the second part and for the further consideration of One Dollar ($1.00), in hand paid, to the said party of the first part, receipt of which is hereby acknowledged, the party of the first part doth grant to the party of the second part a temporary encroachment to use a portion of the City's right-of-way known as Vanderbilt Avenue for the purpose of constructing and maintaining such fence. It is expressly understood and agreed that such temporary encroachment will be constructed and maintained in accordance with the laws of the Commonwealth of Virginia and the City of Virginia Beach, and in accordance with the City of Virginia Beach Public Works Department's specifications and approval as to size, alignment and location and is more particularly described as follows, to wit: An area of temporary encroachment into a portion of the City's right-of-way known as Vanderbilt Avenue as shown on that certain plat entitled: "SITE PLAN LOT 6 BLOCK 17 & 1/2 OF ALLEY, CROATAN BEACH, MB. 24 P. 37, LYNNHAVEN BOROUGH, VIRGINIA BEACH, VIRGINIA, SCALE L" = 20', 5 JULY 1995, MADE FOR JOHN BARBARIAN" a copy of which is attached hereto as Exhibit "A" and to which reference is made for a more particular description. It is further expressly understood and agreed that the temporary encroachment herein authorized shall terminate upon notice by the City of Virginia Beach to the party of the second part, and that within thirty (30) days after such notice is given, such temporary encroachment shall be removed from the 2 City's right-of-way known as Vanderbilt Avenue by the party of the second part; and that the party of the second part shall bear all costs and expenses of such removal. It is further expressly understood and agreed that the party of the second part shall indemnify and hold harmless the City of Virginia Beach, its agents and employees, from and against all claims, damages, losses and expenses including reasonable attorney's fees in case it shall be necessary to file or defend an action arising out of the location or existence of such temporary encroachment. It is further expressly understood and agreed that nothing herein contained shall be construed to enlarge such permission and authority to permit the maintenance or construction of any encroachment other than that specified herein and to the limited extent specified herein, nor to permit the maintenance and construction of any encroachment by anyone other than the party of the second part. It is further expressly understood and agreed that the party of the second part agrees to maintain said temporary encroachment so as not to become unsightly or a hazard. It is further expressly understood and agreed that the party of the second part must submit and have approved a traffic control plan before commencing work in the City's right-of-way. It is further expressly understood and agreed that the party of the second part agrees that no open cut of the public roadway shall be allowed except under extreme circumstances. Such exceptions shall be submitted to the Highway Division, Department of Public Works, for final approval. It is further expressly understood and agreed that the party of the second part must obtain a permit from the Development Services Center prior to commencing any construction within the City's right-of-way. It is further expressly understood and agreed that prior to issuance of a Highway permit, the party of the second part must post a Performance Bond in the amount of Five Hundred Dollars ($500). It is further expressly understood and agreed that the party of the second part shall obtain and keep in force All Risk Property Insurance and General Liability or such insurance as is deemed necessary by the party of the first part, and all insurance policies must name the party of the first part as additional named insured or loss payee, as applicable. The party of the second part also agrees to carry Comprehensive General Liability Insurance in an amount not less than $500,000.00, combined single limits of such insurance policy or policies. The party of the second part will provide endorsements providing at least thirty (30) days written notice to the party of the first part prior to the cancellation or termination of, or material change to, any of the insurance policies. The party of the second part assumes all responsibilities and liabilities, vested or contingent, with relation to the temporary encroachment. It is further expressly understood and agreed that the party of the first part, upon revocation of such authority and permission so granted, may remove any such temporary encroachment and charge the cost thereof to the party of the second part, and collect the cost in any manner provided by law for the collection of local or state taxes; may require the party of the second part to remove such temporary encroachment; and pending such removal, the party of the first part may charge the party of the second part compensation for the use of such portion of the City's right-of-way encroached upon the equivalent of what would be the real property tax upon the land so occupied if it were owned by the party of the second part; and if such removal shall not be made within the time ordered hereinabove by this Agreement, the City shall impose a penalty in the sum of One Hundred Dollars ($100.00) per day for each and every day that such temporary encroachment is allowed to continue thereafter, and shall collect such compensation and penalties in any manner provided by law for the collection of local or state taxes. IN WITNESS WHEREOF, Jonh Barbarian, the said party of the second part has caused this Agreement to be executed by his signature and seal duly affixed. Further, that the City of Virginia Beach has caused this Agreement to be executed in its name and on its behalf by its City Manager and its seal be hereunto affixed and attested by its City Clerk. CITY OF VIRGINIA BEACH By City Manager/Authorized Designee of the City Manager ( SEAL ) ATTEST: City Clerk '~°hn ~arbarian STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: this The foregoing instrument was acknowledged before me day of , 19 , by , CITY MANAGER/AUTHORIZED DESIGNEE OF THE CITY MANAGER. My Commission Expires: Notary Public STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this day of , 19 , by RUTH HODGES SMITH, City Clerk for the CITY OF VIRGINIA BEACH. My Commission Expires: Notary Public STATE OF '~,~1,~i'~ CITY/COUNTY OF V,rc,..4,~ The foregoing instrument was acknowledged before me this ~ 7 r~ day of ~L,~ -~ 19 9 7 by '~ My Commission Expires: Notary Public Elevahone shown hereto tiler to Nol~onal Ocean Survey detum. Mean Sea EXHIBIT "A" Proposed ~levoholll :~ ~xf sling £1evohons:Gu- C~ty w~ter B aewerofe AVAILABL£ O.l.y flood ,ellltonf moM, al may be uled below the IOO year flood ele vohonl ..chored mM ~dequefe bel~ Me IO0 ~.r flood No m~ham~l w eMcfr~col equipment may be located ~M I~ yew flood New ~fer ~ tap ~nd ~ fo be msfolled by Fwce ~ of Oe~l~er ~ e SIDE_ SIDE CORN[~ _ HEIGHT Insl~ector P~[$) ,' : $0.0', e.t iI, B 2'dll ,I,. 37 7' TMeJ W [ i Ed/e~ M' ~l %\\ - 34 - Item V-K. 6. ORDINANCES ITEM # 42160 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinance to authorize the City Manager execute a Deed of Easement for the Vacation of portions of a City-owned 20' drainage on property of Berkshire Associates, L.P, north side of Virginia Beach Boulevard contiguous to West Lane. (L YNNHA VEN BOROUGH). ~ting: 10-0 (By ConsenO Council Members Voting Aye: John A Baum, Linwood O. Branch, III, Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay' None Council Members Abstaining: William W. Harrison, Jr. Council Members Absent: None *Councilman Harrison ABSTAINED on Item 6, as his law firm has provided legal services to Berkshire Associates. May 27, 1997 ORDINANCE NO. 2 3 4 5 6 7 8 9 10 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A DEED OF EASEMENT AND VACATION OF EASEMENT VACATING A 69 SQ. FT. AND 279 SQ. FT. PORTION OF A 20' DRAINAGE EASEMENT IN EXCHANGE FOR THE DEDICATION OF AN ADDITION OF 317 SQ. FT. TO THE 20' DRAINAGE EASEMENT RELATING TO PROPERTY OWNED BY BERKSHIRE ASSOCIATES, L.P. 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, Berkshire Associates, L.P., a Virginia limited partnership, hereinafter "Owner", is the fee simple owner of a parcel of land designated "6.836 ACRES" on that certain plat entitled "PLAT SHOWING PORTION OF 20' DRAINAGE EASEMENT TO BE VACATED AND VARIABLE WIDTH DRAINAGE EASEMENT TO BE DEDICATED TO THE CITY OF VIRGINIA BEACH, VIRGINIA BY BERKSHIRE ASSOCIATES, L.P., LYNNHAVEN BOROUGH - VIRGINIA BEACH, VIRGINIA," dated April 22, 1997, prepared by John E. Sirine & Associates, Ltd., Surveyors- Engineers-Planners, a copy of which is attached hereto as Exhibit A and made a part hereof; WHEREAS, by Deed of Easement, dated May 10, 1984, duly recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, in Deed Book 2338, at page 2045, Owner's predecessor in title dedicated to the City of Virginia Beach a 20' drainage easement as shown on the plat referred to therein and recorded in the aforesaid Clerk's Office in Map Book 179, at page 52; WHEREAS, Owner has requested that the City vacate a 69 sq. ft. and 279 sq. ft. portion of the aforesaid drainage easement in exchange for a 317 sq. ft. addition to such drainage easement to be dedicated to the City by Owner, all as shown on the aforesaid plat attached hereto; and WHEREAS, the Owner represents and warrants that the vacation of the aforesaid portions of the drainage easement and the dedication of the addition thereto would sufficiently accommodate 36 37 38 39 40 41 42 43 44 45 46 47 48 49 5O 51 52 53 54 55 56 57 the drainage of surface water intended by the originally dedicated easement. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That, subject to all appropriate conditions or provisions of law that may be determined by the Director of Public Works and/or the City Attorney, the City Manager or his designee is hereby authorized to execute a Deed of Easement and Vacation of Easement similar to the copy attached hereto as Exhibit B and made a part hereof between Berkshire Associates, L.P., a Virginia limited partnership, and the City of Virginia Beach, wherein the City vacates the portions of the 20' drainage easement therein described and Owner dedicates to the City the addition to said 20' drainage easement therein described. Adopted by the Council of the City of Virginia Beach, Virginia, on this 27 day of May , 1997. This Ordinance requires an affirmative vote of three- fourths of the members of City Council. CA-6659 R-1 Prepared: 5/21/97 G \data\deeds\streetclosure\ca6659 Departrfie{i~f Pubhc Works' ' APPROVED AS TO LEGAL SUFFICIENCY Department PREPARED BY: Wilks & Alper, P.C. 700 Town Poznt Center 150 Boush Street Norfolk, VA 23510 EXEMPTED FROM RECORDATION TAXES UNDER SECTIONS 58.1-811(a)(3) AND 58.1-811(c)(4) REIMBURSEMENT AUTHORIZED UNDER SECTION 25-49 THIS DEED OF EASEMENT AND VACATION OF EASEMENT, made this let day of May, 1997, by and between BERKSHIRE ASSOCIATES, L.P., a Virginia limited liability company, Grantor, party of the first part, and the CITY OF VIRGINIA BEACH, a municipal corporation in the Commonwealth of Virginia, Grantee, party of the second part; W I T N E S S E T H: That for and in consideration of the mutual benefits accruing or to be accrued to the above mentioned parties, and other good and valuable consideration, the receipt of which is hereby · · acknowledged, the party of the first part does hereby dedicate, grant and convey or release with GENERAL WARRANTY the respective interest of the party of the first part in and to the hereinafter described perpetual right of way and easement, to the party of the second part, and/or its successors and assigns, to construct, reconstruct, alter, operate and maintain drainage facilities in, under, upon and across lands and property of the party of the first part, including the right of ingress and egress to the same, described as follows: All that certain strip of land, lying, situate and being in the City of Virginia Beach, Virginia and designated and described as "PORTION OF 20' DRAINAGE EASEMENT HEREBY DEDICATED TO THE CITY OF VIRGINIA BEACH UNLESS OTHERWISE GPIN NO. 2407-96-5126-0000 05/20/97 16.16 625 650~ I1'I LKS & ALFI~R i"C, SPECIFIED (317 SQ. FT./0.007 ACRE)" on that certain plat entitled "PLAT SHOWING PORTION OF 20' DRAINAGE EASEMENT TO BE VACATED AND VARIABLE WIDTH DRAINAGE EASEMENT TO BE DEDICATED TO THE CITY OF VIRGINIA BEACH, VIRGINIA BY BERKSHIRE ASSOCIATES, L.P. LYNNHAVEN BOROUGH VIRGINIA BEACH, VIRGINIA", dated April 22, 1997, duly recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, virginia, in Map Book_____, at page__.. It is agreed between the parties hereto that the party of the second part and its agents, assigns, and/or successors shall have the right to inspect the same easement and to cut and clean all undergrowth and other obstructions xn and along the said drainage easement or adjacent thereto that may in any way endanger or interfere with the proper use of same. The party of the first part covenants that it is seized in fee simple of the said property and has the right to grant the above described easement to the said party of the second part; that the ~aXd party of the second Dart, shall have quiet and peaceable possession of the same, free from all encumbrances; and that it, the party of the first part will execute such further assurances of title as may be requisite. The party of the first part agrees that the said party of the second part shall not be liable for any maintenance work whatsoever to the areas encompassed in this easement except if said party of the second part is required to perform excavation within the easement in order to effectuate maintenance or repair of drainage facilities that are dedicated to the party of the second part. All other maintenance of the land encompassed by this easement shall be done by the party of the first part and the party of the second 05/20/9? 1~:16 ~¥ILKS & ALPER PC ~F!jUIz part shall have no duty or liability to perform any routine maxntenance work in this easemen% other than that work whxch arises out of maintaining or repairing the drainage facilities. The party of the first part agrees that when requested by the party of the second part, it shall remove any fence(s), structure(s), landscaping or vehicle parking within for%y-eight (48) hours of receipt of written notice requesting such removal. Excep% that in an emergency; or failure to remove after written notice; the party of the second part will remove, or have removed by others, any impediment to access, maintenance or operation and the party of the f~rst part agrees that it is responsible for replacement of said fence(s), structure(s), landscaping or vehicle parking at its sole expense. The party of %he first par% covenants and agrees for itself aHd its assigns and successors, that the consideration aforementioned shall be in lieu of any and all claims of compensation and damages by reason of the location, construction, reconstruction, alteratIon or maintenance of said ~acility. By joining in the execution of this instrument, the party oX the second part hereby vacates and releases its drainage easement rights in and to those certain strips of land designated on the aforesaid plat as "PORTION OF 20' DRAINAGE EASEMENT HEREBY VACATED (279 SQ. FT./0.006 ACRE)" and "PORTION OF 20' DRAINAG~ EASEMENT HEREBY VACATED (69 SQ. FT./0.002 ACRE)". TRSTE, Inc., Substitute Trustee, hereby Join in the execution of this instrument for the sole and express purpose of 05/20/97 16'17 '~"804 623 6508 WILKS & ALPER PC ~ UlJ subordinating to the rights hereby granted to the party of the second part the lien of the following deeds of trust: (a) The deed of trust of party of the party of the first part, dated April 1, 1984, duly recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, in Deed Book 2336, at page 1308, securxng the payment oX an indebtedness in the original principal amount of $2,970,000; (b) Deed of Trust of party of the first part, dated April 1, 1984, duly recorded in the aforssaid Clerk's Office in Deed Book 2336, at page 1338, securing the payment of an indebtedness in the original principal amount of $330,000. First Union National Bank of Virginia, the owner and holder of th9 indebtednesses secured by the aforesaid deeds of trust, hereby joins in the execution of this Deed of Easement for the express and sole purpose of consenting to the aforesaid subordination. WITNESS the following signatures: BERKSHIRE ASSOCIATES, L.P., a Virginia limited liability company By: Ramon W. Breeden, Jr. General Partner APPROVED AS TO FORM: City Attorney CITY OF VIRGINIA BEACH VIRGINIA, a municipal corporation By: City Manager 05/Z0/97 IU.17 "{;~U4 U~3 OSUb TRSTE, INC., a Vir0inia corporation, Substitute Trustee FIRST UNION NATIONAL BANK OF VIRGINIA By: Vice President COMMONWEALTH OF VlRG1NIA CITY OF , to-wit: The foregoing instrument was acknowledged before me this day of May, 1997, by RAMON W. BREEDEN, JR., General Partner of Berkshire Associates, L.P., on behalf of the partnership. My. Commission Expires: Notary Public COMMONWEALTH OF VIRGINIA CITY OF , to-wit: The foregoing instrument was acknowledged before me th£s ~, day of May, 1977, by._ , City Manager of the City of Virginia Beach, Virginia. My Commission Expires: Notary Publlc 05/20/97 16.15 '~504 623 6505 COMMONWEALTH OF VIRGINIA CITY OF , to-wit: The foregoing instrument was acknowledged before me this day of May, 1997, by , , of TRSTE, INC., a Virginia corporation, Substitute Trustee, on behalf of said corporation. My Commission Expires: Notary Public COMMONWEALTH OF VIRGINIA CITY OF , to-wit: The foregoing instrument was acknowledged before me this day of May, 1997, by , of FIRST UNION NATIONAL BANK OF VIRGINIA, N.A. on behalf of the Bank. My Commission Expires: · · Notary Public 05/21/97 623 6508 I¥1LKS & ALPER FL WILKS & ALPER, P.C. ATTORNEYS AND COUNSELORS AT LAW Suite 700, Town Point Center 150 Boush Slreet NorfolK, V~rgin~a 23510-1626 (757) 623-6500 Fax, (757) 623-6508 E-Mail: scalperl@aoi.com May 21, 1997 David S. Hay, Esq. Assistant City Attorney City Attorney Office Annex Building 20 2412 North Landing Road Virginia Beach, VA 23456 Re: Berkshire Associates w. Berkshire Apartments, L.L.C. Berkshire Apartments, Virgil, s Beach, Virginia Our File No. 31228 Dear David: As you are aware, I represent Berkshire Associates in connection with the pending sale of Berkshire Apartments to Berkshire Apartments, L.L.C., settlement for which sale is scheduled to occur on June 2, 1997. As a result of the preparation of a physical survey of the apartment project by John E. Sirine & Associates, Ltd., it was discovered that apartment building numbered 1521 and apartment building numbered 1505 encroach upon a drainage easement granted by deed to the City in 1984, and the title insurance company for the purchaser is requiring the elimination of these encroachments. With regard to the encroachment by building numbered 1521, such encroachment only involves a 69 sq. ft. area of the drainage easement and the City is being requested to vacate such portion of such drainage easement. With regard to the encroachment by building numbered 1505, such encroachment involves a 279 sq. ft. area of the subject drainage easement which the City is being requested to vacate, in exchange for which Berkshire Associates, proposes to grant, in substitution therefor, a 317 sq. ft. parcel as an addition to such drainage easement. We have been assured by Paul Oarrett of' John E. Sirine & Associates, Ltd. that neither of the aforesaid apartment buildings which encroach upon the drainage easement are located over any drainage pipes, and the requested vacation of easement areas and the dedication of the additional area will have no adverse effect, whatsoever, upon the utilization of the drainage easement for the purposes originally intended. Each of the vacation areas of the easement and additional area to be added to the easement are shown on the plat referred to in the proposed Deed of Easement and Vacation of Easement instrument previously submitted to you. 05/21/97 08'39 ~'804 623 8508 WlLKS & ALPER PC David S. Hay, Esq. May 21, 1997 Page 2 Trusting the foregoing is sufficient explanation of the reason for the requested easement vaoation, ! remain JFW: gb Very truly yours, Wilks - 35 - Item V-K. 7. ORDINANCES ITEM # 42161 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinance appointing viewers in the petition of The Runnymede Corporation for the closure of portions of rights-of-way known as Pine Street and Poplar Street, West of Rosemont Road and South of the Virginia Beach Expressway (Rt. 44) (L YNNHA VEN BOROUGH). The Viewers are: David M. Grochmal Director of General Services Robert ,I. Scott Director of Planning Ralph A. Smith Director of Public Works Voting: 1 I-0 (By ConsenO Council Members Voting ,,lye: John A. Baum, Linwood O. Branch, III, William W Harrison, Jr, Harold Heischober, Barbara M Henley, Louis R Jones, Reba S. McClanan, Mayor Meyera E. Oberndo~ Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Loutsa M. Strayhorn Council Members Voting Nay: None Council Members Absent: None May 27, 1997 ORDINANCE APPOINTING VIEWERS I WHEREAS, The Runnymede Corporation has given due and proper notice, in accordance with the statutes for such cases made and provided, that they will on the 27th day of May, 1997, apply to the City Council of the City of Virginia Beach, Virginia, for the appointment of viewers to view the below-described property and report in writing to the Council whether, in the opinion of said viewers, any, and if any, what inconvenience would result from the discontinuance of the hereinat~er described portions of those certain streets of variable width, and has filed such application with said Council. NOW, THEREFORE, be it ORDAINED by the Council of the City of Virginia Beach, Virginia: THAT Robert J. Scott David M. Grochmal and Ralph A. Smith arehereby appointed to view the below-described property and report in writing to the Council, as soon as possible, whether in their opinion, any and if any, what inconvenience would result in the discontinuing and vacating of a portion of those certain streets of variable width located in the City of Virginia Beach, Virginia, and more particularly described as follows: PINE STREET: A portion of a Right of Way known as Pine Street, beginning at a point which is the northeastern intersection of Pine Street and Fourth Street and running thence south S04 °22'17"W a distance of 457.03 feet to the imersection of South Boulevard, said Right of Way being 66.01 feet in width. POPLAR STREET: A portion of a Right of Way known as Poplar Street, beginning at a point which is the Northwestern intersection of Poplar Street and Fourth Street and nmning thence South S04°22'17"W a distance of 456.99 feet to the intersection of South Boulevard, said Right of Way being 66.06 feet in width. All of which aforesaid streets are shown on a certain Plat entitled "PLAT SHOWING A PORTION OF PINE STREET AND POPLAR STREET TO BE CLOSED, LYNNHAVEN BOROUGH - VIRGINIA BEACH, VIRGINIA, April 28, 1997", which plat is attached hereto as Exhibit A-1. ADOPTED BY THE COUNCIL of the City of Virginia Beach,, Virginia,. on this 27 day of May , 1997. NOTICE PLEASE TAKE NOTICE, that at the meeting of the City Council of the City of Virginia Beach, Virginia, to be held on the 27th day of May, 1997, at 6:00 p.m., at the City Hall of the City of Virginia Beach, Princess Anne Station, the undersigned will petition the Council for the appointment of Viewers to view the below-described portion of those certain streets and report to the City Council whether in the opinion of the Viewers, what, if any, inconvenience would result from the vacating, closing and discontinuance of same, the said portion of said streets being described as follows: PINE STREET: A portion of a Right of Way known as Pine Street, beginning at a point which is the northeastern intersection of Pine Street and Fourth Street and running thence south S04°22'17"W a distance of 457.03 feet to the intersection of South Boulevard, said Right of Way being 66.01 feet in width. POPLAR STREET: A portion of a Right of Way known as Poplar Street, beginning at a point which is the Northwestern intersection of Poplar Street and Fourth Street and running thence South S04°22'17"W a distance of 456.99 feet to the intersection of South Boulevard, said Right of Way being 66.06 feet in width. All of which aforesaid streets are shown on a certain Plat entitled "PLAT SHOWING A PORTION OF PINE STREET AND POPLAR STREET TO BE CLOSED, LYNNHAVEN BOROUGH - VIRGINIA BEACH, VIRGINIA, April 28, 1997", which plat is attached hereto as Exhibit A-1. At that time, anyone affected may appear and present his views. After the report of the Viewers is received, at the next regular meeting of the City Council, or as soon thereafter as the matter may be placed on the agenda, the undersigned will Petition the City Council to vacate, close, and discontinue those portions of the aforesaid streets in the City of Virginia Beach, Virginia, described above. WM. DAVID TIMBERLAKE Of Counsel IN THE MATTER OF CLOSING, VACATING, AND DISCONTINUING A PORTION OF THOSE CERTAIN STREETS OF VARIABLE WIDTH, KNOWN AS, Pine Street and Poplar Street, AS SHOWN UPON THAT CERTAIN PLAT ENTITLED, "Plat Showing a Portion of Pine Street and Poplar Street To Be Closed" WHICH PLAT IS ATTACHED HERETO. PETITION TO: THE MAYOR AND THE MEMBERS OF THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Your Petitioner, The Runnymede Corporation, respectfully represents as follows: PINE STREET: A portion of a Right of Way known as Pine Street, beginning at a point which is the northeastern intersection of Pine Street and Fourth Street and running thence south S04°22'17"W a distance of 457.03 feet to the intersection of South Boulevard, said Right of Way being 66.01 feet in width. POPLAR STREET: A portion of a Right of Way known as Poplar Street, beginning at a point which is the Northwestern intersection of Poplar Street and Fourth Street and running thence South S04°22'17"W a distance of 456.99 feet to the intersection of South Boulevard, said Right of Way being 66.06 feet in width. All of which aforesaid streets are shown on a certmn Plat entitled "PLAT SHOWING A PORTION OF PINE STREET AND POPLAR STREET TO BE CLOSED, LYNNHAVEN BOROUGH - VIRGINIA BEACH, VIRGINIA, April 28, 1997", which plat is attached hereto as Exhibit A-1. 1. That pursuant to the provisions of Section 15.1-364 of the 1950 Code of Virginia, as amended, the Petitioner applies for the vacating, closing, and discontinuance of a portion of those certain streets, which is more specifically described as follows: Said parcels of land being the portions of Pine Street and Poplar Street, as indicated on that certain plat entitled "Plat Showing a Portion of Pine Street and Poplar Street To Be Closed - Lynnhaven Borough - Virginia Beach, Virginia", which plat is attached hereto and made a part hereof and intended to be recorded with the Ordinance closing the aforedescribed streets. 2. That no inconvenience will result to any persons by reason of said closing, vacation, and discontinuance of said streets; and the Petitioner prays that this Honorable Council appoint viewers as provided by law to view said platted streets proposed to be closed and to report in writing to the Council on or before the ~day of ., 1997, as to whether in the opinion of said Viewers, what inconvenience, if any, would result from the discontinuance and closing of said streets, as herein reported and described. 3. That on the 2nd day of May, 1997 and on the 9th day of May, 1997, notice of the presenting of this application was published in the Virginia Beach Sun, a newspaper of general circulation in the City of Virginia Beach, Virginia. 4. That the fee simple owners of all land along and adjacent to and affected by said portion of the platted streets are your Petitioners herein, The Runnymede Corporation, 2101 Parks Avenue, Suite 600, Virginia Beach, Virginia. Respectfully submitted, THE RUNNYMEDE CORPORATION Of Counsel Wm. David Timberlake Fine, Fine, Legum & Fine 2101 Parks Avenue, Suite 601 Virginia Beach, VA 23451 i i ii · i i i _ i i ii i i i i i i i ii CROSS-HATCHED AREA DENOTES PORTIONS OF PINE STREET AND POPLAR STREET TO BE CLOSED. TOTAL AREA = 60,337 SF OR 1.385 AC. 280.81' t~L OCK 22 FOUR TH STREET (50' R~.) S87'18'4-8'E S87'18'48"E N87'18'48"W 280.81' z PARCEL '~ ' (MB 2/~, PC /04) N86'54'OO'W N88'14'OO"W UTILITIES ~ DRAINACE (MB 70, PO 42) ~, , DiN BY: KCR PLAT SHOWING A PORTION OF PINE STt~EET AND POPLAR STREET TO BE CLOSED LYNNHAVEN BOROUGH - VIRGINIA BEACH, VIRGINIA APRIL 28, 1997 MILLER - STEPHENSON &: ASSOCIATES, P.C. ENVIRONMENTAL SCIENCES, PLANNING, SURVEYING & ENGINEERING 5033 ROUSE DRIVE VIRGINIA BEACH, VIRGINIA 23462 (804)490-9264 FAX: (804)490-0634 JOB# M127A I SCALE:I" I, 100' FB: LOUIS S FINE, RETIRED MORRIS H FINE ANDREW S FINE WILLIAM B SMITH WM DAVID TIMBERLAKE STEVEN P LETOURNEAU M MICHELLE P McCRACKEN KATHRYN ELIZABETH FINE PROFESSIONAL ASSOCIATION ATTORNE:YS AT LAW PAVILION CENTER 2101 PARKS .~VENUE, SUITE 601 VIROIN~ B~CH, VIROINIA 23451 CERTIFICATE 0F VEST~G 0F TITLE HOWARD I LEGUM (1922-1993) TELEPHONE (757) 422-1678 FACSIMILE (757) 422-0865 I, Wm. David Timberlake, attorney for The Runnymede Corporation, do hereby certify that: 1. I am an attorney at law and represent The Runnymede Corporation, the petitioner. 2. If the property described below is discontinued, closed, and vacated by the Council of the City of Virginia Beach, Virginia, then title to said property will vest in The Runnymede Corporation. 3. The said property referred to herein is hereby described as follows: PINE STREET: A portion of a Right of Way known as Pine Street, beginning at a point which is the northeastern intersection of Pine Street and Fourth Street and running thence south S04 °22'17"W a distance of 457.03 feet to the intersection of South Boulevard, said Right of Way being 66.01 feet in width. POPLAR STREET: A portion of a Right of Way known as Poplar Street, beginning at a point which is the Northwestern intersection of Poplar Street and Fourth Street and running thence South S04°22'17"W a distance of 456.99 feet to the intersection of South Boulevard, said Right of Way being 66.06 feet in width. All of which aforesaid streets are shown on a certain Plat entitled "PLAT SHOWING A PORTION OF PINE STREET AND POPLAR STREET TO BE CLOSED, LYNNHAVEN BOROUGH - VIRGINIA BEACH, VIRGINIA, April 28, 1997", which plat is attached hereto as Exhibit A-1. Wm. David Timberlake AFFIDAVIT STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: I, Wm. David Timberlake, attorney for The Runnymede Corporation, being first duly sworn, deposes and states: 1. That I am an attorney at law and represent The Runnymede Corporation. 2. That on the 2nd day of May, 1997, and on the 9th day of May, 1997, notice of the presenting of the application to close a portion of those certmn streets known as Pine Street and Poplar Street on behalf of The Runnymede Corporation, was published in the Virginia Beach Sun, a newspaper of general circulation in the City of Virginia Beach, Virginia. And further the deponent smth not. Wm David T~mberlake Subscribed and swom to before me this ~ g.~, day of (_~Lc~ ! ,199g. My commission expires: .¢Notary Public The Virginia Beach Sun 138 South Rosemont Road, Suite 209 Virginia Beach, VA 23452 affidavit STATE OF VIRGINIA CITY OF VIRGINIA BEACH to wit: This day Andrea Greene personally, appeared before me and after being duly sworn made oath: (1) (He) (She)is affidavit clerk of a newspaper published by Byerly Publications, ~n the c~ty of V~rginia Beach, State of V~rg~n~a; (2) That the advertisement hereto annexed of The Runnymede Corp. has been published, in said newspaper on the following dates: 5 - 2 - 97 5-9-97 19 t/i, / -_-~ ~ ~ I \,_~;,, (, _~,_, ~,_ Affiant Subscribed and sworn to before me in my city and state aforesaid this 9 t h day of t~a y 19 97 My com~ssion expires June~ ~ 19 99 Nota~ Pub~ Public Notice i i NOTICE PLEASE TAKE NOTICE, that at the meeting of the City Council of the City of Virginia Beach, Virginia, to be held on the 27[h day of May, 1997, at 6:00 p.m., at the City Hall of the City of Virginia Beach, Princess Anne Station, thc undersigned will petltton the Council for the appointment of Viewers to view. the below-described portion of those certain streets and report to the City Council whether in the opinion of the Viewers, what, if any, inconvenience would result from the vacating, closing and discontinuance of same, the said portion of said streets being described as follows: PINE STREET: A portion of a Right of Way known as Pine Street, beginning at a point which is the northeastern intersection of Pine Street and Fourth Street and running thence south S04°22'I7''W a distance of 457.03 feet to the intersection of South Boulevard, said Right of Way being 66.01 feet m w~dth. POPLAR STREET: A poruon of a Right of Way known as Poplar Street, beginning at a point which is the Northwestern intersection of Poplar Street and Fourth Street and runmng thence South S04°22'17"W a distance of 456 99 feet to the intersection of South Boulevard, said Right of Way being 66.06 feet in width All of which aforesaid streets are shown on a certain Plat entitled "PLAT SHOWING A PORTION OF PINE STREET AND POPLAR STREET TO BE CLOSED, LYNNHAVEN BOROUGH - VIRGINIA BEACH, VIRGINIA, Apml 28, 1997", which plat is attached hereto as Exhibit A- 1. At that time, anyone affected may appear and present his views. After the report of the V~ewers is received, at the next regular meeting of the City Council, or as soon thereafter as the matter may be placed on the agenda,. the undersigned will Petition the City Council to vacate, close and discontinue those portions of the aforesaid streets in the City of Virginia Beach, Virginia, described above. WM. DAVID TIMBERLAKE Of Council 18-6 2t5-9 -36- Item VoK. 8. ORDINANCES ITEM # 42162 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinance to authorize License Refunds in the amount of $48,433.53 upon application of certain persons and upon certification of the Commissioner of the Revenue. Voting: 11-0 (By Consent) Council Members Voting Aye: John A. Baum, Linwood O. Branch, III, Wdliam W Harrison, Jr, Harold Heischober, Barbara M. Henley, Louis R Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent. None May 27, 1997 I 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 cerbhcatJon of the Commissioner of the Revenue are hereby approved NAME LICENSE DATE BASE YEAR PAID PENALTY INTEREST TOTAL Krause Enterprises Inc(Mary Krause) 299 Wdhston Road 6 1995-96 Wdhston VT 05495 Mcgrananhan, T R 1541 Salem Road Va Beach VA 23456 Audit 176 13 M~lls, Eleanore 314 16th Street Va Beach VA 23451 1996 Audit 138 73 M~ttlestadt, Bdly R 205 Hall Dnve Chesapeake VA 23320 1995-96 Audit 206 76 1194-96 Audit 214 91 Th~s ordinance shall be effective from date of adoption The above abatement(s) totaling $736 53 of the C~ty of V~rg~n,a Beach on the 27th 176 13 138 73 206 76 214 91 Cerbfied as to Payment ~-~:~6~ert P- Vat~"6an,~~ Commissioner of the Revenue Approved as to form C,ty Attorney were approved by the Council day of May ,1997 Ruth Hodges Smith C~ty Clerk I 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 applications for hcense refunds, upon certification of the Commissioner of the Revenue are hereby approved NAME LICENSE DATE BASE YEAR PAID PENALTY INTEREST TOTAL Grace & Sarah L~m~ted P O Box 3214 Va Beach VA 23454 Image Agency Incorporated(The) 1067 Hanson Way Va Beach VA 23454 Janet Gdbert Mezzy & Assoc Inc 1021 North Eden Way Chesapeake VA 23320 K B Toy Of V~rg~n~a Inc 100 West Street P~ttsfleld MA 01201 1997 03-19-97 250 00 1994-96 Audit 47 55 1995-96 Audit 1,505 84 1997 03-25-97 389 89 Th~s ordinance shall be effective from date of adoption The above abatement(s) totaling $2,193 28 of the C~ty of V~rg~n~a Beach on the 27th 25o 00 47 55 1,505 84 389 89 Cerbhed as to Payment obert P ~/'~ug~ Commissioner o~f'the Revenue Approved as to form C~ty Attorney were approved by the Council day of Nay ,1 997 Ruth Hodges Smith Crty 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 applications for license refunds, upon certification of the CommissIoner of the Revenue are hereby approved NAME LICENSE DATE BASE YEAR PAID PENALTY INTEREST TOTAL Albano Cleaners Inc 815 North B~rdneck Road Va Beach VA 23451 Armstrong, Lucy A 615 Massachusetts Ave Norfolk VA 23508 Beverly H Hopkins LCSW Inc 2223 Bayberry Street Va Beach VA 23451 Blue R~dge Buffalo Company Rt 1 Box 236 Hwy 637 Saxe VA 23967 1995-96 Audit 220 07 1995 Audit 30,30 1996 Audit 99 87 1996 Audit 21 06 Th~s ordinance sh{~[! be effective from date of adoption The above abatement(s) totaling $371.30 of the C~ty of Virginia Beach on the 27th Ruth Hodges Smith City Clerk 220 07 30 30 99 87 21 06 Certified as to Payment: err P Vaughan ~_.~~5~ert_ P._~ Commissioner of n et~-Revenue Approved as to form: City Attorney were approved by the Council day of May ,19 97 I FORM NO C A I REV 3/Ill 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 applications for license refunds, upon cerbfication of the Commissioner of the Revenue are hereby approved NAME LICENSE DATE BASE YEAR PAID PENALTY INTEREST TOTAL Dom~mon Chrysler Plymouth, Inc 4421 V~rgm~a Beach Blvd Va Beach VA 23462 Farm Fresh, Inc P O Box 1289 Norfolk VA 23501 Fleck, George E 1365 Ruddy Oaks Court Va Beach VA 23456 1995 Audit 1,731 59 1995-97 Audit 37,564 34 1994-95 Audit 23 74 1,731 59 37,564 34 23 74 Th~s ordinance shall be effecbve from date of adoption The above abatement(s) totaling $39,319 67 of the C~ty of V~rg~n~a Beach on the 27th Cert~hed as to Payment rt P Vaug'~an ~ Commissioner of th(~H=revenue Approved as to form ~'~1,~ L L~ey'"'"- C~ty Attorney were approved by the Council day of Nay ,1997 Ruth Hodges Smith C~ty Clerk I FORM NO C A I REV ~ 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 license refunds, upon certification of the Commissioner of the Revenue are hereby approved NAME LICENSE DATE BASE YEAR PAID PENALTY INTEREST TOTAL Oakley, Christopher K 3420 Indian R~ver Road Chesapeake Va 23325 P~zza Hut of Amenca Inc P O Box 783186 W~chKa KS 67278-3186 Porter, T~m L 3300 Edinburgh Dnve Va Beach VA 23452 Santt~, Carl Jr 1504 Stanfleld Road Va Beach VA 23455 1997 04-21-97 1995-97 Audit 1994-96 Audit 1995-96 Audit Th~s ordinance shall be effective from date of adopbon The above abatement(s) totaling $912 83 of the C~ty of V~rg~n~a Beach on the 2?t:h 5O 00 5O 00 692 88 692 88 46 51 46 51 123 44 123 44 Cerhfied as to Payment ~ert ~ V a~'g~an/,,,,-// Commissioner oFthe~evenue Approved as to form L Li~y~______~_____.~, CIty Attorney were approved by the Council day of Nay ,1997 Ruth Hodges Smith City Clerk I FORM NO CA BI,iV 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 applications for license refunds, upon cerbfication of the Commissioner of the Revenue are hereby approved NAME LICENSE DATE BASE YEAR PAID PENALTY INTEREST TOTAL Scott, Donald C & Bonme L 127 Orleans C~rcle Norfolk VA 23509 Sentara Enterpnses 6015 Poplar Hall Dnve 212 Norfolk VA 23502 Shochet, All 513 Harton C~r Va Beach VA 23452 Short, Ronald F 3824 Colomal Pkwy Va Beach VA 23452 1995-96 Audit 1996 Audit 1997 04-01-97 18 75 18 75 Th~s ordinance shall be effective from date of adoption The above abatement(s) totahng $3,296.07 of the C~ty of V~rg~n~a Beach on the 27th 3,219 39 3,219 39 33 89 33 89 1996 Audit 24 04 24 04 Certified as to Payment rt P V augt~a*~- ~-// Commissioner of the Regenue Approved as to form C~ty Attorney were approved by the Council day of May ,19 97 Ruth Hodges Smith C~ty Clerk FORM 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 certification of the Comm~ssfoner of the Revenue are hereby approved NAME LICENSE DATE BASE YEAR PAID PENALTY INTEREST TOTAL S~gnet Mortgage Corporabon P O Box 25970 R~chmond VA 23260 Sutton, Kenneth M 1401 White Blaze Court Va Beach VA 23464 Two Step Inc (Ed Ohara) 3013 Reflecbons Way 103 Va Beach VA 23452 Velo, Anthony G Jr 1369 Lask~n Road s-2 Va Beach VA 23451 1995-96 Audit 1,334 81 1997 04-14-97 10 00 1994-95 Audit 159 18 1997 03-10-97 99 86 Th~s ordinance shall be effective from date of adoption The above abatement(s) totaling $1,603 85 of the C~ty of V~rg~n~a Beach on the 2?th 1,334 81 10 00 159 18 99 86 Certified as to Payment Commissioner of the Re'~.'hue Approved as to form C~ty Attorney were approved by the Council day of May ,1 997 Ruth Hodges Smith C~ty Clerk -37- Item V-K. 9 ORDINANCES ITEM # 42163 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinance to authorize Tax Refunds in the amount of $2,298.94. upon application of certain persons and upon certification of the City Treasurer for payment. Voting: 11-0 (By ConsenO Council Members Vottng Aye: John A. Baum, Linwood 0 Branch, III, Wtlliam W. Harrison, Jr., HaroM Heischober, Barbara M. Henley, Louts R Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor Wilham D Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent. None May 27, 1997 ORM NO C A 7 AN ORDINANCE AUTHORIZING TAX REFUNDS UPON APPLICATION OF CERTAIN PERSONS AND UPON CERTIFICATION OF THE TREASURER FOR PAYMENT BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That the following applications for tax refunds upon certification of the Treasurer are hereby approved: Tax Type Ticket Exonera- Date Penalty Int. Total NAHE Year of Tax Number tion No. Paid City of Virginia Beach 97 RE(l/2 George B & Tita Galgo 97 RE(l/2 Robert J Neilson 97 RE(l/2 Main Line Federal Savings Bnk 97 RE(l/2 William F & Mary Dempsey 97 RE(l/2 Life Savings Bank FSB 97 RE(l/2 Life Savings Bank FSB 97 RE(l/2 O1 ive D Burnett 97 RE(2/2 Cora W Cox 96 RE(l/2 Cora W Cox 96 RE(2/2 L Edmondson & R Armstrong 96 RE(l/2 L Edmondson & R Armstrong 96 RE(2/2 Frank S Donnells 96 RE( 1/2 Frank S Donnells 96 RE(2/2 Frank S Donnells 95 RE(l/2 Frank S Donnells 95 RE(2/2 Frank S Donnells 94 RE(l/2 Frank S Donnells 94 RE(2/2 Vivian S Person N/A Misc 1 Gary McMahon 97 Dog ) 092527-5 12/5/96 776.51 ) 042674-1 12/5/96 701.19 ) 087548-0 12/5/96 217.80 ) 035169-7 11/18/96 26.84 ) 030869-1 12/2/96 24.40 ) 108567-0 12/5/96 19.03 ) 108651-7 12/5/96 19.50 ) 016542-5 2/6/97 135.25 ) 025589-1 11/14/95 47.52 ) 025589-1 5/24/96 47.52 ) 034635-7 11/24/95 18.30 ) 034635-7 5/17/96 18.30 ) 032024-0 12/5/95 4.87 ) 032024-0 5/14/96 4.87 ) 031369-6 11/18/94 4.68 ) 031369-6 5/24/95 4.68 ) 031228-8 12/5/93 4.68 ) 031228-8 6/5/94 4.68 i enW4-11 1/28/97 216.32 Vl1263 4/17/97 2.00 Total 2,298.94 This ordinance shall be effective from date of adoption. The above abatement(s) totaling $2,298.94 were approved by the Council of the City of Virginia Beach on the27_ day of Hay, 1997 Ruth Hodges Smith C~ty Clerk ApiSroved as to form LeSl,e Z L, IleY,-'~ty ~tt~ - 38 - Item VoL. RESOLUTIONS ITEM # 42164 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council APPROVED BY CONSENT in ONE MOTION Resolutions 1 and 3. Voting: 11-0 Council Members Voting Aye: John A. Baum, Linwood O. Branch, III, William W. Harrison, Jr., Harold Heischober, Barbara M Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndo~ Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent: None Councilman Jones DISCLOSED, pursuant to Section 2.1-639.14(G) of the Code of Virginia, he owns property located adjacent to the Lake Ridge Property and in close proximity to the parcels on which the golf course and multi-purpose sports stadium will be constructed His property is valued in excess of $10,000. Councilman Jones wished to disclose this interest and declare he was able to participate in the transaction fairly, objectively and in the public interest. Councilman Jones 'letters of March 25, 1997, and May 27, 1997, are hereby made a part of the record. May 27, 1997 - 39- Item V-L. 1. RESOLUTIONS ITEM # 42165 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Resolution to authorize the issuance and sale of $$6,700,000 General Obligation Public Improvement Bonds, Series of 1997, of the City of Virginia Beach, heretofore authorized and providingfor the form, details and payment thereof to finance, in part, the cost of the various public, school, road and highway improvements. Voting: 11-0 (By ConsenO Council Members Voting ~4ye: John ~4. Baum, Linwood O. Branch, III, William W. Harrison, Jr., HaroM Heischober, Barbara M. Henley, Louis R. Jones, Reba $. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members ~4bsent : None May 27, 1997 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $56,700,000 GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, SERIES OF 1997, OF THE CITY OF VIRGINIA BEACH, VIRGINIA, HERETOFORE AUTHORIZED, AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF WHEREAS, the issuance of $41,300,000 of bonds of the C~ty of V~rg~ma Beach, Virginia (the "City"), was authorized by an ordinance adopted by the Council of the City (the "City Council") on November 24, 1992, without being submitted to the qualified voters of the City, for the purposes and in the amounts shown below, $40,896,324 of whmh bonds have been issued and sold' School projects, including planning, design, construction, renovation, expansion, equipping, and furnishing of schools and related faclliues $40,545.232 Building projects, including design, planning, construction, improvements, renovation, expansion, equipping, and furmsh~ng of courts, l~brarles, storage, and other facilities 754.768 TOTAL $41.300.000, and WHEREAS, the issuance of $48,818,000 of bonds of the City was authorized by an ordinance adopted by the City Council on May 10, 1994, without being submitted to the qualified voters of the City, for the purposes and in the amounts shown below, $35,318,000 of whtch bonds have been issued and sold: School projects, including planning, design, site acquisition, construction, l enovation, expansion, equipping, and furnishing of schools and related faclhtles $23,034,579 Road projects, ~ncluding design, planning, site acquisition, construcuon, improvements, and landscaping of roadways and bridges 11,142.295 Economic and Tourism projects, ~ncludlng design, s~te acquisition, planning, expansion, construction, improvements, and landscaping of property and capital improvements 1,086,009 Virg~ma Marine Science Museum Expansion project, including planning, design, construction, renovation, expansion, eqmppmg, and furnishing of the Virginia Manne Science Museum expansion 11,910,617 Building projects, including planmng, design, site acquisition, construction, renovation, expansion, equipping, and furnishing of city and related fac~llues 1,644,500 TOTAL $48,818,000, and WHEREAS, the issuance of $51,100,000 of bonds of the City was authorized by an ordinance adopted by the City Council on May 9, 1995, without being submitted to the qualified voters of the City, to finance various public improvements, including schools, roadways, economic and tourism and building projects, $19,151,083 of which bonds have been issued and sold, and WHEREAS, the issuance of $50,900,000 of bonds of the City was authorized by an ordinance adopted by the City Council on May 14, 1996, without being submitted to the qualified voters of the City, to finance various public improvements, including schools, roadways, coastal, economic and tourism and building projects, none of which bonds have been issued and sold; and WHEREAS, the City Council has determined it is in the City's best interest to issue and sell $403,676 of the bonds authorized on November 24, 1992, $13,500,000 of the bonds authorized on May 10, 1994, $28,448,917 of the bonds authorized on May 9, 1995, and $14,347,407 of the bonds authorized on May 14, 1996; and WHEREAS, it has been recommended to the City Council by representatives of Government Finance Associates, Inc. and Government Finance Group, Inc. (the "Financial Advisors") that the City issue and sell a single issue of public improvement bonds in the principal amount of $56,700,000, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. Issuance of Bonds. There shall be issued, pursuant to the Constitution and statutes of the Commonwealth of Virginia, including the City Charter and the Public Finance Act of 1991, general obligation public improvement bonds of the City in the pnnc~pal amount of $56,700,000 (the "Bonds") to provide funds to finance, in part, the cost of the various public, school, road and highway improvements as more fully described in the ordinances authorizing the Bonds adopted on November 24, 1992, May 10, 1994, May 9, 1995, and May 14, 1996, and costs incurred in connection with issuing the Bonds 2. Bond Details. The Bonds shall be designated "General Obligation Public Improvement Bonds, Series of 1997," shall be in registered form, shall be dated June 1, 1997, shall be in denominations of $5,000 and multiples thereof and shall be numbered R-1 upward. The issuance and sale of the Bonds are authorized at an interest cost and at a price as shall be satisfactory to the City Manager; provided, however, that the Bonds (a) shall have a "true" or "Canadian" interest cost not to exceed 8.0%, taking into account any original issue discount or premium, and (b) shall be sold to the purchaser at a price not less than 99% of the principal amount thereof The Bonds shall mature or be subject to mandatory sinking fund redemptions in installments on April 1 in years and amounts, as follows' Year Amount Year Amount 1998 $2,835,000 2008 $2,835,000 1999 2,835,000 2009 2,835,000 2000 2,835,000 2010 2,835,000 2001 2,835,000 2011 2,835,000 2002 2,835,000 2012 2,835,000 2003 2,835,000 2013 2,835,000 2004 2,835,000 2014 2,835,000 2005 2,835,000 2015 2,835,000 2006 2,835,000 2016 2,835,000 2007 2,835,000 2017 2,835,000 At the time of sale, the City Manager may provide for consecutive annual principal amounts of the Bonds to be combined ~nto not more than two term Bonds (the "Term Bonds") Each Bond shall bear interest from June 1, 1997, at such rate as shall be determined at the ttme of sale, calculated on the basis of a 360-day year of twelve 30-day months, and payable semiannually on each April 1 and October 1, beglnmng October 1, 1997. Pnncipal and premium, if any, shall be payable to the registered owners upon surrender of Bonds as they become due at the office of the Registrar, as hereinafter defined Interest shall be payable by check or draft mailed to the registered owners at their addresses as they appear on the registration books kept by the Registrar on the fifteenth day of the month preceding each interest payment date. Principal, premium, ~f any, and ~nterest shall be payable ~n lawful money of the United States of America Initially, one Bond certificate for each maturity of the Bonds shall be issued to and registered ~n the name of The Depository Trust Company, New York, New York ("DTC"), or its nominee The C~ty shall enter into a Letter of Representations relating to a book-entry system to be maintmned by DTC w~th respect to the Bonds "Securities Depository" shall mean DTC or any other securities depository for the Bonds appointed pursuant to this Section In the event that (a) the Securities Depository determines not to continue to act as the securities depository for the Bonds by g~ving notice to the Registrar, and the C~ty d~scharges ~ts responslbdlt~es hereunder, or (b) the City ~n xts sole discretion determtnes 0) that beneficial owners of Bonds shall be able to obtain certificated Bonds or (i0 to select a new Securities Depository, then its chief financial officer shall, at the direction of the C~ty, attempt to locate another quahfied securities depository to serve as Securities Depository and authenticate and deliver certificated Bonds to the new Securities Depository or its nominee, or authenticate and deliver certificated Bonds to the beneficial owners or to the Securities Depository participants on behalf of beneficial owners substantially in the form provided for in Section 5, provided, however, that such form shall provide for ~nterest on the Bonds to be payable (A) from the date of the Bonds if they are authenticated prior to the first ~nterest payment date, or (B) otherwise from the ~nterest payment date that is or immediately precedes the date on which the Bonds are authenticated (unless payment of ~nterest thereon ~s ~n default, in which case ~nterest on such j- Bonds shall be payable from the date to which ~nterest has been paid) In dehvenng certificated Bonds, the chief financial officer shall be entitled to rely on the records of the Securities Depository as to the beneficial owners or the records of the Securities Depository pamc~pants acting on behalf of beneficial owners. Such certificated Bonds w~ll then be reg~strable, transferable and exchangeable as set forth ~n Section 7. So long as there is a Securities Depository for the Bonds (1) ~t or ~ts nominee shall be the registered owner of the Bonds, (2) notwithstanding anything to the contrary ~n th~s Resolution, determinations of persons entitled to payment of pnnmpal, premmm, if any, and ~nterest, transfers of ownership and exchanges and receipt of notices shall be the responsibility of the Securities Depository and shall be effected pursuant to rules and procedures established by such Securities Depository, (3) the Registrar and the C~ty shall not be responsible or l~able for ma~nta~mng, supervising or rewew~ng the records mmntmned by the Securities Depository, ~ts participants or persons acting through such participants, (4) references ~n th~s Resolution to registered owners of the Bonds shall mean such Securities Depository or ~ts nominee and shall not mean the beneficial owners of the Bonds, and (5) ~n the event of any ~ncons~stency between the provisions of th~s Resolution and the provisions of the above-referenced Letter of Representations such provisions of the Letter of Representations, except to the extent set forth m th~s paragraph and the next preceding paragraph, shall control 3. Redemption Provisions. Bonds matunng on or before April 1, 2007, are not subject to redemption prior to maturity Bonds matunng on or after April 1, 2008, are subject to redemption prior to maturity at the option of the C~ty on or after April 1, 2007, ~n whole or In part at any t~me, upon payment of the fbllow~ng redemption prices (expressed as a percentage of pnnc~pal amount of bonds to be redeemed) plus ~nterest accrued and unpmd to the redemption date Period During Which Redeemed (Both Dates Inclusive) Redemption Price April 1, 2007, to March 31, 2008 April 1, 2008, to March 31, 2009 April 1, 2009, and thereafter 102% 101 100 Term Bonds, ff any, are reqmred to be redeemed ~n part before maturity by the C~ty on April 1 ~n years and amounts as determxned at the t~me of sale, at a redemption price equal to the pnnc~pal amount of the Term Bonds to be redeemed, plus accrued interest to the redemption date If less than all of the Bonds are called for redemption, the Bonds to be redeemed shall be selected by the chief financial officer of the C~ty ~n such manner as he may determine to be ~n the best ~nterest of the C~ty If less than all the Bonds of a particular maturity are called for redemption, the Bonds w~th~n such maturity to be redeemed shall be selected by the Securities Depository pursuant to ~ts rules and procedures or, ffthe book-entry system ~s d~scont~nued, shall be selected by the Registrar by lot in such manner as the Registrar ~n ~ts d~scretlon may determine In either case, (a) the port~on of any Bond to be redeemed shall be ~n the pnnc~pal amount of $5,000 or some integral multiple thereof and (b) In selecting Bonds for redemption, each Bond shall be considered as representing that number of Bonds that is obtmned by dividing the pnnc~pal amount of such Bond by $5,000. The City shall cause not~ce of the call for redemption identifying the Bonds or portions thereof to be redeemed to be sent by facsimile transmission, registered or certified mall or overnight express dehvery, not less than 30 nor more than 60 days prior to the redemption date, to the registered owner of the Bonds. The City shall not be responsible for mailing not~ce of redemption to anyone other than DTC or another quahfied securities depository or 1ts nominee unless no quahfied securities depository Is the registered owner of the Bonds If no qualified securities depository is the registered owner of the Bonds, notice of redemption shall be mmled to the registered owners of the Bonds If a portion of a Bond is called for redemption, a new Bond in principal amount equal to the unredeemed pomon thereof w~ll be ~ssued to the registered owner upon the surrender thereof 4. Execution and Authentication. The Bonds shall be signed by the manual or facsimile signature of the Mayor or V~ce-Mayor, shall be countersigned by the manual or facsimile s~gnature of ~ts Clerk or Deputy Clerk, and the C~ty's seal shall be affixed thereto or a facsimile thereof printed thereon, provtded, however, that ~f both of such signatures are facsim~les, no Bond shall be valid untd ~t has been authenticated by the manual signature of an authorized officer or employee of the Registrar and the date of authenticat~on noted thereon 5. Bond Form. The Bonds shall be in substantially the following form, w~th such completions, omissions, ~nsert~ons and changes not inconsistent with this Resolunon as may be approved by the officers signing the Bonds, whose approval shall be ewdenced conclusively by the execution and delivery of the Bonds Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to the issuer or its agent for registration of transfer, exchange, or payment, and any certificate is registered in the name of Cede & Co., or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. REGISTERED REGISTERED No.R- $ UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH General Obligation Public Improvement Bond Series of 1997 INTEREST RATE MATURITY DATE DATED DATE CUSIP June 1,1997 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: DOLLARS The City of V~rginia Beach, Virginia (the "City"), for value received, promises to pay, upon surrender hereof to the registered owner hereof, or registered assigns or legal representanve, the pnnc~pal sum stated above on the maturity date stated above, subject to prior redemption as hereinafter provided, and to pay ~nterest hereon from ~ts date semiannually on each April 1 and October I, beg~nmng October I, 1997, at the annual rate stated above, calculated on the basis of a 360-day year of twelve 30-day months. Principal, premium, ~f any, and interest are payable ~n lawful money of the Umted States of America by the C~ty Treasurer, who has been appointed Registrar (the "Registrar"). The City may appoint a quahfied bank as successor paying agent and registrar for the bonds. Notwithstanding any other provision hereof, th~s bond ~s subject to a book-entry system maintmned by The Depository Trust Company CDTC"), and the payment of pnnc~pal, premium, ~f any, and ~nterest, the providing of notices and other matters shall be made as described ~n the C~ty's Letter of Representations to DTC Th~s bond is one of an ~ssue of $56,700,000 General Obhgat~on Pubhc Improvement Bonds, Series of 1997, of hke date and tenor, except as to number, denomination, rate of ~nterest, pnwlege of redemption and maturity, and ~s ~ssued pursuant to the Constitution and statutes of the Commonwealth of V~rg~ma, ~nclud~ng the C~ty Charter and the Public F~nance Act of 1991 The bonds have been authorized by ordinances adopted by the Council of the C~ty (the "C~ty Council") on November 24, 1992, May 10, 1994, May 9, 1995, and May 14, 1996, and are ~ssued pursuant to a resolution adopted by the C~ty Council on [May 271, 1997, to finance various pubhc, school, road, h~ghway and bridge ~mprovements and to pay costs of ~ssuance of the bonds. Bonds matunng on or before April 1, 2007, are not subject to redemption prior to maturity Bonds maturing on or after April 1, 2008, are subject to redemption prior to maturity at the option of the C~ty on or after April 1, 2007, in whole or ~n part at any ttme, upon payment of the followxng redemption prices (expressed as a percentage of pnncipal amount of bonds to be redeemed) plus ~nterest accrued and unpaid to the redemption date: j- Period During Which Redeemed (Both Dates Inclusive) Redemption Price April 1, 2007, to March 31, 2008 April 1, 2008, to March 31, 2009 April l, 2009, and thereafter 102% 101 100 [ Bonds maturing on , , are required to be redeemed in part beibre maturity by the City on in the years and amounts set forth below, at a redemption price equal to the principal amount of the bonds to be redeemed, plus accrued interest to the redemption date' Year Amount Year Amount If less than all of the bonds are called ibr redemption, the bonds to be redeemed shall be selected by the chief financial officer of the City in such manner as he may determine to be in the best interest of the City. If less than all the bonds of a particular maturity are called for redemption, the bonds within such maturity to be redeemed shall be selected by DTC or any successor securities depository pursuant to its rules and procedures or, if the book entry system is discontinued, shall be selected by the Registrar by lot in such manner as the Registrar in ItS discretion may determine. In e~ther case, (a) the portmn of any bond to be redeemed shall be in the principal amount of $5,000 or some integral multiple thereof and (b) in selecting bonds for redemption, each bond shall be considered as representing that number of bonds that is obtained by dividing the pnnclpal amount of such bond by $5,000 The City shall cause notice of the call for redemption ~dent~fymg the bonds or portmns thereof to be redeemed to be sent by facsimile transmission, registered or certified mall or overmght express delivery, not less than 30 nor more than 60 days prior to the redemption date, to DTC or ~ts nominee as the registered owner hereof. If a port~on of this bond Is called for redemption, a new bond m principal amount of the um'edeemed port~on hereof w~ll be ~ssued to the registered owner upon surrender hcrcot The full faith and credit of the City are irrevocably pledged for the payment of pnnclpal of and premium, if any, and interest on this bond. The Registrar shall treat the registered owner of this bond as the person or entity exclusively entitled to payment of principal of and premium, if any, and interest on th~s bond and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person or entity shown as the owner on the registration books on the fifteenth day of the month preceding each interest payment date. All acts, conditions and th~ngs required by the Constitut~on and statutes of the Commonwealth of Vlrglma to happen, exist or be performed precedent to and ~n the ~ssuance of this bond have happened, exist and have been performed, and the issue of bonds of which th~s bond is one, together with all other indebtedness of the City, is within every debt and other limit prescribed by the Constitution and statutes of the Commonwealth of V~rglma IN WITNESS WHEREOF, the City of V~rgima Beach, Virginia, has caused this bond to be signed by its Mayor, to be countersigned by its Clerk, its seal to be affixed hereto, and this bond to be dated June 1, 1997. COUNTERSIGNED: Clerk, City of Vlrglma Beach, Virginia (SEAL) Mayor, C~ty of V~rg~ma Beach, Vlrg~ma ASSIGNMENT FOR VALUE RECEIVED the undersigned sell(s), assign(s) and transfer(s) unto (Please print or type name and address, including postal zip code, of Transferee) PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE the within bond and all rights thereunder, hereby irrevocably constituting and appointing , Attorney, to transfer said bond on the books kept for the registration thereofi with full power of substitut~on in the premises Dated: Signature Guaranteed NOTICE' Signature(s) must be guaranteed by an Eligible Guarantor Institution such as a Commercial Bank, Trust Company, (Signature of Registered Owner) NOTICE: The signature above must Securities Broker/Dealer, Credit Union or Savings Association who is a member of a medallion program approved by The Securities Transfer Association, Inc. correspond with the name of the registered owner as it appears on the front of this bond in every particular, without alteration or enlargement or any change whatsoever. 6. Pledge of Full Faith and Credit. The full faith and credit of the City are irrevocably pledged for the payment of the principal of and premium, if any, and interest on the Bonds. Unless other funds are lawfully available and appropriated for timely payment of the Bonds, the City Council shall levy and collect an annual ad valorem tax, over and above all other taxes authorized or limited by law and without limitation as to rate or amount, on all locally taxable property in the City sufficient to pay when due the principal of and premium, if any, and interest on the Bonds. 7. Registration, Transfer and Owners of Bonds. The City Treasurer is appointed paying agent and registrar for the Bonds (the "Registrar"). The City may appoint a qualified bank or trust company as successor paying agent and registrar of the Bonds. The Registrar shall maintain registration books for the registration and registration of transfers of Bonds. Upon presentation and surrender of any Bonds at the office of the Registrar, at its corporate trust office if the Registrar is a bank or trust company, together with an assignment duly executed by the registered owner or his duly authorized attorney or legal representative in such form as shall be satisfactory to the Registrar, the City shall execute, and the Registrar shall authenticate, if required by Section 4, and shall deliver in exchange, a new Bond or Bonds having an equal aggregate principal amount, in authorized denominations, of the same form and maturity, bearing interest at the same rate and registered in the name as requested by the then registered owner thereof or its duly authorized attorney or legal representative. Any such exchange shall be at the expense of the City, except that the Registrar may charge the person requesting such exchange the amount of any tax or other governmental charge required to be prod with respect thereto The Registrar shall treat the registered owner as the person or entity exclusively entitled to payment of principal, premium, if any, and interest and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person or entity shown as owner on the registration books as of the fifteenth day of the month preceding each interest payment date 8. Sale of Bonds. The City Council approves the following terms of the sale of the Bonds The Bonds shall be sold by competitive bid, and the City Manager shall receive bids for the Bonds and award the Bonds to the bidder providing the lowest "true" or "Canadian" ~nterest cost, subject to the limitations set forth in paragraph 2. Following the sale of the Bonds, the City Manager shall file a certificate with the City Clerk setting forth the final interest rates and the purchase price of the Bonds. The actions of the City Manager in selhng the Bonds shall be conclusive, and no further action shall be necessary on the part of the City Council. 9. Notice of Sale. The City Manager, in collaboration with the Financial Advisors, is authorized and directed to take all proper steps to advertise the Bonds for sale substantially in accordance with the form of Notice of Sale attached hereto, which is approved, provided that the City Manager, in collaboration with the Financial Advisors, may make such changes in the Notice of Sale not inconsistent with this Resolution as he may consider to be In the best interest of the City 10. Official Statement. A draft of a Preliminary Official Statement describing the Bonds, copies of which have been provided to the members of the City Council, is approved as the form of the Preliminary Official Statement by which the Bonds will be offered for sale, with such completions, omissions, insertions and changes not inconsistent with this Resolution as the City Manager, in collaboration with the Financial Advisors, may consider appropriate. After the Bonds have been sold, the City Manager, in collaboration with the Financial Advisors, shall make such completions, omissions, insertions and changes in the Preliminary Official Statement not inconsistent with this Resolution as are necessary or desirable to complete it as a final Official Statement, execution thereof by the City Manager to constitute conclusive evidence of his approval of any such completions, omissions, insertions and changes The City shall arrange for the delivery to the purchaser of the Bonds of a reasonable number of copies of the final Official Statement, within seven business days after the Bonds have been awarded, for delivery to each potential investor requesting a copy of the Official Statement and to each person to whom such purchaser and members of his group initially sell Bonds. 11. Official Statement Deemed Final. The City Manager is authorized, on behalf of the City, to deem the Preliminary Official Statement and the Official Statement in final form, each to be final as of its date within the meaning of Rule 15c2-12 (the "Rule") of the Securities and Exchange Commission (the "SEC"), except for the omission in the Preliminary Official Statement of certain pricing and other information permitted to be omitted pursuant to the Rule The dlstrlbunon of the Preliminary Official Statement and the Official Statement ~n final form shall be conclusive evidence that each has been deemed final as of its date by the City, except for the omission in the Preliminary Official Statement of such pricing and other information permitted to be omitted pursuant to the Rule 12. Preparation and Delivery of Bonds. After bids have been received and the Bonds have been awarded, the officers of the City are authorized and directed to take all proper steps to have the Bonds prepared and executed in accordance with their terms and to deliver the Bonds to the purchaser thereof upon payment therefor 13. Arbitrage Covenants. The City covenants that it shall not take or omit to take any action the taking or omission of which will cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, including regulations issued pursuant thereto (the "Code"), or otherwise cause interest on the Bonds to be includable in the gross income of the registered owners thereof under existing laws. Without limiting the generality of the foregoing, the City shall comply with any provision of law that may require the City at any time to rebate to the United States any part of the earnings derived from the investment of the gross proceeds of the Bonds, unless the City receives an opinion of nationally recognized bond counsel that such compliance is not required to prevent ~nterest on 10 ,/ the Bonds from being ~ncludable tn the gross income of the registered owners thereof under emst~ng law. The City shall pay any such reqmred rebate from its legally available funds 14. Non-Arbitrage Certificate and Elections. Such officers of the C~ty as may be requested are authorized and directed to execute an appropriate certificate setting forth the expected use and ~nvestment of the proceeds of the Bonds ~n order to show that such expected use and ~nvestment w~ll not v~olate the proms~ons of Section 148 of the Code, and any elections such officers deem desirable regardxng rebate of earnings to the United States, for purposes of complying w~th Section 148 of the Code. Such certificate and elections shall be ~n such form as may be requested by bond counsel for the City. 15. Limitation on Private Use. The C~ty covenants that ~t shall not permit the proceeds of the Bonds or the facilities financed with the proceeds of the Bonds to be used ~n any manner that would result ~n (a) 5% or more of such proceeds or the fac~lmes financed with such proceeds being used in a trade or business carried on by any person other than a governmental unit, as provided ~n Section 141 (b) of the Code, (b) 5% or more of such proceeds or the facilities being financed w~th such proceeds being used w~th respect to any output facility (other than a facdlty for the furmshlng of water), within the meamng of Section 141(b)(4) of the Code, or (c) 5% or more of such proceeds being used d~rectly or indirectly to make or finance loans to any persons other than a governmental unit, as provided in Section 141(c) of the Code, provided, however, that if the City receives an op~mon of nationally recognized bond counsel that any such covenants need not be comphed w~th to prevent the interest on the Bonds from being includable xn the gross income for federal income tax purposes of the registered owners thereof under existing law, the C~ty need not comply with such covenants. 16. SNAP Investment Authorization. The C~ty Council has received and reviewed the Information Statement (the "Information Statement") describing the State Non-Arbitrage Program of the Commonwealth of Vlrg~ma ("SNAP") and the Contract Creating the State Non- Arbitrage Program Pool I (the "Contract"), and the City Council has determined to authorize the C~ty Treasurer to utilize SNAP in connection with the tnvestment of the proceeds of the Bonds, ~f the C~ty Manager and the Dtrector of Finance, in consultation with the C~ty Treasurer, determine that the utthzatlon of SNAP ~s in the best ~nterest of the City. The City Council acknowledges the Treasury Board of the Commonwealth of V~rg~ma ~s not, and shall not be, ~n any way liable to the City in connection with SNAP, except as otherwise provided ~n the Contract 17. Continuing Disclosure Agreement. The Mayor, the City Manager and such officer or officers of the C~ty as either may designate are hereby authorized and d~rected to execute a cont~nmng d~sclosure agreement setting forth the reports and notices to be filed by the City and contmmng such covenants as may be necessary to assist the purchasers of the Bonds in complying w~th the provisions of the Rule promulgated by the SEC Such continuing d~sclosure agreement shall be substantially in the form provided to members of the City Council, w~th such completions, omissions, insertions and changes that are not ~nconslstent with this Resolution 18. Other Actions. All other actions of officers of the City and the C~ty Council ~n conformity wtth the purposes and intent of th~s Resolution and in furtherance of the issuance and 11 sale of the Bonds are hereby ratified, approved and confirmed. The officers of the City are authorized and d~rected to execute and dehver all certificates and instruments and to take all such further action as may be considered necessary or desirable in connection w~th the ~ssuance, sale and delivery of the Bonds. 19. Repeal of Conflicting Resolutions. All resolutions or parts of resolutions ~n conflict herewith are repealed. 20. Effective Date. Th~s Resolution shall take effect immediately Adopted by the Council of the City of V~rg~ma Beach, Virginia, this 27th day of May, 1997. Clerk, C~ty of Vlrg~ma Beach, V~rg~ma SIGNAlU ,..~. jr D E P/, F,"I M.T~qT APP2OVED AS '10 ~ EGAL SUFi:ICIENCY AND FO2M - an'- 12 CONTINUING DISCLOSURE AGREEMENT This CONTINUING DISCLOSURE AGREEMENT dated as of , 1997 (the "Disclosure Agreement"), is executed and delivered by the City of Virginia Beach, Virginia (the "City"), in connection with the issuance by the City of its $56,700,000 General Obligation Public Improvement Bonds, Series of 1997 (the "Bonds") The City hereby covenants and agrees as follows: Section 1. Purpose. Th~s D~sclosure Agreement is being executed and delivered by the City for the benefit of the holders of the Bonds and in order to assist the purchasers of the Bonds m complying the provisions of Section (b)(5)(i) of Rule 15c2-12 (the "Rule") promulgated by the Secunnes and Exchange Commission by providing certain annual financial information and material event notices required by the Rule (collectively, "Continuing Disclosure") Section 2. Annual Disclosure. (a) The City shall provide annually certain financial information and operating data in accordance with the provisions of Section (b)(5)(0 of the Rule as follows (0 audited financial statements of the City, prepared In accordance with generally accepted accounting principles, and (ii) the operating data with respect to the City of the type described in the section of the City's Official Statement entitled "Operating Data." If the financial statements filed pursuant to Section 2(a) are not audited, the City shall file such statements as audited when available. (b) The City shall provide annually the financial information and operating data described in subsection (a) above (collectively, the "Annual Disclosure") within 180 days after the end of the City's fiscal year, commencing with the City's fiscal year ending June 30, 1997, to each nationally recognized municipal securities information repository ("NRMSIR") and to the appropriate state information depository if any then exists ("SID") (c) Any Annual Disclosure may be included by specific reference to other documents previously provided to each NRMSIR and to the SID or filed with the SEC; provided, however, that any final official statement incorporated by reference must be available from the Municipal Securities Rulemaklng Board (the "MSRB"). (d) The City shall provide in a timely manner to each NRMSIR or the MSRB and to the SID notice specifying any failure of the City to provide the Annual Disclosure by the date specified Section 3. Event Disclosure. The City shall provide in a timely manner to each NRMSIR or the MSRB and to the SID notice of the occurrence of any of the following events with respect to the Bonds, if material' (a) principal and interest payment delinquencies, (b) non-payment related defaults, (c) unscheduled draws on debt service reserves reflecting financial d~fficultles, (d) unscheduled draws on any credit enhancement reflecting financial difficulties; (e) substitution of credit or liquidity providers, or their failure to perform; (f) adverse tax opinions or events affecting the tax-exempt status of the Bonds, (g) modifications to rights of Bondholders; (h) bond calls, defeasance of all or any portion of the Bonds, 0) release, substitution, or sale of property securing repayment of the Bonds, and (k) rating changes. Section 4. Termination. The obligations of the City will terminate upon the redemption, defeasance (within the meaning of the Rule) or payment in full of all the Bonds. Section 5. Amendment. The City may modify its obligations hereunder w~thout the consent of Bondholders, provided that this Disclosure Agreement as so modified complies with the Rule as it exists at the time of modification. Section 6. Defaults. (a) If the City falls to comply with any covenant or obligation regarding Continuing Disclosure specified in this Disclosure Agreement, any holder (within the meaning of the Rule) of Bonds then outstanding may, by notice to the City, proceed to protect and enforce its rights and the rights of the holders by an action for specific performance of the City's covenant to provide the Continuing Disclosure. (b) Notwithstanding anything herein to the contrary, any failure of the City to comply with any obligation regarding Continmng D~sclosure specified in this D~sclosure Agreement 0) shall not be deemed to constitute an event of default under the Bonds or the resolution prov~dlng for the ~ssuance of the Bonds and (ii) shall not g~ve rise to any right or remedy other than that described in Section 6(a) above. Section 7. Additional Disclosure. The City may from t~me to time disclose certmn information and data in addition to the Continuing Disclosure. Notwithstand~ng anything herem to the contrary, the C~ty shall not ~ncur any obhgation to continue to provide, or to update, such additional tnformat~on or data Section 8. Counterparts. Th~s Disclosure Agreement may be executed ~n several counterparts each of which shall be an original and all of which shall constitute but one and the same ~nstrument. Section 9. Governing Law. Th~s D~sclosure Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of V~rg~ma. CITY OF VIRGINIA BEACH, VIRGINIA Mayor, C~ty of V~rglma Beach, Vlrg~ma C~ty Manager, City of V~rg~ma Beach, V~rg~ma 40- Item V-L.2. RESOLUTIONS ITEM # 42166 The following registered in OPPOSITION: Hattie M. Setzer, 2424 Rock Creek Drive, Chesapeake, Phone: 424-5993 Matthew Brown, Brewer's East Inn, Phone: 472-01786 Upon motion by Councilman Harrison, seconded by Councilman Heischober, City Council ADOPTED: Resolution re the Princess Anne Corridor Plan: Lake Ridge Land Use Plan (Approximately 2,000 Acres), (PRINCESS ANNE BOROUGH) Voting: 8-3 Council Members Voting Aye. John .4. Baum, Linwood O. Branch, III, William W. Harrtson, Jr, Harold Hetschober, Louis R Jones, Mayor Meyera E Oberndorf Vice Mayor Wtlham D. Sessoms, Jr and Louisa M Strayhorn Council Members Vottng Nay: Barbara M. Henley, Reba S McClanan and Nancy K. Parker Council Members Absent: None Councilman Jones DISCLOSED, pursuant to Sectton 2 1-639 14(G) of the Code of Vtrginta, he owns property located adjacent to the Lake Ridge Property and tn close proximity to the parcels on which the golf course and multi-purpose sports stadtum wtll be constructed His property is valued in excess of $10,000. Counctlman Jones wtshed to dtsclose thts tnterest and declare he was able to parttcipate tn the transaction fairly, objectively and in the pubhc tnterest. Councilman Jones' letters of March 25, 1997, and May 27, 1997, are hereby made a part of the record. May 27, 1997 A RESOLUTION TO ADOPT THE PRINCESS ANNE CORRIDOR PLAN: LAKE RIDGE PROPERTY 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3O 31 32 33 34 35 36 WHEREAS, on December 13, 1994, City Council acquired 1,193 acres of land in the Princess Anne Corridor, known as the Lake Ridge Property, for the purpose of creating an activity center of unparalleled quality to meet the economic development, land use, and other related goals of the City; WHEREAS, City Council subsequently acquired an additional 112 acres adjacent to the Lake Ridge Property, in part, to accommodate a Juvenile Detention Center; WHEREAS, the City of Virginia Beach now owns approximately 2,000 acres of land and water resources in the Princess Anne Corridor which will offer to the citizens of Virginia Beach a place that belongs to them and provides them with the opportunity to enhance every aspect of their lives; WHEREAS, City Council has expressed support for the development of the Princess Anne Corridor through its Destination Points and Capital Improvement Program for certain projects located within the Lake Ridge Property that are vital to Council's view of the future of the City; WHEREAS, in January, 1995, City Council directed the Department of Planning to begin a process that would result in a plan for the coordinated development of the Lake Ridge Property which would include a determination of developer interest in the property and a forum for citizen input into the decision making leading to a final plan; WHEREAS, City Council has appointed a Steering Committee composed of representatives of the development community, the School Board, citizens, City Council, and the Planning Commission to provide perspective to the public input process, assist in conducting the Request for Interest Process, evaluate ideas and proposals, and combine ideas into a final plan; WHEREAS, the Steering Committee has held a series of public workshops to solicit input from citizens and property owners; 37 38 39 4O 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 6O 61 62 63 64 65 66 67 68 69 70 71 72 WHEREAS, the City has made applications for development proposals available to individuals, groups, and non-profit developers interested in developing some portion of the Lake Ridge property and has issued a Request for Interest for the purpose of determining if and what kind of private sector interest there might be in the Lake Ridge Property; WHEREAS, the City has received development proposals and responses to the Request for Interest; WHEREAS, a land use plan for the Princess Anne Corridor and Lake Ridge property has been prepared based upon citizen input, the development proposals by non-profit and small firms, the responses to the Request for Interest, and the Mission Statement endorsed by the Steering Committee; WHEREAS, on March 25, 1997, a public hearing was held on the land use plan for the purpose of soliciting public comment; and WHEREAS, it appears that the land use plan for the Princess Anne Corridor - Lake Ridge Property establishes the land use and design theme for this part of the City well into the 21st Century and ensures that the development which will occur is of the highest quality and is of a type that meets the goals of the City of Virginia Beach. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That the "Princess Anne Corridor Plan: Lake Ridge Property" dated May 1997 and attached hereto is hereby adopted as City Council's guiding land use tool for the Lake Ridge property. Adopted by the Council of the City of Virginia Beach, 27 Virginia, on the day of CA-6663 ORD IN \ NONCOD E \ PAPLAN. RES R-2 PREPARED: 05/22/97 May , 1997. APPROVED AS TO CONTENT: P la%~ning-D~par~ent APPROVED AS TO LEGAL SUFFICIENCY AND FORM: Law Department ~ Vi~G BE~*~ May, 1997 Topic Page Introduction .................................................................. The Process .................................................................. Mission Statement ........................................................ The Recommended Land Use Allocation .................... Princess Anne Park Relocation 7 Higher Education / Business Facilities 7 Public Schools 8 Multi-Purpose Stadium 8 Golf Courses / Resort 8 Juvenile Detention Center 8 Business / Office Center 8 Implementation Strategies ........................................... Utilities Roadways Open Space and Trails Design and Aesthetics Appendix A: Non-Profit & Small Firm Submissions .......... 9 10 13 13 Appendix B: Request for Interest Submissions ................... Appendix C: The Alternative Plans ..................................... Alternative One Alternative Two Alternative Three Alternative Four C.l C.3 C.5 C.5 A.I B.I C.1 r' 6N Lake Ridge Propmy Strategically located between the City's Municipal Center and the Virginia Beach Amphitheater is a large tract of municipally-owned land of almost 1200 continuous acres known as Lake Ridge. This property, combined with other properties owned by the City of Virginia Beach in the adjoining areas, provides the City with a continuous corridor of nearly 2000 acres of municipally-owned land and water resources that stretch from Tidewater Community College to Indian River Road, near Pungo. This corridor, held in 'common' by the citizens of Virginia Beach, offers the City of Virginia Beach an opportunity to create an activity center of unparallel quality and to establish the land use and design theme for this part of the City well into the 2 l'~t Century. Like the great open space 'commons' found in the large cities of the United States, like Central Park, in New York City, the Princess Anne Corridor offers the citizens of Virginia Beach a place that belongs to them and provides them with the opportunity to enhance every aspect of their lives. The foundation for this opportunity was laid on December 13, 1994, when the City Council of Virginia Beach approved the purchase of 1,193 acres of land, located in the center of Virginia Beach (see Map l). This property was formerly known as Lake Ridge, a name given to it by a proposed past development. The City purchased this tract due to its size, its location along one of the City's more significant growth corridors, its location adjacent to other municipally-controlled properties, and its potential as an integral Virginia Beach The City of Virginia Bench is located within the Norfolk- Virgima Bench-Newport News, VA-N.C MSA, which is the 27th largest in the nation (MSA population is approximately I 7 million) The City borders the AtlanUc Ocean in the southeastern comer of the state of Vtrgmin The population of the City of Virginia Beach ts approximately 430,000, making tt the largest city in the state and the 35th largest in the United States One of the City's primary industries is tourism. The City and the surrounding region is a major tourist destination, with benches, amusement facilities, natural resource nmemties, historical sites, museums, special events, golf courses, and n 20,000-seat outdoor amphitheater To lodge and serve these wsitors, the C~ty has nearly ! 1,000 hotel rooms and numerous conventaon and ancdlary faclht~es part of the City's future. Control of this tract provides the City with the opportunity to ensure that development which occurs is of the highest quality and is of a type that meets the economic development, land use, and other related goals of the City. In January, 1995, the City Council directed the PA Corridor Plan: Lake Ridge Property Page 1 Lake Ridge Property / Ex~sting Conditions I Department of Planning to begin a process that would result in a plan for the coordinated development of the property. This process was to include a determination of developer interest in the property and a forum for citizen input into the decision- making leading to a final plan. This plan represents the first installment of what will eventually be a more extensive plan for all of the Princess Anne Corridor. While the City's Comprehensive Plan provides the overall framework for the physical development of the city, plans such as this one offer a clearer vision and more detailed guidance for specific parts of the city. This plan, in affect, helps to implement the City's Comprehensive Plan. The following pages provide a description of the process used in developing a land use allocation recommendation for the Lake Ridge property, a presentation of the recommended allocation, and an explanation of a future implementation strategy that will assist in making the goals for the Lake Ridge Property become reality. The course of action selected by the Council involved staff doing the majority of the effort, with an outside consultant brought into the process at various steps to assist with design and land use planning, as needed. Until May, 1995, Staff collected data and other information related to the property and then developed preliminary various alternative concept plans for the purpose of gaining an initial determination about the potential use of the property. From May to August, 1995, the alternative concept plans were discussed and further refined. Meetings were held with various City Staff and with the School Board to address a number of issues including the possible relocation of existing Princess Anne Park into the Lake Ridge property and the possible locations for elementary, middle, and high schools. Transportation, utility, open space, recreation, natural resource and other impacts were discussed. The relationship of the land use concepts to surrounding areas and the amphitheater (then under construction) were discussed. On September 15, 1995, Staff reported The Princess Anne Comdor Lake Ridge is situated near the center of the City, strategically located on the fringe of the u~anized area of the City and on the northern edge of the rural countryside of Virgima Beach The Municipal Center ts less than a mile from thc eastern boundary of the property, on Princess Anne Road The property is located within 20 m~nutes of Downtown Norfolk, 20 minutes of the Greenbrier nrea of Chesapeake, 10 to 15 minutes of the Oceanfront, and 45 nunutes of Newport News and Hampton The surrounding area consists of a mixture of residential, park, and rural land uses The western edge of the property is bordered by a single-family resldenUal area, a 14- field soccer complex, and a municipal park (see attached vlcimty map) The northern edge is bordered by the Virginia Beach campus of Tidewater Community College, the future s~te of the Virginia Beach Higher Education Center, a cemetery and a mixture of single-famdy, agricultural, and rural res~denual uses adJacent to Pnncess Anne Road The eastern and southern edges a~ bordered by agricultural and rural residenual uses The major roadway serving the site is Princess Anne Road/Ferrell Parkway Princess Anne Road/Ferrell Parkway ~s an e~ght-lane controlled-access arterial highway north of its intersection with Dam Neck Road South of that mtersectmn, the road becomes a two-lane arterial running along the northern boundary of the property Princess Anne Road/Fen'ell Parkway ~s the primary east-west highway through the south-central part of the C~ty, providing access to 1-64 and to the Oceanfront (wa Dam Neck Road) PA Corridor Plan: Lake Ridge Property Page 2 to the City Council on the progress being made in regard to the planning process and requested that the Council consider appointing a Princess Anne Corridor Steering Committee to provide perspective to the public input process, assist in conducting the Request for Interest process, evaluate ideas and proposals put forward, and combine the ideas into a final plan. On September 17, 1995, the Council approved the formation of the requested steering committee. Members of the Committee included representatives of the development community, the School Board, citizens, and City Council and the Planning Commission: Members: Dr. E. T. Buchanan, Dean, TCC Dorcas Helfant, President, Coldwell Banker Helfant Realty Barbara M. Henley, City Council Robert Dean, City Council Bob Hicks, Parks and Recreation Commission John Kalocay, Chief of Operations, School Board Kenneth F. Palmer, Chair, Virginia Beach Development Authority James Pendergast, Virginia Beach Visions Robert Vakos, Chair, Planning Commission Roger L. Visser Staff: Patricia Phillips, Director, Finance Department Donald Maxwell, Director, Economic Development Susan Walston, Director, Parks and Recreation Department Robert Scott, Director, Planning Department Stephen White, Planning Department On December 14, Staff held the first meeting with the Princess Anne Corridor Steering Committee and briefed the committee on the work done to date, noting the natural resource and other constraints of the property, and discussed what the future process might be for the development of a land use allocation. From November, 1995 to January, 1996, Staff worked with CMSS Architects to develop a more definitive concept for the Corridor and the Lake Ridge property. The earlier concepts developed by the staff were used as a starting point for development of the plan. Based on the previous work and discussion, the proposed land use mix included two golf courses adjacent to business facilities, a relocated Princess Anne Park, a Special Events Area, business facilities interfacing with higher learning (Virginia Beach Higher Education Center [VBHEC]), and public school sites. Using the work done with CMSS as a starting point, the Staff met with the Steering Committee once again, on December 18, 1995. The Committee agreed that a set of goals needed to be established against which proposals for the use of the property could be assessed. At the January 22, 1996 meeting of the Steering Committee, the Committee discussed several items which became foundational to future planning: the possibility of consolidating the school sites into one location on the property rather than as spread out as was shown on the original concept plan (the School Board had noted that the locations as shown were designed to meet their demographic needs in terms of existing and projected school zones). PA Corridor Plan: Lake Ridge Property Page 3 ,! The mix of uses and the acreage allocated to each was discussed, including possible locations for the various non-profit uses that had expressed interest in the property. · Work on the goals and mission statement for the property began. At the February 9, 1996 meeting, the Steering Committee finalized the Mission and Goals for the Princess Anne Corridor (see next page); discussed the process to be used to inform the public of the planning for the Corridor and the Lake Ridge property and to solicit input from citizens and property owners; and decided to hold two meetings at Landstown Elementary School, on February 26, and March 11, 1996. At these workshops, the public was invited to review the work done to date, including the Mission and Goals statement, the proposed process for planning the property, a map showing existing land use, constraints, and opportunities, and a map showing the land use concept that had been jointly developed by the Staff/CMSS team. Application forms, with accompanying guidance documentation, were also made available for individuals and groups interested in developing some portion of the Lake Ridge property. Potential non-profit developers were directed to submit their applications to the Planning Department, by March 26, 1996. On March 26, Staff received application packages from various groups interested in developing some portion of the Lake Ridge property. The groups were asked to (I) detail their proposal as far as the uses they were proposing and the ability of their organization to actually develop the proposal and to (2) explain how their proposal met the Mission and Goals statement established by the Committee. Appendix A to this plan provides an explanation of who responded, and a description of how well, based on Staff and Steering Committee review, each met the Mission and Goals. Concurrent with the receipt and review of the development proposals from the various groups and individuals discussed above, Staff was also preparing for release of a Request for Interest, for the purpose of determining if and what kind of private sector interest there might be in the property. On April 1, 1996, the Request for Interest was sent to developers and others, who possessed a known interest in the Lake Ridge property or who specialized in golf courses and golf course resort development. Firms were given until June 3, 1996, to respond. On June 3, responses to the Request for Interest were received. Appendix B describes those proposals. PA Corridor Plan: Lake Ridge Property Page 4 On July 2, 1996, the Steering Committee held their fifth meeting. The responses to the RFI process were discussed with Steering Committee. Based on this discussion and on the discussions previously held regarding the non-profit/small firm submissions, decisions on land use mixes, acreage allocation, potential for acquisition of additional adjacent properties, and future process were discussed. This was done with the purpose of ensuring that the Mission and Goals, as noted above, were achieved as closely as possible. After the July meeting of the Committee, the City staff began meeting with the firms that expressed an interest through the RFI process in developing the Lake Ridge property and whose ideas seemed appropriate in the context of the Mission and Goals. Those meetings provided the firms with an opportunity to present their proposals and for staff to ask specific questions regarding the proposals and their possible implementation. Staff also developed three land use concepts showing how various combinations of the desired land uses could be accommodated and the affect of each combination in terms of meeting the Mission and Goals (see Appendix C for a description of the four alternatives). At the August l, 1996, Steering Committee meeting, the Committee reviewed the land use concepts and made a decision regarding a recommended land use plan for the Princess Anne Corridor and Lake Ridge property. The Steering Committee's recommended land use plan was forwarded to the City Council, on August 13, 1996, for their review and comment. preferred Alternative After reviewing the alternatives, the Steering Committee concluded that Alternative Three best satisfied the Mission and Goals for the property. Since the August I meeting with the City Council, however, three events have forced some modifications to that alternative: As the preliminary design work for the multi-purpose stadium proceeded, there was an increasing expression of concern from the amphitheater operators that a use such as a stadium of potentially 30,000 seats might not be compatible to the amphitheater due to noise and traffic conflicts. As a result, staff investigated moving the stadium to another site, and determined that the best possible site was the adjacent site across Landstown Road to the east. The City Council authorized purchase of the 112 acres, fromerly known as Princess Anne Commons. Further refinement of the design for the golf course complex, and specifically the first course, resulted in the course being routed through the extreme southeast corner of the PA Corridor Plan: Lake Ridge Property Page 6 I property to take advantage of the trees in that location. This necessitated relocation of the future 150 Foot Arterial (London Bridge Road / West Neck Parkway) and shift in some of the uses. Staff, therefore, revisited Alternative Three and made some modifications to the land use allocation. This became Alternative Four (see Map 5, in Appendix C). Alternative Four maintains the concept of Alternative Three but also provides the best opportunity for ensuring a return on the investment that the City made in purchasing the Lake Ridge property. Improved opportunities are available for quality entertainment and recreation facilities, serving the residents of the City and expanding the base of amenities for tourism. Finally, the alternative provides the highest degree of business expansion possibilities, particularly those related to higher education. Alternative Four, therefore, is the preferred alternative and is the recommended land use plan for the Lake Ridge property (see "Lake Ridge Land Use Plan", on the following page). The following are the features of the recommended Land Use Plan: Princess Anne Park Relocation: The relocation of Princess Anne Park is proposed, from its current location at the intersection of Dam Neck and Princess Anne Roads, to a location south of the amphitheater and Dam Neck Road. This proposed new location provides the park with more acreage than it currently has and with acreage that is unencumbered by roads or other physical features that might divide the uses within the park apart. Also, the park at this proposed PA Corridor Plan: Lake Ridge Property I I location benefits from a large lake (constructed for the fill material used at the amphitheater) and a large area of protected non-tidal wetlands adjacent to the west side of the park and running to the north behind the amphitheater. These wetlands are suitable for passive recreation activities. It must be stressed, however, that the City has a vested interest in the capital improvements already in place at the existing park site. Those facilities will have to reestablished at the new park site. Additionally, the Princess Anne Park Master Plan and its implementation has been put on hold while the Lake Ridge planning effort is underway, due to the potential relocation of the park. The master plan for the park included the addition of some new facilities beyond those already located in the existing park. It has been estimated by the Parks and Recreation Department that the relocation of the park to the proposed site will entail a cost of approximately $8 Million. The source of a portion of those funds can be recovered through the sale of the existing park site and additional sites within the Lake Ridge property for economic development opportunities as recommended by this plan. Higher Education/Business Facilities: The relocation of the park allows a portion of the current Page 7 park site to be reused for business and uses related to education. It is envisioned that this area, combined with the City-controlled property on the north side of Princess Anne Road, would become a high-quality office and research center, associated with the activities at the VBHEC. Public Schools: As part of the effort to ensure three schools sites on the Lake Ridge property (an elementary, middle, and high school), locations for those schools were identified. The elementary school was situated just south of the Soccer Complex on the extension of Dam Neck Road to Salem Road. This site possesses sufficient acreage and is closest to the population it is targeted to serve. The middle school is located at the southern end of the property, within the Princess Anne Commons property. The high school is located at the northern end of the properties, just north of the existing Landstown School complex and across from the Virginia Beach Higher Education Center site. Multi-Purpose Stadium: The site proposed for the stadium is the area between Landstown Road and the Southeastern Parkway and Greenbelt right-of- way. This site has nearly 150 acres, making it possible to locate both an ultimate 30,000 seat stadium, a stormwater management lake, and adequate parking on the site. Should PA Corridor Plan: Lake Ridge Property this site not be developed for the stadium, the site should be reallocated for entertainment / recreation uses compatible with Princess Anne Park, the amphitheater, and the nearby residential areas. Business / office use is also a possible land use, but the entertainment / recreation uses are a better 'fit' with the park and the amphitheater. Golf Courses / Resort: The plan allocates over 450 acres for the development of two quality 18-hole golf courses and a resort hotel complex. The two courses would be located side-by-side on the area of the property between the Southeastern Parkway and Greenbelt and the future location of Judicial Boulevard (Courthouse North). A clubhouse and a resort hotel could be located central to the two courses. Juvenile Detention Center: A 10 acre site is allocated for a proposed Virginia Beach Juvenile Detention Center. The proposed site is located within the former Princess Anne Commons property, adjacent to the new Princess Anne Post Office, on George Mason Drive. Should the detention center not be developed, the site should be realloacted for business / office uses compatible in use and design to the Municipal Center. Business / Office Area: Land within the former Princess Anne Commons property not allocated to the middle school, the golf course, or the Page 8 juvenile detention center is allocated for business / office uses compatible in use and design to the Municipal Center. Selection of a preferred alternative does not carry with it the automatic implementation of the land use shown on it. To make the land use allocation become a reality, consistent with the mission and goals for the Lake Ridge property, a strategy must be developed for ensuring that all needed infrastructure is in place, that the land uses are developed in a sequence where each complements the other, and that development is of the highest quality. Utilities Sewer: Currently, any development will be required to pump sewage to an existing gravity sewer system located north of Recreation Drive. The amphitheater currently discharges into this system. Any development in the southern end of the property near the Municipal Center could utilize existing force mains in that area along North Landing Road. Eventually, the Lake Ridge sewer system will be connected to the Hampton Roads Sanitation District (HRSD) interceptor force main (IFM), and the entire area will be served by that system [construction is scheduled to begin on the HRSD IFM concurrent with the construction of the first golf course -- estimated cost os IFM is $5. l Million]. PA Corridor Plan: Lake Ridge Property Page 9 Water: Two large capacity water supplies are available in the northern portion of the site. A 20" water line exists in Princess Anne Road and could be extended to serve the area. A 12" water supply is located in Dam Neck Road, adjacent to the Amphitheater. As to the southern end of the property, the 20" line in Princess Anne Road and a 16" line along North Landing Road are available. Stormwater Management Facilities: Some of the projects will have their own stormwater management facilities; however, it is the intent of this plan that regional stormwater facilities be built and utilized to the greatest extent possible. The Public Works Department is studying the Lake Ridge property for possible locations. Roadwa,~s The northwestern corner of the property currently has the best transportation access, due to the proximity of eight-lane Princess Anne Road (Ferrell Parkway) and four-lane Dam Neck Road. Future roadway improvements will make this area one of the most accessible in the region: Southeastern Parkway and Greenbelt (construction estimated between 2001 and 2004): This 22.5 mile highway will run from Route 44 in the proximity of Birdneck Road to the border with Chesapeake, and then continue westwardly through Chesapeake to the interchange of 1-464 and 1-64 (Hampton Roads Beltway). The roadway is planned to be heavily landscaped and designed as a parkway of national interest. An interchange PA Corridor Plan: Lake Ridge Property is planned at Princess Anne Road, along the northern edge of Lake Ridge, providing excellent access to the remainder of the region and the state (Total Cost for the Virginia Beach portion: $261.7 Million FY 1996-97 /FY 2001-02 Capital Improvement Program [CIP] estimate). Princess Anne Road / Ferrell Parkway - Phase II and Phase V (construction scheduled for beyond 2001): This project is for construction of a four-lane roadway from Dam Neck Road to Judicial Boulevard. At Judicial Boulevard, the roadway would follow a new alignment to General booth Boulevard. The road will be designed to Page 10 I Figure 1 View of the proposed improvements to Princess Anne Road as part of the Ferrell Parkway II Project eventually be eight lanes and will have an extremely high level of landscaping and aesthetic treatment, supportive of the roadway being a grand entrance to the Municipal Center / Lake Ridge area (see Figures 1 and 2 ). ($18.7 Million -- FY 1996-97 / FY 2001-02 CIP) Dam Neck Road [Extended] (construction scheduled for beyond 2000): This project would connect Dam Neck Road at its current terminus at the Amphitheater to Elbow Road at Indian River Road. It would widen the road to four-lanes, divided, with a bikeway, and a 15 foot buffer on each side. A portion of this road would be constructed concurrent with the construction of the elementary school planned for Lake Ridge (2 lanes from the Elbow Road / Salem Road intersection to the elementary school (school construction scheduled 1998-1999). ($19.2 Million- FY 1996-97 /FY 2001-02 CIP) Judicial Boulevard (construction frown current terminus to George Mason Drive scheduled for 1997-2002): This roadway is the first phase of a four-lane arterial parallel PA Corridor Plan: Lake Ridge Property Page 12 I to the existing North Landing Road. This roadway would eventually stretch from Princess Anne Road / Ferrell Parkway to North Landing Road at Salem Road. This portion completes a loop currently missing around the Municipal Center and provides access to the Princess Anne Commons property to the east of Lake Ridge. ($2.5 Million m FY 1996-97 /FY 2001-02 CIP) 150 Foot Arter, al [London Bridge Road -- Extended] (no construction scheduled m long term project): This four-lane arterial highway would connect Lake Ridge with the northern part of the city via London Bridge Road. It is part of a Master Street and Highway Plan proposal that would create a future north-south arterial connection in this part of the city (Cost Undetermined). Open S, pace and Trails An important part of the overall plan for the Lake Ridge property is the open space, trails, and design component. The mission and goals for Lake Ridge call for this property to be an important part of the City's recreational and open space system for the future. It is planned as the central core of the City's open space system, around which other facilities will radiate. As noted at the beginning of this plan, the Lake Ridge property, when combined with the other municipally-owned property in the area, provides the City with an uninterrupted corridor of open space. The use of that space and how it is connected with trails is vital to the overall success of the Princess Anne Corridor as the centerpiece of Virginia Beach's open space system. Map 6 shows the proposed trail system within and around Lake Ridge. Connections PA Corridor Plan: Lake Ridge Property to the north are provided by the Pungo Connector Trail and the future Ferrell Parkway V trail. Connections to the west are provided by the future trail to be constructed with Dam Neck Road. Connections to the east are provided by the future Ferrell Parkway V trail and the Pungo Connector Trail. Connections to the south will be provided by a trail to be included with the Judicial Boulevard project, the Pungo Connector Trail, a trail within the future HRSD force main easement along the southern border of Lake Ridge, and possibly a trail within the Southeastern Parkway and Greenbelt right-of-way. Princess Anne Park will be the heart of the open space system, surrounding the amphitheater site and the large lake adjacent to Dam Neck Road. The golf courses will provide the appearance of open space and the trail running along the southern border of the golf courses will connect Princess Anne Park with the future middle school and the future West Neck Creek District Park. Design attd Aesthetics The Princess Anne Corridor and Lake Ridge offer the City an opportunity of unparalleled significance. The land use and design theme established for Lake Ridge and the Corridor will play an important role in guiding the development in this part of the city into the future. The following points are simple guidelines for guiding design in Lake Ridge. A plan for the Princess Anne Corridor, which will be conducted after the adoption of the 1997 Comprehensive Plan, will contain more extensive design guidelines: Page 13 I I I jaouumd~G Jupnmld q:)e~ Design in the area around the educational / entertainment core (surrounding amphitheater and VBHEC) should be in a high-tech, modern to post-modern style. This will help to identify the area as an educational and technical center and contribute to its image as a center for research and development (see Map 7). The design theme of the area south and east of the Southeastern Parkway and Greenbelt should be more traditional, reflecting the colonial and nco-colonial appearance of the Municipal Center and the rural heritage of Virginia Beach. Buildings and their surroundings should be designed to reflect that theme. Roadway design should be of the highest quality, with landscaped areas that act as scenic buffers and provide aesthetic opportunities. They should take advantage of the vistas that are offered by the existing landscape and by future planned land use and vistas. Lighting of these roadways should be low-level and of the highest quality design. Special paving materials should be used where pedestrian and other trail systems intersect the roadway to designate the crossing and to provide visual relief. Signs should be of the highest quality and reflect the design character of the area in which they are located (as described above). PA Corridor Plan: Lake Ridge Property Signs should be monument in type and should be illuminated by ground- level lighting (not internally illuminated). Materials and colors should blend into the surroundings and fit the design theme of the area. Page 15 I APPENDIX A The following describes each of the individuals or groups that submitted a request for use of the Lake Ridge property. A brief explanation of the proposal is provided, as well as an ~ assessment of how well each met the "Mission and Goals" established by the Steering Committee. Virginia Beach Water Ski Club An open membership, non-profit, social organization incorporated in Virginia. Promotes water sports, water sports safety, and safe boating. Currently has 62 members. Proposal: Development and operation of a lake for water sports activities. Propose use of the existing stormwater management lake opposite the amphitheater 16 acre lake with buffer areas around the lake, yielding a total land use of about 35 acres City would be responsible under Phase I for modifying the lake to meet water ski tournament specifications and for building an access road to the lake. The Ski Club would build a launch ramp, locate the course markers in the lake bed, locate judge's towers and jump meters, and provide liability insurance for the site. Future phases include upgrading the facility to enable It to hold world record tournaments and upgrading the facility by building additional lake(s) Proposal did not include a marketing or economic impact study; included instead economic impact information from similar facilities In other locations around the nation. Mission and Goals: Proposal does provide residents interested In water sports additional opportunities for recreation Lirmted support for expansion of the tourism industry, through the increase in visitors from outside the region for tournaments Limited expansion of the commercial tax base through increased sales of water sports equipment Minimal return on the investment that the City has made m buying the Lake Ridge property; City would provide the lake free of charge and would also be involved in additional expense of modifying the lake and building restrooms and pariong facilities In the future. Hampton Roads Chapter of The Lacrosse Foundation A non-profit entity that supports and promotes lacrosse throughout the region. Promotes tournaments at various locations in Hampton Roads. Proposal: Request that the City provide multi-purpose fields suitable for lacrosse. Lacrosse fields measure 120 yards by 60 yards. Peak demand would require 15 fields each being approximately one acre in size (total of 15 acres for fields). The City would provide the facilities for hosting tournaments and for practice The foundation would host the events. Mission and Goals: Provides the opportunity for those interested in lacrosse to particnpate in the sport. Supports to a small degree the expansion of the tourism industry by bnngnng tournaments and college games into the region, generating hotel nights and related spending. Limited support for expansion of the economic development through commercial activity associated w~th tournaments and through purchases of equipment related to the sport. No mention of compensation for needed land ns made. In fact, the proposal requests that the City provide the necessary fields. Joseph Watson~ ,.Ir. Proposal: In conjunction with two local businesses, Mr. Watson would construct and operate an 18-hole, 1500 to 2000 yard, lighted, par-3 golf course Course would contain a 400 to 500 square foot clubhouse, manntenance shed, and 60 car parkang lot. Facility would require 20 to 25 acres, and Mr Watson has identnfied preferred s~tes adjacent to Princess Anne Road and the proposed high school site Mr Watson wnll do one of the following to compensate the city: (1) pay the Cnty between $5000 and $7000 per acre; (2) Consider a 20 year leases with two ten-year options (with a 'ball-out' clause should the facility fail), or (3) trade the land for land owned by Mr Watson on Virgima Beach Boulevard, at London Bridge Creek (possnble canoe launch site, which he has d~scussed with Parks and Recreation Department). A prehrmnary development plan with projected costs was included Expected tax revenue to the Cnty is $15,500 per year, and includes 5 full or part-time employee positnons added. No marketing study was subnutted, but generic ~nformatlon relating to the demand for par-3 courses was included Mr Watson notes that the facility would", fill a gap to allow youth, seniors, and beginners a place to play golf inexpensnvely as well as a place where families can recreate days, nights and on weekends." He also notes that this course would complement any other courses constructed ~n the area. Mission and Goals: Facility would provide identified recreational amenity for residents of the City. While not a tourism draw as a full-s~ze course would be, thns facnlity provides some support for growth of the tourism industry. Supports the expansion of the City's tax base through tax revenues and purchase of equipment related to the sport. Proposal nncludes some kind of compensatnon to the Cnty for the land Louis Cullipher Mr. Cullipher, the Director of Agriculture, has worked with a group attempting to develop a Farm Park for the City of Virginia Beach. A City task force was involved in developing this proposal, which started as a study of the relocation of the existing Farmer's Market. Proposal: Requests 60 acres for the development of a 'Farmpark'. The Farrnpark would be a multi- faceted complex consisting of an agrnculturaily themed attraction and nnterpretatnve center, and enhanced Farmer's Market, and a restaurant. Prefer a site that fronts on Pnncess Anne Road The fac~hty would provide farmers with an outlet for sellnng produce, enhance the Cnty's reputatnon by providing a fanuly- oriented destnnation ponnt, and provide an educational resource where students can learn about the history and culture of the City. Operating revenues for the facilnty would be generated by admissions and other onsite visntor expenditures at the Agricultural Village, and from lease payments form Farmer's Market tenants and the restaurant operator. Total revenues are estimated to be $1 4 Mnllion It ns also estimated that the park's operation would generate $1.6 Million in lodging expenditures, and $1.1 Mnllnon m restaurant sales. The project would be developed through a public/prnvate partnership. A market, fnnancnal and econormc impact study PA Corridor Plan: Lake Ridge Property -- Appendix A Page A.2 for the project has been conducted and was submitted. Mission and Goals: The proposal does not directly provide recreational amenities to the residents of the City. The proposal supports the growth of the tourism industry by providing a fatmly-oriented entertainment, cultural, and historical attraction that complements existing the existing tourist industry Supports the expansion of the City's non-residential tax base through an increase In direct tax revenues and indirect tax revenues related to hotel, shopping, and entertainment taxes. Return on ~nvestment in purchasing the property is achieved only through the d~rect and indirect econormc benefits. No purchase of property is proposed and the City would be directly involved in the construction of th~s facihty .Hampton Roads Equestrian Center: The Hampton Roads Equestrian Advisory Committee (HREAC) is a non-profit committee currently representing over 23 horse-related organizations with total membership exceeding 2500 individuals. The group intends moving forward as a non-profit private foundation to provide capital and investment funds to construct, operate and manage the proposed center. proposal: HREAC is proposing a multi-use recreational and educational facility to include an indoor coliseum w~th I0,000 permanent seats, barns housing 500 stalls, covered rings, outdoor rings, cross country/steeplechase course, and related components The proposal would reqmre 200 acres as a single, contiguous site. Request a s~te somewhere in the Princess Anne Corridor The City would be compensated through the revenues generated by the facility. Point to the Lexington (VA) Horse Center, which generated $830,000 incremental sales tax dollars to the state, in 1995, and $243,000 to the Lexington revenues A marketing, financial, or economic impact study has not been conducted Group subrmtted various facts and figures from various sources, primarily, the 1995 Virginia Horse Industry Profile Execuuve Summary, which notes that the horse industry has a significant ~mpact on the state's economy. Group notes that the Farm Park and Equikids proposals integrate well with their concept. Mission and Goals: Proposal increases the recreational opportunities for those residents involved or interested in equestrian recreation. Linkage to an equestrian trails network is possible. Some support of the tourist industry is possible w~th the influx of visitors to the various horse shows as participants and audience. Some expansion of the non-residential tax base could be possible through the secondary economic ~mpact of the facility, related to hotels, restaurants, clothing, etc. The proposal could contribute to the relocation of the Princess Anne Park, by making possible the relocation of the existing horse nng to the Equestrian Center. Recapture of the investment that the City has made in the Lake Ridge property would come through the direct and indirect economic benefits. No compensation for the purchase of needed land is mentioned. Edward "Ned" Williams: Mr. Williams works with Equi-Kids, which is a non-profit organization that provides therapeutic horseback riding for disabled children and young adults. Proposal: Propose that City-owned land be provided for the development of a permanent facility to allow for the continuation and growth of the program Notes that there ~s currently a wmting list of potentml riders. Facilities will include: stables and the associated tack/feed areas for approximately 20 horses; mounting area and exercise rooms for disabled riders; riding nngs, and an ~ndoor ndmg barn for night and poor-weather riding lessons; pastures for grazing and exercising the horses. Need 5 acres for the PA Corridor Plan: Lake Ridge Property -- Appendix A Page A.3 I! buildings and tiding tings plus an additional 20 acres for pasture. Room for adding programs and expansion is requested. The City would be compensated in terms of the City's disabled citizens having access to a therapeutic and recreation program largely funded through non-public sources. Note that development integrated with the Farm Park or Equestrian Center would be ideal. Any site in the Pnncess Anne Corridor would be ideal. Mission and Goals: The proposal provides recreational amenities for a segment of the population not totally served by traditional recreational facilities. Does not directly contribute to increasing the tourism industry. Limited contribution to expansion of the non-residential tax base. Lirmted abihty to recapture the investment that the City has made in purchasing Lake Ridge. No compensation for the land is mentioned. Green Run Little League: The Green Run Little League is a well established league which has been in existence for 20 years. Their mission is to implant firmly into the youth of the community the ~deals of good sportsmanship, honesty, loyalty, courage and respect for authority. Proposal: Request 25 to 30 acres of land to develop seven additional fields No specific site has been proposed, but the site must allow field lighting. The group proposes that the City would be compensated through the construction of a baseball and softball complex that supports the league at no cost to the City Facility would allow the group to sponsor tournaments, and ease the reqmrements upon ex,sting City recreational programs. The group ~s financially able to construct the faclht~es once the City provides the land. Mission and Goals: Facility would provide additional recreation for a segment of the City's population, easing the burden on the City's public recreation programs. Not specifically related to expanding the tourism industry except for tournaments which may draw a number of visitors. Direct and indirect economic benefits would be hnuted to those related to the tournaments held at the facility Return on the City's ~nvestment would be lirmted to the indirect and direct tax benefits and the relief on the City's recreation programs and facilities. No marketing or economic impact study accompanied the proposal The 'application form' that the groups and individuals described above were responding to is provided on the following pages. PA Corridor Plan: Lake Ridge Property m Appendix A Page A.4 PRINCESS ANNE CORRIDOR Guidelines for Submission This document is designed to provide potential users of City-owned property within the Princess Anne Corridor with some guidance regarding the information that the Princess Anne Corridor Steenng Cornnuttee needs to evaluate proposals for development. The questions and issues listed below should be addressed in your development proposal. Your proposal should be submitted in 8V2xl 1 inch format and contain as much information and maps as needed to address the points listed below. If you have materials which differ from a letter-size document (video for example), please subrmt 12 copies of the item. All proposals for development should be subrmtted to Stephen White, Special ProJects Manager, Department of Planning, City of V~rginia Beach, Room 115, Building #2, Mumcipal Center, by March 29, 1996. If you should have any questions while preparing your proposal, please call 427-8610 Please provide your name, address, phone number, and any related information. If you represent a group, please provide information about the group. Are you or your group a non-profit or a for-profit entity? What are you proposing for City-owned property within the Princess Anne Corridor? (Provide additional documentation if desired) PA Corridor Plan: Lake Ridge Property m Appendix A Page A.5 How many acres of land does this proposal require? Do you currently have a specific site in mind? If so, please indicate where this site is situated. How do you propose to compensate the City of Virginia Beach for the site you propose to use? e Do you have a development plan for your proposal? If so, please include a copy of the plan with your proposal. ,, Do you have a marketing study for your proposal, which indicates the demand for your proposed use and the potential of the proposal to generate a profit for your or your organization and potential tax revenue for the City of Virginia Beach? If so, please include a copy of the study with your proposal. . Who will be involved in the financing, planning, and constructing of your proposed development (please provide as much detail as possible)? PA Corridor Plan: Lake Ridge Property -- Appendix A Page A.6 I I ., Please discuss how this proposal could integrate with or complement other potential land uses within the Princess Anne Corridor. ,, Please discuss how this proposal works toward achieving the Mission and Goals for the Princess Anne Corridor as described on the attached Mission and Goals handout. PA Corridor Plan: Lake Ridge Property m Appendix A Page A.7 APPENDIX B In response to the Request for Interest process that was conducted during the spring, of 1996, the following proposals were received from a variety of private individuals and development firms. After the Steering Committee had briefed on each of the proposals, in July, 1996, the City staff began meeting with the firms that expressed an interest through the RFI process in developing the Lake Ridge property and whose ideas seemed appropriate in the context of the Mission and Goals. Those meetings provided the firms with an opportunity to present their proposals and for staff to ask specific questions regarding the proposals and their possible implementation. Design, construction, financing, and leasing back to the City of up to three 'signature' level golf courses with one quality Pro Shop. NHL regulation size skating surfaces and seating for 1600 (viewIng of 2200). Construction of an 18 hole, 72 par 'signature' level course, with a 9-hole addition and a pro shop within 5 years. Driving range included. 185 acres requested. Letter of interest submitted for a world-class hotel of 300 to 500 rooms, containing ballroom and conference space, restaurants and lounges, a European health spa, and walk to 18 holes of golf. Proposal to construct a Par 3 golf course on 20 to 25 acres. Proposal includes development of a 54-hole complex on the Lake Ridge property, development of an 18-hole facility on the West Neck Creek (Seaboard Rd) property, renovate and expand the Red Wing Golf Course, and provide professional management services under the direction of the City for the Kempsville and Bow Creek Golf Courses. Construction and operation of a 74,000 square foot ice skating facility. PA Corridor Plan: Lake Ridge Property t Appendix B Page B.1 APPENDIX C II I AS noted above, Staff and the Steering Committee developed four land use allocation alternatives, based on the evaluation of the non-profit/small firm submissions against the Mission and Goals for the Princess Anne Corridor and the responses received through the Request for Interest process. The evaluation resulted in a land use mix that included two golf courses (350 acres), a resort hotel (7:5 acres), Princess Anne Park [relocated] (180 acres), an elementary, middle, and high school (115 acres), and an area or areas for recreation and entertainment uses (110 acres). These uses require 830 acres of the original 1192 acres of the lake Ridge property. The remaining 362 acres are or would be allocated to the amphitheater (110 acres), the lake adjacent to the amphitheater (60 acres), non-  tidal (100 acres), roadway utility rights-of-way, including wetlands and and the Southeastern Parkway and Greenbelt right-of-way and interchange with Princess Anne Road.t The alternatives developed utilizing the land use mix specified by the Steering Committee are shown on the next three pages and discussed below. .Proposals Common to All Alternatives . Each of the alternatives share some common land use allocations, particularly ~in the area of the Lake Ridge property that is north and west of the proposed 'n~i~ Southeastern Parkway and Greenbelt. This area builds upon the theme already established by the construction of the amphitheater and the proposed location of the  Virginia Beach Higher Education Center (VBHEC), adjacent to Tidewater (TCC). two uses, conjunction with Princess Anne Community College These land in Park and the Soccer Complex have established this area of the property as a center for entertainment, recreation and open space, and education (with associated business facilities). Alternative Concept One This alternative places all of the proposed land uses within the borders of the Lake Ridge property (Map 2): The area between the Southeastern Parkway and Judicial Boulevard is designated as being suitable for two golf courses (350 acres) and a resort hotel (75 acres). This land is currently farmed and is situated under the highest level of Air Installation Compatible Use Zone (AICUZ) constraint. Part of the area is unconstrained by AICUZ and could be used for a resort hotel. I Acreage figures provided are approximate. PA Corridor Plan: Lake Ridge Property -- Appendix C Page C.1 I lu:xlllJt'd'~(! ,'lumm'ld q'~r'~U rmt,'lllA The area between the proposed extension of West Neck Creek Parkway and the eastern boundary of Lake Ridge is identified as being suitable for a middle school. Some of this land is constrained by wetlands, leaving available developable acreage at approximately 40 to 60 acres. This middle school location is actually closer to the population base it would serve than the middle school site proposed with the high school (see section above). The area west of the SEP&G right-of-way is identified as being suitable for the land use mix as described in the preceding section ("Proposals Common to All Alternatives"). Moreover, since the middle school is located at the far eastern end of the property in the proposal, additional acreage for 'entertainment' and 'recreational' uses is possible. .Alternat!v. e Concept Two. ............ This alternative locates the proposed land uses within the original Lake Ridge property and the former Princess Anne Commons property (I 12 acres) located to the east of the Lake Ridge property (Map 3). The Princess Anne Commons property was joined with the original Lake Ridge property when the City acquired the property early in 1997. The purchase of this property secured the final 'link' between the municipally controlled lands to the north (Lake Ridge) and the municipally-controlled lands to the south (Municipal Center and West Neck Creek District Park). As in Alternative One, the area between the SEP&G and the proposed extension of West Neck Creek Parkway to Princess Anne Road is designated as being suitable for two golf courses (350 acres) and a resort hotel (75 acres). This land is currently farmed and is situated under the highest level of AICUZ constraint. Part of the area is unconstrained by AICUZ and could be used for a hotel. In Alternative One, the area between the proposed extension of West Neck Creek Parkway and the eastern boundary of Lake Ridge is identified as being suitable for a middle school. In Alternative Two, this area is expanded through the addition of the adjacent 112 acres of the former Princess Anne Commons property. This results in a larger developable parcel of approximately 80 to 90 acres (discounting areas of non-tidal wetlands) between the future West Neck Creek Parkway and the future Judicial Boulevard extension. This area is designated as being suitable for entertainment or recreation uses. The rationale behind providing this area was to create an area that could possibly accommodate one of the uses proposed through the non- profit submission process described earlier in this plan. Additionally, this area provides some opportunity to expand the acreage devoted to golf course development if more land is deemed necessary during the golf course design process. The middle school that was located in the area described above is relocated to a consolidated site with the high school, west of the SEP&G alignment PA Corridor Plan: Lake Ridge Property u Appendix C Page C.3 The remaining acreage of the former Princess Anne Commons property is designated as being suitable for business uses and possible expansion of the Municipal Center and associated facilities. This area is located south of the future extension of Judicial Boulevard and is divided by a future extension of West Neck Road, which provides the site with access to North Landing Road. Ten acres of this property has been designated as being suitable for the proposed Virginia Beach Juvenile Detention Center. Alternative Concept Three This alternative is identical to Alternative Two, except in regard to the number of acres allocated to the golf course complex (Map 4). This alternative was developed as an attempt to show what the most likely affect would be of attempting to fit one or more of the uses proposed by the non- profit organizations into the property. While it had been determined by the Steering Committee that these uses were not high priorities for Lake Ridge because they did not fully meet the Mission and Goals that had been established, there was still a desire to show how they might be accommodated. This was accomplished by realigning the future West Neck Creek Parkway such that 100 acres were removed from that allocated to the golf course complex and reallocated to the area designated for possible recreation and entertainment uses. This created 170 acres for those uses. Doing this, however, reduces the acres available for the golf course complex (325 acres) such that only one quality course and a resort hotel could be accommodated. Alternative Concept Four This alternative is very similar to Alternative Three, with the following exceptions (see Map 5): The high school site has been relocated to a site across from the Virginia Beach Higher Education Center (VBHEC) on Princess Anne Road This site is currently the existing expansion area for Princess Anne Park. With the relocation of the park, however, to within Lake Ridge, this site is made available. The site provides some very unique opportunities in regard to the creation of an "education complex," with the location of the VBHEC and TCC across Princess Anne Road and Landstown Middle and Elementary Schools to the south. The site shown for the high school and the middle school in Alternative Three is redesignated in Alternative Four as being suitable for Entertainment and Recreation uses. This provides a contiguous 150 acre site for such uses. PA Corridor Plan: Lake Ridge Property -- Appendix C Page C.5 The middle school site is relocated to the Princess Anne Commons property, south of the future extension of Courthouse Loop/Judicial Boulevard. The area designated for the two golf courses and resort uses is reconfigured in Alternative Four so that more use can be made of the only quality treed area in Lake Ridge, which is located in the southeastern corner of the property. This also provides some business development opportunities adjacent to Princess Anne Road, south of the future Southeastern Parkway. PA Corridor Plan: Lake Ridge Property -- Appendix C Page C.6 I II City of Virginia Beach LOUIS R JONES COUNCILMAN - BAYSIDE BOROUGH (8(.14) 583-0177 1008 WITCH POINT TRAIL VIRGINIA BEACH VIRGINIA 23455 May 27, 1997 Mrs. Ruth Hodges Smith, CMC/AAE City Clerk Mumc~pal Center Vlrgima Beach, Virginia 23456 Re' D~sclosure Pursuant to Section 2.1-639.14(G), Code of Virginia Dear Mrs. Smith: Pursuant to the V~rginia Conflict of Interests Act, Section 2.1-639.14(G), Code of Virginia, I make the following declaration: 1. The transactions for which I am executing this written disclosure are as follows: ao A resolunon to adopt the Princess Anne Corridor Plan: Lake R~dge Property; b. An ordinance d~recting the preparation of documents with TPC for a golf facility at Lake Ridge; C. A resolunon authorizing the City Manager to execute certain documents associated with the multi-purpose sports stadium s~te located at Lake Ridge; do An application of the City of Virginia Beach for a conditional use permit for the TPC golf course and associated facilities; and Mrs. Ruth Hodges Smith, CMC/AAE 2 May 27, 1997 Re: D~sclosure Pursuant to Section 2.1-639 14(G), Code of V1rg~nla e. An application of the City of Virginia Beach for a conditional use permit for the multi-purpose sports stadium and associated facilities. . The nature of my personal interest is that I own property located adjacent to the "Lake Ridge" property, and in close proximity to the parcels on which the golf course and multi-purpose sports stadium will be constructed. My property is valued in excess of $10,000.00. , The City Attorney has adwsed me that, ~n his opinion, I am a member of a group (i.e., surrounding s~milarly-situated property owners) the members of which will all be affected by these transactions. . I wish to disclose this interest and declare that I am able to participate in these transactions fmrly, objectively, and ~n the public ~nterest. Accordingly, I respectfully request that you record this declaration in your official records. I have enclosed an opinion letter from Leslie L. Lilley, City Attorney, dated March 28, 1995, which addresses the issue of my personal interest in Council transactions involwng the "Lake Ridge" property Thank you for your assistance and cooperation ~n this matter. Sincerely, ores R. Jo~j~s Councflmember LRJ/clb Enclosure - 41 - Item V-L.3. RESOLUTIONS ITEM # 42167 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Resolution to authorize the City Manager and City Attorney to execute an agreement with the Tournament Players Club (TPC) re a golf facility proposed at Lake Ridge; establish CIP #9-004 Lake Ridge Golf Facih'ties, transfer $3,550,000 from CIP #9-260, Economic and Tourism Development Partnerships; and, authortze acquisition of an access point along Princess Anne Road for the proposed project. Voting: 11-0 (By Consent) Council Members Voting Aye: John A. Baum, Linwood O. Branch, III, William W Harrison, Jr, HaroM Heischober, Barbara M. Henley, Louts R Jones, Reba S McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent: None Councilman Jones DISCLOSED, pursuant to Section 2.1-639 14(G) of the Code of Virginia, he owns property located adjacent to the Lake Ridge Property and in close proximity to the parcels on which the golf course and multi-purpose sports stadium will be constructed. His property is valued in excess of $10,000. Councilman Jones wished to disclose this interest and declare he was able to participate in the transaction fairly, objectively and in the public interest. Councilman Jones' letters of March 25, 1997, and May 27, 1997, are hereby made a part of the record. May 27, 1997 ORDINANCE DIRECTING PREPARATION OF DOCUMENTS WITH TPC FOR A GOLF FACILITY AT LAKE RIDGE, ESTABLISHING LAKE RIDGE GOLF FACILITY AS A CAPITAL PROJECT, AND AUTHORIZING THE ACQUISITION OF AN ACCESS POINT 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 36 37 WHEREAS, PKF Consulting, Inc. Completed its "Golf Destination Study" in January, 1996, concluding that Virginia Beach had "potential to become a destination golf area" and further recommending consideration of the Lake Ridge property for the creation of "two to three courses, at least one being a signature course," and Virginia Beach's expansion of its efforts to promote golf, locally and regionally; WHEREAS, in September, 1996, the Virginia Beach Golf Committee presented its report to City Council incorporating the principal recommendations of PKF as they relate to Lake Ridge, including the development of "Tier 1" golf courses at Lake Ridge, as well as other specific recommendations; WHEREAS, in October, 1996 the Virginia Beach Development Authority (VBDA) initiated a Request for Proposals (RFP) process for the lease of land to develop a portion of the Lake Ridge property for two golf courses, and selected Tournament Players Club (TPC) because its proposal most closely met the criteria that are considered critical to the success of Virginia Beach as a golf destination; and WHEREAS, the VBDA has received a non-binding letter of intent from PGA Tour Golf Course Properties, Inc., the owner and licensor of TPC, detailing the lease of the necessary property, as well as the proposed construction and operation of a TPC course on the Lake Ridge property, with an option to construct a second course thereon. NOW, THEREFORE, BE IT ORDAINED that the City Manager and City Attorney are directed to proceed with development of the documents necessary and appropriate to enter into an agreement with TPC for a proposed golf facility at Lake Ridge and to return with the final documents and proposed actions by which City Council may authorize and enable the VBDA to proceed with the contemplated project. 38 39 40 41 42 43 44 45 46 47 48 49 BE IT FURTHER ORDAINED that Project 9-004 Lake Ridge Golf Facilities be established as a Capital Improvements Project (CIP) and that funds in the amount of $3,550,000 be transferred into this project from CIP Project #9-260, Economic and Tourism Development Partnerships. BE IT FURTHER ORDAINED that the City Manager is authorized as a part of the Lake Ridge Golf Course Facilities to acquire an access point along Princess Anne Road for the proposed project. CA-6660 Noncode \Lakeridg. Ord 05/22/97 R-2 II I APPROVED AS TO ~,I~~-'f' ~ .... ' LEGAL I III I II ADOPTED: May 27, 1997 Fact Sheet on Golf Course at Lake Ridge Project: Public / Private Partnership to result in construction of a Tournament Player's Club (TPC) golf course on 200 acres at Lake Ridge, including hosting a NIKE TOUR tournament during at least the first five years, and possible construction of a second course at Lake Ridge at a later date Cost: Virginia Beach share: TPC share: Total cost: $3.5 million for improvements and infrastructure, excluding land cost $7 - 8 million ($6.5 million is minimum investment) $10.5 - $11.5 million, depending on various site requirements City funding source: TGIF Special Revenue Fund (special revenue from hotel, restaurant and amusement taxes) Course Management: The course will be managed by TPC which currently owns/operates 13 courses and licenses 3 courses in the U.S., two in Japan, two in Thailand, and one in China. Two courses are currently under construction. Course Ownership: The City of Virginia Beach will maintain ownership of the land and will lease it to the Virginia Beach Development Authority which will lease it to TPC for 40 years for $300,000 per year. If the second course is completed, the lease will increase to a total of $550,000 per year. Construction completion: Fall, 1998 First Toumament: May 22, 1999 Fiscal Impacts: The initial $3.5 million city investment is expected to be retumed within 10 years. Additional fiscal impacts will result from increased hotel room nights generated by the course, employment and annual rounds. Employment: Initial course will employ 135 persons (80% full time, 20% part time)-annual payroll of $1.73 million Annual Rounds: Annual rounds are projected at 40,000 by year 3. In-season greens fees, including cart, are projected to be between $75- $85, with out-of-season discounts. Marketing: The City will commit to a 5-year funding for advertising the NIKE TOUR in each year: years I & 2 - $150,000; years 3 & 4 - $175,000 and year 5 - $200,000. This project is in line with the city's Outdoor Plan, recommendations of the Virginia Beach Golf Committee and the PKF Consulting, Inc. "Golf Destination Study. NIKE TOUR is one of three tours sanctioned by the PGA TOUR. Players are those seeking to be members of the PGA TOUR. Virgmm Beach Public Information - 42 - Item V-L. 4. RESOLUTIONS ITEM # 42168 The following spoke in SUPPORT of the Resolution: Mike Barrett, 1829 Eden Way, Phone: 422-1568, represented Hampton Roads Soccer Council Mark McMullin, Phone: 494-2068, represented Hampton Roads Soccer Council Upon motion by Councilman Heischober, seconded by Councilman Branch, City Council ADOPTED: Resolution to authorize the City Manager to execute a Coordination Agreement, Ground Lease and related project documents for the establishment of the Multi-Purpose Sports Stadium. Councilman Heischober advised, when the Sports Stadium is addressed to be expanded, this agreement self-destructs and a new agreement will be structured to take into account the expenditure, so the pay- back will be totally different than the pay-back in this present Agreement. The pay-back is a combination of revenues anticipated from the Mariners and other acttvities contracted Voting. 9-0 Council Members Voting Aye: John A. Baum, Linwood 0 Branch, III, Harold Heischober, Barbara M. Henley, Louis R. Jones, Mayor Meyera E Oberndo~ Nancy K. Parker, Vice Mayor William D Sessoms, Jr. and Louisa M. Strayhorn Councd Members Abstained: William W. Harrison, Jr. Council Members Voting Nay: None Council Members Absent: Reba S. McClanan This item was voted upon after the Planning Item M. 6. a.b.c. Applications of the City of Virginta Beach (L~I~ ~DGE). Councilman Harrison ABSTAINED as his law firm represents the Hampton Roads Mariners. Councilman Jones DISCLOSED, pursuant to Section 2 1-639.14(G) of the Code of Virginia, he owns property located adjacent to the Lake Ridge Property and in close proximity to the parcels on which the golf course and multi-purpose sports stadium will be constructed. His property is valued in excess of $10,000. Counctlman Jones wished to disclose this interest and declare he was able to participate in the transaction fairly, objectively and in the public interest. Councilman Jones' letters of March 25, 1997, and May 27, 1997, are hereby made a part of the record. May 27, 1997 1 2 3 4 5 6 7 8 9 10 11 12 RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A COORDINATION AGREEMENT, GROUND LEASE AND RELATED PROJECT DOCUMENTS FOR THE MULTI- PURPOSE SPORTS STADIUM SITE WHEREAS, the City Manager has been authorized by a Resolution 13 adopted by the City Council on August 27, 1996, to develop an 14 agreement of understanding with the City of Virginia Beach 15 Development Authority (the "Authority"), to accomplish, among other 16 things, the following: identify and negotiate the terms of a 17 transfer by the City of a site for a proposed multi-purpose sports 18 stadium (the "Facility") and negotiate the terms of a long term 19 lease of the Facility; and 20 WHEREAS, pursuant to the direction of the August 27th 21 Resolution, the City Manager has identified the site and negotiated 22 the terms of a coordination agreement (the "Coordination 23 Agreement") with the Authority, as well as a ground lease (the 24 "Ground Lease") with the Authority under which the Facility site 25 consisting of 150 Acres ± will be leased to the Authority for a 26 term not to exceed 40 years; and 27 WHEREAS, the City Council has previously authorized funding in 28 its FY 1998 Capital Budget for the Multi-Purpose Sports Stadium; 29 and 30 WHEREAS, the City Manager seeks authorization to execute and 31 deliver the Coordination Agreement, the Ground Lease, and certain 32 other project documents ("Project Documents") necessary for the 33 establishment of the Multi-Purpose Sports Stadium. 34 35 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 36 BEACH, VIRGINIA: That the City Manager, acting on behalf of the City, is 3 authorized to enter into (i) the Coordination Agreement, and (ii) 4 the Ground Lease, substantially in the form attached hereto as 5 Exhibit A and Exhibit B, respectively, and (iii) other Project 6 Documents necessary and appropriate for the establishment of the 7 Multi-Purpose Sports Stadium on such terms and conditions as may be 8 approved by the City Manager subject to approval as to legal 9 sufficiency by the City Attorney. 10 11 12 this Adopted by the Council of the City of Virginia Beach, Virginia 27 day of May , 1997. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 CA-6640 NONCODE \ CA6640 RES R-2 PREPARED: May 22, 1997 APPROVED AS TO LEGAL SUFFICIENCY: City ~ttorney MULTI-PURPOSE STADIUM COORDINATION AGREEMENT THIS MULTI-PURPOSE STADIUM COORDINATION AGREEMENT (the "Coordination Agreement") is entered into as of the day of , 1997, by and between the CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia (the "City"), and the CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, a political subdivision of the Commonwealth of Virginia (the "VBDA"). RECITALS: WHEREAS, subject to the execution and delivery of this Agreement by the City, the VBDA is willing to enter into certain contractual arrangements with Hampton Roads Sports and undertake construction of the Stadium to be developed on a site located in the City of Virginia Beach, Virginia, in accordance with the Operating Agreement; WHEREAS, pursuant to the Operating Agreement, the VBDA will agree to construct the Stadium and to provide funding therefor; WHEREAS, prior to completion of construction of the Stadium, the VBDA will enter into the Operating Agreement with Hampton Roads Sport s; WHEREAS, the City, the VBDA and Virginia Beach City Public Schools will be entitled to use the Stadium for Community Service Events in accordance with the provisions of the Operating Agreement; WHEREAS, as an inducement to the VBDA to undertake the Stadium project and to enter into the Operating Agreement, the City is willing, subject to appropriation by City Council, to make funds available to the VBDA as required to meet the VBDA's obligations under the Operating Agreement and the Ground Lease; and WHEREAS, the parties desire to enter into this Agreement for the purpose of coordinating their respective rights and obligations with respect to the Stadium. AGREEMENTS NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows: ARTICLE II. DEFINITIONS Unless the context otherwise requires, the capitalized terms used herein shall, for all purposes of this Agreement, have the meanings set forth in the Operating Agreement. In addition, the following additional capitalized terms shall have the following specified meanings: (a) "City's Representative" shall mean the City Manager or his designee. (b) "Ground Lease" shall mean the Ground Lease dated as of , 1997, by and between the VBDA and the City identified in Section 2.1 below. (c) "Hampton Roads Sports" shall mean Hampton Roads Sports, L. L. C., a Virginia limited liability company, its successors and permitted assigns. (d) "Land" shall mean the property leased to the VBDA by the City pursuant to the Ground Lease. (e) "Operatinq Aqreement" shall mean the Operating and Use Agreement dated as of , 1997, by and between Hampton Roads Sports and the VBDA relating to the construction, operation and use of the Stadium, a copy of which is attached hereto as Exhibit A (f) "Termination Date" shall mean the last day of the Term (as defined in the Operating Agreement) or, if earlier, the date on which the Operating Agreement is terminated in accordance with its terms. (g) "VBDA's Representative" shall mean the City's Director of Economic Development or his designee. ARTICLE II. CITY'S UNDERTAKINGS 2.1 Ground Lease. On or before the Commencement Date, the City shall enter into the Ground Lease with the VBDA on the terms set forth in Exhibit B attached hereto and shall enter into a Recognition Agreement with Hampton Roads Sports and the other parties thereto substantially in the form attached to the Operating Agreement as Exhibit C. 2.2 Fundinq for the Stadium. Subject to appropriation by City Council, the City agrees to contribute funds to the VBDA (in the form of grants) in an amount not to exceed $ , unless otherwise approved by City Council, on written request of VBDA solely to pay the costs of design and construction of the Stadium. 2.3 Fundinq for VBDA's Obliqations as Landlord. Subject to appropriation by City Council, the City agrees to contribute funds to the VBDA (in the form of grants) on written request of the VBDA as necessary to enable the VBDA to perform its monetary obligations under the following provisions of the Operating Agreement: Section 4.2 (Utility Charges), Section 5.6 (Traffic, Crowd Control and Cleanup), Section 5.8 (VBDA/Schools/City Use), Section 5.9 (Non- Gated Use) and Section 5.15 (User Agreements) all solely to the extent such charges relate to the City's or the VBDA's use of the Stadium; Section 7.1 (Maintenance and Repair); Section 7.2 (Damage or Destruction); Section 7.3 (Condemnation); Section 9.1 (A) (Insurance Coverage); Section 9 .2 (Liability Insurance); Section 9.4 (Indemnification); Section 14.0 (Setoff, Abatement, etc.); and Section 17.13 (Attorneys' Fees), in each case, solely to the extent permitted by law and excluding acts and omissions attributable to negligence, gross negligence or willful misconduct of the VBDA, its employees or agents. ARTICLE III. VBDA'S UNDERTAKINGS 3.1 Certain Payments to City. (a) The VBDA shall remit promptly to the City any excess funds disbursed to the VBDA by the City after construction of the Stadium has been completed. (b) The VBDA shall pay ground rent to the City when due as required by Section 2.2 of the Ground Lease. (c) Except as expressly provided in this Section 3.1, the VBDA shall have no obligation to repay any grant made to it by the City under Article II of this Agreement and the City's recourse for such payments shall be restricted solely to the sources from which such payments are derived (except to the extent the VBDA may wrongfully misappropriate such payments to other uses). 3.2 No Liens, etc. The VBDA shall not grant or suffer to exist any lien on or security interest in or otherwise encumber the VBDA's right, title and interest in and to the Land, the Ground Lease, the Operating Agreement, or the Fees payable to it under the Operating Agreement without, in each instance, the City's prior written consent, which may be withheld in its sole discretion. ARTICLE IV. USE OF STADIUM BY CITY 4.1 Coordination of Use. Pursuant to Sections 5.8 and 5.9 of the Operating Agreement, the City has certain rights to use the Stadium, subject to Sections 5.7 and 5.15 of the Operating Agreement. The VBDA agrees that the use of the Stadium by the City as set forth in such Sections 5.8 and 5.9 will be coordinated with and subject to the approval of the City's Representative during the Term of the Operating Agreement. 4.2 Selection of Dates and Proqrams. The VBDA, acting through VBDA's Representative, and the City, acting through the City's Representative, shall cooperate with each other and work together to select the dates the Stadium is to be utilized by the City and to develop the programs and events to occur during such use, all subject to the provisions of Sections 5.7, 5.8, 5.9 and 5.15 of the Operating Agreement. ARTICLE V. AMENDMENTS AND WAIVERS WITH RESPECT TO OPERATING AGREEMENT 5.1 No Consents or Amendments. The VBDA shall not cancel, amend or modify any of the provisions of the Operating Agreement without the prior written consent of the City's Representative. 5.2 Notice of Defaults; No Waiver. The VBDA shall promptly notify the City in writing if any material default occurs under the Operating Agreement, and the VBDA shall not waive or grant any extension of time for curing any default beyond any applicable grace period set forth in the Operating Agreement without the prior written consent of the City's Representative. ARTICLE VI. MISCELLANEOUS PROVISIONS 6.1 Notices. (a) Unless otherwise provided in this Agreement, all notices, demands or requests from one party to another may be personally delivered or sent by mail, certified or registered, return receipt requested, postage prepaid to the addresses below, and shall be deemed to have been given at the time of personal delivery or at the time of receipt. (b) Ail notices, demands or requests from the City to the VBDA shall be given to the VBDA at: One Columbus Center, Suite 300 Virginia Beach, VA 23462 Attention: Chairman With a Copy to: Director of Economic Development One Columbus Center, Suite 300 Virginia Beach, Virginia 23462 (c) Ail notices, demands or requests from the VBDA to the City shall be given to the City at: Municipal Center Virginia Beach, VA 23456 Attention: City Manager (d) Either party may change its address for notices from time to time by giving notice of its new address to the other party pursuant to this Section 6.1. 6.2 Assiqnment. Neither the City nor the VBDA shall have the right to assign or transfer its respective rights, liabilities and obligations under this Agreement to any person without the prior written consent of the other party. Subject to the foregoing, this Agreement shall be binding upon, inure to the benefit of and be enforceable by the City and the VBDA and their respective successors and permitted assigns. 6.3 No Third Party Beneficiaries. No person, including without limitation, Hampton Roads Sports and any successor operator under the Operating Agreement, shall be a third party beneficiary of this Agreement. 6.4 Entire Aqreement; Amendments. This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations, statements or agreement, whether written or oral, between the parties hereto. This Agreement may be amended only by a written agreement executed and delivered by each party hereto. 6.5 Relevant Law. This Agreement shall be governed by Virginia law. All actions relating to this Agreement shall be instituted and litigated in state or federal courts sitting in Virginia. 6.6 Partial Invalidity. If any term or provision of this Agreement or the application thereof to any person or circumstance shall to any extent be held invalid or unenforceable by a court of competent jurisdiction, the other provisions of this Agreement, or the application of such provisions to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 6.7 Counterparts. This Agreement may be executed in any number of counterparts and all such counterparts together shall constitute but one and the same agreement. IN WITNESS WHEREOF, this Agreement has been executed on behalf of the VBDA and the City as of the date first above written. CITY OF VIRGINIA BEACH CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY BY: BY: City Manager/Designee G \ leases\stadium\coordin vr4 May 22, 1997 Chairman MULTI-PURPOSE STADIUM OPERATING AND USE AGREEMENT THIS MULTI-PURPOSE STADIUM OPERATING AND USE AGREEMENT ("Agreement") is entered into as of the ~ day of , 1997, by and between the CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY (the "VBDA"), a political subdivision of the Commonwealth of Virginia, and HAMPTON ROADS SPORTS, L.L.C., a Virginia limited liability company (the "Operator"). WHEREAS, subject to the terms and conditions contained herein, the VBDA will cause the design and construction of a multi-purpose stadium on a portion of the site known as Lake Ridge in the City of Virginia Beach, Virginia, which is more particularly described on Exhibit A attached hereto (the "Site"), to host, among other events, professional soccer games; and WHEREAS, the Operator owns and operates a United States Interregional Soccer League ("USISL") professional soccer team which is currently known as the "Hampton Roads Mariners" (the "Mariners") which plays its home games in Virginia Beach, Virginia; and WHEREAS, the Operator and the VBDA desire that the Mariners continue to be located in Virginia Beach, Virginia, and to play their home games in the stadium to be built on the Site pursuant to this Agreement; and WHEREAS, the Operator and the VBDA desire that this Agreement shall set forth their full and complete understanding with respect to the subject matter herein contained and the terms and conditions under which the Mariners will (i) schedule and play home games in the stadium to be constructed and owned by the VBDA for such purpose; and (ii) operate and use the said stadium as described herein. NOW, THEREFORE, for and in consideration of the premises, the mutual promises and covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which are expressly acknowledged, the VBDA and the Operator do hereby mutually agree as follows: WITNESETH: 1.0 DEFINITIONS AND OTHER GENERAL PROVISIONS 1.1 Definitions Unless the context otherwise requires, for all purposes of this Agreement, the capitalized terms used herein shall have the following specified meanings: A. Agreement. The term "Agreement" shall mean this Operating and Use Agreement and all modifications, renewals and extensions hereof. B. Amphitheater. The term "Amphitheater" shall mean the Virginia Beach Amphitheater presently known as the "GTE Virginia Beach Amphitheater" C. Broadcasting Rights. The term "Broadcasting Rights" shall mean the rights to all broadcasting without limitation, commercial broadcast television, radio, all forms of cable transmissions, whether currently existing or developed during the term of this Agreement, whether microwave, satellite over-the-air, fiber optics or otherwise, including, without limitation, basic and pay cable television, over-the-air pay television, multipoint distribution system television, multipoint multichannel distribution system television, direct broadcast satellite television, subscription television, pay-per-view television, low power television and closed circuit television, telecommunication, internet and any other method which may supplant the foregoing of all events held at the Stadium. D. Broadcasting Revenues. The term "Broadcasting Revenues" shall mean all revenues received from any source by the Operator generated from Broadcasting Rights. E. City. The term "City" shall mean the City of Virginia Beach, a political subdivision and public body corporate of the Commonwealth of Virginia. F. Club. The term "Club" shall mean the USISL Division II (or any equivalent or higher future designation available under governing soccer authorities) professional soccer franchise which (1) is owned and operated by the Operator; and (2) at the date of this Agreement is known as the Mariners; and such term shall include any successor thereto. G. Club Home Game. The term "Club Home Game" shall mean any professional soccer game played by the Club in the Stadium, including exhibition, all-star, regular season, playoff and championship games. H. Commencement Date. The term "Commencement Date" shall mean the date on which all of the following have occurred and/or been satisfied: (i) construction of the Stadium and related facilities have been completed in accordance with the Plans and Specifications; (ii) a certificate of substantial completion relating to the Stadium and related facilities has been issued by the supervising architect; and (iii) a certificate of occupancy for the Stadium has been issued by the City. I. Community Service Event. The term "Community Service Event" shall mean a local event held by a civic, educational, governmental, recreational, religious or charitable organization for non-profit purposes, including, without limitation, high school football and other high school events, and held at the Stadium in accordance with the terms hereof, but not including professional, extfibition or Other Soccer Games involving professional, national or international teams. J. Concessions. The term "Concessions" shall mean any and all food and beverage items sold on the Site by the Operator or pursuant to an agreement to be negotiated between the Operator and a third-party concessionaire other than the Operator. Said third-party concessionaire must be approved in advance by the VBDA, which approval may not be unreasonably withheld or delayed. K. Concession Revenues. The term "Concession Revenues" shall mean all gross revenues or receipts of the Operator from the sale of Concessions at the Stadium during any calendar year. L. Concession Rights Revenues. The term "Concession Rights Revenues" shall mean lump sum revenues received by the Operator for the sale, license or other grant to a third party concessionaire of the exclusive rights to sell Concessions at the Stadium, but excluding any revenue based on a percentage of Concession Revenues. M. Fees. The term "Fees" shall mean the Base Fee set forth in Section 3.1 and the Percentage Fees set forth in Section 3.2 of this Agreement. N. Gross Revenues. The term "Gross Revenues" shall mean the total amount of revenues and receipts actually received by the Operator from time to time during the term of this Agreement arising out of or relating to the Operator's possession, control, use or operation of the Stadium. O. Ground Lease. The term "Ground Lease" shall mean the Ground Lease dated as of between the City and the VBDA with respect to the Site, as amended from time to time. P. Mariners. The term "Mariners" shall mean the professional soccer team currently known as the" Hampton Roads Mariners" initially owned and operated by the Operator, any successor corporation or entity (by way of sale of assets or stock, merger or otherwise) and any assignee permitted under Section 10 hereof. Upon the written request of the VBDA or the City at least six (6) months prior to the beginning of any Soccer Season, Operator agrees to change the team name to "Virginia Beach Mariners". The Operator reserves the right to change the "Mariners" portion of the team name, but agrees that the geographic designation portion of the team name will be "Virginia Beach". Q. On-Site Parking. The term "On-Site Parking" shall mean all surfaced lots on the Site. R. On-Site Parking Revenues. The term "On-Site Parking Revenues" shall mean any and all revenues and receipts by Operator from On-Site Parking associated with Soccer Events and Stadium Events. Upon the written request of the VBDA or the City at least six (6) months prior to the beginning of any Soccer Season, the parking fee for On-Site Parking shall be included in the admission price for all Soccer Events that coincide with an event at the Amphitheater. S. Other Soccer Game. The term "Other Soccer Game" shall mean any soccer game played in the Stadium which does not include professional soccer teams but excluding any Community Service Event. T. Parameters. The term "Parameters" shall mean the components listed on Exhibit B attached hereto, and concepts expressed therein and herein, including without limitation, the number of seats as provided in (AA) below. U. Plans and Specifications. The term "Plans and Specifications" shall refer to the mutually approved final plans and specifications prepared based on the Parameters by an architect mutually approved by the VBDA and the Operator. V. Schools. The term "Schools" shall mean Virginia Beach City Public Schools. W. Sky_ Box Revenues. The term "Sky Box Revenues" shall mean all Gross Revenues actually received by the Operator and derived from the sale and/or rental of any sky box luxury suites at the Stadium. X. Soccer Events. The term "Soccer Events" shall mean all professional soccer games (including Club Home Games), Other Soccer Games and other events or uses related to such professional soccer games, Club Home Games, Other Soccer Games and the sport of soccer, including exhibition games, practices, camps, clinics and other soccer-related promotional or community events. Y. Soccer Season. The term "Soccer Season" shall mean the period commencing April 15 and ending either (1) on the date on which the Club's last game is played during the same calendar year, including any and all post-season competition, exhibition, play-off and all-star games, or (2) October 15, whichever shall later occur. Z. Sponsorship Revenues. The term "Sponsorship Revenues" shall mean Gross Revenues actually received by the Operator and derived from the sale of fixed stadium advertising and other stadium signs approved by the VBDA. For purposes of calculating Sponsorship Revenues, all constituent items of revenues and receipts shall be deemed to have been actually received by Operator during the calendar month of collection. AA. Stadium. The term "Stadium" shall mean the structure to be constructed, in accordance with this Agreement, the Parameters and the Plans and Specifications. Initially, the Stadium will have a seating capacity of at least 6,000 with phased expansion capability to 30,000 seats as conditions warrant. BB. Stadium Event. The term "Stadium Event" shall mean any and all events, other than Community Service Events and Soccer Events, promoted and held in the Stadium. CC. Stadium Taxes. The term "Stadium Taxes" shall mean all taxes and assessments of any kind or nature whatsoever, general and special, ordinary and extraordinary, foreseen and unforeseen, which at any time during the Term of this Agreement may be assessed, levied, confirmed or imposed upon the Operator for the operation and/or use of the Stadium and/or the Site for the exhibition or performance of Soccer Events and Stadium Events, specifically including, without limitation, admission taxes now or hereafter imposed by the City pursuant to Section 35-181, et seq, of the Virginia Beach City Code (1981), as amended, the City's portion of food and beverage taxes and sales and use taxes, business license taxes, personal property tax and other such future taxes, fees and levies imposed by and benefiting the City. Stadium Taxes shall not include any real estate, leasehold or similar taxes or assessments relating to the Stadium and/or the Site. DD. Standard Industry_ Practice. The term "Standard Industry Practice" shall mean, at a given time, any of the practices, methods and acts engaged in or approved by a significant portion of the professional soccer industry prior to such time, as reasonably determined by the Operator at the time in question. EE. Term and Interim Term. The terms "Term" and "Interim Term" each shall have the meanings set forth in Section 2 of this Agreement. 1.2 Construction of the Stadium The VBDA shall construct the Stadium incorporating the Parameters and the Plans and Specifications pursuant to a separate agreement with the City. Four sky box shells shall be constructed by the VBDA as part of the Stadium. If the Plans and Specifications permit, the Operator shall have the option to pay for additional sky boxes. The Operator shall be responsible for the build-out of all sky boxes constructed as part of the Stadium. The Plans and Specifications, any changes to the Plans and Specifications and the architect and/or engineer preparing the same shall be subject to the mutual approval of the VBDA and the City. The Operator shall be permitted the opportunity to review and comment on the Plans and Specifications. The VBDA agrees to construct the Stadium and related facilities in accordance with the approved Plans and Specifications in a good and workmanlike manner, using first quality, new materials. The VBDA agrees to promptly, diligently and continuously pursue preparation of the Plans and Specifications and construction of the Stadium and related facilities and agrees to use its best efforts to complete construction of the Stadium and related facilities such that the Commencement Date will occur on or prior to April 1, 1998. If the Commencement Date has not occurred on or prior to April 1, 1998, the VBDA and the City will cooperate with the Operator to locate suitable substitute facilities for any Club Home Games scheduled to occur prior to the Commencement Date. If the Commencement Date has not occurred on or prior to May 15, 1998, then, notwithstanding any other provision of this Agreement to the contrary, 33 % of the Base Fee payable during the 1998 Soccer Season shall be abated. If the Commencement Date has not occurred on or before June 5, 1998, then, notwithstanding any other provision of this Agreement to the contrary, 66% of the Base Fee payable during the 1998 Soccer Season shall be abated. If the Commencement Date has not occurred on or before July 1, 1998, 100% of the Base Fee payable during the 1998 Soccer Season shall be abated. 1.3 Agreement Immediately prior to the execution and delivery of this Agreement by the parties hereto, the VBDA has leased the Site from the City for a term not to exceed 40 years pursuant to the Ground Lease. Subject to the terms and conditions contained in this Agreement, and in consideration of the mutual covenants set forth in this Agreement, the VBDA authorizes and gives the Operator the exclusive right to operate and use, and the Operator agrees to operate and use, the Site and the Stadium, together with use of all rights, easements, privileges, and appurtenances thereto, for the Term of this Agreement. 1.4 Compliance with Law During the term of this Agreement, at its sole cost and expense (except to the extent certain maintenance, repair and replacement expenses are the responsibility of the VBDA under Sections 7.1(C) and (D) hereof and except as otherwise provided in this Agreement), the Operator shall operate and use the Stadium in compliance with all laws, ordinances, orders, rules, regulations and requirements of all federal, state and local governmental agencies which may be applicable to the Operator's operation or use of the Site and the Stadium. The Operator shall likewise observe and comply with the material requirements of all policies of public liability, fire, and other insurance at any time in force with respect to the Site and the Stadium relating to the Operator's operation and use of the Stadium. By way of clarification, it is hereby expressly acknowledged and agreed that the obligations contained in this Section 1.4 shall in no way impose upon the Operator any contractual obligation to make any design or construction changes to the Stadium to comply with any such laws, ordinances, orders, rules, regulauons and requirements, it being agreed and acknowledged that the foregoing provisions relate solely to the manner in which the Stadium is to be operated and used and that the VBDA shall be responsible for the initial design and construction in accordance with such laws and any subsequent changes required in connection therewith. 2.0 TERM 2.1 Interim Term The interim term of this Agreement (the "Interim Term") shall begin on the date hereof and (unless earlier terminated in accordance with the provisions hereof) shall end at 12:01 a.m. on the Commencement Date. During the Interim Term, no Fees shall be payable by the Operator, and the Operator's obligations to maintain insurance in accordance with Section 9 hereof shall be suspended. 2.2 Term The basic term of this Agreement (the "Term") shall begin at 12:01 a.m. on the Commencement Date and (unless earlier terminated in accordance with the provisions hereof) shall end on the last day of the calendar year in which the twentieth (20th) Soccer Season occurs. The VBDA shall deliver the Site and the Stadium to the Operator for operating and using same, subject to the provisions of this Agreement, on or before the Commencement Date. If the Commencement Date occurs on or before May 15 of a particular calendar year, then the Soccer Season during such calendar year shall be deemed to be, for all purposes of this Agreement other than the Fees payable pursuant to Sections 3.1 and 3.2, the "first" Soccer Season of the term of this Agreement. If the Commencement Date occurs after May 15 of a particular calendar year, then the Soccer Season during the next succeeding calendar year shall be deemed to be, for all purposes of this Agreement other than the Fees payable pursuant to Section 3.1 and 3.2, the "first" Soccer Season of the term of this Agreement. 2.3 A. Renegotiation/Expansion The Stadium may be expanded at any time during the Term upon the mutual agreement of the Operator and the VBDA. B. The Stadium may be expanded at any time during the Term by the VBDA at the request of the City for purposes unrelated to professional soccer without the concurrence of the Operator. In such event, the Operator and the VBDA agree to negotiate in good faith a new agreement as provided in Section 2.3 (C) below with no increase in the net expense to the Operator. If the Operator subsequently acquires a Major League Soccer franchise, this Agreement shall be renegotiated in accordance with Section 2.3 (C) below. C. In the event of any expansion ("Expansion") pursuant to Sections 2.3 (A) or (B) above, the VBDA and the Operator agree to negotiate in good faith a new agreement (subject to the approval of the City) which will replace or amend this Agreement, as required. Among the items subject to renegotiation are the following: (i) Fees. (ii) Sponsorship Revenues. (iii) Stadium naming rights. (iv) Term. (v) Capital contribution by the Operator toward expansion costs. (vi) Stadium Use. (vii) Use of Stadium by the City, the VBDA and Schools. (vifi) Personal Guaranties. D. If the City desires to expand the Stadium due to the availability of a Major League Soccer franchise, and the Operator refuses or is unable to obtain such a franchise, the Operator agrees to negotiate in good faith with the potential franchisee to release the Operator's rights under this Agreement. E. Prior to an Expansion, the Operator and the VBDA agree to further evaluate the impact of expansion of the Stadium on the Amphitheater. An Expansion shall be conditioned on the availability of adequate infrastructure (including roads and parking) to accommodate the operation and use of the expanded Stadium. 3.0 PAYMENTS 3.1 Base Fee Subject to Section 1.2 above, the Operator shall pay to the VBDA annually a base fee (the "Base Fee") in the sum of $100,000, without demand therefor being made, commencing with the calendar year in which the Commencement Date occurs and continuing during the Term of this Agreement. If the Commencement Date occurs after April 1, 1998, but on or before May 15, 1998, the Base Fee shall be prorated based on a fraction, the numerator of which is the number of Club Home Games played during such calendar year and the denominator of which shall be the total number of Club Home Games scheduled, including playoff and championship games. The Base Fee shall be increased every two (2) years during the Term by five percent (5 %) of the previous year's Base Fee amount. The Base Fee shall be payable in two equal installments (initially in the amount of $50,000 each), the first of which shall be due on April 15 of each calendar year during the Term hereof, and the second of which shall be due on October 30 of each calendar year during the Term hereof together with the annual payment of Percentage Fees required by Section 3.2 of this Agreement. 3.2 Percentage Fees Commencing on October 30 of the calendar year in which the first Club Home Game occurs and continuing during the Term of this Agreement, without demand therefor being made, the Operator shall pay to the VBDA annually, in arrears, as Percentage Fees ("Percentage Fees"), an amount equal to the sum of the following: A. Unless otherwise agreed to by the City's Director of Economic Development on a per event basis, for all Stadium Events: (i) 10% of Concession Revenues (ii) 50% of On-Site Parking Revenues as provided in Section 5.11 (iii) 50% of Broadcasting Revenues (iv) 15 73 of ticket sales as provided in Section 5.11 B. For all Soccer Events: (i) For the first three (3) Soccer Seasons: a) 5 73 of the first $340,000 of Concession Revenues b) 12.5 73 of all Concession Revenues in excess of $340,000 (ii) Beginning with the fourth Soccer Season, 1073 of all Concession Revenues (iii) 5 % of On-Site Parking Revenues (iv) 10% of Sky Box Revenues (v) 5 % of Sponsorship Revenues 3.3 Payment Procedures for Fees A. All Fees due hereunder shall be payable to the VBDA at its address for notices set forth in Section 17.10 of this Agreement. B. The Operator shall submit with each payment of Percentage Fees pursuant to Section 3.2 of this Agreement an itemized report setting forth the amount of all Concession Revenues, Sky Box Revenues, Broadcasting Revenues from Stadium Events, Concession Rights Revenues, Sponsorship Revenues and On-Site Parking Revenues actually received by the Operator for the year ending October 15 preceding the due date of the Percentage Fees, which statements shall be certified to by the chief financial officer or chief executive officer of the Operator as to the accuracy thereof. C. In the event any Fees payment is not made when due under Section 3 and such delinquency continues for seven days after written demand by the VBDA to the Operator, the VBDA shall be entitled to receive a late charge equal to 5% of the amount of any delinquent payment (unless the item in question is in good faith being contested). D. All taxes, charges, costs and expenses which the Operator is required to pay hereunder, together with all interest and penalties that may accrue thereon in the event of the Operator's failure to pay such amounts, and all damages, costs and expenses, including reasonable attorney's 3.0 fees, which the VBDA may reasonably incur by reason of any default of the Operator or failure by the Operator to comply with the terms of this Agreement, shall be deemed to be additional Fees due in the event of nonpayment by the Operator. 3.4 Books and Records A. The Operator shall maintain accurate and complete books and records, including income and tax returns, and records of complimentary tickets, in a form which will permit verification of Sponsorship Revenues, Sky Box Revenues, Broadcasting Revenues from Stadium Events, Concession Rights Revenues, Concession Revenues and On-Site Parking Revenues in accordance with the definitions thereof showing all revenue, and shall require all licensees, concessionaires, or others using or occupying the Stadium or in any way doing business with the Operator at the Stadium to do the same, for a period of not less than three (3) years after the expiration of the year to which such records relate. Such records shall show all revenue supported by documents of original entry such as sales slips, cash register tapes, purchase invoices and tickets issued. B. Within one hundred twenty (120) days after the end of each of its fiscal years, the Operator shall make available at its offices at the Stadium for inspection by the VBDA a balance sheet as of the end of such fiscal year and the related statements of earnings, owners' equity and cash flows of the Operator for such fiscal year, in each case setting forth in comparative form the figures (if available) as of the end of and for the previous fiscal year, compiled by independent certified public accountants of recognized standing selected by the Operator. The Operator represents that its fiscal year currently ends December 31. 3.5 Right to Audit The VBDA shall have the right, at its expense, but only after reasonable advance written notice to the Operator, to examine and audit from time to time, at the discretion of the VBDA, the Operator's records of revenue and receipts relating to the Stadium and the Site, including all books of account and all supporting documents. Notwithstanding the foregoing, the VBDA shall not have the right to examine and audit the books and records of the Operator for a second time during any calendar year unless the first audit during such calendar year uncovered a deviation from reported results resulting in an underpayment to the VBDA in excess of three percent (3 %). The Operator shall reimburse the VBDA for all expenses incurred in connection with any such second audit and any first audit uncovering a deviation from reported results resulting in an underpayment of Percentage Fees to the VBDA in excess of three percent (3 %). 3.6 Security Deposit The Operator's obligations to pay Fees and to perform its other obligations under this Agreement shall be secured by a cash security deposit or a Letter of Credit acceptable to the City Attorney in the amount of $50,000.00. At the commencement of each Soccer Season, the Operator shall deposit the cash or letter of credit with the VBDA on or before April 15 of the applicable calendar year, with any letter of credit to expire no earlier than December 31 of the then current calendar year. Upon the Operator's payment of the Base Fee and Percentage Fees for such calendar year, the VBDA shall return the deposit or letter of credit to the Operator. Notwithstanding the foregoing, the requirements of this Section 3.6 shall expire and become null and void (and any cash security deposit or Letter of Credit shall be returned to the Operator) immediately after the end of the seventh Soccer Season if no Event of Default has occurred and is then continuing (provided that the VBDA reserves the right to reimpose such requirement upon any assignee of the Operator in the event of a permitted assignment, for a period of seven Soccer Seasons following the effective date of such assignment). 4.0 TAXES AND UTILITIES 4.1 Payment of Taxes, Assessments, etc. The Operator shall pay and discharge, before any fine, penalty, interest or cost may be added thereto for the nonpayment thereof, all Stadium Taxes; provided, however, the Operator shall have the right to contest in good faith in accordance with statutory procedures all such taxes and assessments so long as there is no material risk of forfeiture. In the event any real estate, leasehold or similar taxes or assessments relating to the Stadium and/or the Site (other than Stadium Taxes) are levied against or imposed on the Operator or the Stadium and/or the Site resulting from the operation and use of the Stadium and/or the Site under this Agreement, the Operator shall pay same but shall be entitled to offset and deduct the amount so paid from the Base Fee otherwise payable under this Agreement. 4.2 Utility Charges At its sole cost and expense, the Operator shall pay or cause to be paid all charges for gas, water, sewer, electricity, telephone or other service or services furnished to the Stadium and/or the Site during the Term of this Agreement. Each permitted user of the Stadium, including the VBDA, the City and Schools shall, at its sole cost and expense, pay or cause to be paid all charges for gas, water, sewer, electricity, telephone or other service or services furnished to the Stadium and/or the Site during the Term of this Agreement to the extent that such charges relate to the use of the Stadium and/or the Site by such permitted user, including, without limitation, use of the Stadium and/or the Site pursuant to the provision of Sections 5.8 and 5.9 of this Agreement. Nothing contained in this Section 4.2 shall imply that the Operator or the VBDA shall be required to separately meter utility charges associated with their respective use of the Stadium and/or the Site. In that regard, it is acknowledged that the Operator shall develop standard rates to reasonably approximate the charges for services and utility usage for each use of the Stadium and/or the Site. Such standard rates shall be presented to and approved by the VBDA prior to the beginning of each Soccer Season. 5.0 OPERATION AND USE 5.1 Operation and Use of the Stadium A. The Operator shall operate and use the Stadium pursuant to this Agreement primarily as the locanon of its Club Home Games and other Soccer Events, including activities, events and other uses incidental to or customarily related to the sport of soccer. In addition, the Operator may also use the shell office space to be built as part of the Stadium (and built-out by the Operator) for the Club's and the Stadium's administrative offices. If the Operator desires to use the office space for any other purpose, additional fees shall be agreed upon prior to such use. Furthermore, the Operator shall have the right to conduct Stadium Events as provided under Section 5.11 below. Except as expressly permitted by the terms of this Agreement, neither the Stadium nor the Site shall be otherwise operated or used without the prior written consent of the VBDA. B. The Operator agrees to open the Stadium for business, fully-fixtured, staffed and stocked within 30 days after the Commencement Date if the Commencement Date occurs on or after March 15 and prior to May 15 of a particular calendar year. If the Commencement Date occurs after May 15 of a particular calendar year, the Operator agrees to open the Stadium in the manner required by the preceding sentence no later than 30 days prior to the beginning of the first Soccer Season (determined in accordance with Section 2.2 of this Agreement). The Operator shall have the right, but not the obligation, to commence operation of the Stadium prior to the date required above. 13 C. The Operator shall use, or permit others to use, the Stadium and the Site only in the manner for which it was designed and intended and will, subject to the provisions of Section 7 of this Agreement, use and maintain the Stadium in accordance with (i) all maintenance and service recommendations of the manufacturer of all furniture, equipment and fixtures used in connection with the operation of the Stadium as are required to enforce warranty claims against the manufacturer or which are otherwise established by the manufacturer as recommended operating procedures, (ii) all applicable federal, state and local laws and regulations, (iii) customary and prudent standards for the operation of similar stadium facilities, (iv) any requirements necessary for the procurement and maintenance of any insurance policies required by Section 9 of this Agreement, (v) actions necessary to keep the Stadium in good condition, excepting ordinary wear and tear, damage by casualty and/or condemnation and those items for which the VBDA is responsible as provided in Section 7.0 of this Agreement. D. The Operator shall have the exclusive right to exhibit, promote, stage and hold Soccer Events in the Stadium during the Term hereof, and retain all proceeds thereof, subject to the terms of this Agreement. 5.2 Duties and Obligations of the Operator In addition to its other duties and obligations hereunder and at its own cost and expense throughout the term of this Agreement, the Operator shall: A. Actively and diligently pursue obtaining a Major League Soccer franchise; B. Pay the cost of all telephone service charges incurred in areas occupied by Operator's personnel; C. Keep clean all areas of the Stadium and the Site; D. Mow, fertilize, seed, reseed, water and otherwise maintain the playing surface in the Stadium; E. Maintain and repair the scoreboard and public address systems and provide for any replacement thereof or replacement parts therefor, maintain and repair all on-field equipment and maintain and repair or cause all concessionaires to maintain and repair all equipment and fixtures contained in or used about the concession areas; F. Prepare and line the playing surface of the Stadium prior to each Soccer Event and, as appropriate, Stadium Event and Community Service Event and, during such events, provide all such grounds keeping and other field maintenance service and equipment as are appropriate to 14 maintain a quality soccer playing surface; however, notwithstanding any provision in this Agreement to the contrary, the Operator shall only be required to provide one (1) employee to cover both grounds keeping and maintenance under this Section 5 2 (F) and Section 5.2(I) below during any Community Service Event unless the VBDA and the Operator otherwise agree prior to such Community Service Event; G. Secure or cause to be secured such permits, variances and licenses as may be necessary or desirable for the Operator and any concessionaires to operate in the Stadium as is contemplated by this Agreement; H. Retain, employ, compensate, train and manage a sufficient number of personnel to discharge its responsibilities and obligations under this Agreement; I. Provide a sufficient maintenance crew for each professional soccer game, Stadium Event and Community Service Event to handle emergency field repairs during such periods; J. Provide or contract for the provision of suitable Concessions sales during all professional soccer games and Stadium Events; K. Provide all soccer equipment and any other furniture and equipment necessary for professional soccer games (other than the spectator seats, lockers, benches, plumbing fixtures and other locker room facilities and fixtures, sound system and other equipment to be provided by the VBDA in accordance with the Parameters); L. Subject to Section 7.2, ensure that the Club plays all of the Club's regular season home games in the Stadium; M. Obtain and maintain the insurance policies required to be obtained and maintained by the Operator by this Agreement; N. Provide equipment and furnishings for the team clubhouses and locker rooms, manager's offices, referee's dressing rooms for all Soccer Events held by the Operator; and the Operator's administrative offices (other than the lockers, benches, plumbing fixtures and other locker room facilities and fixtures to be provided by the VBDA in accordance with the Parameters); O. During Club Home Games and Stadium Events initiated by the Operator, control ingress and egress to and from the Stadium seating and service areas located near the Stadium, adequately staff On-Site Parking and be responsible for the securing of such areas; 15 P. Provide at least two (2) security guards or uniformed police officers having arrest powers at all professional soccer games and at Stadium Events initiated by the Operator; Q. Be fully responsible for compliance with all rules and regulations relating to the purchase and sale of alcoholic beverages during the term of this Agreement. The Operator shall defend, indemnify and hold harmless the VBDA and the City from and against any and all claims, liabilities and losses related to or arising out of the Operator's and/or any third party concessions operator's negligence relating to the sale of alcoholic beverages at the Site. No alcoholic beverages shall be sold or distributed in connection with any Community Service Event without the prior written consent of the VBDA, the City and/or Schools as the case may be. R. Maintain its status as a USISL DivisionlI professional soccer franchise or equivalent or higher future designation available to the Club under governing soccer authorities; and S. Use its reasonable skill and diligence and exercise sound business judgment in operating the Stadium throughout the Term in a commercially reasonable manner; provided, however, anything in this Agreement to the contrary notwithstanding, the Operator shall not use or permit the Stadium to be used for any show, performance or event which could reasonably be performed at the Amphitheater without the prior written consent of the VBDA. 5.3 Signs and Advertisin~ The location and size of all permanent signs which are placed or constructed on the Site or the Stadium must receive the prior written approval of the VBDA and the City, not to be unreasonably withheld or delayed, and must be in compliance with all applicable laws, ordinance, rules and regulations governing the location and size of advertising signs, including zoning ordinances and conditional use permits. All other signs used for advertising or sponsorships inside or outside the Stadium shall be portable or constructed or affixed so that removal will not damage the Stadium or the Site and shall be subject to removal if determined to be offensive, of poor quality, in poor taste or otherwise inappropriate in the reasonable opinion of the VBDA or the City. Anything contained herein to the contrary notwithstanding, it is hereby specifically agreed and acknowledged that any sign displaying or advertising any alcoholic beverage or tobacco product must be constructed so that it can be removed or completely covered from view, and it shall be removed or completely covered from view, whenever the Stadium is to be used for a Community Service Event involving the City or Schools. 5.4 Operation; Covenant Against Competition The Operator shall use recognized modern business practices to provide efficient and competent services to the public. The Operator shall not abandon the operation of the Stadium during any Soccer Season (except as a result of casualty, condemnation and/or other reasons outside the Operator's reasonable control as described in Section 17.3 of this Agreement). During the Term of this Agreement, the Operator shall not, without the prior written consent of the VBDA, sponsor, sell tickets for or otherwise promote, directly or indirectly, any professional soccer game at any other facility or location within the Greater Hampton Roads metropolitan area during any Soccer Season. 5.5 Handicapped Accessibility The Operator shall operate the Stadium in such a manner as to assure that it complies fully with all state, federal, and local standards for handicapped accessibility. By way of clarification, it is hereby expressly acknowledged and agreed that the obligation contained in the immediately preceding sentence shall in no way impose upon the Operator any contractual obligation to make any design or construction changes to the Stadium to comply with any state, federal or local standards for handicapped accessibility, it being agreed and acknowledged that the foregoing provision relates solely to the manner in which the Stadium is operated and that the City and the VBDA shall be responsible for the initial design and construction in accordance with such standards and any subsequent changes required in connection therewith. 5.6 Traffic, Crowd Control and Cleanup The Operator, at its expense, shall be responsible for cleanup of the Stadium and the Site, reasonable crowd control, reasonable security and reasonable traffic control on the Site whenever a Soccer Event, Stadium Event or other activity or event is held by the Operator at the Stadium. The Operator shall also provide post-event cleanup services for the Stadium and the Site whenever a Community Service Event is held at the Stadium. Unless the VBDA and the Operator otherwise agree, the VBDA, the City and/or Schools, as the case may be, shall be responsible for reasonable crowd control, reasonable security and reasonable traffic control and other operating services in connection with any Community Service Event initiated by the VBDA, the City or Schools. The Operator shall provide adequate trash collection and cleaning services to assure that the refuse of the patrons of the Stadium does not litter any adjoining property, and the Operator shall use its reasonable efforts to provide such temporary barriers and sufficient security personnel as are 17 reasonably necessary to prevent patrons attending a Soccer Event, Stadium Event or other activity or event held by the Operator at the Stadium from parking on, walking on, or otherwise trespassing upon adjoining properties, unless written permission for such activities is obtained from the owner and operator of such adjoining properties. 5.7 Schedulin~ A. On or before April 1 of each calendar year, the Operator shall submit, for informational purposes, to the VBDA its proposed schedule of regular season home games of the Club for the upcoming Soccer Season insofar as the schedule may be known at that time. The Operator shall inform the VBDA promptly of any changes in the proposed schedule of regular season home games of the Club from time to time as they become known to the Operator. The submissions required by this Section 5.7 are in no way intended to limit or prohibit the booking by the Operator of other activities or events during the Soccer Season as dates and opportunities become available, subject to the provisions of Sections 5.7 (B) and (C) below. B. The VBDA shall be responsible for the scheduling of events and maintaining the master schedule for the Stadium, and the VBDA will notify the Operator of all Community Service Events desired to be scheduled. Events will be scheduled by the VBDA based on the following order of priority. First priority will be given to the scheduling of all Club Home Games and all preparation and promotional or other events related thereto. Second priority will be given to the scheduling of Community Service Events and all preparation related thereto. Third Priority will be given to all other Soccer Events and all preparation and promotional or other events related thereto. Fourth priority will be given to Stadium Events to be held in accordance with Section 5.11 of this Agreement. The VBDA and the Operator agree to cooperate with each other to resolve any scheduling conflicts. C. The Operator and the VBDA agree to coordinate scheduling of events at the Stadium with the schedule of events held at the Amphitheater to avoid conflicts to the greatest extent possible subject to the following conditions: (i) Provided at least twenty-two (22) days advance written notice of the date of an evening concert is given to the Operator and the VBDA by the operator of the Amphitheater, events scheduled to be held at the Stadium on the same date will be adjusted to conclude by 8:00 p.m. Events which are rescheduled at the Amphitheater due to acts of God, hurricanes, illness of performer or other cause beyond the control of the operator of the Amphitheater shall be exempt from such advance notice requirement, provided, however, the operator of the Amphitheater has given notice (oral and written) to the Operator and the VBDA of the need for rescheduling as soon as is reasonably possible. (ii) On nights that an event is scheduled at the Amphitheater, high school band performances at the Stadium must conclude by 8:00 p.m. (iii) Soccer Events at the Stadium which are being covered or broadcast by major sports television (including, but not limited to, the major television networks such as ABC, NBC, CBS and Fox and cable television such as ESPN, Home Team Sports, "superstations", etc.) shall not be required to be rescheduled pursuant to subsection (i) above. (iv) Subject to subsection (ii) above, if the Operator and the VBDA have not received notice of the scheduling of an Amphitheater event twenty-two (22) days prior to a given date, the Operator and the VBDA shall be free to schedule events for such date in accordance with this Agreement. (v) The provisions of subsections (i), (ii), (iii) and (iv) above and the need to include any parking fees in ticket prices as provided under Section 1.1 (R) above, shall be re- evaluated with the operator of the Amphitheater at the completion of the first Soccer Season to determine whether adjustment or elimination is appropriate. The adjustment or elimination of any of these provisions shall be subject to the mutual consent of the VBDA, the Operator and the operator of the Amphitheater, which consent shall not be withheld unreasonably. In the event, the parties cannot agree, however, the City, acting through the City Manager or his designee, shall make the final determination. 5.8 VBDA/Schools/City Use A. The Operator acknowledges and agrees that the VBDA, Schools and/or the City, shall have the right to use the Stadium and/or the Site from time to time for Community Service Events, free of any Fee, in accordance with this Section 5.8 and Section 5.9, subject, however, to the rights of the Operator under this Agreement, and provided that such dates do not conflict with a Club Home Game or conflict with other Soccer Events approved by the VBDA in accordance with Section 5.7, or maintenance or work on such requested date in preparation for such game, activity or event. B. When the VBDA, Schools and/or the City uses the Stadium and/or the Site pursuant to this Section 5.8, it shall be obligated to pay to the Operator only an amount sufficient to reimburse the Operator for actual and reasonable expenses incurred for operating the Stadium and/or the Site in connection with such activity or event in accordance with the standard user agreement required by Section 5.15 and the cost to repair any damage to the Stadium and/or the Site caused during such activity or event not covered by insurance. The Operator shall have no obligation to provide any such services except as otherwise provided in this Agreement. C. The VBDA, Schools and/or the City, as the case may be, will be entitled to receive and retain all net income (after payment of concessionaires, vendors, artists, advertisers and other costs associated with the production and promotion of a Community Service Event), if any, generated from the Community Service Events presented by the VBDA, the City and/or Schools pursuant to this Section 5.8 after paying to the Operator the expenses determined as set out in this Section; provided, however, that any share of proceeds received by concessionaires, subtenants or others utilized for such activities and events which are payable to the Operator pursuant to separate agreements between the Operator and such parties shall be paid to the Operator. To the extent the Operator may elect to inform the VBDA, Schools and/or the City, as the case may be, of its third party arrangements and provide copies of those agreements on request, the VBDA, Schools and/or the City, as the case may be, shall abide by (but shall not assume or otherwise become obligated to any third party in respect of) the exclusive rights and other provisions contained ~n such agreements. D. Immediately following any Community Service Event, any damage done to the playing field, other than normal wear and tear as provided in Section 5.15, as a result of such Community Service Event shall be repaired and the field restored to its condition existing prior to such Community Service Event by the Operator at the expense of the VBDA, the City and/or Schools, as the case may be. Immediately following any Community Service Event, any damage done to any other part of the Stadium or the Site, other than normal wear and tear as provided in Section 5.15, as a result of such Community Service Event, shall be repaired and restored to its condition existing prior to such Community Service Event, at the expense of the VBDA, the City or Schools, as the case may be. The Operator shall be entitled to reimbursement by the VBDA, Schools and/or the City, as the case may be, for all expenses actually incurred by the Operator in providing for such use of the Stadium and/or the Site. 20 5.9 Non-Gated Use In addition to the events described in Section 5.8 hereof, the Operator agrees that the VBDA, Schools and/or the City may use the Stadium or a portion thereof for non-gated, non-profit events by providing at least fifteen (15) days advance written request to the Operator; provided, however, that if the Operator has otherwise scheduled or is then currently expecting to schedule an activity or event for the Stadium or otherwise has contracted with others for the use of the Stadium or such portion thereof for such time as the VBDA, Schools and/or the City shall have requested use of the Stadium or such portion thereof pursuant to this Section 5.9, or such use would otherwise interfere with set-ups, maintenance or other activities planned by the Operator, then the VBDA, Schools and/or the City shall not be entitled to use the Stadium for such non- gated, non-profit event. All activities and events presented pursuant to this Section 5.9 shall in all other respects be governed by the provisions of subsections (B) and (E) of Section 5.8. 5.10 Concessionaire If any food, beverage or other Concessions are to be sold at any activity or event to be held at the Stadium pursuant to the provisions of Sections 5.8 or 5.9 of this Agreement, then no third party professional vendor or concessionaire may be used without the prior written consent of the Operator (which consent may be withheld for any reason whatsoever), other than the professional vendors or concessionaires which provide services at the events and performances presented by the Operator at the Stadium. In no event may the concession and vending equipment owned by the Operator or the Operator's concessionaires or vendors be used in connection with the sale or dispensing of any food, beverage or merchandise at any activity or event held at the Stadium pursuant to Sections 5.8 or 5.9 of this Agreement without the express consent of the owner of such equipment. The VBDA, the City and/or Schools may sell concessions using its/their own equipment at all Community Service Events. Furthermore, neither the Operator nor its concessionaire shall be obligated to provide Concessions at any Community Service Events. If any agreement between the Operator and any such vendors or concessionaires or any sponsor of the Stadium provides that such vendors or concessionaires are entitled to provide services or enjoy promotional rights at all events and performances at the Stadium and the Operator provides copies thereof to the VBDA on request, then the VBDA shall abide by (but shall not assume or otherwise become obligated to any third party in respect of) such rights in all cases except for Community Service Events involving Schools. The Operator and/or its concessionaires shall have the exclusive 21 right to provide Concessions for all professional soccer games, other Soccer Events and all Stadium Events. 5.11 Stadium Events The Operator and the VBDA shall have the right to promote and hold Stadium Events at the Stadium in accordance with this Section 5.11. The Operator and the VBDA shall mutually approve all Stadium Events (such approval not to be unreasonably withheld) and shall share equally in On-Site Parking Revenues for Stadium Events. Unless otherwise agreed to by the City's Director of Economic Development on a per event basis, in addition to all other Fees payable under this Agreement, the VBDA shall receive fifteen percent 15 % of the gross revenues generated from the sale of tickets for all Stadium Events. All Stadium Events shall be scheduled by the VBDA in accordance with the provisions of Section 5.7 of this Agreement. 5.12 Broadcasting Rights The Operator shall have the exclusive Broadcasting Rights to all Soccer Events. The Operator shall exercise such rights at such times and in such manner as the Operator shall consider appropriate. The Operator and the VBDA shall jointly hold all Broadcasting Rights to any Stadium Events, and the VBDA, the City and/or Schools shall have the exclusive Broadcasting Rights to any Community Service Events. 5.13 Scoreboard and Public Address System At its sole cost and expense, the Operator shall supply a public address announcer and a sufficient number of personnel to operate the scoreboards at all professional soccer games and other activities or events which require the use of the scoreboards other than Community Service Events initiated by the VBDA, the City or Schools. The Operator shall have the right to approve any operator of the Stadium scoreboards not provided by the Operator and will provide any necessary training. 5.14 Name The Stadium shall initially be known as "Virginia Beach Stadium." The VBDA and the City reserve the right to make a municipally-oriented name change without the Operator's consent. The Operator and the VBDA with the consent of the City shall have the right to approve any commercial name designation with each party to receive 50 % of the revenues generated from the sale thereof. Unless otherwise agreed to by the City, the name of the City will be featured as a prominent part of the name of the Stadium. 9.2 5.15 User Agreements The Operator shall require each user of the Stadium other than the Operator, to execute a standard agreement which has been approved by the City Attorney and the VBDA and which shall provide specifically for the following: A. Adequate liability insurance coverage for personal injury and property damage. B. Standard charges for utilities, playing surface preparation (if any), cleaning, security, grounds and house staff, insurance and the normal wear and tear arising from the use of the Stadium and the playing surface and other services that may be provided by the Operator at the user's option. C. Assumption by such user of responsibility for damage to the Stadium and the playing surface beyond normal wear and tear. D. The ability of the Operator with the concurrence of the VBDA to cancel any event due to inclement weather conditions when, in the opinion of the Operator, the performance of such event would result in excessive damage to the playing surface. It is contemplated that the Operator (with the approval of the VBDA) will annually establish standard user fees (which will include charges to cover the Operator's actual and reasonable expenses relating to normal wear and tear arising from a given use, normal utilities, normal insurance costs, event grounds keeping crews and post-event janitorial cleanup) for events to be held in the Stadium. The Operator (with the approval of the VBDA) will also annually establish a schedule of standard fees for additional services that may be prowded by the Operator (such as parking lot, security, ticket taking and crowd control personnel and field preparation and lining) and excess utility consumption. Excess insurance charges will be determined on a per event basis. These standard charges shall be incorporated into the user agreement to be executed by each user of the Stadium other than the Operator. 5.16 Incompatible Events The Operator with the concurrence of the VBDA shall have the right to refuse events which are incompatible with the intended purposes and physical layout of the Stadium or which by the inherent nature of the event may be destructive to the Stadium or the playing surface. 23 6.0 CONSTRUCTION BY OPERATOR 6.1 Operator's Right to Build The Operator shall have no right to erect, maintain, alter, remodel, reconstruct, rebuild, replace or remove any building or other improvements on the Stadium Site or to correct or change the contour thereof without the prior written consent of the VBDA, which consent may be withheld in the VBDA's sole discretion. 6.2 Operator's Furniture, Fixtures & Improvements The Operator shall have the right at any time and from time to time during the term of this Agreement to install in or upon the Stadium, furniture, movable trade fixtures, and equipment and make repairs thereto and additions thereto. Any furniture, movable trade fixtures and equipment which will be attached or affixed to any portion of the Stadium shall require the consent of the VBDA, which consent shall not be withheld unreasonably, prior to installation. All such furniture, movable trade fixtures and equipment shall be and remain the property of the Operator during the Term of this Agreement, and the Operator shall bear all cost, loss, and expense for any casualty or theft risk in connection with such furniture, movable trade fixtures, and equipment. Upon the termination or expirauon of this Agreement, all such furniture, movable trade fixtures and equipment shall be removed by the Operator, and any damages to the Stadium caused by such removal shall be the responsibility of the Operator. To the extent any such property remains at the Site for more than 15 days after the termination or expiration of this Agreement, such property may be retained, removed or sold by the VBDA without liability to the Operator. 6.3 VBDA's Right to Inspect The VBDA and the City shall have the right to inspect the Stadium and the Site at all reasonable times so long as such inspections do not limit or interfere with the presentation or preparation for presentation of any activity or event at the Stadium or the Site. 7.0 REPAIRS AND RESTORATION 7.1 Maintenance and Repair The obligation to cause the Stadium and the Site to be maintained and repaired shall be borne by the Operator and the VBDA in accordance with the following provisions: A. The Operator shall be responsible, at its sole cost and expense except as otherwise provided herein, for all maintenance, repair and upkeep as may be necessary to maintain all 24 driveways and other vehicular approaches used in connection with and located within the Site in a good state of appearance and repair, reasonable wear and tear excepted. B. The Operator shall be responsible, at its sole cost and expense except as otherwise provided herein, for (i) all normal and routine day-to-day maintenance, cleaning, seeding, sodding, landscaping, painting and repair work with respect to the Stadium, (ii) all repairs and replacements of furniture, equipment and trade fixtures located at the Site, and (iii) all repairs to the Stadium. C. While the Operator shall be responsible for making arrangements for the accomplishment and shall initially bear the expense of the same, the VBDA shall be responsible for the cost and expense for all repairs and replacements of the Stadium, other than those capital improvements which are the Operator's responsibility under Section 7. I(D) of this Agreement and repairs and replacements that are required as a result of Operator's breach of its obligations under this Agreement. The Operator shall bear the cost of maintenance and upkeep of the Stadium and the Site, but the VBDA shall be responsible for the cost of repairs or, if reasonably necessary, replacements of the Stadium and its components to the extent that such repairs and replacements are not covered by the insurance required to be carried pursuant to Section 9.1 of this Agreement. D. In connection with any capital improvements to the Stadium or the Site, the VBDA and the Operator shall mutually approve each year an annual budget for capital improvements (i.e., improvements or additions to the Stadium or the Site) and assign responsibilities therefore in a manner consistent with the provisions of this Section 7.1. 7.2 Damage or Destruction In the event the Stadium is damaged or destroyed from any casualty, to the extent of available insurance proceeds, the VBDA shall repair the damage and restore the Stadium to the extent reasonable and practical under the circumstances then existing; provided, however, the VBDA shall not be required to so repair and restore the Stadium and shall be entitled to terminate this Agreement by giving written notice to the Operator within thirty (30) days after the date of the damage or destruction in the event (i) the Stadium is damaged or destroyed from any casualty of a type then generally excluded from conventional all risk property insurance and as a result, no insurance proceeds are available, or if coverage exists but, in the reasonable estimation of the VBDA and the Operator, acting jointly, there is an insufficient amount of insurance proceeds available to permit adequate reconstruction and repair of the Stadium and, in either event, the VBDA does not agree to provide sufficient funds to cover the amount of the deficiency, or (ii) such 25 damage or destruction exceeds fifty percent (50%) of the insurable value of the Stadium and occurs during the last two (2) years of the Term of this Agreement. The Operator shall have the right to terminate this Agreement by giving written notice to the VBDA within thirty (30) days after the date of the damage or destruction in the event such damage or destruction exceeds fifty percent (50%) of the insurable value of the Stadium and occurs during the last two (2) years of the Term of this Agreement. If the Operator is unable to hold any Club Home Games at the Stadium due to such damage or destruction, the VBDA and the City will cooperate with the Operator to locate suitable substitute facilities. The VBDA shall be entitled to all of the insurance proceeds payable by reason of any such damage or destruction to the Stadium, subject to its restoration obligations above. In case of a casualty to the Stadium resulting in damage or destruction, the Operator will immediately give written notice thereof to the VBDA. 7.3 Condemnation A. If all or substantially all of the Stadium and/or the Site shall be taken in condemnation proceedings, this Agreement shall terminate as of the taking and the Fees due hereunder from the Operator to the VBDA shall be paid to the date of such taking, but such termination shall not affect the Operator's right to pursue an award from the condemning authority for such taking. For purposes of this Section 7.3, "substantially all of the Stadium and/or the Site" shall be deemed to have been taken if the untaken portion cannot be practically and economically used or converted for use by the Operator, in the Operator's reasonable opinion, for the purposes for which the Stadium is being used immediately prior to such taking. B. If less than "substantially all of the Stadium and/or the Site" is taken in condemnation proceedings, this Agreement shall remain in effect as to that part of the Stadium and/or the Site not taken and the Base Fee shall be equitably abated based on the affect of such taking on the use and operation of the Stadium and the Site. C. In the event of any taking, each party shall be entitled to receive a portion of the award made by the condemning authority based on the parties' relative interests in the portion of the Stadium and/or Site subject to the taking. 8.0 TITLE IMPEDIMENTS 8.1 Prohibitions The Operator shall not at any time suffer or permit any mechanic's hens or other liens to be filed against the VBDA's interest in the Stadium or the Site by reason of any work, labor, services, or materials supplied or claimed to have been supplied to the Operator or anyone holding the Stadium or the Site, or any part thereof, through or under the Operator. The Operator will not in any way cloud the title to the Stadium or the Site, or any part thereof, and will promptly pay and discharge any and all debts contracted by the Operator in reference thereto for labor, material, or services, to the end that no liens shall attach to the VBDA's interest in the Stadium or the Site as a result of the acts or omissions of the Operator. 8.2 Removal of Liens If any mechanic's or materialman's lien or any other lien prohibited by Section 8.1 of this Agreement shall be recorded against the Stadium or the Site, or any part thereof, at its sole cost and expense, and within sixty (60) days after the filing thereof, the Operator shall cause the same to be removed or bonded. In any event, the Operator shall be entitled to do so but in such a case the Operator hereby agrees to indemnify and hold harmless the VBDA from and against all liability of a judgment or foreclosure upon such lien, and to cause the same to be discharged and removed prior to the execution of such judgment. 9.0 INSURANCE 9.1 Insurance Coverage A. During the Interim Term, the VBDA shall maintain builder's risk insurance providing full replacement cost coverage during all periods of construction of the Stadium and related facilities. B. During the Term of this Agreement, at the sole cost and expense of the Operator, the VBDA shall carry and maintain for the mutual benefit of the VBDA and the Operator (naming the VBDA and the Operator as loss payees as their interests may appear) such policy of hazard and property damage insurance insuring the Stadium and all improvements at any time located upon the Site and all additions, alterations and improvements to the same, as is customarily carried with respect to similar multi-purpose stadium facilities as mutually agreed upon by the VBDA and the Operator in their reasonable discretion. The Stadium and related structures shall be insured for 27 100 % of the replacement cost of all improvements located thereon, with no co-insurance provisions permitted. C. The Operator shall have the option to receive separate bids for the insurance required by Section 9.1 (B) above and to submit same to the VBDA for approval; provided, such insurance shall be written with a company authorized to engage in the business of casualty insurance in the Commonwealth of Virginia and approved in writing by the VBDA, which approval will not be unreasonably withheld or delayed. Any insurance company authorized to engage in business in the Commonwealth of Virginia and having an A. M. Best rating of at least A/VIII shall be deemed to be acceptable to the VBDA. D. The Operator shall be responsible for any insurance on its furniture, movable trade fixtures, and equipment. However, the Operator shall not be required to insure such furniture, movable trade fixtures and equipment, and, if the Operator elects to insure such property, the VBDA shall not be loss payee thereof. 9.2 Liability Insurance At all times during the Term of this Agreement, the Operator shall procure and maintain in full force and effect, commercial general liability insurance, insuring the Operator against any and all claims, actions, causes of actions, costs and expenses for or on account of any loss of, injury to or destruction of any person or property, caused by or resulting from any act or omission occurring on or about the Stadium or the Site or growing out of the Operator's use and occupancy of the Stadium or the Site with limits of at least Five Millions Dollars ($5,000,000) combined single limit per occurrence. The Operator shall be permitted to provide the $5,000,000 liability insurance coverage required in the preceding sentence through a combination of base and umbrella liability insurance policies. Such insurance shall be written with a company acceptable to the VBDA, in its reasonable discretion, and authorized to engage in the business of general liability insurance in the Commonwealth of Virginia and shall name the VBDA and the City as additional insurers thereunder. The VBDA, the City and/or Schools shall maintain liability insurance for all Community Service Events providing the same coverage to be provided by Operator above, and Operator shall be named as an additional insured under all such policies. The Operator acknowledges, however, that the VBDA, the City and/or Schools may participate in or establish a program or programs of self-insurance in satisfaction of the requirements of the preceding sentence and Section 9.3 below. 28 9.3 Certificates; Notice of Cancellation The Operator shall provide the VBDA and the City w~th current certificates of the insurance required by Sections 9.1 and 9.2, and shall also provide the VBDA and the City with paid receipts or other evidence satisfactory to the VBDA and the City indicating payment of the premiums for such insurance policy or policies at least fourteen (14) days prior to the expiration of the policy or policies of insurance. Each insurance policy or certificate issued by the insurer shall name the City and the VBDA as additional insureds and shall contain an agreement by the insurer that such policy shall not be cancelled or materially modified without at least thirty (30) days prior written notice to the VBDA and the City and that any loss which shall be payable to or on behalf of the VBDA or the City as provided herein shall be so payable notwithstanding any act or negligence of the Operator which might otherwise result in a forfeiture of all or a part of such insurance. The VBDA, the City and/or Schools shall provide similar certificates and notice requirements with respect to their liability insurance policies under Section 9.2 above. 9.4 Indemnification A. The Operator covenants and agrees that it will indemnify, defend, and hold the VBDA harmless against and from all claims, losses, costs, damages or expenses arising out of or from any accident or other occurrence occurring on or about the Stadium or the Site on account of the Operator's (or Operator's, employee's, agent's, licensee's or concessionaire's) negligence, gross negligence or willful misconduct while the Operator is in control of the use and operation of the Stadium. The Operator also covenants and agrees that it will indemnify, defend and hold the VBDA harmless against and from any and all claims and against any and all losses, costs, damages or expenses arising out of any failure of the Operator in any respect to comply with and perform all the material requirements and material provisions of this Agreement. B. The VBDA covenants and agrees that, to the extent permitted by law, it will indemnify, defend and hold the Operator harmless against and from all claims, losses, costs, damages or expenses arising out of or from any accident or other occurrence occurring on or about the Stadium or the Site on account of the negligence, gross negligence or willful misconduct of the VBDA, the City and/or Schools (or the VBDA's, the City's and/or Schools' employees, agents, licensees or concessionaires) while the VBDA, the City and/or Schools are using the Stadium for Community Service Events. 29 C. The Operator and the VBDA agree that neither the VBDA nor the City shall have any responsibility or liability whatsoever with respect to any loss or theft of or damage to the personal property of the Operator, its employees and players, players for opposing teams, referees, concessionaires, employees and agents of concessionaires, Stadium attendees, and others, except to the extent that any such loss, theft or damage shall be shown to have been caused by the act, or failure to act, of the VBDA or the City, its employees or its agents. The Operator agrees to indemnify and hold harmless the VBDA and the City, and their respective officials, employees and agents with respect to any claim or liability for loss or theft of or damage to personal property of any of the foregoing described persons, except to the extent that such loss, theft, or damage shall be shown to have arisen from the act of the VBDA or the City, or their respective employees or agents. (D) The VBDA, the City and/or Schools agree that, the Operator shall have no responsibility or liability whatsoever with respect to any loss or theft or damage to the personal property of the VBDA, the City and/or Schools or their employees and players, referees, concessionaires, employees and agents of concessionaires, Stadium attendees and others, except to the extent that any such loss, theft or damage shall be shown to have been caused by the act, or failure to act, of the Operator, its employees or its agents. The VBDA agrees, to the extent permitted by law, to indemnify and hold harmless the Operator and its officers, employees and agents with respect to any claim or liability for loss or theft of or damage to personal property of any of the foregoing described persons, except to the extent that such loss, theft or damage shall be shown to have arisen from the act of the Operator or its employees or agents. 10.0 ASSIGNMENT Right to Assign The VBDA may convey, transfer or assign its leasehold estate in the Site and assign its right, title and interest in this Agreement, in whole or in part without the prior consent of the Operator, provided that any such conveyance, transfer or assignment shall be subject to the Operator's rights under this Agreement. Except as otherwise provided in this Agreement, the Operator shall not assign this Agreement or its right, title or interest in this Agreement in whole or in part to any person without the prior written consent of the VBDA and the City. The foregoing shall not be deemed to restrict 30 or limit the Operator's rights to hold Soccer Events and Stadium Events at the Stadium in accordance with the terms of this Agreement. In the event of any such assignment, the Operator · and any guarantors of this Agreement shall remain fully liable for all covenants and obligations under this Agreement binding upon the Operator, unless expressly released in writing by the VBDA. 11.0 DEFAULT 11.1 Default by Operator Each of the following events shall constitute a default (an "Event of Default") by the Operator: A. If the Operator shall fail to pay any Fees when due to the VBDA from the Operator pursuant to this Agreement and such default shall continue unremedied for fifteen (15) days after the Operator's receipt of written notice from the VBDA; or B. If the Operator shall fail to maintain insurance as required by Section 9 of this Agreement and shall not promptly and with all due diligence remedy such situation following receipt of written notice thereof from the VBDA; or C. If the Operator shall assign its interest in this Agreement without the prior written consent of the VBDA, except as permitted under this Agreement and such transaction is not rescinded within thirty (30) days after Operator's receipt of written notice from the VBDA alleging such violation; or D. If the Operator shall fail to maintain a Letter of Credit or cash as a security deposit as required by Section 3.6 of this Agreement and such failure is not remedied within fifteen (15) days after Operator's receipt of written notice thereof from the VBDA; or E. If the Operator or the Club breaches or fails or refuses to perform or comply with any other term, condition or covenant contained in this Agreement and such default shall continue unremedied for 30 days after written notice from the VBDA to the Operator or such longer period as may be permitted under Section 11.2 of this Agreement; or F. If the Operator or the Club shall (i) admit in writing its inability to pay its debts generally as they become due, (ii) commence, file or consent by answer or otherwise to the filing against it of a proceeding or a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy or insolvency law 31 in any jurisdiction, (iii) make a general assignment for the benefit of its creditors, or (iv) consent to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to itself or with respect to any substantial part of its property; and any such matter under this Section 11 (F) is not terminated or dismissed within sixty (60) days thereafter; or G. If a court of competent jurisdiction shall enter an order appointing, without the consent of the Operator or the Club, as the case may be, a custodian, receiver, trustee or other officer with similar powers with respect to the Stadium or with respect to any substantial part of the Operator's or the Club's property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Operator or the Club, and such order is not dismissed within sixty (60) days; or Ho If any petition, case or proceeding for any relief specified in the foregoing Section 11.1 (G) hereof shall be filed against the Operator or the Club and such petition shall not be dismissed within 60 days; or I. If the Club (i) relocates its operations or its home games to another location except as may be permitted hereunder or (ii) fails to maintain its status as a USISL Division II professional soccer franchise or equivalent or higher future designation available to the Club under governing soccer authorities. 11.2 Additional Time to Cure Certain Defaults If a default of the type referred to in Section 11.1 (E) cannot with due diligence be cured within a 30 day period, and prior to the expiration of such 30-day cure period, the Operator commences to eliminate the cause of such default and diligently pursues same to its reasonable comlSletion, then such action shall constitute a cure of such default. 11.3 Remedies Upon Operator Default If, at the expiration of any period for cure set forth in Section 11.1 (or Section 11.2, if applicable), if any, the Operator has failed or refused to cure any default specified in Section 11.1, at its option, the VBDA may declare this Agreement to be in default, and at any time thereafter (unless all defaults have been cured) the VBDA may exercise one or more of the following remedies, as the VBDA in its sole discretion may elect: 32 A. The VBDA may (i) demand that the Operator, and thereupon the Operator shall at the Operator's expense, return possession of the Stadium and the Site promptly to the VBDA in the manner and condition required by, and otherwise in accordance with the provisions of Section 5 of this Agreement and (ii) without prejudice to any other remedy which the VBDA may have for possession of the Stadium and the Site or arrearages in Fees, take all action required to enable the VBDA to enter upon the Stadium and the Site and take possession (to the exclusion of the Operator) of the Stadium and the Site and expel or remove the Operator and any other person who may be occupying the Stadium or the Site, or any part thereof, all without liability to the Operator or any other person for or by reason of such entry or taking of possession, whether for the restoration of damaged property caused by such taking or otherwise; B. The VBDA may sell the Stadium or the Site or any part thereof, at a public or private sale, conducted in accordance with applicable law, as the VBDA may determine, free and clear of any rights of the Operator therein and without any duty to account to the Operator with respect to such sale or the proceeds thereof, in which event the Operator's obligation to pay Fees for periods commencing after the date of such sale shall terminate; C. The VBDA may elect to retake possession of the Stadium and the Site and, if the VBDA desires, lease the same (or any part thereof) or enter into any operating and use agreement with another party for the benefit of the Operator without terminating this Agreement, in which case, the Operator will be liable for and will pay to the VBDA all amounts required to be paid by the Operator during the remainder of the Term of this Agreement as such amounts accrue hereunder until the expiration of the Term of this Agreement, diminished by any net sums received by the VBDA through leasing the Stadium and the Site or entering into another agreement during such period (after deducting expenses incurred by the VBDA in connection with such lease or agreement); and any excess Fees or other amounts obtained by such lease or agreement over and above the amount for which the Operator would otherwise be liable hereunder shall be applied against future obligations of the Operator under this Agreement, but in no event shall the Operator be entitled to receive payment of any such excess (it being understood and agreed that actions to collect amounts due by the Operator as provided in this Section 11.3 (C) may be brought from time to time on one or more occasions, without the necessity of the VBDA waiting until expiration of the Term of this Agreement); 33 D. The VBDA may rescind or terminate this Agreement; provided, however, (i) no reentry or taking of possession of the Stadium or the Site by VBDA will be construed as an election on the VBDA's part to terminate this Agreement unless a written notice of such intention is given to the Operator, (ii) notwithstanding any reletting, reentry or taking of possession, the VBDA may at any time thereafter elect to terminate this Agreement for a continuing default, and (iii) no act or omission by the VBDA or any of its agents, representatives or employees shall be deemed an acceptance of a surrender of the Stadium or the Site, and no agreement accepting a surrender thereof shall be valid unless the same shall be made in a writing signed by a duly authorized officer of the VBDA; E. In the event that this Agreement is terminated or in the event that the VBDA elects to exercise its remedies pursuant to Section 11.3 (C) or (D) above, the VBDA shall have no obligation to mitigate its damages, but in the event of leasing, the VBDA may lease the whole or any portion of the Stadium or the Site for any period, to any person, and for any amount, use and purpose; F, The VBDA may proceed by appropriate court action to specifically enforce the terms of this Agreement and/or to recover damages for the breach hereof; or G. The VBDA may exercise any other right or remedy that may be available to it under applicable law. The Operator shall be liable for any and all unpaid Fees due hereunder before, after or during the exercise of any of the foregoing remedies. No remedy of the VBDA under this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any other remedy provided thereunder or otherwise available to the VBDA at law or in equity. No action or omission by the VBDA shall constitute an implied waiver of any Operator default. 12.0 SIJRRENDER OF STADIUM 12.1 Peaceful Surrender The Operator agrees that, upon termination of this Agreement, title to all personal property and movable trade fixtures of the Operator on the Site which are not removed as required by Section 6.2 of this Agreement shall vest in the VBDA without the necessity of any action by the VBDA or any deed, contract or other relinquishment of title by the Operator. 34 Upon the expiration of the Term of this Agreement or sooner termination of this Agreement in accordance with the provisions hereof, the Operator will quietly and peacefully surrender to the VBDA the Stadium, the Site and all improvements and fixtures thereon. 13.0 RIGHT TO PERFORM OTHER PARTY'S COVENANTS 13.1 Right to Perform Covenants Each of the parties hereto shall have the right at any time, if the other party has failed to commence to remedy the situation within thirty (30) days after notice to the other party hereto and thereafter failed to diligently prosecute such remedy to completion (or without notice in case of an emergency or in the case of the lapse of any insurance coverage required by this Agreement), to make any payment or perform any act required by such other party by any provision of this Agreement, and in exercising such right, to enter upon the Site and ~ncur necessary and incidental costs and expenses. Nothing herein shall imply any obligation on the part of either party hereto to make any payment or perform any act required of the other party hereto and the exercise of the right to do so shall not constitute a release of any obligation or a waiver of any default. 13.2 Reimbursement All payments made and all reasonable costs and expenses incurred in connection with any exercise of the rights referred to in Section 13.1 shall be reimbursed by the responsible party within ten (10) days after request for such payment. 14.0 SETOFF, ABATEMENT, ETC. At the time of the payment of the April 15 installment of Base Fee and the October 30 installment of Base Fee and payment of Percentage Fees each year, the Operator and the VBDA shall conduct an accounting with respect to sums owed by one party to the other, and the Operator shall be entitled to offset against such Base Fee installments and payment of Percentage Fees all sums due from the VBDA, the City and/or Schools and not paid as of the date of the Operator's payment of Base Fee and/or Percentage Fees. The Operator shall further be entitled to offset any sums due to the Operator under Section 13.2 not paid by the VBDA within thirty (30) days after receipt of an itemized billing therefor, any final judgment obtained against the VBDA, the City and/or Schools and any sums payable by the VBDA, the City and/or Schools pursuant to the terms of this Agreement but not appropriated as provided in Section 17.15 of this Agreement below. 35 15.0 QUIET ENJOYMENT After the Commencement Date, and so long as the Operator is not in default hereunder beyond any applicable grace or cure period, the VBDA hereby warrants and represents to the Operator the quiet enjoyment, peaceful possession and use of the Stadium and the Site for its intended purpose in accordance with and subject to the terms, conditions and provisions contained in this Agreement. 16.0 CERTAIN COVENANTS REGARDING GROUND LEASE The VBDA shall give prompt written notice to the Operator in the event of the occurrence of any "Event of Default" under the Ground Lease. So long as this Agreement remains in effect, the VBDA shall not agree to any termination or modification of the term of the Ground Lease without the prior written consent of the Operator. As a condition to the Operator's obligations under this Agreement, the VBDA shall deliver a fully executed recognition agreement from the City in the form attached to this Agreement as Exhibit C. 17.0 GENERAL PROVISIONS 17.1 No Waiver of Breach No failure by either the VBDA or the Operator to insist upon the strict performance by the other of any covenant, agreement, term or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such covenant, agreement, term or condition. No waiver of any breach shall affect or alter this Agreement, but each and every covenant, condition, agreement and term of this Agreement shall continue in full force and effect with respect to any other than existing or subsequent breach. 17.2 Nondiscrimination Dunng the performance of this Agreement, the Operator agrees as follows: A. The Operator will not discriminate against any employee or applicant for employment because of race, religion, color, sex or national origin, except where religion, sex or national origin is a bona fide occupational qualification/consideration reasonably necessary to the normal operation of the Operator. The Operator agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. 36 B. In all solicitations or advertisements for employees placed by or on behalf of the Operator, the Operator will state that such Operator is an equal opportunity employer. C. Notices, advertisements and solicitations placed in accordance with federal law, rule or regulation shall be deemed sufficient for the purpose of meeting the requirements herein. The Operator will include provisions of the foregoing Section 17.2 (A), (B) and (C) in every subcontract or purchase order of over ten thousand dollars ($10,000.00), so that the provisions will be binding upon such subcontractor or vendor. 17.3 Unavoidable Delay If either party shall be delayed or prevented from the performance of any act required by this Agreement by reason of acts of God, casualty, condemnation, strikes, lockouts, labor troubles, inability to procure materials, restrictive governmental laws or regulations or other cause, without fault and beyond the reasonable control of the party obligated, performance of such act shall be excused for the period of the delay, and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay, provided, however, nothing in this section shall excuse either party from the prompt payment of any Fee or other sums due hereunder, except as otherwise provided in this Agreement. 17.4 Binding Effect Subject to the provisions of Section 10 of this Agreement, each and all of the covenants, conditions and restrictions in this Agreement shall inure to the benefit of and shall be binding upon the VBDA and the Operator and their respective permitted assignees, transferees, and other successors in interest. 17.5 Entire Agreement This Agreement contains the entire understanding of the parties with respect to the matters covered by this Agreement and no conflicting agreement, statement, or promise made by any party or to any employee, officer, or agent of any party which is not contained in this Agreement shall be binding or valid. 17.6 Amendments This Agreement may be modified only by a writing signed by both the VBDA and the Operator. The VBDA and the Operator hereby agree to meet each calendar year after the conclusion of the Soccer Season and prior to December 31 of each year, to discuss the operation of the Stadium and any problems, and will reduce any agreement to writing as an addendum to this 37 Agreement; provided however, the provisions of this Section 17.6 shall in no way imply that either party hereto is under any compulsion to enter into any amendment to this Agreement unless it freely, willingly and voluntarily enters into such amendment. 17.7 Partial Invalidity If any term, condition or provision of this Agreement or the application thereof to any person or circumstance shall to any extent be held invalid or unenforceable by a court of competent jurisdiction, the other provisions of this Agreement, or the application of such provisions to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby and each provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 17.8 Gender In this Agreement, the masculine gender includes the feminine and masculine, and the singular number includes plural, and the word "person" includes corporation, partnership, firm or association wherever the context so requires. 17.9 Captions Captions of the sections of this Agreement are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation or meaning of the provisions of this Agreement. 17.10 Notices A. All payments, sums, notices, demands or requests from one party to another may be personally delivered or sent by mail, certified or registered, return receipt requested, postage prepaid to the addresses below, and shall be deemed to have been given at the time of personal delivery or at the time of receipt. B. All notices, demands or requests from the Operator to the VBDA shall be given to the VBDA at: c/o Dept. of Economic Development One Columbus Center Suite 300 Virginia Beach, Virginia 23462 Attention: Director 38 With a copy to: City Attorney's Office City of Virginia Beach Municipal Building Virginia Beach, Virginia 23456 Attention: Gary L. Fentress, Esq. C. All notices, demands or requests from the VBDA to the Operator shall be given to the Operator at: Hampton Roads Sports, L.L.C c/o Harmony Investments, Inc. Attention: Page S. Johnson, II Haygood Medical Center 1016 Independence Boulevard Post Office Box 68413 Virginia Beach, Virginia 23455 With a copy to: Willcox & Savage, P.C. Attention: Stephen R. Davis 1800 NationsBank Center One Commercial Place Norfolk, Virginia 23510-2197 D. Either party may change its address for notices from time to time by giving notice of its new address to the other party pursuant to this Section 17.10. 17.11 Relevant Law A. This Agreement shall be deemed to be a Virginia contract and shall be governed as to all matters whether of validity, interpretations, obligations, performance or otherwise exclusively by the laws of the Commonwealth of Virginia, and all questions arising with respect thereto shall be determined in accordance with such laws. Regardless of where actually delivered and accepted, this Agreement shall be deemed to have been delivered and accepted by the parties in the Commonwealth of Virginia. B. The Operator shall comply with all federal, state and local statutes, ordinances, and regulations now in effect or hereafter adopted, in the performance of its obligations set forth herein. The Operator further expressly represents that it is a limited liability company duly organized and existing under the laws of the Commonwealth of Virginia and will so remain throughout the term of this Agreement. C. Any and all suits for any claims or for any and every breach or dispute arising out of this Agreement shall be maintained in the appropriate court of competent jurisdiction in the City of Virginia Beach or the United States District Court for the Eastern District of Virginia, Norfolk Division. 39 17.12 Counterparts This Agreement may be executed in any number of counterparts and by each of the parties in separate counterparts, all such counterparts together constituting but one and the same agreement. 17.13 Attorney's Fees If the VBDA and the Operator are involved in any litigation regarding the performance of their obligations under this Agreement, then in addition to all other rights and remedies the parties may have under this Agreement, the unsuccessful party by final order, decree or judgment in such litigationby a court of competent jurisdiction shall reimburse the successful party for all reasonable legal fees and expenses incurred by such successful party in connection with such litigation. 17.14 Estoppel Certificate. Within fifteen (15) days after receipt of a request, the VBDA and the Operator agree to deliver to the other party a duly executed and acknowledged instrument certifying to the party's best knowledge (i) whether this Agreement is in full force and effect (and if not, why); (ii) as to the existence of any default, including the nature or extent of such default; (iii) whether there are any defenses, counterclaims or offsets to such default; (iv) whether there has been any modification or amendment to this Agreement, and specifying the nature of such modification; (v) as to the commencement and expiration dates of the Term; (vi) as to the date to which Fees have been paid; and (vii) as to such other matters relating to this Agreement as may be reasonably requested that do not modify or otherwise alter the rights under this Agreement of the party executing the estoppel certificate. Any such certificate may be conclusively relied upon by the requesting party and by any other person to whom it has been exhibited or delivered, and the contents of the certificate shall be binding upon the party executing such certificate. 17.15 Non-appropriation All financial obligations of the VBDA, Schools and the City set forth herein are subject to appropriation therefor being made by the City Council of the City, and the VBDA, Schools and the City shall be bound and obligated hereunder only to the extent that funds have been appropriated and budgeted in any fiscal year for such purposes. If adequate funds are not appropriated in any fiscal year, the VBDA, Schools, or the City, as the case may be, shall not be subject to any penalty or expense of any kind whatsoever. 40 17.16 Guaranty The payment and performance obligations of the Operator under this Agreement shall be personally guaranteed, jointly and severally, by Mark F. Garcea and Page S. Johnson, II, pursuant to the Guaranty attached hereto as Exhibit D. IN WITNESS WHEREOF, this Agreement has been executed on behalf of the VBDA and the Operator as of the date first set forth above. VBDA: (SEAL) ATTEST: CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY BY: Secretary Chairman Operator: HAMPTON ROADS SPORTS, L.L.C a Virginia limited liability company BY: Authorized Member STATE OF VIRGINIA CITY OF VIRGINIA BEACH The foregoing Lease Agreement was acknowledged before me this day of , 1997, by , Chairman of the City of Virginia Beach Development Authority, a political subdivision of the Commonwealth of Virginia. Notary Public My commission expires: STATE OF VIRGINIA CITY OF VIRGINIA BEACH The foregoing Lease Agreement was acknowledged before me this day of ,1997, by , an Authorized Member of Hampton Roads Sports, L. L. C., a Virginia limited liability company, on behalf of the company. Notary Public My commission expires: G \DATA\FORMS\LEASE\OPERATIN AG7 Revls~ondate May 22, 1997 41 EXHIBIT C Recognition Agreement THIS RECOGNITION AGREEMENT is made as of the day of , 19__, by and between the CITY OF VIRGINIA BEACH, a political subdivision and public body corporate of the Commonwealth of Virginia (the "City"); the CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, a political subdivision and public body corporate of the Commonwealth of Virginia (the "VBDA"); and HAMPTON ROADS SPORTS, L.L.C., a Virginia limited liability company ("Operator"). RECITALS R-1. Pursuant to a certain ground lease (the "Ground Lease") dated , 19 , the City ground leased certain property located in the City of Virginia Beach, Virginia, and more particularly described on Exhibit A to this Recognition Agreement (the "Premises") to the VBDA. R-2. By a certain Multi-Purpose Stadium Operating and Use Agreement dated , 1997, (the "Operating Agreement"), the VBDA has given the Operator the right to operate and use the stadium and other improvements to be constructed by the VBDA on the Premises. · R-3. In order to induce the Operator to enter into the Operating Agreement and address the rights of the parties in the event of a default by the VBDA under the Ground Lease, the parties have agreed to enter into this Recognition Agreement. NOW, THEREFORE, in consideration of the mutual covenants set forth below and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. If the Ground Lease is canceled or terminated prior to the expiration date of the Operating Agreement, or the Premises is surrendered to the City, then so long as the Operator observes and performs all of the terms, covenants and conditions of the Operating Agreement on its part to be observed and performed within the applicable cure period therefor, the City agrees as follows: (i) The Operating Agreement shall continue in full force and effect as a direct agreement between the City and Operator; (ii) The Operator shall not be removed by the City and shall not be joined as a defendant in any action or proceeding which may be instituted by the City by reason of any default under the Ground Lease; and (iii) Any transfer of the Premises or assignment or transfer of the City's rights as lessor under the Ground Lease will be made subject to Operator's rights under the Operating Agreement. 2. The Operator agrees, in the event of the cancellation or termination of the Ground Lease, to attorn to the City for the balance of the term of the Operating Agreement, and the Operating Agreement shall thereafter continue in full force and effect as a direct agreement between the City and Operator. 3. The terms, covenants and conditions of this Recognition Agreement shall inure to the benefit of and be binding upon the respective parties hereto, their successors and assigns. 4. This Recognition Agreement is made, executed and delivered under seal. The designation "SEAL" next to any signature on behalf of a corporation shall be as effective as if the corporate seal were physically affixed to this Agreement. IN WITNESS WHEREOF, the parties have executed and delivered this document under seal as of the day and year first above written. CITY CITY OF VIRGINIA BEACH, [Seal] Attest, City Clerk VBDA: By, (Seal) Name, Title, City Mana~er/Desiqnee CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY: ATTEST, By: (Seal) Name Title, Chairman Secretary OPERATOR, HAMPTON ROADS SPORTS, L.L.C., By, Name, Title, (Seal) STATE OF CITY/COUNTY OF , to-wit: The foregoing instrument was acknowledged before me this day of , 1997 by , the City Manager/Designee of City Manager of the City of Virginia Beach, Virginia on its behalf. Notary Public My commission expires: STATE OF CITY/COUNTY OF , to-wit: The foregoing instrument was acknowledged before me this ~day of , 1997 by Ruth Hodges Smith, City Clerk of the City of Virginia Beach, Virginia on its behalf. My commission expires: Notary Public STATE OF CITY/COUNTY OF , to-wit: The foregoing instrument was acknowledged before me this ~day of , 1997 by , Chairman and , Secretary of the City of Virginia Beach Development Authority on its behalf. My commission expires: Notary Public STATE OF CITY/COUNTY OF , to-wit: The foregoing instrument was acknowledged before me this ~day of , 1997 by , Authorized Member of Hampton Roads Sports, L. L. C., on its behalf. My commission expires: Notary Public G \FORMS\LEASE\EXHIBIT C1 Revised April 30, 1997 GUARANTY AGREEMENT THIS GUARANTY AGREEMENT (as amended or supplemented from time to time, this "Guaranty") is made as of the day of , 199 , between MARK F. GARCEA and PAGE S. JOHNSON, II (the "Guarantors") and the CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, a political subdivision of the Commonwealth of Virginia (the "VBDA"). The VBDA has agreed to construct a 6,000 seat multipurpose stadium and enter into an agreement with Hampton Roads Sports, L. L. C. (the "Operator") for use, in part, as its home stadium (the "Stadium") pursuant to that certain Multi-Purpose Stadium Operating and Use Agreement of even date herewith between the VBDA and the Operator (the "Agreement"), and as a condition to entering into the Agreement, the VBDA has required that the Guarantors execute this Guaranty. NOW, THEREFORE, the Guarantors agree as follows: Section 1. Definitions and Interpretation. Unless the context indicates otherwise, terms used in this Guaranty which are defined in the Agreement shall, for the purpose of this Guaranty, have the meanings set forth in the Agreement. Unless the context indicates otherwise, words used in this Guaranty in the singular number shall be deemed to include words in the plural number, and vice versa, and words in one gender shall be deemed to include words in the other gender. The section headings are for convenience only and neither limit nor amplify the provisions of this Guaranty. Section 2. Guaranty. The Guarantors, jointly and severally, hereby unconditionally guarantee to the VBDA the full and prompt payment when due of all sums due from the Operator to the VBDA under the Agreement and the full and prompt performance by the Operator under the Agreement. This is a guaranty of payment and not merely of collection. If the Operator shall default in the payment of any sum due the VBDA under the Agreement or in the performance of any of the Operator's obligations under the Agreement, upon written demand of the VBDA, the Guarantors shall promptly pay the VBDA any amount due the VBDA or perform or cause to be performed the obligations of the Operator under the Agreement. The Guarantors further agree, after a proper demand for payment or performance under this Guaranty has been refused, to pay all costs and expenses, including reasonable attorney's fees, paid or incurred by the VBDA in enforcing the provisions of the Agreement and/or this Guaranty. Each failure on the part of the Guarantors to make a payment or perform the Operator's obligations shall give rise to a separate cause of action hereunder. Section 3. Guaranty Unconditional. The obligations of the Guarantors hereunder shall be absolute, continuing and unconditional and, without limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by: (i) any extension, renewal, compromise, settlement, waiver or release of any of the obligations of any other obligor under the Agreement or this Guaranty; -Page 2- (ii) any amendment or supplement to the Agreement or this Guaranty; (iii) any change in the structure, existence or ownership of the Operator, or the filing or entry of a final order in any insolvency, bankruptcy, reorganization or other similar proceeding affecting the Operator or its assets or releasing any obligor from any of its obligations under the Agreement or this Guaranty; (iv) the existence of any claim, set-off or other right which the Guarantors may have at any time against the Operator, the VBDA or any other obligor, other than a defense or discharge premised upon a breach of the Agreement by the VBDA whether arising from the execution of the Agreement or otherwise, provided that nothing contained herein shall prevent the assertion of such a claim in a separate suit; (v) the unenforceability, for any reason, of any of the obligations of any other obligor under the Agreement; or, (vi) the failure of the VBDA (a) to file or enforce a claim against any other obligor (or its estate in a bankruptcy or other proceeding); (b) to give notice of the creation or incurrence by any other obligor of any new or additional indebtedness or obligation with respect to the Agreement; (c) to commence any action against any obligor; (d) to proceed with due diligence to collect any amount due to it under the Agreement. Section 4. Discharqe; Reinstatement in Certain Circumstances. This Guaranty shall remain in full force and effect until the rental payments required under the Agreement have been paid in -Page 3- full. If at any time any payment is rescinded or is required to be restored or returned because of insolvency, bankruptcy, reorganization or otherwise, the Guarantors' obligations hereunder with respect to such payment shall be reinstated as though such payment had been due, but not paid, at the time of such rescission or requirement. The Guarantors agree that payment of any of the obligations or other acts which toll any statute of limitations applicable to the obligations shall also toll the statute of limitations applicable to the Guarantors' liability hereunder. Section 5. Riqhts of VBDA Not Impaired. Other than a breach of the Agreement by the VBDA, no act or omission of any kind or at any time upon the part of the VBDA in respect of any matter whatsoever shall in any way affect or impair the rights of the VBDA to enforce any right, power or benefit of the VBDA under this Guaranty, and no set-off, claim, diminution of any obligation or · defense of any kind or nature which the Guarantors have or may have against the VBDA shall be available against the VBDA in any suit or action brought by the VBDA to enforce any of its rights under this Guaranty. Nothing in this Guaranty shall be construed as a waiver by the Guarantors of any rights or claims the Guarantors may have against the VBDA under this Guaranty or otherwise, but any recovery upon such rights and claims shall be had from the VBDA separately, it being the intent of this Guaranty that the Guarantors shall be unconditionally and absolutely obligated to perform fully all of the Guarantors' obligations hereunder for the benefit of the VBDA. -Page 4- Section 6. Representations of Guarantors. The Guarantors hereby represent and warrant the following to the VBDA: (i) The execution and delivery of this Guaranty and the performance of the Guarantors' obligations hereunder will not violate any agreement to which either of the Guarantors is a party or by which either is bound or any laws, orders or decrees of governmental authorities and courts having jurisdiction over either of the Guarantors. (ii) The Guarantors have duly executed and delivered this Guaranty, and this Guaranty constitutes a valid and binding obligation of the Guarantors. (iii) There are no pending or, to the best of the Guarantors' knowledge, threatened actions, suits, proceedings or investigations of a legal, equitable, regulatory, administrative or legislative nature, the resolution of which could have a material adverse affect on the Guarantors' business, assets or condition (financial or otherwise) or the Guarantors' ability to perform their obligations under this Guaranty. Section 7. Venue; Waiver of Jury Trial. The Guarantors agree that any suit, action or proceeding arising out of or relating to this Guaranty shall be instituted in the Circuit Court of the City of Virginia Beach, Virginia, or in the United States District Court for the Eastern District of Virginia, Norfolk Division (assuming such court has Jurisdiction), and the Guarantors hereby waive any objection which they may have to such venue and irrevocably submit to the jurisdiction of either of such courts in any such suit, -Page 5- action or proceeding. To the extent permitted by law, the Guarantors waive any right they may have to a trial by jury in any action or proceeding to defend, enforce or collect any of the obligations of the Guarantors hereunder, whether such action or proceeding is instituted by the VBDA, the Guarantors or any other party. Section 8. Successors and Assiqn. This Guaranty shall inure to the benefit of and be binding on the Guarantors and their respective heirs, personal representatives and successors. Section 9. Severability. If any provision of this Guaranty or the application thereof in any circumstance is held to be unenforceable, the remainder of this Guaranty shall not be affected thereby and shall remain enforceable. Section 10. Applicable Law. This Guaranty shall be governed by the laws of the Commonwealth of Virginia. Section 11. Notices, Demands and Requests. All notices, demands, requests and other communications required or permitted hereunder shall be in writing and shall be given in person or shall be sent by courier or by registered or certified mail, postage prepaid, return receipt requested, (i) to the Guarantors at their addresses set forth below, with a copy to Willcox and Savage, P.C., Attn: Stephen R. Davis, Esq., 1800 NationsBank Center, Norfolk, Virginia 23510-2197; and (ii) to the VBDA at its address set forth in the Agreement, or to such other person or address as the party entitled to notice shall have specified by at least ten (10) days' prior notice given to the other party in the manner provided -Page 6- herein. All such notices, demands, requests and other communications shall be deemed to have been given upon the earlier of (i) delivery at the address specified above, whether in person, by express courier or by mail, or (ii) two (2) days after the postmark date of mailing. Rejection or other refusal to accept or the inability to deliver because of a change of address to which no notice was given shall not invalidate the effectiveness of any notice, demand, request or other communication. Section 12. Waiver. To the extent permitted by law, the Guarantors hereby waive notice of any of the matters referred to in Section 3 of this Guaranty, and any demand (except as expressly specified herein), proof or notice of nonpayment. Section 13. Amendments. This Guaranty may only be amended, supplemented or terminated in writing, signed by all of the parties hereto. · Section 14. Entire Aqreement. This Guaranty expresses the entire understanding and all agreements between the parties. Section 15. Counterparts. This Guaranty may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute but one and the same instrument. WITNESS the following signatures and seals. -Page 7- ADDRESSES: Mark F. Garcea Page S. Johnson, II (SEAL) (SEAL) STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to wit: The foregoing instrument was acknowledged before me this day of , 1997, by Mark F. Garcea. My commission expires: Notary Public STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to wit: · The foregoing instrument was acknowledged before me this day of , 1997, by Page S. Johnson, II. My commission expires: Notary Public LEASES\STADIUM\GUARANTY AG3 Revised Apr~l 30, 1997 -Page 8- MULTI-PURPOSE STADIUM GROUND LEASE between CITY OF VIRGINIA BEACH and CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY MULTI-P~OSE STADIUM GROUND LEASE THIS MULTI-PURPOSE STADIUM GROUND LEASE, dated as of the __ day of , 1997, between the CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia (the "Landlord"), and the CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, a political subdivision of the Commonwealth of Virginia (the "Tenant"), recites and provides: RECITALS: The Landlord is the owner of acres, more or less, of land (the "Leased Premises") located in the City of Virginia Beach, Virginia, described on Exhibit A attached hereto and depicted on the plat attached hereto as Exhibit B. The Landlord wishes to lease the Leased Premises to the Tenant, and the Tenant wishes to lease the Leased Premises from the Landlord. The Tenant intends to construct a multi-purpose stadium and related facilities on a portion of the Leased Premises and, by separate operating agreement, to authorize the operation and use of the stadium facilities and a portion of the Leased Premises by Hampton Roads Sports. ARTICLE I Definitions Section 1.1 Definitions. The following terms shall have the indicated meanings: A. "City Council" means the City Council of the City of Virginia Beach, Virginia. B.. "Coordination Agreement" means the Coordination Agreement between the Landlord and the Tenant, dated as of , 1997, with respect to the Stadium. C. "Deed of Trust" means any leasehold deed of trust, mortgage or similar security agreement and any modifications, renewals or extensions thereof. D. "Default" means any fact or circumstance that by itself, or with the giving of notice or passage of time or both, would constitute an Event of Default. E. "Event of Default" means any of the events described in Section 9.1. F. "Fees" shall have the meaning given to the term "Fees" in the Operating Agreement. G. "Hampton Roads Sports" means Hampton Roads Sports, L. L. C , a Virginia hmited liability company, as the Operator under the Operating Agreement. H. "Leased Premises" means that certain parcel of land located in the City of Virginia Beach, Virginia, described on Exhibit A attached hereto and depicted on the plat attached hereto as Exhibit B. I. "Operating Agreement" means that Multi-Purpose Stadium Operating and Use Agreement between the Tenant and Hampton Roads Sports, dated as of , 1997, which sets forth the Tenant's and Hampton Roads Sports' respective responsibilities for the construction of the Stadium, the payment of the costs of such construction and the operation and use of the Stadium. J. "Permitted Encumbrances" means existing easements, restrictions and other title matters affecting the Leased Premises on the date hereof. K. "Project" means the Stadium, which shall consist of the Tenant's (i) leasehold interest in the Leased Premises, and (ii) ownership interest in the Stadium. L. "Project Documents" means this Ground Lease, the Coordination Agreement and the Operating Agreement. M. "Rent" means the rental required to be paid by the Tenant to the Landlord pursuant to Section 2.2. N. "Stadium" means the multi-purpose stadium to be constructed in accordance with the Operating Agreement. O. "Taxes" means all personal property, real property, rental, excise, gross receipts, business and occupation and other taxes and assessments of every kind and nature whatsoever, levied or assessed against the Leased Premises, the Stadium or the Project, as well as those taxes arising from the use, occupancy or operation of the Project or the activities of the Tenant or any person or entity claiming by or through the Tenant, the non-payment of which would adversely affect the Landlord or the Leased Premises. P. "Term" shall mean the term described in Section 2.3, unless terminated earlier pursuant to the terms and conditions of this Ground Lease. -2- ARTICLE II Lease of Leased Premises; Rent; Term Section 2.1 Lease. The Landlord hereby demises and leases the Leased Premises to the Tenant and the Tenant takes and leases the Leased Premises from the Landlord, subject to and in accordance with the provisions hereof. Section 2.2 Rent. The Tenant shall pay to the Landlord, as ground rent hereunder, (a) in advance for the entire Term, the sum of ONE HUNDRED AND 00/100 DOLLARS ($100.00), payable upon the Tenant's execution of this Ground Lease, and (b) in arrears, payable on or before November 30 of each calendar year during the Term, an amount equal to all Fees and other sums actually received by the Tenant from Hampton Roads Sports under the Operating Agreement during and in respect of the preceding year (or portion thereof). Section 2.3 Term. Unless sooner terminated as provided herein, the term of this Ground Lease shall be for a period no longer than forty (40) years, commencing on the date hereof and expiring on the earlier to occur of (a) the fortieth (40th) anniversary of the date hereof, or (b) at the option of the Landlord, ten (10) business days after the Operating Agreement expires or is terminated without renegotiation as provided in Section 2.3 of the Operating Agreement. Section 2.4 Quiet Enjoyment. So long as no Default exists hereunder, the Landlord covenants that the Tenant shall lawfully and quietly hold, occupy and enjoy the Leased Premises without disturbance by the Landlord or anyone claiming by, through or under the Landlord. The Leased Premises are demised and leased subject to (a) Permitted Encumbrances, and (b) all zoning regulations, restrictions, rules and ordinances, building restrictions and other laws and regulations now in effect or hereafter adopted by any governmental authority having jurisdiction over the Leased Premises. Section 2.5 Property "AS IS". The Tenant acknowledges that the Landlord has not made, and the Tenant has not relied upon, any representations or warranties regarding the Leased Premises, and the Tenant agrees to accept the Leased Premises in "AS IS" condition. Section 2.6 Surrender of Premises. At the expiration of the Term, the Tenant shall deliver possession of the Project to the Landlord in the state of repair and condition required by Section 4.3 of this Ground Lease and by the provisions of the Operating Agreement, cure any defaults and quitclaim to the Landlord all right, title and interest of the Tenant in the Project free -3- and clear of all liens and encumbrances except those existing as of the date hereof or those created, or consented to in writing, by the Landlord. At the expiration of the Term, the Stadium shall automatically, without compensation to the Tenant, become the property of the Landlord free and clear of all claims to or against the Stadium by the Tenant or any third party. Upon written request by the Landlord, the Tenant shall execute, acknowledge and deliver to the Landlord a deed confirming that title to the Stadium has transferred to the Landlord. All property that the Tenant is not required to surrender but that the Tenant abandons, at the Landlord's written election, shall become the Landlord's property or be disposed of by the Landlord at the Tenant's expense. This Ground Lease shall terminate without further notice at the expiration of the Term and no holding over shall be permitted without the prior written consent of the Landlord. Any holding over by the Tenant after expiration or other termination of this Ground Lease shall not constitute a renewal or extension of this Ground Lease .or give the Tenant any rights in or to the Leased Premises or the Stadium. Section 2.7 Use. The Leased Premises shall be used only for the construction, operation and maintenance of the Stadium and the use thereof as a multi-purpose stadium facility and uses incidental and accessory thereto. Section 2.8 Net Lease. This is a triple net lease. ARTICLE III Taxes, Utilities and Easements Section 3.1 Taxes. The Tenant shall pay, or cause to be paid, all Taxes. Section 3.2 Utilities. The Tenant shall pay, or cause to be paid, all costs and expenses required to provide utility service to the Project (including all professional and service charges, costs of connections to the applicable utility systems and charges for the usage of utility services). Section 3.3 Easements. The Landlord shall grant to the Tenant such easements over its adjoining property for the location of utilities and access to the Project as are (a) contemplated by the Operating Agreement, and (b) reasonably necessary for the Tenant's development and use of the Project. The location of such easements shall be subject to the approval of the Landlord. -4- ARTICLE IV Construction, Maintenance and Operation of Stadium Section 4.1 Stadium. The Tenant shall construct, or cause to be constructed, the Stadium in accordance with the provisions of the Operating Agreement. Section 4.2 No Obligation to Maintain. The Landlord shall not be required or obligated to make or pay for any change, alteration, addition, improvement or repair to the Stadium, except as contemplated by the Coordination Agreement. Section 4.3 Tenant's Duty to Maintain. The Tenant shall be responsible, at no cost to Landlord, for performing, or causing to be performed, all maintenance, repair and upkeep as may be necessary to keep the Project clean, safe and free from deterioration, subject to reasonable wear and tear. Section 4.4 No Liens or Encumbrances. Subject to the Permitted Encumbrances, the Tenant shall keep, or cause to be kept, the Project free and clear of all liens and encumbrances of every kind whatsoever. If any lien is filed or purportedly filed against the Leased Premises or any other property owned by the Landlord, as a result of any act or omission of the Tenant or Hampton Roads Sports, upon the written request of the Landlord, the Tenant shall cause the same to be released of record within ten (10) days after the Tenant receives such written request. Section 4.5 No Mechanics' Liens. The Tenant shall pay, or cause to be paid, when due all costs and expenses associated with the construction, maintenance, repair, replacement and operation of the Stadium. The Tenant shall not permit any mechanic's, materialman's, contractor's, subcontractor's or other lien to be filed against the Leased Premises or other property owned by the Landlord. If any such lien is filed, the Tenant shall, upon the written request of the Landlord, cause the same to be released of record within ten (10) days after the Tenant receives such written request. Section 4.6 Landlord's Right to Inspect. The Landlord may enter the Leased Premises at any time without prior written notice to the Tenant (or any subtenant or operator of which the Landlord has actual notice) for the purpose of inspection so long as such inspection does not interfere with the operation of the Stadium. -5- ARTICLE V Ownership of Stadium Section 5.1 Title to Stadium. The Stadium shall be the property of the Tenant only during the Term, and thereafter shall be the property of the Landlord. The Tenant may not demolish or alter the structural components of the Stadium without the Landlord's prior written approval except as expressly permitted by Sections 7.1, 7.2 and 7.3 of the Operating Agreement. ARTICLE VI Mortgage of Leasehold Section 6.1 Right to Mortgage. The Tenant shall not grant, or suffer to exist, any Deed of Trust or other encumbrance on all or any part of the Project, the Fees or the Tenant's interest under the Operating Agreement or this Ground Lease. ARTICLE VII Insurance Section 7.1 Insurance Coverages. During the Term the Tenant shall maintain, or cause to be maintained, the insurance specified in the Operating Agreement. ARTICLE VIII Indenmification of Landlord Section 8.1 Indemnification of Landlord. To the extent permitted by law, the Tenant shall indemnify the Landlord, its officers, employees and agents for, and save them harmless from, any and all liability, loss, costs, obligations and causes of action, including without limitation, the Landlord's reasonable attorneys' fees and related legal expenses, arising on or with respect to the Project other than due to the actions of the Landlord or the Landlord's employees, contractors or agents. The Tenant, its agents, officers, servants and employees shall assume all risks of injury or death of person or persons, or damage to or loss of any and all property of the Landlord or the Tenant and any and all property under the control or custody of the Tenant while on the Project. ARTICLE IX Default, Remedies, Waiver Section 9.1 Default. The occurrence of any of the following shall constitute an Event of Default: A. Failure to pay when due the Rent or any other amount required to be paid hereunder by the Tenant to the Landlord; provided, however, that no Event of Default -6- shall occur if the Rent or such other amount is paid within fifteen (15) days following the Landlord's written notice to the Tenant that the Tenant failed to pay the Rent or such other amount when due. B. The vacation or abandonment of the Project by the Tenant. C. The failure of the Tenant to observe or perform any provision of this Ground Lease required to be observed or performed by the Tenant if such failure continues for forty-five (45) days after written notice thereof from the Landlord to the Tenant; provided, however, that if the default cannot be cured within such forty-five (45) day period, no Event of Default shall be deemed to exist if the Tenant shall within such forty-five (45) day period commence such cure and thereafter diligently prosecute the same to completion. Section 9.2 Remedies Upon Default. Upon an Event of Default, the Landlord, without further notice to the Tenant, shall have each of the following remedies at the Landlord's election (which shall be in addition to any other remedies available under applicable law): A. Subject to the provisions of the Operating Agreement, at the Landlord's election, the Landlord may terminate this Ground Lease by giving the Tenant written notice of termination. Upon the giving of such notice, all of the Tenant's rights in the Project shall terminate. The Landlord shall not be deemed to have terminated this Ground Lease unless the Landlord shall have so declared such termination in a writing to the Tenant, nor shall the Landlord be deemed to have accepted or consented to an abandonment by the Tenant by performing acts intended to maintain or preserve the Project, making efforts to relet the Leased Premises or appointing a receiver to protect the Landlord's interest under this Ground Lease. Subject to the provisions of the Operating Agreement, promptly after notice of termination, the Tenant shall surrender and vacate the Project in a broom-clean condition, and the Landlord may reenter and take possession of the Project and eject any or all parties in possession. Termination hereunder shall not relieve the Tenant of any obligation under this Ground Lease or from any claim for damages previously accrued or then accruing against the Tenant. -7- B. At the Landlord's written election, the Landlord may use or take title to the Tenant's personal property located on the Leased Premises without compensation and without liability for use or damage. C. If this Ground Lease is terminated, the Landlord shall be entitled to collect all Rent and other amounts which are due and owing as of the termination date of this Ground Lease. Section 9.3 Equitable Relief. Nothing contained herein shall affect, change or waive any rights of the Landlord to obtain equitable relief when such relief is otherwise appropriate. Section 9.4 Cumulative Remedies. The remedies of the Landlord hereunder are cumulative and in addition to, rather than exclusive of, any other remedy of the Landlord herein given or that may be permitted by law. Any reentry as provided for herein shall not make the Landlord liable in damages or guilty of trespass because of any such reentry. Section 9.5 No Waiver. No waiver by the Landlord at any time of any of the terms, conditions, covenants or agreements of this Ground Lease shall be deemed or taken as a waiver at any time thereafter of the same or any other term, condition, covenant or agreement herein contained, nor of the strict and prompt performance thereof by the Tenant. No delay, failure or omission of the Landlord to reenter the Project or to exercise any right, power, privilege, remedy or option arising from any default or Event of Default shall impair any such right, power, privilege, remedy or option, or be construed as a waiver of any such right, power, privilege, remedy or option, or as a relinquishment thereof, or acquiescence in such default or Event of Default. No right, power, privilege, remedy or option of the Landlord shall be construed as being exhausted or discharged by the exercise thereof in one or more instances. Each and all of the rights, powers, privileges, remedies and options given to the Landlord by this Ground Lease are cumulative and no one of them is exclusive of the other or exclusive of any remedies provided by any Law. -8- ARTICLE X Assignment and Subletting Section 10.1 Assignment and Subletting. Except as expressly provided in this Ground Lease or in the Operating Agreement, the Tenant may not assign this Ground Lease (or any portion thereof), sublease the Leased Premises (or any portion thereof) or lease the Stadium (or any portion thereof) without the prior written consent of the Landlord; provided, however, that no such assignment or subleasing consented to by the Landlord shall release the Tenant from its obligations hereunder, for which it shall remain primarily liable. Section 10.2 Recognition Agreement. Simultaneously with the execution of the Operating Agreement, the Landlord, the Tenant and Hampton Roads Sports will execute a Recognition Agreement substantially in the form attached to the Operating Agreement as Exhibit C. ARTICLE XI Condemnation Section 11.1 Full Taking. If all or substantially all of the Project is taken as a result of the exercise of the power of eminent domain, this Ground Lease shall terminate as of the taking. For purposes of this Section 11.1, "substantially all of the Project" shall be deemed to have been taken if the untaken portion cannot be practically and economically used or converted for use by Hampton Roads Sports under the terms of the Operating Agreement. Section 11.2 Partial Taking. If less than the entire Project is taken as a result of the exercise of the power of eminent domain, and if the Project can at a reasonable expense be repaired, restored or replaced, this Ground Lease shall not terminate but shall continue in full force and effect for the remainder of the Term. The Tenant shall cause the Project to be restored, repaired or replaced in accordance with the provisions of the Operating Agreement. ARTICLE XII Miscellaneous Section 12.1 Estoppel Certificates. The Landlord or the Tenant, upon written request from the other, shall execute, acknowledge and deliver to the other, a certificate stating (a) that this Ground Lease is unmodified and in full force and effect (or, if there have been modifications, that this Ground Lease is in full force and effect as modified and stating the modifications), (b) the dates, if any, by which obligations hereunder have been satisfied, (c) that there are no existing offsets or defenses against the enforcement of any term hereof (or, if so, -9- specifying the same), and (d) that no notice has been given to the Landlord or the Tenant of any Default or Event of Default. Section 12.2 Binding Effect. The provisions of this Ground Lease shall bind and benefit the successors and assigns of the parties hereto. Section 12.3 Memorandum or Short Form of Lease. Concurrently with the execution of this Ground Lease, the parties hereto shall execute and acknowledge a memorandum or short form of lease for the purpose of recording the same in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia. The expense of recordation shall be borne by the Tenant. Upon a termination of this Ground Lease for any reason, both the Landlord and the Tenant shall execute a document, in recordable form, confirming that this Ground Lease is null and void. Section 12.4 Notices. Any notice or other communication required or permitted hereunder or contemplated hereby shall be in writing and sent by, and deemed given when deposited in, the United States mail, certified and postage prepaid, or overnight mail delivery to the following unless another address is designated: If to Landlord: City of Virginia Beach Municipal Center Virginia Beach, Virginia 23456 Attn: City Manager with a copy to: City Attorney's Office City of Virginia Beach Municipal Center Virginia Beach, Virginia 23456 Attn: City Attorney If to Tenant: City of Virginia Beach Development Authority One Columbus Center, Suite 300 Virginia Beach, Virginia 23462 Attn: Chairman with copies to: Director of Economic Development One Columbus Center, Suite 300 Virginia Beach, Virginia 23462 and -10- City Attorney's Office City of Virginia Beach Municipal Building Virginia Beach, Virginia 23456 Attn: Gary L. Fentress, Esquire Section 12.5 Captions. The captions used herein are for convenience only, are not a part of this Ground Lease and do not in any way limit or amplify the terms and provisions hereof. The words "herein," "hereof" and "hereunder" and other words of similar import shall refer to this Ground Lease as a whole and not a particular Article, Section, Subsection or Paragraph. Section 12.6 Governing Law; Interpretation. This Ground Lease shall be interpreted in accordance with and governed by the laws of the Commonwealth of Virginia. The language in all parts of this Ground Lease shall be interpreted according to its fair meaning and not more strictly for or against the Landlord or the Tenant. Section 12.7 Entire Agreement. This Ground Lease and the other Project Documents contain all covenants, terms, provisions, and agreements between the Landlord and the Tenant, relating in any manner to the demise of the Leased Premises or the rental, use and occupancy of the Project and other matters set forth in this Ground Lease. No prior agreement or understanding with respect to the same shall be valid or of any force or effect, and no covenant, term, provision or agreement of this Ground Lease may be altered, changed, modified or deleted, to except in a writing signed by the Landlord and the Tenant. No representation, inducement, understanding or anything of any nature whatsoever made, stated or represented on behalf of either party hereto, either orally or in writing, has induced the other party to enter into this Ground Lease, except as expressly set forth in this Ground Lease. Section 12.8 Survival. All covenants which, by their terms, are not to be performed before the expiration of the Term or earlier termination of this Ground Lease shall survive such expiration or earlier termination. Section 12.9 Counterparts. This Ground Lease, which ~ncludes the Exhibits attached hereto as incorporated herein, may be executed in counterparts, and if executed in counterparts, each such counterpart shall constitute one and the same instrument. -11- Section 12.10 No Third-Party Beneficiaries. The provisions of this Ground Lease shall not give rise to any third-party beneficiary rights in any person or entity other than the parties hereto. Section 12.11 Incorporation of Exhibits. All of the Exhibits attached hereto are hereby ~ncorporated into this Ground Lease and made a part hereof. Section 12.12 Severability. If any provision of this Ground Lease, or the application thereof to any person or circumstance, shall to any extent be held to be invalid or unenforceable, the remainder of this Ground Lease and the application of such provision to other person or circumstances shall not be affected thereby. Section 12.13 No Partnership.. This Ground Lease does not and shall not be construed to create a partnership, joint venture or any other relationship between the parties hereto except the relationship of lessor and lessee. Section 12.14 Survival of Tenant's Obligations. Tenant's obligations to Landlord hereunder shall survive the expiration or termination of the Operating Agreement. Section 12.15 Appropriations. Notwithstanding any provision herein to the contrary, Tenant's monetary obligations to make repairs to the Stadium and other expenditures under this Ground Lease and the Operating Agreement, other than the payment of the Rent, shall be subject to appropriation by City Council. IN WITNESS WHEREOF, the parties hereto have caused th~s Ground Lease to be executed by their duly authorized representative the day and year first above written. [Seal] CITY OF VIRGINIA BEACH ATTEST: By: City Clerk Name: City Manager/Designee [Seal] CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY ATTEST: By: Secretary Name: Chairman -12- COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH ) ) ss ) The foregoing instrument was acknowledged before me this day of , 1997, by , City Manager/Designee of the City of Virginia Beach, a political subdivision of the Commonwealth of Virginia, on its behalf. Given under my hand and notarial seal this ~ day of , 1997. My commission expires: Notary Public COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH ) ) ss ) The foregoing instrument was acknowledged before me this day of ,1997, by , Chairman of the City of Virginia Beach Development Authority, a political subdivision of the Commonwealth of Virginia, on its behalf. Given under my hand and notarial seal this ~ day of ,1997. Notary Public My commission expires: -13- EXHIBIT A Description of Leased Premises [To be attached] A-1 EXHIBIT B Plat of Leased Premises [To be attached] G \ \leases\stadium\ground vr6 May 22, 1997 B-1 This instrument prepared by the Virginia Beach City Attorney's Office MEMORANDUM OF LEASE FOR MULTI-PURPOSE STADIUM THIS MEMORANDUM OF LEASE, dated as of the day of , 1997, by and between the CITY OF VIRGINIA BEACH, VIRGINIA, a municipal corporation of the Commonwealth of Virginia (the "Landlord" and for indexing purposes, the "Grantor"), and the CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, a political subdivision of the Commonwealth of Virginia (the "Tenant" and for indexing purposes, the "Grantee"), recites and provides: ' RECITALs By Multi-Purpose Stadium Ground Lease dated as of , 1997, between the Landlord and the Tenant, the Landlord leased and demised to the Tenant (the "Ground Lease"), and the Tenant leased and rented from the Landlord, certain real estate located in the City of Virginia Beach, Virginia, and more particularly described on Exhibit A attached hereto. The Landlord and the Tenant now wish to enter into a memorandum of lease, in accordance with the provisions of Va. Code §55-57.1, and to record such memorandum of lease in order to provide record notice of the Ground Lease. GPIN: MEMORANDUM OF LEASEs Pursuant to Va. Code § 55-57.1; the Landlord and the Tenant do hereby state the following: 1. The name of the Landlord is the CITY OF VIRGINIA BEACH, VIRGINIA, a municipal corporation of the Commonwealth of Virginia. 2. The name of the Tenant is the CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, a political subdivision of the Commonwealth of Virginia. 3. The Landlord has leased to the Tenant the Leased Property (as hereinafter defined) pursuant to the terms, provisions and conditions contained in the Ground Lease. 1997. 4. (a) The address of the Landlord is: Municipal Center Virginia Beach, Virginia 23462 Attn: City Manager (b) The address of the Tenant is: One Columbus Center Suite 300 Virginia Beach, Virginia 23462 Attn: Director of Economic Development 5. The effective date of the Ground Lease is 6. A description of the real estate comprising the leased premises (referred to herein as the "Leased Property"), is attached hereto as Exhibit A. 7. The term of the Ground Lease is forty (40) years and shall begin , 1997, and shall end on , 2037, unless sooner terminated by operation of law or pursuant to the terms of the Ground Lease. 2 8. The Landlord and the Tenant hereby represents and warrant that they have full power, authority and right to execute and deliver this memorandum of lease. IN WITNESS WHEREOF, the Landlord and the Tenant have caused this Memorandum of Lease to be executed by their duly authorized representatives. LANDLORD: CITY OF VIRGINIA BEACH BY: Name: Title:City Manager/Designee of the City Manager TENANT: CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY BY: NAME: TITLE: COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH, ss The foregoing instrument was acknowledged before me this day of , 1997, by , as City Manager/Designee of the City Manager of the City of Virginia Beach, Virginia, a municipal corporation of the Commonwealth of Virginia, on behalf of the political subdivision. My commission expires: Notary Public COMMONWEALTH OF VIRGINIA ) ) ss CITY OF VIRGINIA BEACH, ) The foregoing instrument was acknowledged before me this · day of , 1997, by , as City Manager/Designee of the City Manager of the City of Virginia Beach, Virginia, a political subdivision of the Commonwealth of Virginia, on behalf of the political subdivision. My commission expires: Notary Public a:\..\leases\stadium\memorand.VR2 Revision Date: May 5, 1997 TABLE OF CONTENTS RECITALS ................................................ 1 ARTICLE I Section 1.1 Definitions ................................. 1 Definitions .................................. 1 ARTICLE II Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 2.5 Section 2.6 Section 2.7 Section 2.8 Lease of Leased Premises; Rent; Term ............... 3 Lease ..................................... 3 Rent ...................................... 3 Term ...................................... 4 Quiet Enjoyment ............................... 4 Property "AS IS" .............................. 4 Surrender of Premises ........................... 4 Use ...................................... 5 Net Lease .................................. 5 ARTICLE III Section 3.1 Section 3.2 Section 3.3 Taxes, Utilities and Easements ................... 5 Taxes ..................................... 5 Utilities .................................... 5 Easements .................................. 6 ARTICLE IV Section 4.1 Section 4.2 Section 4.3 Section 4.4 Section 4.5 Section 4.6 Construction, Maintenance and Operation of Stadium ...... 6 Stadium .................................... 6 No Obligation to Maintain ......................... 6 Tenant's Duty to Maintain ......................... 6 No Liens or Encumbrances ........................ 6 No Mechanics' Liens .......................... 7 Landlord's Right to Inspect ........................ 7 ARTICLE V Ownership of Stadium .......................... 7 Section 5.1 Title to Stadium ............................... 7 ARTICLE VI Mortgage of Leasehold .......................... 8 Section 6.1 Right to Mortgage .............................. 8 ARTICLE VII Insurance ................................... 8 Section 7.1 Insurance Coverages ............................ 8 ARTICLE VIII Indenmification of Landlord ...................... 8 Section 8.1 Indemnification of Landlord ........................ 8 ARTICLE IX Section 9.1 Section 9.2 Section 9.3 Section 9.4 Section 9.5 Default, Remedies, Waiver ....................... 8 Default .................................... 8 Remedies Upon Default .......................... 9 Equitable Relief .............................. 10 Cumulative Remedies ........................... 10 No Waiver ................................. 11 ARTICLE X Section 10.1 Section 10.2 Assienment and Sublettine ........................ 11 _ _ Assignment and Subletting ........................ 11 Recognition Agreement .......................... 12 ARTICLE XI Section 11.1 Section 11.2 Condemnation ............................... 12 Full Taking ................................. 12 Partial Taking ................................ 12 (i) ARTICLE XII Section 12.1 Section 12.2 Section 12.3 Section 12.4 Section 12.5 Section 12.6 Section 12.7 Section 12.8 Section 12.9 Section 12.10 Section 12.11 Section 12.12 Section 12.13 Section 12.14 Section 12.15 Miscellaneous ................................ 12 Estoppel Certificates ............................ 12 Binding Effect ................................ 13 Memorandum or Short Form of Lease ................. 13 Notices .................................... 13 Captions ................................... 14 Governing Law; Interpretation ...................... 14 Entire Agreement .............................. 15 Survival ................................... 15 Counterparts ................................. 15 No Third-Party Beneficiaries ....................... 15 Incorporation of Exhibits ......................... 16 Severability ................................. 16 No Partnership .............................. 16 Survival of Tenant's Obligations ..................... 16 Appropriations ............................... 16 EXHIBIT A - Description of Leased Premises EXHIBIT B - Plat of Leased Premises (ii) - 43 - Item V-M. PUBLIC HEARING ITEM # 42169 PLANNING Mayor Oberndorf DECLARED a PUBLIC HEARING on: PLANNING 1. NO ACTION ITEM DEFERRED B Y PLANNING COMMISSION a. JOSEPH 0 VERHOL T, TR US TEE 0 VERttOL T TR US T CONDITIONAL CHANGE OF ZONING 2. MARK R. LICHTENSTEIN STREET CLOSURE 3. PA UL D. RO WAN CHANGES OF ZONING CONDITIONAL USE PERMIT 4. ZIMMER DEVELOPMENT CO. OF VIRGINIA, L.P. CHANGE OF ZONING 5. CMSS ARCHITECTS CHANGE OF ZONING 6. CITY OF VIRGINIA BEACH CHANGE OF ZONING CONDITIONAL USE PERMIT AMEND/REORDAIN SECTION 1521 CZO RE DRIVE-THRU FA CILITIES IN R T-3 May 27, 1997 - 44 - Item V-M. PUBLIC HEARING ITEM # 42170 PLANNING B Y CONSENT Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council APPROVED in ONE MOTION Items 2, 5, and 6d of the PLANNING BY CONSENT Items. Voting: 11-0 Counctl Members Voting Aye: John A. Baum, Linwood 0 Branch, III, Wtlliam W. Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorj~, Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent. None May 27, 1997 - 45 - Item V-M. 1. PUBLIC HEARING ITEM # 42171 PLANNING City Council TOOK NO ACTION: Application of JOSEPH O VERIIOL T, TRUSTEE O VERttOL T TRUST for a Conditional Change of Zoning District Classification from R-lO Residential District to Condittonal B-2 CommunitF Business District at the Southwest corner of Lynnhaven Parkway and Salem Road re commercial land use and containing 15 acres (KEMPSVILLE BOROUGH). This item was deferred by the Planning Commission on May 14, 1997, so no action is required. May 27, 1997 -47- Item V-M.3. PUBLIC HEARING ITEM # 42173 PLANNING The following registered in SUPPORT: Attorney R. J. Nutter II, 4425 Corporation Lane, Phone: 518-3200, represented the applicant A. Frank Malbon, 1812 Addington Road, Phone: 496-2306 Dr. Craig Sweeny, 504 Frances Court, Chesapeake, Phone; 482-1037 The following registered in OPPOSITION: Melvin C. Moore, 536 South Birdneck Road, Phone: 425-1174 Cheryl Fentress, 548 South Birdneck Road, Phone: 425-0447 George C. Morris, 518 South Birdneck Road, Phone: 428-5571 Lois D. Bostic, 1112 Battle Royal Circle, Phone: 460-6231 Rosa Lee Norman, I10 North Birdneck Road, Phone: 425-7106, President - Seatack Civic League Beverly A. Woodhouse, 420 Cronin Road, Phone: 486-6420, Vice President Seatack Civic League Upon motion by Councilman Harrison, seconded by Vice Mayor Sessoms, City Council ADOPTED Ordinances upon application of PAUL D. ROWAN for Changes of Zoning and Conditional Use Permits: ORDINANCE UPON APPLICATION OF PAUL D. ROWAN FOR A CHANGE OF ZONING DISTRICT CLASSIFICATION FROM I-1 TO CONDITIONAL B-I AND FROM I-1 TO CONDITIONAL AG-1 Z05971076 Ordinance upon application of Paul D. Rowan for a Change of Zoning District Classification from bi Light Industrial District to Conditional B-I on 4.58 acres more or less on the west side of South Birdneck Road beginning at a point 840 feet north of Bells Road and from bi slight Industrial District to Conditional AG-1 Agricultural District on 5.01 acres more or less located 340 feet west of Birdneck Road and 840 feet north of Bells Road. The proposed zoning classification change to Conditional B-1 and Conditional AG-1 is for an animal hospital The Comprehensive Plan recommends use of this parcel for industrial use in accordance with other Plan policies. Said parcel contains a total of 9.59 acres more or less. L YNNHA VENBOROUGH. The following condition shah be required: An agreement encompassing proffers shah be recorded with the Clerk of the Circuit Court and is hereby made a part of the record. AND, ORDINANCE UPON APPLICATION OF PAUL D. ROWAN FOR A CONDITIONAL USE PERMIT FOR AN ANIMAL HOSPITAL R05972114 BE IT HEREBY ORDAINED BY ~E COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of Paul D. Rowan for a Conditional Use Permit for an animal hospital on the west side of South Birdneck Road, 840 feet north of Bells Road. Said parcel contains 9..$9 acres more or less. L YNNHA VEN BOROUGH. May 27, 1997 - 48 - Item V-M.$. PUBLIC HEARING ITEM # 42173 (Continued) PLANNING The following conditions shall be required: . . The property shall be used only in conjunction with the animal hospital to be constructed on the B-1 portion of the subject site. Use shall be limited to grazing, feeding, sheltering and convalescence of horses being treated at the animal hospital. Structures shall be limited to a 2,000 square foot barn and fencing, as depicted on the submitted site plan, except that additional fencing may be provided to completely enclose the proposed grazing area. Fencing materials shall consist of three or four board wood and/or pvc fence, or wire or chain-link fencing screened by a solid hedge. Any composting of animal wastes shall be limited to an area not more than 10' x 10' in size, and shall be located adjacent to the western property line. AND, ORDINANCE UPON APPLICATION OF PAUL D. ROWAN FOR A CHANGE OF ZONING DISTRICT CLASSIFICATION FROM I-I TO CONDITIONAL I-I Z059 71077 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of Paul D. Rowan for a Change of Zoning District Classification from I- 1 Light Industrial District to Conditional I- 1 Light Industrial District on the west side of Birdneck Road, beginning at a point 1175 feet more or less north of Bells Road. The proposed Conditional I-I zoning classification is for light industrial land use The Comprehensive Plan recommends use of this parcel for industrial use in accordance with other plan policies. Said property contains 7.28 acres more or less. L YNNHA VEN BOROUGH. The following condition shall be required: An agreement encompassing proffers shall be recorded with the Clerk of the Circuit Court and is hereby made a part of the record. These Ordinances shall be effective in accordance with Section 107 (]) of the Zoning Ordinance. Adopted by the Council of the City of Virginia Beach, Virginia, on the TwentF-seventh Of May Nineteen Hundred and NinetF-Seven. May 27, 1997 - 49 - Item V-M.$. PUBLIC HEARING ITEM # 42173 (Continued) PLANNING Voting: 7-4 Council Members Voting Aye: John A. Baum, William ~ Harrison, Jr., HaroM Heischober, Louis R. Jones, Barbara M. Henley, Nancy K. Parker and Vice Mayor William D. Sessoms, Jr. Council Members Voting Nay: Linwood O. Branch, III, Mayor Meyera E. Oberndorf Reba $. McClanan and Louisa M. Strayhorn Council Members Absent: None May 27, 1997 City oi" Virginia F~each INTER-OFF~CE CORRESPON13EAICE In Reply Refer To Our File No. DF-4425 DATE: May 15, 1997 TO: Leslie L. Lilley DEPT: City Attorney FROM: William M. Macali ~v~ DEPT: City Attorney Conditional Zoning Application - Paul D. Rowan and William G. Lilley The above-referenced conditional zoning application is scheduled to be heard by the City Council on May 27, 1997. I have reviewed the subject proffer agreement, dated April 18, 1997, and have determined it to be legatly sufficient and in proper legal form. A copy of the agreement is attached. Please feel free to call me if you have any questions or wish to discuss this matter further. WMM/ Enclosure THIS AGREEMENT, made this 18th day of April 1997, by and between PAUL D. ROWAN, contract purchaser property described on EXHIBIT A attached hereto, and WILLIAM G. LILLEY, the owner of the property described on EXHIBIT A attached hereto (hereinafter collectively referred to as "Grantors"); and the CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia (hereinafter referred to as "Grantee"). W ITN E S S E TH: WHEREAS, the Grantors have initiated amendments to the Zoning Map of the City of Virginia Beach, Virginia, by petitions addressed to the Grantee to change the classification of the Grantors' property as follows' FROM TO ACRES I-1 B-I 4 58 I-1 AG-I 5.01 I- 1 I- 1 (Conditional) 7.27 Such changes are to be granted on certain property which contains a total of 16.86 acres, more or less, located in the Lynnhaven Borou~ of the City of Virginia Beach, Virginia, more particularly described in the attached EXHIBIT A (hereinafter, the "Property"); and WHEREAS, the Grantee's policy is to provide only for the orderly development of land for various purposes, including business, agricultural and light industrial purposes, through zoning and other land development legislation; and WHEREAS, the Grantors acknowledge that the competing and sometimes incompatible uses conflict, and that in order to permit differing uses on and in the area of the subject Property and at the same time to recognize the effects of the change and the need for various types of uses, including those listed above, certain reasonable conditions governing the use of the Property for the protection of the community that are not generally applicable to land similarly Prepared by Mays & Valentme, L L P 4425 Corporation lane, Suite 420 Virginia Beach, VA 23462 zoned B-I, AG-I and I-1 (Conditional) are needed to cope with the situation to which the Grantors' rezoning application gives rise; and WHEREAS, the Grantors have voluntarily proffered in writing in advance of and prior to the public hearing before the Grantee, ns part of the proposed conditional amendment to the Zoning Map, in addition to the regulations provided for in the existing B-l, AG-I and I-1 (Conditional) zonings district by the existing City's Zoning Ordinance (CZO), the following reasonable conditions related to the physical development, operation and use of the Property to be adopted as a part of said amendment to the new Zoning Map relative to the Property, certain of which proffers shall apply to all of the Property, as set forth below, and certain of which proffers shall apply only to certain of the rezoning classifications, as set forth below, and ali of which proffers have a reasonable relation to the rezonings, and the need for which is generated by the rezonings; and WHERKAS, said conditions having been proffered by the Grantors and allowed and accepted by the Grantee as part of the amendment to the CZO, such conditions shall continue in full force and effect until a subsequent amendment chnnges the zoning on the Property covered by such conditions; provided, however, that such conditions shall continue despite a subsequent amendment if the subsequent amendment is part of the comprehensive implementation of a new or substantially revised zoning ordinance, unless, notwithstanding the foregoing, these conditions are amended or varied by written instrument recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia and executed by the record owner of the subject Property at the time of recordation of such instrument; provided, further, that said instrument is consented to by the Grantee in writing ns evidenced by a certified copy of ordinance or resolution adopted by the governing body of the Grantee, al~er a public hearing before the Grantee advertised pursuant to the provisions of the Code of Virginia, Section 15.1- 4:31, which said ordinance or resolution shall be recorded along with said instrument as conclusive evidence of such consent. NOW THEREFORK, the Grantors, for themselves, their successors, assigns, grantees, and other successors in title or interest, voluntarily and without any requirement by or exaction from the Grantee or its governing body and without any element of compulsion of quid pro quo for zoning, rezoning, site plan, building permit or subdivision approval, hereby make the following declaration of conditions and restrictions which shall restrict and govern the physical development, operation and use of the Property, certain of which proffers shall apply to all of the Property, as set forth below, and certain of which proffers shall apply only to certain of the rezoning classifications, as set forth below, if developed for a use permitted under the B-1, AG- I and I-1 (Conditional) zoning classifications, and hereby covenant and agree that these Proffers shall constitute covenants running with the said Property, which shall be binding upon the Property and upon all parties and persons claiming under or through the Grantors, their heirs, personal representatives, assigns, grantees and other successors in interest or title, namely: 1. The Property shall be developed substantially as shown on the plan entitled "Preliminary Site Plan for Owl's Creek Veterinary Hospital, Lynnhaven Borough, Virginia Beach, Virginia," dated April 28, 1997, prepared by Gallup Surveyors and Engineers, Ltd (hereinafter, the "Plan"), a copy of which is exhibited to the City Council of the City, and is on file in the Planning Department of the City. 2. The area of the Property to be rezoned B-I shall be used for an animal hospital and veterinary establishment (the "Animal Hospital") in which animals shall be kept in a sound- proofed, air-conditioned building. 3. The Animal Hospital shall be constructed substantially as depicted on th~ rendering entitled "Proposed Owl Creek Veterinary Hospital" dated April 17, 1997, prepared by ASA Architects, a copy of which is exhibited to the City Council of the City and is on file in the Planning Department of the City. 4. The Grantors shall construct one internally illuminated, monument style sign on the area of the Property to be rezoned B-1, the design of which sign shall be substantially similar to the sign depicted on EXHIBIT B attached hereto. 5. The area of the Property to be rezoned AG-I shall be used for the grazing, feeding, sheltering and convalescence of horses treated at the Animal Hospital. 6 In the event that the Grantee expands Birdneck Road to a four-lane divided roadway, and provides a median break opposite Brooklyn Avenue, the Grantors shall grant an ingress-egress easement and construct an access drive across the area of the Property to be rezoned I-1 (Conditional) for the benefit of the area of the Property to be rezoned B-l, to provide access to and from Birdneck Road at a location opposite Brooklyn Avenue. Further conditions may be required by the Grantee during detailed Site Plan and/or Subdivision review and administration of applicable City Codes by all cognizant City agencies and departments to meet all applicable City Code requirements. All references hereinabove to zoning districts and to regulations applicable thereto, refer to the City Zoning Ordinance of the City of Virginia Beach, Virginia, in force as of the date the conditional zoning amendment is approved by the Grantee. The Grantors covenant and agree that (1) the Zoning Administrator of the City of Virginia Beach, Virginia shall be vested with all necessary authority on behalf of the governing body of the City of Virginia Beach, Virginia to administer and enforce the foregoing conditions, including (i) the ordering in writing of the remedying of any noncompliance with such conditions, and (ii) the bringing of legal action or suit to ensure compliance with such conditions, including mandatory or prohibitory injunction, abatement, damages or other appropriate action, suit or proceedings; (2) the failure to meet all conditions shall constitute cause to deny the issuance of any of the required building or occupancy permits as may be appropriate; (3) if asgrieved by any decision of the Zoning Administrator made pursuant to the provisions of the City Code, the CZO or this Agreement, the Grantors shall petition the governing body for the review thereof prior to instituting proceedings in court; and (4) the Zoning Map show by an appropriate symbol on the map the existence of conditions attaching to the zoning of the subject Property on the map and that the ordinance and the conditions may be made readily available and accessible for public inspection in the office of the Zoning Administrator and in the Planning Department and that they shall be recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia and indexed in the name of the Grantors and Grantee. Paul D. Rowan Wdham (3 Lilley (SEAL) COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me thin'ay of April, 1997, by Paul D. Rowan. My Comnfission Expires: /~/~.~C ,~/~/~'~ ~' COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me William G. Lilley this~ d'~ay of April, 1997, by My Commission Expires: EXHIBIT A ALL THAT certain lot, piece or parcel of land being known and designated as Parcel A as shown on that certain survey entitled "Subdivision of Property of Earl R. Lilley Estate," W.B. 53 P. 522, D.B. 273 P. 231, Lynnhaven Borough, Virginia Beach, Va. (unrecorded), which survey is made by Crallup Surveyors & Engineers, Ltd., and dated 20 March 1997 and more particularly bounded and described as follows: Beginning at a point on the western right-of-way line of South Birdneck Road approximately 840' north of Bells Road, said point also being on the northern line of Parcel G, M.B. 183 P. 1, thence proceeding S 76° 26' 07" W, 806.92' along the northern line of Parcels G and F-I as recorded in M.B. 183 P. 1, to a point on the northern line of Parcel F-l, thence turning and continuing along the northern line of Parcel F- 1 S 76° 11' $4" W, 30.61' to a point on the eastern line of the Residual Parcel being the remains of the Earl R. Lilley Estate, thence turning and proceeding along the eastern line of the Residual Parcel N 18° 51' 46" W, 669.83' to a point on the southern line of property of Nancy F. Braithwaite, D.B. 251 P. 93, M.B. 162 P. 15, thence turning and proceeding along the southern line of property of Nancy F. Braithwaite N 75° 58' 45" E, 120.53' to a point, thence turning and continuing along the southern line of Nancy F. Braithwaite N 77° 06' 25" E, 876.39' to a point, thence turning and continuing along the southern line of property of Nancy F. Braithwaite N 77° 28' 00" E, 451.74' to a point on the western right-of-way line of South Birdneck Road, thence turning and proceeding along the western right-of-way line of South Birdneck Road S 31° 30' 07" W, 505.64' to a point, thence turning and continuing along the western right-of-way line of South Birdneck Road along a curve to the left having a radius of 848.$0', a distance of 351.76' to the point of beginning 9041 EXHIBIT B ~- 8 fe,t --~ OWL ~,EEK VETE~R~ HOSPITAL & COASTAL EQgJIT~ ~DI~L ~J~NrJ'ER ,f28-~344 SOUTH B.rRD~g~ C~ ROAD 6 ~Qat Mommen! Style s~nwith hdern&! fJuzr~seerd lqJttm~ - 50- Item V-M. 4. PUBLIC HEARING ITEM # 42174 PLANNING The following represented the applicant: James L. Bradford, 305 Volvo Parkway, Chesapeake, Phone: 547-9531 Tom Cofer, 111 Princess Street, Wilmington, North Carolina, Phone: (910) 763-4669 Upon motton by Council Lady Strayhorn, seconded by Councilman Branch, City Council ADOPTED an Ordinance upon application of ZIMMER DEVELOPMENT CO. OF VIRGINIA, L.P., for a Change of Zoning: ORDINANCE UPON APPLICATION OF ZIMMER DEVELOPMENT CO., OF VIRGINIA, L.P. FOR A CHANGE OF ZONING FROM R-7.5 AND B-2 TO CONDITIONAL B-1 Z05971078 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of Zimmer Development Co. of Virginta, L.P for a Change of Zoning District Classification from R-7.5 Residenttal District and B-2 Communtty Business District to Conditional B-I Neighborhood Business District on certain property located at the northwest corner of Princess Anne Road and S. Parliament Drive The proposed zoning classification change to B-1 is for commercial land use. The Comprehensive Plan recommends use of this parcel for single famil)~ residential at densities that are compattble with single famtly use in accordance with other plan policies. Satd parcel contains 1.6 acres. KEMPSVILLE BOROUGH. The following condition shah be required: An agreement encompassing proffers shall be recorded with the Clerk of the Circmt Court and is hereby made a part of the record. This Ordinance shah be effective in accordance wtth Sectton 107 09 of the Zontng Ordtnance. Adopted by the Council of the City of Virginia Beach, Virgtnia, on the Twentp-seventh of May Nineteen Hundred and Ninet},-Seven. Voting: 11-0 Council Members Voting Aye: John A. Baum, Linwood O. Branch, III, William W. Harrison, Jr, Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vtce Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent. None May 27, 1997 INTER-OFFICE CORRESPONDENCE Ia Reply R~fer To Our Filo No. DF4399 DATE: May 15, 1997 TO: FROM: Leslie L. Lilley DEPT: City Attorney William M. Macali ~ DEPT: City Attorney Conditional Zoning Application - Zimmer Development Corporation, L.P. The above-referenced conditional zoning application is scheduled to be heard by the City Council on May 27, 1997. I have reviewed the subject proffer agreement, dated February 24, 1997, and have determined it to be legally sufficient and in proper legal form. A copy of the agreement is attached. Please feel free to call me if you have any questions or wish to discuss this matter further. WMM/ Enclosure AGREEMENT THIS AGREEMENT, made as of t_his 24th. day of February, 1997, by and between Zimmer Development Company, L.P., as property owner of the property described in EXHIBIT A (hereinafter referred to as the 'Grantor'); and the CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia (hereinafter referred to as thc 'Grantee"). WITNESSETH: WHEREAS, the Grantor h** initiated a conditional amendment to the Zoning Map of the City of Virginia Beach, Vh'ginia, by petition addressed to the Grantee (the "Petition'), to change the classification of the Orantor's property from (R-7-5) and (B-2) to (B-l), such change to be granted on certain property which contain- a total of 1_59 acres, more or less, located in the Kempsville Borough of the City of Virginia Beach, Virginia, more particularly descn'bed in EXHIBIT A (attached hereto and incorporated herein by reference); WHEREAS, the Grantee's policy is to provide only for the orderly development of land for various purposes, including residential, business and preservation purposes, through zoning and other land development legislation; and WHEREAS, the Grantor acknowledges that the competing and sometimes incompatible uses conflict, and that in order to permit differing uses on and in the area of the subject Property and at the same time to recognize the effects of the change, certain reasonable conditions governing the use of the Property for the protection of the community that are no~ generally applicable to land similarly zoned as B-1 are needed to cope with the situation to which the Grantor's rezoning application gives rise; and WHEREAS, the Grantor has voluntarily proffered in writing in advance of and prior to the public hearing before the Grantee, as part of the proposed conditional amendment to the Zoning Map, in addition to the regulations provided for the in the B-1 zoning district by the existing City's Zoning Ordinance (CZO), the following reasonable conditions related to the physical development, operation and use of the Property to be adopted as a part of said amendment to the new Zoning Map relative to the Property, which proffers have a reasonable relation to the rezoning and the need for which is generated by the rezoning; and WHEREAS, said conditions having been proffered by the Grantor and allowed and accepted by the Grantee as part of the amendment to the CZO, such conditions shall continue in full force and effect until a subsequent amendment changes the zoning of the Property covered by such conditions; provided, however, that such conditions shall continue despite a subsequent amendment if the subsequent amendment is part of the comprehensive implementation of a new or substantially revised zoning ordinance, unless, notwithstanding the foregoing, these conditions are amended or varied by written instrument recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, and executed by the record owner of the subject Property at the t_ime of recordation of such instrument; provided, that said instrument is consented to by the Grantee in writing as evidenced by a certified copy of ordinance or resolution adopted by the governing body of the Grantee, after a public hearing before the Grantee advertised pursuant to the provisions of the Code of Virginia § 1.5.1-431, which said ordinance or re. solution shall be recorded along with said instrument as conclusive evidence of such consent; NOW, THEREFORE, the Grantor, for himself, his successors, assigns, grantees, and other successors in title or interest, voluntarily and without any requirement by or exaction from the Grantee or its governing body and without any element of compulsion of quid oro quo for zoning, rezoning, site plan, building permit or subdivision approval, hereby make the following declaration of conditions and restrictions which shall restrict and govern the physical development, operation and use of the Property developed for a use permitted under the B-1 zoning classification, and hereby covenant and agree that these Proffers shall constitute covenants running with the said Property, which shall be binding upon the Property and upon all parties and persons claiming under or through the Grantor, his heirs, personal representatives, assigns, grantees and other successors in interest or title, namely: Prepared by 'Hassell & Folkes', P.C. 325 Volvo Parkway Chesapeake, VA 23320 1. The Property shall be developed substantially as shown on the plan entitled 'Rezoning Exhibit', dated February 19, 1997, prepared by Hassell & Folkes, P.C., a copy of which is exhibited to the Virginia Beach City Council, and is on f'de in the Planning Department of the City of Virginia Beach. 2. The exterior of the structure and the freestanding sign depicted on the site plan shall be substantially similar in design, materials and colors to the elevations and renderings shown on the exhibit entitled 'Proposed Revco Drug Store, Princess Anne Road and S. Parliament Drive, Virginia Beach, Virginia,' dated February 19, 1997, a copy of which has been exhibited to the Virginia Beach City Council, and is on file in the Planning Department of the City of Vh-ginia Beach. 3. Further conditions may be required by the Grantee during detailed site plan and/or subdivision review and adminisuation of applicable City Codes by all co?i:,~nt City agencies and department to meet all applicab~ City Code requirements. All references hcrcinabovc to zoning districts and to regulations applicable thereto refer to thc City Zoning Ordinance of thc City of Virginia Beach, Virginia, in force as of the date of the conditional zoning amendmen~ i~ approved by thc Grantee. The Grantor covenants and agrees that (1) thc Zoning Administrator of the City of Virginia Beach, Virginia shall be vested with all necessary authority on behalf of the governing body of the City of Virginia Beach, NKn'ginia to admlni_~ter and enforce the foregoing conditions, including (i) the ordering in writing of the remedying of any noncompliance with such conditions, and (ii) the bringing of legal action or suit to ensure compliance with such conditions, including mandatory or prohibitory injunction, abatement, damages or other appropriate action, suit or proceedings; (2) the failure to meet all conditions shall constitute cause to deny the issuance of any of the required building or occupancy permits as may be appropriate; (3) if aggrieved by any decision of the Zoning Administrator made pursuant to the provisions of the City Code, thc Zoning Ordinance or thi~ Agreement, the Grantor shall petition to the governing body for the review thereof prior to instituting proceedings in court; and (4) the Zoning Map may show an appropriate symbol on the map the existence of conditions attaching to thc zoning of the Subject Property, and the ordinance and the conditions may be made readily available and accessible for public inspection in thc office of thc Zoning Administrator and in the Planning Department, and they shall be recorded in the Clerk's Office of the Circuit Court of the City of Vir~nla Beach, Vh'ginia and indexed in the name of the Grantor and Grantee. THE FOLLOWING SIGNATURE AND SEAL. ZIMMER DEVELOPMENT COMPANY OF VIRGINIA, L.P. By: Z imm~~elopmen~ Company of Virginia, Jcffrcy~ L. csidc Inc. NORTH STATE O ~AROLINA CITY OF..SJ/Ilds~o-T~l, to-wit: Thc foregoing instrument was acknowledged before me this ~ day of Zimmer, President of Zimmer Development Company, a Virginia Corporation. My commission expires: (REWCO~4) EXHIBIT A LEGAL DESCRIPTION PARCELS 'Fl', 'F2', 'E' AND 'H' OVERALL BEGINNING AT AN IRON PIN SET WHERE THE WESTERN RIGHT~:~F-WAY UNE OF PARUAMENT DRIVE MEETS THE NORTHERN RIGHT-OF-WAY UNE OF PRINCESS ANNE ROAD; THENCE FOLLOWING THE NORTHERN RIGHT-OF-WAY MNE OF PRINCESS ANNE ROAD N 64° 00' 00' W 142.94 FEET TO AN IRON PIN FOUND; THENCE LEAVING SAID RIGHT-OF-WAY MNE N 26° 00' 00' E 200.94 FEET TO AN IRON PIN SET; THENCE N 79' 29' 27' W 74.52 FEET TO AN IRON PIN FOUND AT THE EASTERN RIGHT-OF-WAY UNE OF RONDEAU COURT; THENCE FOLLOWING SAID RIGHT-OF-WAY ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 50.00 FEET AND A LENGTH OF 43.28 FEET TO AN IRON PIN FOUND; THENCE LEAVING SAID RIGHT-OF-WAY UNE N 50° 54' 44' E 145.17 FEET TO AN IRON PIN FOUND; THENCE S 78° 00' 00' E 167.08 FEET TO AN IRON PIN SET AT THE WESTERN RIGHT-OF-WAY UNE OF PARMAMENT DRIVE; THENCE FOLLOWING SAID RIGHT~::)F-WAY UNE S 16° 16' 00' W 343.28 FEET TO AN IRON PIN FOUND AT A POINT OF CURVATURE; THENCE ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 40 00 FEET AND A LENGTH OF 69.63 FEET TO THE ABOVE MENTIONED POINT OF BEGINNING. SAID COMBINED PROPERTY CONTAINING 1.590 ACRES MORE OR LESS. - 51 - Item V-M. 5. PUBLIC HEARING ITEM # 42175 PLANNING B Y CONSENT Upon motton by Vice Mayor Sessoms, seconded by Councdman Branch, City Council ADOPTED an Ordinance upon application of CMSS ARCHITECTS for Change of Zoning District Classifications ORDINANCE UPON APPLICATION OF CMSS ARCHITECTS FOR A CHANGE OF ZONING DISTRICT CLASSIFICATION FROM R-10 and B-2 TO CONDITIONAL A-18 Z0597107 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of CMSS Architects for a Change of Zontng District Classification from R-lO Residential District and B-2 Community Bustness Dtstrtct to Conditional A-18 Apartment District on the following parcels: Parcel 1: From R-lO to Con&tional A-18 on property located 180feet more or less north of Prtncess Anne Road beginning at a point 700feet more or less east of South Parliament Drive. Parcel 2: From B-2 to Conditional A-18 on property located on the north stde of Princess Anne Road beginning at a point 740 feet more or less east of S Parliament Drive The proposed zoning classification change to Conditional A-18 is for multi-family land use at a density no greater than 18 dwelling units per acre. The Comprehensive Plan recommends use of this parcel for suburban medtum density residential at densities that are compatible with stngle-family use tn accordance with other Plan policies. Said parcels contain 2. 72 acres. KEMPSVILLE BOROUGH The following con&tion shah be required An agreement encompassing proffers shall be recorded with the Clerk of the Ctrcuit Court and ts hereby made a part of the record. This Ordtnance shah be effective in accordance with Sectton 107 (]) of the Zoning Ordinance. Adopted by the Council of the City of Virginia Beach, Virginia, on the Twent},-seventh of May Nineteen Hundred and Nine_tv-Seven. ~ting: 11-0 (By ConsenO Council Members Voting Aye: John A Baum, Linwood O. Branch, III, Wtlliam ~ Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor Wilham D. Sessoms, Jr. and Louisa M. Strayhorn Councd Members Voting Nay: None Council Members Absent: None May 27, 1997 City of Virginia Beach INTER-OFFICE CORRESPO~ENCE Ia Reply Refer To Our File No. DF4413 DATE: May 15, 1997 TO: Leslie L. Lilley DEPT: City Attorney FROM: William M. Maeali L~ DEFT: City Attorney Conditional Zoning Application - CMSS Architects The above-referenced conditional zoning application is scheduled to be heard by the City Council on May 27, 1997. I have reviewed the subject proffer agreement, dated March 25, 1997, and have determined it to be legally sufficient and in proper legal form. A copy of the agreement is attached. Please feel free to call me if you have any questions or wish to discuss this matter further. WMM/ Enclosure THIS INSTRUMENT WAS PREPARED BY THE LAW FIRM OF SHUTTLEWORTH. RULOFF & GIORDANO P C PROFFERED COVENANTS. RESTRICTIONS AND CONDITIONS THIS AGREEMENT (hereinafter as "Agreement"), made this 25th day of March. 1997 by and between CMSS ARCHITECTS, a Virginia General Partnership, owner, DAVID L. MAY. JR., contract purchaser, (the "Grantors") and the CITY OF VIRGINIA BEACH, a Municipal Corporation of the Commonwealth of Virginia (the "Grantee"). WITNESSETH: WHEREAS, Grantor is the owners of two parcels of property located in the Kempsville Borough of the City of Virginia Beach, one containing approximately two and nine tenths (2.9) acres and the other containing approximately two thousand two hundred fifty four (2,254) square feet both described in Exhibit "A" attached hereto and incorporated herein by this reference (the "Property); and, WHEREAS, the Grantor has initiated a conditional amendment to the Zoning Map of the City of Virginia Beach, Virginia by petition addressed to the Grantee so as to change the Zoning Classification of the Properties from R-10 to A-18 and B-2 to A-18 conditional; and, WHEREAS, the Grantee's policy is to provide for the orderly development of land for various purposes through zoning and other land development legislation; and, WHEREAS, the Grantor acknowledges that the competing and sometimes incompatible uses conflict and that in order to permit differing uses on and in the area of the Property and at the same time to recognize the effects of change, and the need for various types of uses, certain reasonable conditions governing the use of the Property for the protection of the community that are not generally applicable and to land similarly zoned are needed to cope with the situation to which the Grantor's rezoning application gives rise; and WHEREAS, the Grantor has voluntarily proffered, in writing, in advance of and prior to the public hearing before the Grantee, as a part of the proposed amendment to the Zoning Ma_p, in addition to the regulations provided for the A-18 Zoning District by the existing overall Zoning Ordinance, the following reasonable conditions related to the physical development, operation, and use of the Property to be adopted as a part of said amendment to the Zoning Map relative and applicable to the Property, which has a reasonable relation to the rezoning and the need for which is generated by the rezoning. NOW, THEREFORE, the Grantor, for itself, successors, personal representatives, assigns, and other successors in title or interest, voluntarily and without any requirement by or exaction from the Grantee or its governing body, hereby make the following declaration of conditions and restrictions which shall restrict and govern the physical development, operation, and use of the Property and hereby covenants and agrees that this declaration shall constitute covenants running with the Property, which shall be binding upon the Property and upon all parties and persons claiming under or through the Grantor, successors, personal representatives, assigns, and other successors in interest or title, namely: 1. The site plan entitled, "Riveranne Villa Condominiums for Riveranne, L.L.C., prepared by Copeland Engineering Consultants, P.C., 308 College Place, Norfolk, Virginia and dated December 7, 1996" (hereinafter as the "Site Plan"), Much has been presented to the Virginia Beach City Council and is on file with the Virginia Beach Department of Planning, shall be substantially adhered to so there will be a coordinated design and development of the Property. In terms of vehicular and pedestrian circulation, landscaping, the utilization of best management practices as landscape features in the construction of a condominium project containing a maximum of thirty-six (36) units. 2. The buildings of the condominium shall be constructed in substantial conformity to those elevations as shown on the drawings prepared by CMSS Architects, dated March 20, 1996 and as revised August 23, 1996, which have been presented to the Virginia Beach City Council and are on file with the Virginia Beach Department of Planning. The above conditions, having been proffered by the Grantor and allowed and accepted by the Grantee as part of the amendment to the Zoning Ordinance, shall continue in full force and effect until a subsequent amendment changes the zoning on the Property covered by such condition; provided, however, that such conditions shall continue if the subsequent amendment is part of the comprehensive implementation of a new or substantially revised Zoning Ordinance. The conditions, however, may be repealed, amended, or varied by written instrument recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, and executed by the record owner of the Property at the t~me of recordation of such instrument, provided that smd instrument is consented to by the Grantee in writing as evidenced by a certified copy of an ordinance or a resolution adopted by the governing body of the Grantee, after a public hearing before the Grantee which was advertised pursuant to the provisions of § 15.1-431 of the Code of Virginia, 1950, as amended. Said ordinance or resolution shall be recorded along w~th said instrument as conclusive evidence of such consent, and if not so recorded, said ~nstrument shall be void. The Grantor further covenants and agrees that: (a)The Zoning Administrator of the C~'ty of Virginia Beach, Virginia, shall be vested with all necessary authority, on behalf of the governing body of the City of Virginia Beach, Virginia, to administer and enforce the foregoing conditions and restrictions, including (I) to order, in writing, that any noncompliance with such conditions be remedied, and (ii) to bring legal action or suit to insure compliance with such conditions, including mandatory or prohibitory injunction, abatement, damages, or other appropriate action, suit, or proceeding; (b) the failure to meet all conditions and restrictions shall constitute cause to deny the issuance of any of the required building or occupancy permits as may be appropriate; (c) if I aggrieved by an decision of the Zoning Administrator which decision is made m respect to th~s Agreement, the provisions of the Cit~' Code, or the City Zoning Ordinance, the Grantor shall petition the governing body of the Grantee to review said decision prior to instituting a proceeding in court; and (d) the Zoning Map, as shown by an appropriate symbol on the map, the existence of conditions attaching to the zoning of the Property and copies of any ordinances and the condiuons contained in this Agreement may be made readily available and accessible for public mspecuon m the office of the Zoning Administrator and in the Planning Department and they shall be recorded in the Clerk's Office of the Circmt Court of the City of Virgima Beach, Virginia, and indexed m the names of the Grantor and the Grantee. ~VITNESS the following signatures and seals: CMSS ARCHITECTS, a Virgin' Partnership, Grantor partner DAVID COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing insmsment was acknowledged before me this 25th day of March, 1997, by John H. Crouse, general partner, on behalf of the Grantor, CMSS Architects, a Virginia General Partnership. My Commission Expires: Nota~'~/P'u~lic COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this 25th day of March, 1997, by David L. May, Jr. My Commission Expires: - 52 - Item V-M. 6. a. PUBLIC HEARING ITEM # 42176 PLANNING Upon motion by Vice Mayor Sessoms, seconded by Council Lady Strayhorn, City Council ADOPTED an Ordinance upon application of the CITY OF VIRGINIA BEACH for a Change of Zoning: ORDINANCE UPON APPLICATION OF THE CITY OF VIRGINIA BEACH FOR CHANGE S OF ZONING DISTRICT CLASSIFICATION FROM 0-2, B-2, R-lO, P-1 AND H-1 to AG-1 Z05971078 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of the City of Virginia Beach for Changes of Zoning District Classi. fication from 0-20j~ce District, B-2 Community Business District, R-10 Residential District, P-1 Preservation District and H-1 Hotel Distrtct to AG-1 Agricultural District on certain property located 2, 000 feet more or less southeast of the intersection of Princess Anne Road and Dam Neck Roads. The proposed zoning classification change to AG-1 is for agricultural land use The Comprehensive Plan recommends use of this parcel for agrtcultural use in accordance with Plan policies regarding Transitional Area I. Said parcels contain 1,112 acres. PRINCESS ANNE BOROUGH. This Ordinance shall be effective tn accordance wtth Section 107 O~ of the Zoning Ordtnance. Adopted by the Council of the Ctty of Virginia Beach, Virginia, on the Twen~-seventh of May Nineteen Hundred and NtnetF-Seven. Voting: 10-1 Council Members Voting Aye: John A. Baum, Ltnwood O. Branch, III, William W Harrison, Jr, HaroM Heischober, Barbara M. Henley, Louis R Jones, Mayor Meyera E Oberndor~, Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: Reba S. McClanan Council Members Absent: None Councilman Jones DISCLOSED, pursuant to Section 2.1-639.14(G) of the Code of Virginia, he owns property located adjacent to the Lake Ridge Property and in close proximity to the parcels on which the golf course and multi-purpose sports stadium will be constructed. His property is valued in excess of $10,000. Councilman Jones wished to disclose this tnterest and declare he was able to participate in the transaction fairly, objectively and in the public interest. Councilman Jones ' letters of March 25, 1997, and May 27, 1997, are hereby made a part of the record. May 27, 1997 - 53 - Item V-M. 6.b. PUBLIC HEARING ITEM # 42177 PLANNING Upon motion by Council Lady McClanan, seconded by Vice Mayor Sessoms, City Council ADOPTED an Ordinance upon application of the CITY OF VIRGINIA BEACH for a Conditional Use Permit. ORDINANCE UPON APPLICATION OF THE CITY OF VIRGINIA BEACH FOR A RECREATIONAL FACILITY OF AN OUTDOOR NATURE (GOLF COURSE, CLUBHOUSE AND ASSOCIATED FACILITIES) R05972115 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Or&nance upon applicatton of the City of Virginia Beach for a Conditional Use Permit for a recreational facility of an outdoor nature (golf course, clubhouse and associated factlittes) on certain property located 2500 feet more or less southwest of the tntersection of Princess Anne Road and Judicial Boulevard. Said parcel contains 310 Acres more or less. PRINCESS ANNE BOROUGH. The following conditions shah be required: A sign plan for the facility shah be presented to the Planning Director for approval prtor to any other administrative or regulatory reviews for signage Signage shall be of a high quahty design consistent with the design recommendations of the "Princess Anne Corridor Plan: Lake Ridge" . Temporary rtght and left turn lanes on Princess Anne Road are not identified on submittal plans but are required to serve as temporary access to the site. Location of temporary turn lanes wtll be determined at final stte plan review. This Ordtnance shah be effective tn accordance wtth Sectton 107 (D of the Zoning Ordinance. Adopted by the Council of the Ctty of Virgtnia Beach, Virgima, on the Twentv-seventh of May Nineteen Hundred and Ninety-Seven. Voting: 11-0 Council Members Voting Aye. John A. Baum, Linwood O. Branch, III, William W. Harrtson, Jr., Harold Heischober, Barbara M. Henley, Louis R Jones, Reba S McClanan, Mayor Meyera E. Oberndorf Nancy K Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Councd Members Absent: None Councilman Jones DISCLOSED, pursuant to Section 2.1-639.14(G) of the Code of Virginia, he owns property located adjacent to the Lake Ridge Property and tn close proximity to the parcels on which the golf course and multi-purpose sports stadium will be constructed. His property is valued in excess of $10,000. Councilman Jones wished to disclose this interest and declare he was able to participate in the transaction fairly, objectively and in the public interest. Councilman Jones 'letters of March 25, 1997, and May 27, 1997, are hereby made a part of the record. May 27, 1997 - 54- Item V-M. 6. c. PUBLIC HEARING ITEM # 42178 PLANNING The following spoke in SUPPORT of the apphcatton Nelson Adcock, 1588 Bay Point Drive, Phone: 496-3407, represented the Hampton Roads Chamber of Commerce Mtke Barrett, 1829 Eden Way, Phone: 422-1568, represented the Hampton Roads Soccer Council Upon motion by Councilman Heischober, seconded by Vice Mayor Sessoms, City Council ADOPTED an Ordtnanco upon apphcatton of the CITY OF VIRGINIA BEACH for a Condittonal Use Permtt ORDINANCE UPON APPLICATION OF THE CITY OF VIRGINIA BEACH FOR A CONDITIONAL USE PERMIT FOR A RECREATIONAL FA CILITY OF AN OUTDOOR NATURE (MUL TI-PURPOSE STADIUM & ASSOCIATED FACILITIES) R05972116 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of the Ctty of Vtrginia Beach for a Conditional Use Permtt for a recreattonal facthty of an outdoor nature for a recreattonal facihty of att outdoor nature (multi-purpose stadtum and associated facthttes) on certain property located 2000feet southeast of the tntersectton of Princess Anne and Dam Neck Roads. Said parcel contatns 153 acres more or less PRINCESS ANNE BOROUGH. The following condttton shall be requtred' A landscape and sign plan shall be submitted for approval to the Planntng Director prtor to any other required regulatory revtews Signs should be of a high quahty design consistent wtth the design recommendattons of the "Princess Anne Corrtdor Plan Lake Rtdge" This Ordinance shah be effective in accordance with Section 107 69 of the Zoning Ordinance. Adopted by the Council of the City of Virginia Beach, Virginta, on the Twen_t¥-seventh of May Nineteen Hundred and Ntnety-Seven. May 27, 1997 - 55 - Item V-M. 6. c. PUBLIC HEARING ITEM # 42178 (Continued) PLANNING Voting' 7-3 Council Members Vottng Aye. John A Baum, Ltnwood 0 Branch, III, Harold Hetschober, Louts R Jones, Mayor Meyera E Oberndorf Vtce Mayor William D Sessoms, Jr and Loutsa M Strayhorn Council Members Abstained Wilham W. Harrtson, Jr. Council Members Vottng Nay. Barbara M. Henley, Reba S. McClanan and Nancy K Parker Council Members Absent None Counctlman Harrtson ABSTAINED as his law firm represents the Hampton Roads Manners. Counctlman Jones DISCLOSED, pursuant to Sectton 2 1-639 14(G) of the Code of Vtrgtnta, he owns property located adjacent to the Lake Rtdge Property and tn close proxtmity to the parcels on whtch the golf course and multi-purpose sports stachum wtll be constructed His property ts valued tn excess orS1 O, 000 Counctlman Jones wtshed to chsclose this interest and declare he was able to partictpate tn the transaction fatrly, objectively and tn thepubhc interest CounctlmanJones' letters of March 25, 1997, and May 27, 1997, are hereby made a part of the record May 27, 1997 - 56- Item V-M. 6. d. PUBLIC HEARING ITEM # 42179 PLANNING B Y CONSENT Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED' Ordinance to AMEND and REORDAIN Section 1521 of the City Zoning Ordinance re drive-thru facilities in a portion of the RT-3 Resort Tourist Dtstrict at Arctic Avenue, Winston Salem Avenue and 4th Street, North of 35th Street (VIRGINIA BEACH BOROUGH) Voting: 11-0 (By ConsenO Council Members Voting Aye' John A Baum, Linwood O. Branch, III, Wilham W Harrison, Jr, HaroM Heischober, Barbara M Henley, Louts R Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor Wdliam D. Sessoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent: None May 27, 1997 1 REQUESTED BY COUNCILMEMBER LINWOOD O. BRANCH, III 9 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 36 37 38 AN ORDINANCE AMENDING CITY ZONING ORDINANCE REGULATIONS PERTAINING TO DRIVE-THROUGH FACILITIES IN THE RT-3 RESORT TOURIST DISTRICT SECTION AMENDED: 1521 CITY ZONING ORDINANCE SECTION BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That Section 1521 of the city Zoning Ordinance of the City of Virginia Beach, Virginia, is hereby amended and reordained to read as follows: Sec. 1521. Use regulations [RT-3 Resort Tourist District]. (a) Principal uses and structures: For parcels less than twenty thousand (20,000) square feet in size, any one (1) of the following is allowed; provided, however, that except as provided in subdivision (5.5) of subsection (c). drive-through facilities shall not be permitted -~ . ~ ...... ~ use in any portion of the district (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Auditoriums and assembly halls; Boat sales; Business studios, offices, clinics and medical laboratories; Bicycle rental establishments; Child care and child care education centers; Commercial parking lots, parking garages and storage garages; Commercial recreation facilities other than those of an outdoor nature; Dwellings, additions to single-family, duplex, semi-attached, and attached; Eating and drinking establishments, except as specified in subsection (c)(6); Financial institutions; Funeral homes; 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 6O 61 62 63 64 65 66 67 68 69 7O 71 72 (12) (13) (14) (15) (16) (17) (18) Museums and art galleries; Off-site parking facilities, provided the provisions of section 1505 are met; Personal service establishments, including barber and beauty shops, shoe repair shops, cleaning, dyeing, laundry, pressing, dressmaking, tailoring and garment repair shops with processing on the premises; Private clubs, lodges, social centers, eleemosynary establishments and athletic clubs; Public buildings and grounds; Public utilities installations and substations including offices; provided storage or maintenance facilities shall not be permitted; and provided, further, that utilities substations, other than individual transformers, shall be surrounded by a wall, solid except for entrances and exits, or by a fence with a screening hedge five (5) to six (6) feet in height; and provided also, transformer vaults for underground utilities and the like shall require only a landscaped screening hedge, solid except for access opening; Retail establishments, including the incidental manufacturing of goods for sale only at retail on the premises; retail sales and display rooms and lots, provided that yards for storage of new or used building materials or yards for any scrap or salvage operations or for storage or display of any scrap, salvage or secondhand building materials or automobile parts shall not be allowed, further provided that adult bookstores shall be prohibited from locating within five hundred (500) feet of any apartment or residential district, single- or multiple-family dwelling, church, park or school. 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 For parcels greater than twenty thousand (20,000) square feet, any of the following additional uses are allowed and may be used in combination with any of the permitted uses listed above: (19) Multifamily dwellings when developed in conjunction on the same parcel with other allowed uses where the floor area of the multifamily dwelling does not exceed seventy (70) percent of the total floor area of the entire project; (20) Motels and hotels which may have in conjunction with them any combination of restaurants, retail commercial use and convention facilities, provided that uses in conjunction with hotels and motels may not occupy more than ten (10) percent of the floor area of all structures (excluding parking) located on the lot, and provided further, that drive- through facilities shall not be permitted as a principal use in any portion of the district east of Arctic Avenue, south of Winston-Salem Avenue and 4th Street, or north of 35th Street. (b) Accessory uses and structures: Uses and structures which are customarily accessory and clearly incidental and subordinate to the principal uses and structures; provided, however, that drive- through facilities shall not be permitted as an accessory use: (1) An accessory activity operated for profit in a residential dwelling unit where there is no change in the outside appearance of the building or premises or any visible or audible evidence detectable from outside the building lot, either permanently or intermittently, of the conduct of such business except for one (1) nonilluminated identification sign not more than one (1) square foot in area mounted flat again against the residence; where no traffic is generated, including traffic by commercial delivery vehicles, by such activity in greater volumes than would normally be expected in the neighborhood, and any need for 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 parking generated by the conduct of such activity is met off the street and other than in a required front yard; where the activity is conducted on the premises which is the bona fide residence of the principal practitioner, and no person other than members of the immediate family occupying such dwelling unit is employed in the activity; where such activity is conducted only in the principal structure on the lot; where there are no sales to the general public of products or merchandise from the home; and where the activity is specifically designed or conducted to permit no more than one (1) patron, customer, or pupil to be present on the premises at any one time. The following are specifically prohibited as accessory activities: Convalescent or nursing homes, tourist homes, massage parlors, radio or television repair shops, auto repair shops, or similar establishments. (c) Conditional uses and structures: Uses and structures hereinafter specified, subject to compliance with the provisions of part C of article 2 hereof; and provided, that except as set forth in subdivision (5.5), drive-through facilities shall not be permitted as a conditional or accessory use in any portion of the district east of Arctic Avenue, south of Winston-Salem Avenue and 4th Street, or north of 35th Street: (1) Automobile and small engine repair establishments, provided that all repair work shall be performed within a building; (2) Automobile service stations; provided that, where there is an adjoining residential or apartment district without an intervening street, alley or permanent open space over twenty-five (25) feet in width and where lots separated by a district boundary have adjacent front yards, a six-foot solid fence shall separate the automobile service station use from the adjacent residential district 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 (3) (4) (5) (5.5) (6) (6.1) (7) (8) (9) (10) (11) and no ground sign shall be within fifty (50) feet of the residential or apartment district; Car wash facilities, provided that: (i) No water produced by activities on the zoning lot shall be permitted to fall upon or drain across public streets or sidewalks or adjacent properties; (ii) A minimum of three (3) off-street parking spaces for automobiles shall be provided for each car wash space within the facility; Churches; Dormitories for marine pilots; Drive-through facilities of financial institutions (i) Alcoholic beYerages ~re serYed; (iii) ~he establis~'~ent excludes persons fuel; 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 (12) Mini-warehouses, provided that the yard shall be completely enclosed except for necessary openings for ingress and egress by a fence or wall not less than six (6) feet in height; (13) Motor vehicle sales and rental, provided the minimum lot size is twenty thousand (20,000) square feet; Off-site parking facilities for uses and structures located within the RT-3 Resort Tourist District, provided the requirements of Section 203 are met; (14) Passenger transportation terminals; (15) Public utility storage or maintenance installations; (16) Radio and television broadcasting stations, cellular telephone antenna and line-of-sight relay devices; (17) Recreational and amusement facilities of an outdoor nature, which may be partially or temporarily enclosed on a seasonal basis with approval of city council, provided that, in the development of such properties, safeguards are provided to preserve and protect the existing character of adjacent properties, except that riding academies and recreational campgrounds shall not be allowed as a conditional use or otherwise. (18) Satellite wagering facility. Adopted by the City Council of the City of Virginia Beach on 27 day of May 1997. (13.5) this CA-6607 Proposed \ 45-dt. Ord R-2 May 15, 1997 -57- Item V-N. APPOINTMENTS ITEM # 42180 BY CONSENSUS, City Council RESCHEDULED the following APPOINTMENTS: COMMUNITY DEVELOPMENT CITIZENS AD VIS ORY COMMI~EE (CA C) HAMPTON ROADS PLANNING DISTRICT COMMISSION MEDICAL COLLEGE OF HAMPTON ROADS SOCIAL SER VICES BOARD TIDEWATER COMMUNITY COLLEGE BOARD TIDEWATER REGIONAL GROUP HOME COMMISSION VIRGINIA BEA CH TOWING AD VISOR Y BOARD May 27, 1997 - 58 - Item V-O. ADJOURNMENT ITEM # 42181 Mayor Meyera E. Oberndorf DECLARED the City Council Meeting ADJOURNED at 10:13 P.M. Beverly 0 Hooks, CMC/A~4E Chief Deputy City Clerk City Clerk Meyera E. Oberndorf Mayor City of Virginia Beach Virginta May 27, 1997