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Home My WebLink AboutJANUARY 12, 2016 WORKSHOP MINUTES CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" �N�n•a�gc CITY COUNCIL ok MAYOR WILLIAM D.SESSOMS,JR.,At-Large VICE MAYOR LOUIS R.JONES,Bayside-District 4 r M.BENJAMIN DAVENPORT—At barge s "1 : ROBERT M.DYER,Centerville-District 1 BARBARA M.HENLEY,Princess Anne- District 7 °F OUP %NAT'''S SHANNON DS KANE,Rose Hall District 3 JOHN D.MOSS,At-Large AMELIA N.ROSS-HAMMOND,Kempsville-District 2 JOHN E. UHRIN,Beach District 6 ROSEMARY WILSON,At-Large JAMES L.WOOD,I ynnhaven-District 5 CITY HALL BUILDING 2401 COURTHOUSE DRIVE CITY COUNCIL APPOINTEES VIRGINIA BEACH, VIRGINIA 23456-8005 CITY MANAGER-JAMES K.SPORE PHONE:(757)385-4303 CITY ATTORNEY- MARK D.STILES FAX(757)385-5669 CITY ASSESSOR-JERALD D.BANAGAN E-MAIL:clycncl@vbgov.com CITY AUDITOR- LYNDON S.REMIAS CITY CLERK- RUTH HODGES FRASER,MMC CITY COUNCIL WORKSHOP AGENDA 12 January 2016 VICE MAYOR LOUIS R. JONES PRESIDING I. CITY COUNCIL BRIEFING - Conference Room - 4:00 PM A. 2040 VISION TO ACTION COMMUNITY COALITION—Annual Update Peggy Layne, Chair Joe Voorhees, Vice Chair II. CITY MANAGER'S BRIEFINGS A. BURTON STATION FIRE and RESCUE STATION Chief Steven Cover, Fire Department B. TOURISM DEVELOPMENT FINANCING PROGRAM Douglas Smith, Acting City Manager Patti Phillips, Director- Finance ♦r�u+•B�t�Z Ste` �e cy� dts O,ry Oufl Noo VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia January 12, 2016 Acting Mayor Louis R. Jones called to order the CITY COUNCIL'S WORKSHOP in the City Council Conference Room, Tuesday, January 12, 2016, at 4:00 P.M. Council Members Present: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Acting Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, Amelia N. Ross-Hammond, John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Absent: Mayor William D. Sessoms,Jr. Out of town with Family -2- CITY COUNCIL'S BRIEFING 2040 VISION TO ACTION COMMUNITY COALITION— ANNUAL UPDATE 4:00 P.M. Acting Mayor Jones welcomed Peggy Layne, Chair and Joe Voorhees, Vice-Chair of the 2040 Vision to Action Community Coalition. Ms. Layne expressed her appreciation to City Council for their continued support of the Envision 2040's Committee. The 2040 Vision was the end-result of an 18-month process by the team initially charged with the Mission to create a Vision compelling, yet realistic that people would support and embrace. The original Report was endorsed by the City Council June 12, 2012: 2040 Vision to Action Community Coalition "The future of Virginia Beach in our region" VI�EACH"#, Virginia Beach City Council Update January 12,2016 www.vhaov.con,envs�onvbzoao The Vision to Action Community Coalition was formed in October 2012 in order to monitor/measure the planning and implementation of the Report. Also, the Coalition was to communicate the Vision with Regional bodies, delegations and community groups. The coalition, in conjunction with the City's media department, created a logo and a brief video which was presented: Vision to Action Community Coalition Communicate i i Education&Engagement Evaluation of Policies, Plans,and Decisions Educate January 12, 2016 -3- CITY COUNCIL'S BRIEFING 2040 VISION TO ACTION COMMUNITY COALITION— ANNUAL UPDATE (Continued) Mr. Voorhees advised the Members adopted these Elements to take the Vision to Reality: From Vision to Reality Georgia Cheryl Allen Dm,. uaaa. Snowden cm..aarn es.nosw•ar Dan Cindy Edwards cowl-":10 Ly�y�g';`, Arocho V15104, Martha Most Livable Kyle cosserrN coastal community Ta•ir%wp McClees �° ,„a;, m the world... a oa Z., Korte Vision kilo E OPP5 Illi Thinsperieden Illi cy ORWs Itoslonollosi 1411 lY JYJ ii• -1f ASSETS The Coalition has several resources, including "The Strategic Plan to Achieve City Council's Vision”. This document is published early each year, after the Council's Retreat and outlines the City's three (3) year plan. Ms. Layne advised when reviewing this document she was surprised to discover there are two (2) Visions: the Envision Virginia Beach 2040 and City Council's Vision 2029 (in January 2015). Essentially, the City has "double vision"but how different are the Visions: AW S A , , . , • 200 Virgin/a Beach-A Community fo r , 3 ...leading City in a commun 'awe+ div °. � # tr: ..gyp q di44ti,.. effe r`'-,` x . - , 44... 4 '''':irr:r l''''''' 4( 1 ...beautift mai ,., ...a firs s . ' „„a x our people Hy* ,,' , ` �andptvsptr. great sch cont1. ".: places to January 12, 2016 -4- CITY COUNCIL'S BRIEFING 2040 VISION TO ACTION COMMUNITY COALITION— ANNUAL UPDATE (Continued) Below is the comparison of the two (2) Visions: Let's compare... Bold Step: Regionalism As the largest city in the ...leading City in Virginia Commonwealth,Virginia Beach a community with should take a leadership role. diverse,distinctive neighborhoods diverse local economy Canoe MA Learning diverse living choices,and Co try Commnnj effective transportation system _ ...beautiful natural setting and resources cnpne Dome Enriroamcnt Commonly ...a first class resort and vibrant Town Center ...our people enjoy """e Thriving Li/evyfe Economy great schools and places to have fun City Council's Vision Vision 2040 Virginia Beach-A Community for a Most livable coastal community in the lifetime world... The Coalition suggests and requests the Envision 2040 be THE Vision for Virginia Beach. They feel with one single Vision, the outreach message will be clear, concise and aligned with City Council's Strategic Plans for the City's future: Virginia Beach Vision 2040 Dino, C'net ae Co..aniiy Environment Learning 'team Comm ay L,Jevyle VIS%O4 Most Livable Connected Coastal Community Thriving Con.unfry in the world... Economy VNNn MIN Miler Ey {I�rnansperrlln, IliiDoty Childhood Ilitleallen N,c6, c� ,I fli TJC/fdiltitat-14 ASSETS Acting Mayor Jones thanked Ms. Layne, Mr. Voorhees and the entire Committee for their hard work. January 12, 2016 -5- CITY MANAGER'S BRIEFINGS BURTON STATION FIRE and RESCUE STATION 4:30 P.M. Acting Mayor Jones welcomed Steve Cover, Chief— Fire Department. Chief Cover expressed his appreciation to City Council for their continued support: Diamond Springs/Burton Station Fire and EMS Station Below is the background relating to the Facilities Study: Background - Facilities Study ► A comprehensive study in 2001 identified 8 large sections of the City located more than 4 minutes of travel time from a fire station ► Study recommended relocating 4 aging facilities or adding 4 new ones to fill the gaps ► As a result of this research, 3 stations have been relocated over the past decade (First Landing, Town Center, Chesapeake Beach) January 12, 2016 -6- CITY MANAGER'S BRIEFINGS BURTON STATION FIRE and RESCUE STATION (Continued) The current and significant coverage gaps were identified in the 2001 Study Area and also noted to be outside CFAI(accreditation) Standard of Cover recommendations of 6:20 total response time: • y1. a /***-i!.. .i �� r �t tip•. •• • 1 . P°' • yd J w T Y /7 .1L �+ • �.•' as,:.- ski i �. �,'� -� i• 3 I • ,,,7-4,440-,,„„,'"M C te" x •r -•• to ^ '1;').44.;I:..4 7- s January 12, 2016 1 -7- CITY MANAGER'S BRIEFINGS BURTON STATION FIRE and RESCUE STATION (Continued) This map depicts a five(5)minute response time from this location: � qtr } F t ' F ., Ilwit7*,,,,,,V°" 044 0 s_ 7yn. — This map depicts a five (5)minute response time from the Burton Station Fire Station: 1_,,,,,z4goir . ... fiyr :, t - '�� T iJ 'el :'a, •~ - it--- - I • ♦ - 6 January 12, 2016 -8- CITY MANAGER'S BRIEFINGS BURTON STATION FIRE and RESCUE STATION (Continued) As everyone knows, time is of the essence and five (5) minutes is key to provide assistance. After five minutes the chance of survival is reduced greatly: Why an Engine, Ladders Ambulance FIRE DIAMO4ND THEORY Ladder Engine operations operations With adequate apparatus and staffing to perform both Fire Suppression and Rescue operations as well as medical care,these tasks can be accomplished within 5 minutes of arrival, increasing the survivability profile of occupants and reducing the inherent danger to firefighters. On December 24, 2015, the department responded to a fire and, unfortunately, the first arriving Engine arrived 6:34 after going reroute, which is 2:34 outside the Standard of Cover for travel time: ','71,1":0176"7.1e :"ItS December 24, 2015 t t Interior fire damage done to a single family residential home. January 12, 2016 -9- CITY MANAGER'S BRIEFINGS BURTON STATION FIRE and RESCUE STATION (Continued) Chief Edwards advised the enhancement below is being proposed. The foot print of the station would be comparable to other projects intended to support thirty(30)firefighters and two (2) to five (5)EMS personnel: Proposed Enhancement ► Construct a new Fire and EMS Station ► Staff and deploy a Fire Department engine and ladder company ► Staff and deploy an EMS Department ambulance ► Consider relocation of EMS specialty apparatus, particularly those designated for regional response (i.e. EMS Mass Casualty Truck) Regional Benefits ► Improved Fire automatic aid capacity to support the City of Norfolk, Norfolk International Airport and Joint Expeditionary Base Little Creek ► More optimal location for EMS mass casualty resources designated as a regional response asset, especially proximity to the airport ,0 January 12, 2016 -10- CITY MANAGER'S BRIEFINGS BURTON STATION FIRE and RESCUE STATION (Continued) OP FY 17-22 Diamond Springs/ Burton Station Fire&EMS Station • Total square footage required is approximately 14,260 Building would house 10 firefighters and up to 5 EMS personnel daily. • This would be a 3 to 4 bay station • 30 firefighters,six of which would be Fire Captains,would be approximately$1,861,650 per year in salaries/benefits. A new Fire Engine$550,000 and a new ladder is$1,200,000. PPE,radios,and other equipment are also necessary at an approximate cost of$7,000 each FF. • 12 EMS Paramedics would be approximately$825,000 per year in base salaries/benefits.Initial outfitting would be approximately$6,000 per medic.A fully equipped ambulance will cost up to$350,000. However,EMS intends to request a volunteer rescue squad relocate an existing vehicle. In the last ten (10)years there have been several fire fatalities in this area which potentially could have been adverted with the addition of the Burton Station Fire Station: Summary ► The Burton Station/Diamond Springs area experiences a high volume of Fire and EMS calls. However, this high demand area lies outside the optimal travel distance from existing stations. ► A new Fire and EMS Station, built in conjunction with the SGA growth, will address current gaps and provide capacity far into the future. 12 Acting Mayor Jones thanked Chief Cover, Chief Edwards and the entire team for their continued work on this Project. January 12, 2016 -11- CITY MANAGER'S BRIEFINGS TOURISM DEVELOPMENT FINANCING PROGRAM 4:49 P.M. Acting Mayor Jones welcomed Patti Phillips, Director — Finance. Ms. Phillips expressed her appreciation to City Council for their continued support and advised today's presentation is to review the Hyatt House Hotel at 27`x'Street: ii , fix. •x 4 :r1 .. .i it I s ai•,r i,itU ......�i' `;,. 6 44 X1.4 oi:4, HYATT HOUSE HOTEL 27T" STREET TOURISM DEVELOPMENT FINANCING PROGRAM Below is an overview of the Tourism Development Financing Program and governed and authorized by State Code Sections 58.1-3851.1 and 58.1-3851.2: Tourism Development Financing Program • Represents a mechanism whereby Virginia localities can provide project generated sales tax remittances for private sector debt service to close a project's financial gap provided project meets statutory requirements. • Ensures project fills tourism void. • Creates partnership between developers, localities, and the state. January 12, 2016 -12- CITY MANAGER'S BRIEFINGS TOURISM DEVELOPMENT FINANCING PROGRAM (Continued) Below is the Policy and Amendment the City Council adopted: Council Adopted Policy and Amendment • Originally Adopted March 13, • Amended on November 17,2015 for projects 2012 for Projects with a Funding with a funding gap between 20%and 30%: Gap of 20% Project Requirements: ✓ Capital investment>$30 million - Retains previously-approved requirements,and meets • taxable sales>$I million some/all of the following: • Increases year-round employment Capital investment above$50 million; Fills a tourism void Creates a minimum of 50 full-time equivalent jobs Located in the tourism zone Redevelops an existing building or facility;and Proven private financing gap Is a premium flag or fills a brand gap. • Avoids additional public investment Four(4)projects have been approved State-Wide: State-Wide Approved Tourism Development Financing Projects • Virginia Beach: Cavalier Hotel @ $145 million • Fredericksburg: Hyatt Place @ $13 million • Newport News: City Center (retail and restaurants) @ $22 million • Norfolk: Hilton Hotel ("The Main") @ $77 million January 12, 2016 -13- CITY MANAGER'S BRIEFINGS TOURISM DEVELOPMENT FINANCING PROGRAM (Continued) Below is the information regarding the 27`"Street Project: Application of 27th Street Project for 30% gap (Phase I) i' 156 Room Hyatt House,debuting that brand to our market 19,000 square feet of retail/restaurants on Atlantic Avenue • 8,000 square feet of retail/restaurants on Pacific Avenue • 448 space garage on Pacific Avenue • Total private investment of$79.6 million • Demolished three hotels(Seagull,Sunshine,Seaside)and a Dairy Queen(145 rooms) Y Phase II to be determined but may consist of an additional 150-175 room Hyatt hotel GAP= $23 million City Share= $7 million (plus interest) Below are renderings of the proposed project: .cam k • c.: mei r , January 12, 2016 1 -14- CITY MANA 'S BRIEFINGS TOURISMDEVELOPMENTGERFINANCING PROGRAM (Continued) l' � r . .�. '. � x ar, ,----,,,-,:',.:,,,-.."....—f.wrv,.ir:,toiqmt.kfi,_ •.Tikr 4.-_,. .'•.- ,-,,,,..,.,,,„,...,,,,,„,,„,,,,,,.!„..,,,„1,..*Iii J .'.,..„.k...._4,,,,e4,4,4,..t.tei.-.,-,--i.:.-„iii..,L.341,.., , tanf. .------ . : t. • ' 0 ,„ .,-,'„. 4. ...-...,_.... . . ... ...... ... ., k. ,� ✓..,.....,„,,:.,..'4i: , ,. _, 1 • • rg "; SITE -LAN DESIGN CUNCE ET Below is the proposed site layout: - r '''• ' , ....-- • :. . Mod f"Zi 1 1 '-' - . ----- -- - til ti - ii ... � ' ``'� K r , ..t r ,tr .9Y . .,;;;,a;...,„•:-.F January 12, 2016 -15- CITY MANAGER'S BRIEFINGS TOURISM DEVELOPMENT FINANCING PROGRAM (Continued) Below are the benefits of the proposed project: Project Benefits • Brings Hyatt Flag to our market, which will induce some visitation through loyalty-reward programs (world-wide reservation system). • Adds to supply of high quality brands in the middle of the resort; benefit also to conventions. • Creates 210 (estimated) full-time jobs and additional seasonal jobs. • Garage will supply some public parking. Below is the estimated fiscal impact of Phase I: Estimated Fiscal Impacts of Phase I (in millions) 30 Years Simple NPV C Developer C Developer Net Fiscal Impact $72.4 $92.4 $36.5 $46.5 (before 1%Remittance of Sales Tax) 1%General Sales Tax (9.1) (13.1) (4.8) (7.0) Net Fiscal Impact $63.3 $79.3 $31.7 $39.5 30%gap:1%local sales tax,1%state sales tax, plus 1%developer access fee City share is 1/3 of$23 million or$7 million Local share ends after 30 years January 12, 2016 -16- CITY MANAGER'S BRIEFINGS TOURISM DEVELOPMENT FINANCING PROGRAM (Continued) Below is a review of the Tourism Development Financing Program: Review for Tourism Development Financing Program 1. Investment over $50 million 2. Sales over $1 million annually 3. Increase year round employment 4. Fill a void in City Resort Area Action Plan 5. In Tourism Zone 6. Creates more than 50 FTE jobs 7. Premium flag— fills a brand gap 8. Redevelops or replaces older facilities Below is the staff's due diligence in preparing the analysis: Due Diligence 1.Staff prepared Fiscal impact analysis: — Consultation briefly with CSL for spending benchmarks — Used comparable data available city wide 2.Dr.Larry Filer an Economist at ODU reviewed for reasonableness and confirmation of gap: — Reviewed developer's confidential proforma — Conference calls with: bankers — Conference calls with: Hyatt Place and Hyatt House Mid- Atlantic and Northeast,Vice President of Real Estate and Development — Conference calls with Crestline Hotels and Resorts operator January 12, 2016 -17- CITY MANAGER'S BRIEFINGS TOURISM DEVELOPMENT FINANCING PROGRAM (Continued) Below is the process and next steps should City Council wish to move forward: Process and Next Steps • Briefing to the Virginia Beach Development Authority-January 19 • City Council Ordinance to endorse the project and express its willingness to provide the local 1%sales tax generated by the project-January 19 • If approved by City Council,the staff will forward the project application to the Virginia Tourism Corporation for its approval and review by the State Comptroller. • If approved by the City Council and the VBDA,the Developer,City and VBDA will enter into a Performance Agreement as required by State Statute. Acting Mayor Jones thanked Ms. Phillips for this information. January 12, 2016 -18- ADJOURNMENT Acting Mayor Louis R.Jones DECLARED the City Council Meeting ADJOURNED at 5:31 P.M. //Lai .,_/, Amanda Fin ey- acnes,M Chief Deputy City Clerk eii.. .�►�_- Ruth Hodges Fraser, MMC City Clerk January 12, 2016