HomeMy WebLinkAbout8-14-2018 WORKSHOP / SPECIAL FORMAL SESSION MINUTES .„.
4.,„„,,,t,.,
; 52.,,,
ute„,„,
5,
4 ei
`` ut X n Av:;.3
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
August 14, 2018
Mayor Louis R. Jones called to order the JOINT CITY COUNCIL/DEVELOPMENT AUTHORITY
BOARD BRIEFINGS, in Building 19, Tuesday,August 14, 2018, at 3:30 P.M
Council Members Present:
Jessica P. Abbott, M. Benjamin Davenport, Robert M Dyer, Barbara
M. Henley, Mayor Louis R. Jones, Shannon DS Kane, John D. Moss,
John E. Uhrin, Rosemary Wilson, and Vice Mayor James L. Wood
Council Members Absent:
None
Development Authority Board Members Present:
Linwood Branch III, Jerrold Miller, Peter Mueller, Lisa Murphy,
Vice Chair Charles Salle,Joseph Strange, and Chair Dorothy Wood
Development Authority Board Members Absent:
David Bernd, Bryan Cuffee, Michael Levinson, and Stephen McNulty
2
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT UPDATE
ITEM#68385
3:38 P.M.
Mayor Jones welcomed Ronald H. Williams, Jr., Deputy City Manager. Mr. Williams expressed his
appreciation to the City Council and Development Authority for their continued support:
c7Yy of
Virginia Beach
DOME SITE DEVELOPMENT
Joint City Council&Virginia Beach Development Authority Meeting
INFORMATIONAL BRIEFING
August 14,2018
•
Here is an Overview of the Request for Letter of Qualifications with specific criteria defined:
Request for Letter of Qualifications
February 8, 201 7
Responders were encouraged to demonstrate their ability to
transform this site into a family-friendly unique multi-use
destination to include features such as:
• Multi-block mixed use development
• Entertainment concepts
• Minimum 3,500 seat live entertainment performance venue
• Unique or new to market retail
• Unique or new to market authentic restaurants
• Residential but not as a primary use
• Year-round programming attractive to both locals and tourists
August 14, 2018
3
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT UPDATE
ITEM#68385
(Continued)
Here is the timeline of the Dome Site Selection Process:
Dome Site Selection Process
Here is an Overview of the four(4)completed Feasibility Studies:
Exclusive Dealing Period Feasibility Studies
During the Exclusive Dealing Period,Venture and the Authority,determined
that equally sharing the expenses for studies and analyses was necessary
to evaluate the proper scope and form of development
1. Entertainment Feasibility Study
Validate market demand and affirm recommendations for size of venue
2. Retail Feasibility Study
Validate market demand and affirm recommendations for retail mix
3. Overall Economic Impact Analysis
Forecast overall economic impact of entire mixed use development
4. Parking Feasibility Study
Validate parking demand and recommend total#of spaces
August 14, 2018
4
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT UPDATE
ITEM#68385
(Continued)
Here is Today's Agenda:
Today's Agenda
A. Dome Project Update
B. "The Wave"Developer Project Overview—Mike Culpepper,Venture Realty Group
C. Entertainment Venue Feasibility Study —David Stone,Stone Planning
D. Retail Potential and Merchandising Study—Nick Egelanian,SiteWorks
E. Economic Impact Assessment—Paul Lambert,Lambert Advisory
F. Parking Demand Analysis—Andy Hill,Desman
G. Closed Session
Mayor Jones expressed his appreciation to Mr. Williams for this presentation.
August 14, 2018
5
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
3:42 P.M.
Mayor Jones welcomed Michael Culpepper, Managing Partner— Venture Realty Group. Mr. Culpepper
expressed his appreciation to the City Council and Development Authority for their support:
DESIGNING THE 'W'AVE=
A Vision to Transform the Virginia Beach Oceanfront
P
. +• 4P-1.-
' `
--rz •-"- _� .-r `
.
\ rte '/ yfa
-4IP - �.
}
t
DOME SITE
VIRGINIA BEACH,VA
The next three(3)slides is the timeline from 1985 to present showing the various projects and proposals
for the Dome Site:
WHEREWE STARTED
1985—Tidewater Regional Transit proposed developing an$11 million transit center at the Dome(City Council rejected)
1990—Proposal for Dome and all surrounding land to be turned into a commercial entertainment center with public plaza
1991—City hires Basile,Baumann and Assoc.($70,000)to recommend use;they proposed mixed-use with a planetarium
1991—ODU studies Dome site,concludes: "DO SOMETHING! NOW!THE DOME HAS BEEN STUDIED TO DEATH"
1993—Proposal for Dixie Stampede,Civil War themed dinner-theater operation
1994--Dixie Stampede proposal abandoned after opposition from civic leaders
1994—'The Dome"is demolished
1995—Resort Advisory Commission suggests building an amusement park or playground as temporary attraction until
decision for development is made
1996—Ellis Gibson/CRES present Atlantic Walk"plan,including mixed-use entertainment and retail district
1998—Harvard Study released,describing the Dome Site as"jewel of the Oceanfront";Beach leaders suggest shopping and
entertainment center
2000—Pavilion Steering Committee assembled,engages PriceWaterhouse Coopers study to consider developing Convention
Center at Dome
August 14, 2018
6
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
2002—City hires Skidmore Owings&Merrill to design new Convention Center;City considers Dome site
2006—Sun Rise Development Co.Ltd.proposal for hotels,condos,medical center,retail&shopping center,and fitness center
2006—Proposal for indoor/outdoor wave pool,multiplex,indoor wind tunnel,rock climbing wall,and live theater venue
2007—VBDA seeks additional plans to develop Dome Site,including Wave Loche,Armada Hoffler,Live Nation,Select Contracts
(Dubai)for an indoor ski resort and Jenkins
2008—Leisure and Recreation Concepts Inc.(Jenkins)is selected to develop Dome Site into a mixed-use entertainment center
2008—City hires Sasaki Associates Inc.to master-plan Oceanfront and Dome site
2012—Michael Jenkins abandons the project
2013—RFP for the Dome Site
2014—Negotiations with The Peterson Cos.begin
2015—The Peterson Cos.unveils plans for"VA ViBE"including a luxury movie theater,upscale bowling alley,restaurants and
shops
2016—The Peterson Cos.abandons the project
2017—RFQ for the Dome Site
WHERE WE STARTED
r
II /� 7.. ,..
�r. SINCE 1994:
44 : 3+ ' t • 3 MAYORS
'' 1�.` ? • 5 VICE-MAYORS
— - s , t ' '*2 - ; ' • 36 MEMBERS OF CITY COUNCIL
k_`•41G: ,�, ` II �- ' • 10+DOME PLANS
t - • 10+DOME STUDIES
'� • 0 PROJECTS
:ter ■.. �
OavEO BolingswwM-iAe Vrginu�pbt
August 14, 2018
7
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
Here is an excerpt from the Public Notice Multi-Venue Entertainment Development Solicitation Request
for Qualification: (RFQ):
WHEREWE STARTED
PUBLIC NOTICE
MULTI-VENUE ENTERTAINMENT DEVELOPMENT
SOLICITATION RFQ NO. 1-2017
• Multi-block mixed use development
sec nos:f-onrccmE: • Entertainment concepts
The cr y of Vrpuua beach Des clop ent Authority(VEDA)is aawnng this Request for a Lena of
Quahficanom IRFQI for development of a 10 35 me the in 6e middle of the Clp's resort area
The property x„formerly the ane of the Vxpo.Eenah Dome(Cm,mnon c ental and remain, • Minimum 3,500 seat live entertainment
known as the Dame me.nes though the(-m has tinted tb<tate m prepaarbn for performance venue
redo ekpsrenl uhlch rs We subject of this RFQ The VEDA sacks a'nom lcdpeabkespene rod.
gmhted and capable developer with a anon¢cohnne annual and menial dn<lopment team
exile arced m 0nuple5 uWn-cents urban de.elapoem projects to denp..des elopmanage and • Unique or new to market retail
000,0000 ell farm of this motet The C in of Vtresua Beach Key,has as,anbled duet blocks of
pspavtwtelc 3 2 acre,each of pante devdo¢sent property bombed by Patine Avenue to the
east and Baltic Ancone to the nen bernem Is and Sme<ts x orh an ad hnoml 0 ft one.,on • Unique or new to market authentic restaurants
an adjacent parcel at the corner of Iia Sneer and Arctic Meath(total 10 35 acre:ace aerial at
end of RFQI.The\"BDA de.s,,deekpment of than site as a fouls fnendiy unique mule-roue
denmanon 010 redo ehynsot that amens reudan,and visnon and supports growth of the • Residential but not as a primary use
Cm's oomeotaoo Inkiness Pumpfocus should he on a muumuu 3.5ht bin not Areata than
4 000 seal hoe emenaumunt sews.mph mans emenamonent.nab a mum of retail and restaurant • Year-round programming attractive to both locals
components,ear nenad propen mus.and a pnkme structure m sansfv the parking requarmans
of me dnelopnnm and punkt use parkiop spaces The promo Mould complement the mon and tourists
acne lrfesnie,support columned praxth of the surrounding VOBe Creams Diatnct.be
animated unit the aunombmp cowunmit).and preside an active and amacuse weetscape The
Vsfsn a Beach Desekpueot AMWron01(\TSDAI nnends TO(VC Into an ecclusne uewturron
pared 010 a elated deselopa on accordance AM the terms descnbed m Semen 3
Here are the various and evolving conceptual designs of"The Wave fe:
WHERE WE STARTED
611,:+�Y�# 0,E.. �t`'`iso• f` til ,c:
• .b
- v�'`♦ : .w'w +fir --�
•
•
gym .+ �✓
August 14, 2018
8
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
" 'HERE WE STARTED
4
--- ' tv.7...............: _ „„.
....,
, „.............., s ___,
...".• _ _.,...,_
.... , .., , , ..___Th _ ......„
__
_.. .
, ,, _ .,,,,,,, ,
r--
, .
_ _
i ; _...,
_ ...._,,,, ,, ______,,
1
HOW WE EVOLVED
NM tli.
prair,
eft . ', **4 ' s 4 � " � $41411r-
rAht
August 14, 2018
9
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
Public Engagement included the "Chart The Future"online survey resulting in 2,500 responders and
over 1,400 written comments:
WE LISTENED
PUBLIC ENGAGEMENT
• OVER 25 PUBLIC/CIVIC EVENTS
• OVER 2.500 SURVEY RESPONDERS
• OVER 1.400 WRITTEN COMMENTS
• INTERNATIONAL MEDIA AND SOCIAL ENGAGEMENT
111 /ou
DOME
SITE •- •
1 PROJE � i n
Here is a summary of the survey results:
���OE LISTENED
MUSIC EVENTS
91% MUSIC VENUE INTEGRATED PARKING GARAGES
° 85%
85/0
SURF EVENTS , -^ ' ....._._..._._... _ _
81°/O .' EXPERIENTIAL RETAIL
SURF PARK
Warn '-
EVENT SPACES PARKING WITHIN ONE BLOCK
87% it ' it 84°�- ` `.
° :'� °
August 14, 2018
10
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
Here are some of the comments received regarding proposed retail:
WE READ THE COMMENTS
-.. .....1ir,„imiland
•
i',1.3,-,,
RE '�� ../ "Retail here needs to be unique.Please no more souvenir
LLJJ ` r$ r I shops or national chains."
HERMIT `�, „• I
ERA �� ��t '4
"Avoid cheesy tourist shops(t-shirts,henna tattoos,ice� r . pi
cream,candy-no thanksl)"
.3 "A mix of both local arts and higher-end chains.Not
R ,` tourist t-shirt shops.We have enough hermit crab
e- r4,� �)�'r. - -
A sales."
I II k`
I 1r •
R' , "Please not just another cheap beach store like
most of what is on the strip."
mat..
As a result of the comments received, the proposed project was modified. Here is an Overview of the
additions and/or modifications of the project:
WE RESPONDED
IINTEGRATED PARKING PARKING EAST OF PACIFIC
771,
li
POr 1
�,TIAALL IRETP C ,
l=_.
J_ � .3.• ,. -
,�,
• •
•a '; E L =EADY SURF PARK
C i wv _ r,
l '
I� GREEN/PUBLIC EVENT SPACE
7.-
,, ...,...,.....,..,.„ r.. „.. r ,.......-,,
L: ,........ ,. .,„..,...„..., , ._... ....,
ENHANCED ENTERTAINMENT VENUE
August 14, 2018
11
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
Here is an Overview of the studies conducted:
WE STUDIED
ENTERTAINMENT VENUE ,,u:
FEASIBILITY STUDY Neg•algaeS
Displacement&Economic Impact Assessment STONE
The Wave In Context of Oceanfront Resort District
Virginia Beach
�1IfAV C RETAIL POTENTIAL
G AND MERCHANDISING STUDY
CARDEM SITEWORKS Office&Residential Assessment
Wavegarden Virginia Beach - - The Wave
_co c sic FeasVirginia Beach
DESMAN I DESIGN MANAGEMENT
VIRGINIA BEACH DOME SITE
CURRENT TRENDS IN PARKING STRUCTURE CONSTRUCTION COSTS
Here are the Two Fundamental Issues:
�Y.l`I�E ANALYZED COST
TWO FUNDAMENTAL ISSUES
To achieve DESIRED PROJECT ELEMENTS and MASS,we must go VERTICAL
PARKING To go VERTICAL,we must INTEGRATE PARKING to STACK USES.
CHALLENGE: How do we INTEGRATE PARKING at an AFFORDABLE COST?
DESIGN To TRANSFORM the Oceanfront,we need to ELEVATE the level of QUALITY.
To elevate quality,we need to invest in DESIGN.
CHALLENGE: How do we ELEVATE level of QUALITY at an AFFORDABLE COST?
August 14, 2018
12
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
Here are the Advantages and Disadvantages of Free-Standing Deck parking garages:
WE ANALYZED COST
FREE-STANDING DECK
- 7 .%,
"vE`
- z------...r.----: ,::Alai V - filf074,± ..,0°._,. ---
ADVANTAGES DISADVANTAGES
• LESS COST PER SPACE • CANNOT SUPPORT VERTICAL CONSTRUCTION
• INEFFICIENT USE OF SPACE(LIMITS SCALE OF
RETAIL DUE TO STRUCTURAL SHEAR WALLS)
• OFTEN UNSIGHTLY
Here are the Advantages and Disadvantages of Mixed-Use Deck parking garages:
WE ANALYZED COST
` AN
1 °"°°.....„,_ MIXED-USE DECK
0.0 `= % i., I > ADVANTAGES
""..":: .� • SUPPORTS VERTICAL CONSTRUCTION
-- �--
��� ' ``� : � ECONOMICAL USE OF SPACE
ilIM �� • ALLOWS LARGE AREAS FOR RETAIL ANCHORS
I �_ i� • PROVIDES SAFE PARKING"INTERNAL"TO
•',"N. BUILDING
_ •
ri1It1 1 • LESS COST-EFFECTIVE
.1 '�' 7I
�Oc
August 14, 2018
13
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
Here are the Advantages and Disadvantages of Current Level Design:
WE ANALYZED COST
tT- 000 CURRENT LEVEL OF DESIGN
t .-
-1 r
.111
ADVANTAGES
°! COST-EFFECTIVE
11111 DISADVANTAGES
■ • DOES NOT ALLOW LARGE ANCHOR USERS
'" • PROMOTES SOUVENIR SHOPS
ri li .. IN i; • OFTEN WOOD-FRAMED(LESS RESILIENT TO STORMS)
iigrf J 1 . r LIMITED HEIGHT
Here are the Advantages and Disadvantages of Proposed Level of Design:
WE ANALYZED COST
WI . i; ,4.1. t tt 114 •
' ( PROPOSED LEVEL OF DESIGN
-
'71 10
I
1 tl '(1�,
WWIW '33^' - 1'• i ta` • TRANSFORMS PERCEPTION ADVANTAGES RESORT AREA
�{ ..� . _ • ATTRACTIVE TO OUT-OF-MARKET BUSINESSES
I .,. V- • "RAISES BAR"FOR FUTURE DEVELOPMENT
„ „1 �+„•.._' • STEEL/CONCRETE CONSTRUCTION MORE
RESILIENT TO STORMS
..
I-- DISADVANTAGES
.—� ____ VI' a, - •• 411,,h„}.. `,' ADDITIONAL COST
"
_
August 14, 2018
14
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
Chad Oppenheim is one of the architects consulted who provided inspiration images for the project:
WE WERE INSPIRED
�� `r �1.. fir..
'ac _ �� b '00;.-I!..
•
Al ` " """'llOPPENHEIM
• ---; ARCHITECTURE
:-.,... --
Inspirational Immo Only
Here are examples of Experiential Retail concepts analyzed that provide an engaging experience and
attract people to come to other retail shops nearby:
WE ANALYZED CONCEPTS
,
CASE STUDY: EXPERIENTIAL RETAIL
t To secure large,experiential retail like Notional Geographic:Ultimate
, � - r` .` Explorer,we need SPACE,MASS and CONVENIENT PARKING.
,, 0 -- 1 SPACE: Nat Geo needs 35,000 sf with clear,open bays.
. 3,l
MASS: Users like Nat Geo need a critical mass of ticketed attractions
and retail to promote synergy.
ilia
il 1 .; CONVENIENT PARKING: All retailers need convenient parking. When
, f •45I the success of the retailer depends on recruiting several hundred
..i 0' 'f!- thousand patrons in all-weather,the need is greater.
It Alote,
EACH OF THESE NEEDS COMPETE FOR SPACE.
a) -4 RETAIL STRUGGLES WHEN THESE THREE ELEMENTS ARE ABSENT.
August 14, 2018
15
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
NJ`-�E ANALYZED CONCEPTS
iim
iS
alft
: +J.V. i , `, 1PYS'FNF MIDGE'
e Y ' ORANGE COUNTY,°Ulf ONNIA
. ,.
I r, - �z .,
. , I i
NATNSNAL GEOGRAPHIC ULTIMATE EXPLORER SURMOS VIRTUAL REAMY MGM
SHENYANG,MN. TORRANC{CALNORNIA
WE ANALYZED CONCEPTS
,1, , i..tl;.s. , , . .. tr.. :I::.:i.1,::.i.',..i.oiji:3".... „xi.�` 1
x
� + i —RSI-
i • y ' lJ
' 4.
=- - • Vin, . r
Mil
OMOOUS.OME/'OUS LIMOR
Tom."
TEXASrt E /ROOKIE.,NEW YORK MCO RIVERA,CAUPDRNLA
August 14, 2018
16
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
WE ANALYZED CONCEPTS
---4 4t: ...g. 4I:* ,. . 1411 Li ir------.• . .• i4.-. ' 7,3.17iimum1111:: lit%,'1-;-5:....-yop.. iti -,
""ft
a -
i
„ a t '-sem
I- •
FIVER CITY FOU •OFUF•ARUM
FKMAgMO,VIRGINIA uIOGM,NOM UFOLIMA
Here is The "Integrated Parking"Model:
-_� _-_ THE"INTEGRATED PARKING"MODEL
F
< SCOPE
__.alk_ ,'+ate. RETAIL/F&B/CINEMA 264,800 sf
„ Y '1 OFFICE 150,000 sf
', ••,•• • -; ._ -""b` RESIDENTIAL 426 units
..--_ PARKING(DECK) 1,935 spaces
t PARKING(STREET) 70 spaces
• i PARKING(TOTAL) 2,005 spaces
- - .7,.2 i `..
vi < - yy�� _ • WORLD-CLASS DESIGN
• STATE-OF-THE-ART MUSIC VENUE
• EVENT-LEVEL SURF PARK
�, t '< • INDOOR ATTRACTIONS/RETAIL
- '" • HEADQUARTERS OFFICE
.<� -, • INTEGRATED PARKING
� • MAXIMIZED ECONOMIC IMPACT
August 14, 2018
17
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
Here are the revised and updated designs of"The Wave":
1S.,; '.s
�. y � .
r
T H E W A V E
Tom.n,,A,,e,,
16
'1rIV. .:: �
L• 5, ..111:12.L.4: ti .
. .e
, ,,.,. It_j iNt„ '�k - .. a _=T-
+� .,
Ilr f
e'''
r :
I
r
T N! �l/IEY/ A V E
V Y` mina'a
August 14, 2018
18
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
F ��
', Ntiliti*Z.
r� ` ♦444 =-�,r .gip-
s ! _ er .;-
T H E NW A V E
The design of the entertainment venue was created to evoke the memory of the original Dome Site:
p _ ��
y,. • .,
i .. • ••• ' f ' ' ' ' -"I 'L‘ ' - i
•
E _I 11
-
THEWAVE
August 14, 2018
19
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
Here is an Overview of the economic impact during construction and as stabilized:
WE ANALYZED IMPACTS
DURING CONSTRUCTION
Economic
i• c
• iType Employment Labor Income Output
Direct Effect 2,300 $139,973,000 $337,800,000
• T r2 Indirect Effect 470 $22,493,000 $62,745,000
" - . - + ail Induced Effect 11Q $33.026.000 $107.848.000
° '- Total Effect 3,600 $195,493,000 $508,394,000
-- .1049- ::..:. Source:IMPLAN _.
.,.. AS STABILIZED
• f
Impact Type Employment Labor Income Economic
Output
� t , ''Direct Effect 1,600 $33,519,000 $88,967,000
i R Indirect Effect 200 $8,680,000 $30,441,000
..4 4,411
t" Induced Effect 200 58,630000 $28.184.000
Total Effect 2,000 $50,828,000 $147,592,000
Source.IMPLAN
The estimated revenue in the first year is$8-Million:
WE ANALYZED IMPACTS
DIRECT IMPACTS:
CAPITAL IMPROVEMENT
ltd PROGRAM
Real Estate,Sales,F&B,Admissions and Other Tax Revenues:
RESOURCE MANAGEMENT PLAN
IT 7016.17 _
C24.2:1 t+ T117ryti mLn.t 1St Year: $8,170,400
_ 4114 This number does NOT include additional direct revenues such
,,y'- —` _ as parking fees and rents,which can equal up to$4 million per
* , sok,tt.- - ` annum.
August 14, 2018
20
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
Here are some of the Indirect Impacts:
WE ANALYZED IMPACTS
INDIRECT IMPACTS 17
1''
i _ s
WM
EST.80,000 NET NEW ROOM NIGHTS
(NEW STAYS/EXTEND LENGTH OF STAY) ,..., ,«... , t.:;
.. -' :ir VISITOR PROFILEIiitva
x
INCREASED REAL ESTATE VALUES
• 34 years old AVG ANNUAL INCREASE IN VALUE OVER 12 YEARS:
• Educated
+} Earns+$75K/year CITY-WIDE AROUND MAJOR INVESTMENTS
.a: Families LESS THAN 1% 8%+
Here is an Overview of the Proactive Stormwater Planning:
WE ANALYZED IMPACTS
Proactive Stormwater Planning
• Improving current stormwater infrastructure •f
• Use existing filtration to efficiently harvest on-site
rainwater for lagoon
• Potential to harvest off-site water •
• Potential to use new technologies to promote
positive stormwater impacts throughout Central
Beach
- ' .4'Y
i
i
tG O t
® i4-
,..,off•' .l• �' ! '� E
i 4.:-......'''.41k.' ' 1\4.---."'.17111111.1.1.1.1111Vr'
August 14, 2018
21
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
"THE WAVE"DEVELOPER PROJECT OVERVIEW
ITEM#68386
(Continued)
•
• .:Y .. i.) 41. moi. � M �•,
.4.^t' C
't .i 3 �M_ • ..-- 1_yam.
T H E :::JJJ ���...�^� A V E
Mayor Jones expressed his appreciation to Mr. Culpepper for this presentation.
August 14, 2018
22
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ENTERTAINMENT
VENUE FEASIBILITY STUDY
ITEM#68387
4:07 P.M.
Mayor Jones welcomed David Stone - Stone Planning. Mr. Stone expressed his appreciation to the City
Council and Development Authority for their support:
EN TERTAI N M EN T
FACILITY STUDY
August 14,2018
City Council Briefing
David Stone,Stone Planning
,.an
mega
. a STONE
I,- „-I _ -
T.?
4
_ 1
1
i
r
,
1
4 ' I,— ' 'f UVE M USIC/
'.�\4$ i . \r, 6 , ENTERTAINMENT
`,�f f �1 '.�Ar r INDUSTRY
- ` Y7 r:4; TRENDS
e.
•1046,: '
w - - f I
2
August 14, 2018
23
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ENTERTAINMENT
VENUE FEASIBILITY STUDY
ITEM#68387
(Continued)
Here is an Overview of the Live Music/Entertainment Industry Trends:
UVE MUSIC/ ENTERTAINMENT INDUSTRY MENDS
THE TOURING EVENTS INDUSTRY
The live entertainment industry is thriving—music,alorts.comedy speakers,and other forms of entertainment
For music in particular,technology has increased the importance of live performances to artists.
o Loss of revenue from physical sales
o Number of concerts has increased dramatically
o Increasing ticket prices and ticket sales
Top 200 tours
o 36%average 5.000 or fewei attendees
O 18%average 5,000 to tel attendees
o Consolidation of promoters:
e Live Nation sells 40%*of worldwide tickets
• AEG 12%,all others 46%
gPi
Here are the comparable facilities studied:
UVE MUSIC/ ENTERTAINMENT INDUSTRY TRENDS
COMPARABLE FACILITIES
n The indoor/outdoor model is becoming mom populat particularly within broader mixed-use/entertainment developments
c Facilities analyzed:
EXPRESSasarawItaaLtallIvinem THE PAVILION
LIVE! STAGE AE ® �
Columbus.OH Pittsburgh.PA Irving,TX
Columbus Arena District North Shore Toyota Music Factory
5,200 outdoor 12,200 indoor 5,000 outdoor 12,300 indoor 8,000 outdoor 1 2,500 and 4,000
indoor
Adjamnt.m.0c:300 and 400 seats Other indoor opacities:400,450,
and 1,500 Performance:
Performance: Fist 4 Montle:54.vents.3,400 wogs.nen,$55
Inaood outauor:-In avant;2.100 evyelan, avg'titke prim
433 avg.ticket primPerformartoe:
Iedearloatdoor:100 avant,(70 0,aoor130
TI,aaattnam:35 overdo 200 toe elan..414 outdoor).1,400 eve.seen,433 ave.ticket price
avg.1V•k.t oris. TMs.Club.-15•vent.330.vy..e.n.,415 avg.
ASC M�.�c luurye.et events.200 a,.alae., tlrke fa nielxn
415 eve.flake arkprivet*50. �,
55 privet*avant. fTOM!
4
August 14, 2018
24
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ENTERTAINMENT
VENUE FEASIBILITY STUDY
ITEM#68387
(Continued)
4'" FEASIBILITY AN D
ECONOMIC
} T _ IMPACT STUDY
•ti ' tt 'r'�' ; �;r � SUM MARY
.0 •
1 •,' ' ' 4
!
! lr j
•
V1 A
Here is an Overview of the Local Market:
FEASIBILITY AND ECONOMIC I M PACT STUDY SUMMARY
THE LOCAL MARKET
Vrginia Beach has 450.000.residentsand the Desgnated Market �
Area has 1.5 million residents r)' • SociSBURY
The area is a major tourist market-19 million'person trips in 2017
Characteristics of the DMA market compared to the US �>" --• "' f♦
o Demographics
o ung-lower average age ,rro_-- Le NORFOLK-
Yo ••PORTSMOUTH-
o Affluent-higher household income EWPORT NEWS
xrsa3surrc
o Educated-higher percent of poet-high school ti
educations - -�
o Employed-higher percent of full-time employees
o /11611661110ta
Ivltles:
o More likely to attend concerts(rock,country and hip-
hop/r8p)
o More likely to attend comedy dubs
aro.c
*00 I11C(SCl1
6
August 14, 2018
25
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ENTERTAINMENT
VENUE FEASIBILITY STUDY
ITEM#68387
(Continued)
Here is an Overview of The Local/Regional Entertainment Market:
FEASIBILITY AND ECONOMIC I M PACT STUDY SUM MARY
THE LOCAL/REGIONAL EN TERRAIN MEN T MARKET
o Multiple indoor and outdoor facilities host ticketed and free events in the area
o Indoor facilities.
., The need for a 2,500-to-3.500-seat venue at the beachfront was identified in 2002
A new facility would compete somewhat with the Chrysler Hall and The NorVa,and to a lesser extent.the Sandler Center
Outdoor facilities:
A new facility would compete somewhat with Union Bank 8 Trust Pavilion.and to a lesser extent,Veterans United Home Loans
Amphitheater
Free programming:there is a significant amount of free event offenngs in the market but the new venue is expected to complement
current offerings and work with the City to provide more
Here are the Conclusions and Recommendations:
FEASIBILITY AND ECONOMIC IMPACT STUDY SUMMARY
CON CLUSION SAND RECOM M EN DATION$
Virginia Beach/Hampton Roads is a strong and attractive market
o Demand for live entertainment is increasing
.o The Event Center is sized to attract more than half of touring events
o There has long been an identified need for a new indoor enteranment venue at the beachfront
e Competition with existing venues(particularly within Virginia Beach)will be minimal
c Market feasibility for 3,200-seal indoor venue and 5,000-seat outdoor venue
o Flexibility with capacities and configurations
o OVG's involvement
o Routing for touring events
o Open booking policy
o Bralt-in sound and light
Ability to host free and ticketed events outdoors
�J
August 14, 2018
26
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ENTERTAINMENT
VENUE FEASIBILITY STUDY
ITEM#68387
(Continued)
Here is the Operating and Economic Impact Forecasts:
FEASIBILITY AND ECONOMIC IM PACT STUDY SUMMARY
OPERAT1N G AND ECO NOM IC IM PACT FORECASTS
.E.. __ oa�E_wBO
30 167 55 COO hen 0000sa 33 96
- 70 00 T_,oaac Mania 0,739 13x.50.
tinm.. ..o......e..a un
12 I SOD 40 000
oa.�eams
SO SSO 17
um
......e E .000 coon eaw Ee+
ss 047
SW n e.., Isoo .w oa.w saw
a...•_n..ry Me NO r.wrw.
40, nfclxn
STONE
9
Mayor Jones expressed his appreciation to Mr. Stone for this presentation.
August 14, 2018
27
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT RETAIL ANALYSIS
ITEM#68388
4:26 P.M.
Mayor Jones welcomed Nick Egelanian, President — Site Works Retail Real Estate Services. Mr.
Egelanian expressed his appreciation to the City Council and Development Authority for their support:
T H E W A V E
VIRGINIA SEAGN. v
Nick A. Egelanian ��'SITEWORKS
President ��RETAIL REAL ESTATE SERVICES
Mr. Egelanian explained the United States has eight billion square feet of retail and is a five trillion
dollar business:
MALL AMAZON!
FAILURE Whole Foods ! ! !
RETAIL APOCALYPSE
OUTLET E_
e! GSI9NPART
FOOT T S T ONjet"BgT
TRAFFIC CLOS U RESPROLIFERATION
WEALT t i til_ ; ui r ENTERTAINME
H GAP STORES NT RETAIL
IN FULL PRICE
U.S.Retail&E-Commerce In The Post-Department Store Era
August 14, 2018
28
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT RETAIL ANALYSIS
ITEM#68388
(Continued)
STRATEGIC RETAIL
FRAMEWORK
U.S.Retail&E-Commerce In The Post-Department Store Era
Here is how retail looked in the 20th Century:
Fro A r j U.S
r. y ,
0-it i I
• 4 ,
1 •iE
7 .L1 tESNICK �IUIHEIISI01 �� tr
U.S.Retail&E-Commerce In The Post-Department Store Era
August 14, 2018
29
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT RETAIL ANALYSIS
ITEM#68388
(Continued)
As roads were built and people moved, malls were established causing changes to the Department Store
era:
To The Department Store Era
And 3,000 American Regional Malls
.� - rte
=-40061,4
JCPenney SE IS NORDSTROM
U.S.Retail&E-Commerce In The Post-Department Store Era
"Big Box"Retail are stores that represent the department stores from the 20th Century. There are four
types; apparel, cosmetics,furniture and houseware:
Department Store
Deconstruction And "Big Box" Retail
11.111111t "-
Id od
• • . • i.1i.
SEA kFA ^�.� ups
Avis
L;
U.S.Retail&E-Commerce In The Post-Department Store Era
August 14, 2018
30
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT RETAIL ANALYSIS
ITEM#68388
(Continued)
This shows the decline of Department Stores:
The Result: Market Share "Big Box"
Retailers Vs. Department Stores
;
,D%
-Dept Stores
%
-Value Convenience
90%
10%
1928 1990 1992 1994 1996 1999 2000 2002 2004 2006 2008 2010 2012 2014 2016
U.S.Retail&E-Commerce hi The Post-Department Store Era
Here is a comparison of Commodity Retailers Vs. Department Store Market Cap:
Commodity Retailers Vs.
Department Store Market Cap ($B)
2007 2016
ra vem.v
rawa•
▪% ,vow
✓Macy•
0 wa
raw.
r Tartan
Value Retailers$18B Value Retailers$758
Department Stores$858 Department Stores$268
U.S.Retail&E-Commerce In The Post-Department Store Era
August 14, 2018
31
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT RETAIL ANALYSIS
ITEM#68388
(Continued)
B. 21St CENTURY
U.S. RETAIL ALIGNMENT
U.S.Retail& E-Connnerce In The Post-Department Store Era
Mr. Egelanian explained that 85%of Commodity Retail is house hold necessities whereas 15%of
Specialty Retail is for entertainment:
21st Century Retail Alignment
Two SER‘ l Retail Industries
85o` COMMODITY SPECIALTY
RETAIL RETAIL
PRIMARY DISCRETIONARY
HH INCOME TIME AND
AND PURCHASES
PURCHASES
U.S.Retail&E-Commerce In The Post-Department Store Era
August 14, 2018
32
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT RETAIL ANALYSIS
ITEM#68388
(Continued)
Here is an Overview of the Price/Convenience Equation:
COMMODITY RETAIL:
PRICE/ CONVENIENCE EQUATION
ighest price lowest price
ost convenient least convenien
E try tia�► ����
E-tail DF;uC; grocery Discount Category Warehou E-tail
stores Stores killers se
stores
881a200 s*— waknrt QaM 88[8200
Girt I
it
E-tail
81082011
U.S.Retail&E-Commerce In The Post-Department Store Era
To be successful in Specialty Retail, Mr. Egelanian explained there must be an emotional connection
through the best in either product or place:
SPECIALTY RETAIL:
EMOTIONAL CONNECTION
DISCRETIONARY TIME
DISCRETIONARY INCOME
Best-in-class EMOTIONALAuthentic
shops ATTACHMENT textured
places
./ rA RODEO.,s1 3�t
PRODUCT ;. PLACE
N.RODEO DR` ft
'Hi.
f •� pyx �rt1 z
11.
U.S.Retail&E-Commerce In The Post-Department Store Era
August 14, 2018
33
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT RETAIL ANALYSIS
ITEM#68388
(Continued)
Here are examples of the five (5) types of Specialty Retail Formats:
SPECIALTY RETAIL FORMATS
THEMED
TRADITIONA OUTLET CENTERS&
IL .AJ
ALLS CENTERS ATTRACTIO
STREETS
-- -41 ,, ,,,,,,:it,„....„, iii.. ..i '',,,r,a,. ,0, , -
) IIP .
c�:.� 'a' •�. iE- -4, .±I. b
IGS 7 '
U.S.Retail&E-Commerce In The Post-Department Store Era
Here is an Overview of the increase in Internet sales:
As of 3rd Quarter 2017 - 9.1 %
... and ecommerce sales do represent a growing
portion of retail sales
U.P....Ea.wm..w SY..201.-2020
so o„s.,6 craw arra%of row raw safes
• eCommerce constituted
9.1%of US Retail Sales in «"
Q3 2017 `""'
• US retail eCommerce sales M N" I I I I
um isi M w
will grow 6y 12.2%to A..
................•... .k char..k H a,tier r.ur i«
$48.1 Billion in 2017
1i'M•*''K hMw.b.4 ..._..
U.S.Retail&E-Commerce In The Post-Department Store Era
August 14, 2018
34
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT RETAIL ANALYSIS
ITEM#68388
(Continued)
Amazon represented 1.7%of the Pure-Play Online Retailer Sales:
RETAIL SALES DISTRIBUTION ( Part
3 )
2015 Pure—Play online retailer sales
and percent of total Pine '
Other.
588.5 B(2.00%)
-46.11
Source ne0onel nteil Md nbon top 100 rebibnc .,v. .. w�Nr�,.. .
2015.suromonMr
U.S.Retail&E-Commerce In The Post-Department Store Era
T H E W A V E
viecie • ee,.e., vtxc. .
OUR FINDINGS
U.S.Retail&E-Commerce In The Post-Department Store Era
August 14, 2018
35
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT RETAIL ANALYSIS
ITEM#68388
(Continued)
Here is an Overview of the findings:
THE WAVE: OUR FINDINGS
1. TRANSORMATIVE MIXED USE PROJECT
2. UNIQUE SPECIALTY RETAIL AND ATTRACTIONS
3. NET GENERATOR Of NEW MARKET
DEMAND
4. BRIDGE FROM THE RESORT DISTRICT TO THE
CONVENTION CENTER, THE VIBE&THE ARTS
RISIhKET DISPLACEMENT
U.S.Retail&E-Conunerce In The Post-Department Store Era
Q&A
Nick A. Egelanian MOP
President: RETmI REM ESTATE SERVICES
Mayor Jones expressed his appreciation to Mr. Egelanian for this presentation.
August 14, 2018
36
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
4:44 P.M.
Mayor Jones welcomed Paul Lambert, Managing Principal—Lambert Advisory. Mr. Lambert expressed
his appreciation to the City Council and Development Authority for their support:
DISPLACEMENT& ECONOMIC IMPACT ASSESSMENT
THE WAVE IN CONTEXT OF OCEANFRONT
RESORT DISTRICT
VIRGINIA BEACH
CITY COUNCIL BRIEFING
AUGUST 14,2018
PAUL LAMBERT,MANAGING PRINCIPAL.LAMBERT ADVISORY
July.2011
Here is the Oceanfront Resort District Map with the location of the proposed Sports Center and Dome
Site:
VIRGINIA BEACH
Two Major Proposed Public or Public/Private Projects Proposed in Oceanfront Resort District
August 14, 2018
37
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
(Continued)
Here are the Two Principle Questions analyzed:
Two Principal Questions the Lambert Advisory
Economic Assessment Helps Answer
• Do the economic and fiscal benefits of The Wave project exceed the
public commitment of funds to the project? (a measure of return-on-
investment for the Virginia Beach community)
• When looking at the project in a citywide context;to what extent
does the economic and fiscal activity generated from a given project
displace economic and fiscal activity already being generated within
the City?
Important to measure net economic and fiscal impacts generated by a project
which is the recipient of public investment,not total economic activity.
SECTION ONE
WHAT IS DISPLACEMENT AND IS IT BAD?
August 14, 2018
38
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
(Continued)
Here is an Overview of Displacement:
Is Displacement Bad?
• Not necessarily......it's natural in a market economy
• Displacement however is not good when government intervenes and uses
public money that could move economic and taxable activity from one
business to another entirely like business.
• Yet,important to take great care to not exclusively use measure of
displacement when evaluating the prudency of public investment
• Mathematical methodology for estimating displacement exists when comparing
entirely like businesses.
• However,no mathematical measures for determining if the qualitative qualities of
one new business/development will encourage visitors/shoppers to:
• Spend more money per visit than they would have with another business in the past
• Draw visitors from a broader geographic region,or;
• Become a catalyst for future private investment which improves the competitiveness of the
city or district overall
• Not all science some art
This chart is a comparison of other similar cities to Virginia Beach and the growth rates in shopping,
food&beverage and entertainment, with Myrtle Beach being the most similar:
There Should Be Room to Grow Visitor Retail&Restaurant Expenditure:
Virginia Beach Per Person/Per Day Shopping, Eating,and Entertainment Expenditure
by Overnight Guests is Below Many Other Major Visitor Markets.
sm..•
•6uerMwnl
560A0 •lace Vegas
$5000 baMgaks
$x0.00 •VA Narh
•MKtle Beach
530.00
$HOD I'
$10.00
so.c..
9mp0.6 source:IMNIEuaI CITY CMA
August 14, 2018
39
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
(Continued)
SECTION TWO
HOW TO MEASURE NET NEW BUSINESS ACTIVITY?
MEASURE FORWARD LOOKING NEW DEMAND ONLY
Here are the Seven (7)Net New Potential Demand Drivers of Retail/Restaurants in Oceanfront Resort
District through 2021:
Seven Net New Potential Demand Drivers of
Retail/Restaurants in Oceanfront Resort District
through 2021
1. New residences in new units based upon a market analysis by Lambert Advisory
completed for The Wave development project
2. New office workers based upon a market analysis by Lambert Advisory completed for
The Wave development project
3. Additional hotel guests based upon the addition of hotel rooms in late planning or
under construction between 2018 and 2021 and estimates of occupancy rates
4. New out-of-town participants,families,and coaches at Sports Complex based upon
estimates developed by the City's Consultants and Convention&Visitors Bureau
5. New out-of-town attendance at Wave performance space based upon an analysis
completed for The Wave
6. New out-of-town Wave Garden surfers based upon an analysis completed for The
Wave
7. New out-of-town visitors to other Wave attractions(NatGeo&Bridge)based upon
estimated developed for The Wave
August 14, 2018
40
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
(Continued)
Here is the 2021 Net New Demand for Retail/Restaurant:Residential:
2021 Net New Demand for Retail/Restaurant:
Residential
New Units Absorbed in Submarket 2018-2021(Lambert) 473
Average VA Beach Household Income(U.S.Census) $86,500
Total New Household Income $40,914,500
household income spent on non-auto retail goods/eating out 26%
(U.S.Consumer Expenditure Survey)
Total new non-auto retail/eating out expenditure $10,637,770
spent on retail goods(Economic Census;Lambert) 84%
spent on food and beverage(Economic Census;Lambert) 16%
Retail Sales per Square Foot(Lambert) $300
Restaurant Sales per Square Foot(Lambert) $350
New Square Feet Demanded-Retail 29,800
New Square Feet Demanded-Restaurant 4,900
Here is the 2021 Net New Demand for Retail/Restaurant: Office Workers:
2021 Net New Demand for Retail/Restaurant:
Office Workers
New Office Square Feet Absorbed in District 2018-2021(Lambert) 150,000
Square Feet per Worker(BOMA) 200
New Workers in District 750
Annual Expenditure per Worker:Food Service&Drinking(ULI) $1,389
Annual Expenditure per Worker:Shopper Goods(ULI) $1,965
Annual Expenditure per Worker:Convenience Goods(ULI) $2,438
Retail Sales per Square Foot(Lambert) $300
Restaurant Sales per Square Foot(Lambert) $350
New Square Feet Demanded-Retail 11,000
New Square Feet Demanded-Restaurant 3,000
August 14, 2018
41
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
(Continued)
Here is the 2021 Net New Demand for Retail/Restaurant:Hotel Guests:
2021 Net New Demand for Retail/Restaurant:
Hotel Guests
8021
New Oceanfront Resort Area Hotel Rooms 20182021(City) 480
New Homeshare Rooms(ODU,Lambert) 232
Hotel Occupancy(Smith Travel;Lambert) 65%
Homeshare Occupancy(ODU,Lambert) 43%
Additional Occupied Rooms per Night 412
Persons per Room(Hotels 2.5;Homeshare 2.0) 2.4
Visitor Days 357,500
Average per Visitor Daily Meal Expenditure(City) $27.83
Average per Visitor Dally Entertainment Expenditure(City) $11.12
Average per Visitor Daily Retail Expenditure(City) $15.45
Sales per Square Foot(Restaurants) $350
Sales per Square Foot(Entertainment) $100
Sales per Square Foot(Retail) $300
New Sgwre Feet Demanded—Retall/Entertalnment 58,200
New Spume Feet Dernended-Restaurant 28,400
Here is the financial impact from day visitors:
What happens to restaurant expenditure
when day trips increase?
• Not measured in our summary numbers except for specific entertainment
attractions/venues
• In 2017 there were 8.9 million visitors who traveled more than 50 miles to visit
Virginia Beach to spend the day(Longwoods International).
• An increase from 6.9 million in 2013 and the number of day visitors has grown each year
since 2013 at growth rates as high as 9 percent per year.
• Average daily expenditure for food and beverage in Virginia Beach among day
visitors is$22.33 per visitor or approximately$200 million in total in 2017.
• Assuming a static$22.33 per visitor(current dollars),the growth in the number of
day visitors between 2013 and 2017 generated over 125,000 square feet in
demand for additional restaurant and bar space
• By extension,every 100,000 additional day visitors in the future is likely to
generate an additional$2.23 million in food and beverage sales or demand for
another 6,400 square feet of restaurant and bar space.
August 14, 2018
42
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
(Continued)
Here is the 2021 Net New Demand for Retail/Restaurant/Entertainment: Virginia Beach Sports Center.
2021 Net New Demand for Retail/Restaurant/Entertainment:
Virginia Beach Sport Center
Net New Room Nights(VA Beach CVB) 90,900
Persons per Room 3.5
Visitor Days 318,150
Average per Visitor Daily Meal Expenditure(City) $27.83
Average per Visitor Daily Entertainment Expenditure(City) $11.12
Average per Visitor Daily Retail Expenditure(City) $15.45
Sales per Square Foot(Restaurants) $350
Sales per Square Foot(Entertainment) $100
Sales per Square Foot(Retail) $300
New Square Feet Demanded—Retail/Entertainment 51,800
New Square Feet Demanded-Restaurant 25,300
Here is the 2021 Net New Demand for Retail/Restaurant/Entertainment: Wave Performance Space:
2021 Net New Demand for Retail/
Entertainment/Restaurant: Wave Performance Space
Non-VA Beach Visitors(Wave) 190,000
Percent Out-of-Town Visitors Stay Overnight 25.00%
Per Capita Restaurant Spend Day Visitors(Longwood Study) $22.33
Overnight Event Visitors 47,500
Average per Visitor Daily Meal Expenditure(City) $27.83
Average per Visitor Daily Retail Expenditure(City) $15.41
Total Restaurant Expenditure(overnights+non-overnights) $4,500,000
Total Retail Expenditure(overnights) $734,000
Sales per Square Foot(Restaurants) $350
Sales per Square Foot(Retail) $300
New Square Feet Demanded-Restaurant 12,900
New Square Feet Demanded-Retail 2,500
August 14, 2018
43
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
(Continued)
Here is the 2021 Net New Demand for Retail/Restaurant/Entertainment: Wave Garden:
2021 Net New Demand for Retail/Restaurant:
Wave Garden
Dry Surfers From Beyond 15-minutes(Wave Garden) 22,600
Overnight Surfer(Wave Garden) 42,300
Party Size per Surfer 2.0
Per Capita Eating Spend per visit day visitor $22.33
Per Capita Eating Spend per overnight visitor(1)2 day) $13.90
Per Capita Retail spend overnight visitor(1/2 day) $7.71
Per Capita Other Entertainment spend overnight visitor(1/2 day) $5.56
Total Restaurant Expenditure $2,185,000
Total Retail Expenditure $652,000
Totat Other Entertainment Expenditure $470,000
Sales per Square Foot(Restaurants) $350
Sales per Square Foot(Retail) $300
Sales per Square Foot(Other Entertainment) $100
New Square Feet Demanded—Restaurant 6,200
New Square Feet Demanded—Retail 2,200
New Square Feet Demanded—Other Entertainment 4,700
Here is the 2021 Net New Demand for Retail/Restaurant/Entertainment: Other Gates:
2021 Net New Demand for Retail/Restaurant:
Other Gates
Day Visitors From Beyond 50 miles(LDP&Madison) 153,900
Overnight Visitors(LDP&Madison) 188,100
Per Capita Eating Spend per visit day visitor $22.33
Per Capita Eating Spend per overnight visitor(1/2 day) $13.90
Per Capita Retail spend overnight visitor(1/2 day) $7.71
Per Capita Other Entertainment spend overnight visitor(1/2 day) $5.56
Total Restaurant Expenditure $6,051,000
Total Retail Expenditure $1,450,300
Total Other Entertainment Expenditure $1,045,836
Sales per Square Foot(Restaurants) $350
Sales per Square Foot(Retail) $300
Sales per Square Foot(Other Entertainment) $100
New Square Feet Demanded—Restaurant 17,300
New Square Feet Demanded—Retail 4,80D
New Square Feet Demanded—Other Entertainment 10,400
August 14, 2018
44
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
(Continued)
It is estimated an additional 314,400 square feet of retail and restaurant space will be needed at the
Oceanfront by 2021:
Summary:
New Oceanfront Resort District Demand for Retail & Restaurant
Space by 2021
2021 Personal&
Restaurant Business
2021 New Services
Retail/Entertain Square Space
New Square Feet (additional
Feet Demanded Demanded 15%)• Total
New Residents 29,800 4,900 34,700
New Office Workers 11,000 3,000 14,000
New Hotel Guests in New Hotel Rooms 58,200 28,400 86,600
Overnight Virginia Beach Sports Center Visitors 51,800 25,300 77,100
Out-of-Town Wave Performance Space 2,500 12,900 15,400
Out-of-Town Wave Garden Surfers 6,900 6,200 13,100
Other Entertainment Gates—NatGeo&Bridge 15.200 17,300 32.500
Net New Square Feet Demanded&Absorbed 175,400 98,000 41,000 314,400
•Personal&business services include services typically found in retail space which are not considered retail such as dry clean drop
stores,real estate offices,urgent care medical centers,and hair salons
The summary of New Retail/Entertainment Demand vs. Proposed Supply shows an additional 42,500
square feet is needed:
Summary:
New Retail/Entertainment Demand vs. Proposed Supply
New Projects Proposed/ Retail/Entertainment Retail/
Under Construction Restaurant Space Sq.Feet
Estimated Net New Demand 314,400
Minus:The Wave (243,900)
Minus:Cavalier/Oceanfront Marriott (28.0001
Additional Sq.Ft.of Retail/Entertainment/Restaurant Space Demanded 42,500
August 14, 2018
45
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
(Continued)
SECTION THREE
\\AVE DEVELOPMENT ECONOMIC IMPACT SUMMARY
Here is The Wave Project Summary By Use with the Total Development Cost of$337.8-Million:
The Wave Project: Summary By Use
Total Development Cost of $337.8 million
Office 150,000 square feet
For-Rent Residential 426 units
Retail/Restaurants 138,100 square feet
Entertainment Retail/Fitness 60,800 square feet
Cinema 45,000 square feet
Wave Garden/Common Areas 229,000 square feet
Parking 1,825 spaces
Performance Space 3,500 seat
August 14, 2018
46
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITYBOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
(Continued)
Here is an Overview of the Economic Benefits from Construction:
Economic Benefits from Construction:
The Wave (all phases)
Economic
Impact Type Employment Labor Income Output
Direct Effect 2,300, $139,973,000 $337,800,000
Indirect Effect 470 $22,493,000 $62,745,000
Induced Effect 830 $33,026,000 $107,848,000
Total Effect 3,600 $195,493,000 $508,394,0001
Source:IMPLAN
Here are the Economic Benefits Once Operating&Stabilized:
Economic Benefits Once Operating & Stabilized:
The Wave
Impact Type Employment Labor Income Economic
Output
Direct Effect 1,600 $33,519,000 $88,967,000
Indirect Effect 200 $8,680,000 $30,441,000
Induced Effect 200 $8,630,000 $28,184,000
1Total Effect 2,000 $50,828,000 $147,592,000
Source IMPLAN
August 14, 2018
47
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
(Continued)
Here is the estimated City Select Tax Revenue Generation from Wave Once Stabilized:
City Select Tax Revenue Generation from Wave Once Stabilized
iiiiii
Taxable City:Sales/Admis. City:Sales/Admissions/ Bus Lic. Business Total.
Sales• Prepared Food Prepared Food Tax• Tax Rate License
Rate' Ta
Entertainment Venue 510,142,000 10.0% $1,014,000 0.20% $20,000 $1,034,000
Tickets
Entertainment Venue F&B $3,078,000 6.5% $200,000 0.20% 56,000 $206,000
Entertainment Venue- $834,000 LO% $8,000 0.20% $2,000 $10,000
Other
Cinema $5,910,000 10.0% $591,000 0.20% $12,000 $603,000
Cinema Concessions $4,742,000 6.5% 5308,000 0.20% $10,000 $318,000
Retail-Restaurant $33,715,000 6.5% $2,192,000 0.20% $67,000 $2,259,000
Retail-Non-Restaurants $25,130,000 1.0% $251,000 0.20% $50,000 $301,000
Other Gated Entertainment $5,500,000 10.0% $550,000 0.20% $11,000 $561,000
Office $60,000,000 0.0% - 0.58% 5348,000 5348,000
Surf Park $5,130,000 5.0% $257,000 0.36% $19,000 $276,000
Surf Park Food&Beverage $294,000 6.5% $19,000 0.20% $1,000 $20,000
Surf Park Ancillary Revenue 5574,000 1.00% 56,000 0.20% .1.coo 57.000
Total $155,049,000 $5,396,000 $547,000 $5,943,000
Here is the estimated Annual City Property Tax Revenue Generation from Wave Once Stabilized:
Annual City Property Tax Revenue Generation
from Wave Once Stabilized
Use Estimated Taxable Value Annual Real Estate Tax,
Entertainment Venue Tax Exempt 1
Parking Tax Exempt
Retail(Includes Cinema) _ $65,468,400 $656,32
Office _ _ $33,474,900 $335,601
Surf Park $24,990,000 $250,52
Residential $83,855,000 $840,601
Common Areas $14,400,000 144 360
•
Annual Real Estate Taxes $222,188,200 $2,227,401
August 14, 2018
48
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
(Continued)
.,u
DISPLACEMENT& ECONOMIC IMPACT
ASSESSMENT
THE WAVE IN CONTEXT OF OCEANFRONT
RESORT DISTRICT
VIRGINIA BEACH
Here is an Oceanfront Resort District Map where the Sports Center, Dome and Pier proposed projects
are located:
VIRGINIA BEACH
Three Major Proposed Public or Public/Private Projects Proposed in Oceanfront Resort District
There are three major projects in the Oceanfront Resort
District for which the City of Virginia Beach is considering
substantial public investment.These projects are in addition
to the Cavalier project for which the City recently
participated financially and the first phase of which has now
opened. The first new project,The Wave(Dome),is a mixed
use retail,residential,entertainment,and office project
located several blocks off the beach primarily between
Pacific Avenue and Baltic Avenue east-to-west and 18th and
20th streets north-to-south. The second,a indoor Sports
Complex of more than 200,000 square feet located adjacent
to the Convention Center is aimed at driving visitation in the
City with a particular emphasis on non-peak seasonal
visitation. Finally,the City has issued and received two
responses to a solicitation for financial support for a pier
project to be located on the Beach that also includes an —-
entertainment attraction,hotel rooms,and retail/restaurants.
The pier project is at a very early stage and as a result our
analysis shows the potential net demand for space,with and
without the pier project. While the three projects are untied,
they certainly will impact one another and understanding the
interrelationship of these three projects is important to
guiding the City's investment decision making process.
August 14, 2018
49
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT ECONOMIC IMPACT
ITEM#68389
(Continued)
Here is the 2021 Net New Demand for Retail/Restaurant:Pier Attraction:
2021 Net New Demand for Retail/Restaurant:
Pier Attraction
Whik still in the selection process,it is likely that any
attraction ata new pier and associamd out-of-town 2021
visitation will drive demand for additional food and
beverage purchases in the oceanfront Rema District as Pier Attraction Visitors From Beyond 15-minutes 300,000
long as the attraction is of a scale that it encourages Per Capita Eating Spend per Visit $14.00
longer stays in the City.M the details of this protea
further evolves we will calculate the restive demand Total Restaurant Expenditure $4,200,000
which might he driven from the development of the Sales per Square Foot(Restaurants) $350
attnctinn"the pier. New Square Feet Demanded—Restaurant 12,000
Here is an Overview of the Summary:
Summary:
New Retail/Entertainment Demand vs. Proposed Supply
Three new projects:The Wave,Pier,and Cavalier/Oceanfront Marnmt.5 have•significant amount of remil/rewamant apace built or proposed.Together.m the
table hdow indicates,in sum the three protean will add..other 33t.000.oare fat of remit,rens,,..,std.nteasi.mem retail m the Dionon.&sed upon out
analysis highlighted and mmmarb<d in the pages above,it would appear that if all three projects are delivered to the market prior to 2022,while they will 6e able
o absorb a very significant 314,000 square feet of spare without displacing 2018 level business activity,there will be an oversupply/displacement of 12.003 quare
feet of retail.pme or sales. While there is no reason to suspect that the market will not continue to grow after 2021,and that the excess space will be.b,orbed,
Mere will be.period of adjonment should all of the space proposed be delivered to the market within the nen three years.
New Projects Proposed/ Retail/Entertainment Retail/
Under Construction Restaurant Space
The Wave 243,900
Pier Project 60,000
Cavalier/Oceanfront Marriott MISM
Total Proposed/Under Construction 331,000
Minus:Estimated Demand 1314.0001
Over Supply(Vacant or Potential Displacement) 17,000
Mayor Jones expressed his appreciation to Mr. Lambert for this presentation.
August 14, 2018
50
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT PARKING DEMAND ANALYSIS
ITEM#68390
5:00 P.M.
Mayor Jones welcomed Andy Hill, Director of Consulting Services —Desman Design Management. Mr.
Hill expressed his appreciation to the City Council and Development Authority for their support:
Dome Site Workshop
ge,..iv
, Parking Demand Analysis
r` , City Council Briefing
Presented by DESMAN Inc.
a41 . -Tuesday,August 14,ill4r,
;,+~ 7�r `•moi cl ..x- `` 1
i
Here is an Overview of Shared Parking:
What is Shared Parking?
• Established in collaboration between ULI and ICSC
• Empirically based
• Reflective of operation as an organic whole
• Representative of local conditions
• Environmentally/financially sustainable practice
• Designed to establish critical capacity
• Still requires effective management to succeed
z
li
August 14, 2018
51
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT PARKING DEMAND ANALYSIS
ITEM#68390
(Continued)
Shared Parking NOT Shared Parking
� . 1.1 .f. '4 r A.
This diagram of the Project was used to determine land use demands:
The Project
, .„,____,..,............„ _ pa...sr.-- r.s.i.....• II,/
•' , iM i l'' ... ''' . _
,......a....,.....,
M
;_S' � , . }0211 I „_�.. i_ � ti, k ._ _..
August 14, 2018
52
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT PARKING DEMAND ANALYSIS
ITEM#68390
(Continued)
Based on land use categories the estimated demand is 1,935 parking spaces:
The Program
546.4444 spasms ./Casual .fast/Ca•541 Cato, *sawn/ .5{. Llirec.,14/ nipme551, 4.514.05, 14,55.4
.0,510rt
1aray 3CC
9.441 ,50C
7.5
n4,44 5 az
nem s 4600
ea 30C
Z IN< 555
1141.1•111•51,50.
110 54
•14.5.1
.1414d 1 4.30D
1.41.12 I.303
Read 4.003
.04 4/00
145.1 5.100
2 Mu.. 5100
anal •pr.,
; matanpaiii awn mcos
Stooklyn illozara 101100
1414115 lasso
roaninents re
Parsin
sam
c.c.seim
ryisee 7,5
5,41L4.00..4.1.1 MAW
...hie. 2150 2150
2.44 ma... NOM
1.0190
0
.11
3
Here is an Overview of how land use values are determined:
Base Demand Ratios
• •
land Use User Group Weekday Weekend U. Source
Standard Retail Customer 2.90 3.20 /ksf GLA $hantd Perking 2nd(dition.Washington DC:AU-The Urban Land Institut,,2005,0.11
Employee 0.70 080 /Iof GLA thared Parkl.:2nd Edition.Washington DC:uu-me Urban Land Institute,2005,0.11
r.. Specialty Grocery Customer 3.50 3.70 /ksf DESMAN Inc.(proprietary inf°Prelims f rom 14 specialty voce'stores 0 New England,2093.20061.
Employee 0.60 0.50 /ksf GLA DEMAAN Inc.(proprietary information from 14 specialty grocer storm M New England,2203.2006).
Eine/Casual Dinr. Customer 12.00 19.00 /5 GLA parking 0/mention:Ott,Edtdon.Washington DC)ITE-Institute of Transportation Engineers,2010
Employee 2.20 3.70 /6,3 50.0 eikliNia..1190:thgation.Washington DC:ITE-Institute of Transportation Engineers,2010
FM,Casual Dinniv Customer 15.00 17.00 /ksi G. parking Generation:4th Edi.n.Washington DC:ITE-Institute of Transportation Engineers.2010
Employee 2.40 3.40 Nof G. Perking Generation:4th Edition.Washington DC:ITE-Institute of Transportation Engineers,2010
Cafe/Take Out Customer 12.00 16.00 Nuf GLA Parking Generation:ilth Edition.Washington DC:ITE-Institute of Transportation Engineers,2010
Employee 2.50 2.85 /ksf GLA Parking Gene/Miran:4th Edition.Washington DC:ITE-InstItute of Transportation Engineers,2010
...um/Interactive Customer 3.68 3.19 /6.1000 DEMAPN Inc.(proprietary information 3,0,,,operation studies of the Snythsonian,N FPO,11405,BCM).
Employee 0.65 0.56 /kV CPA DESIMPN Inc.(proprietary information from operation studies of Me 5rns Ma nian,NEAP,MoS,RCM),
Nigh End Cinema Customer 0.19 0.26 /seat DESMAN Inc(proprietary information from AMC,2033-2009)and;hared Parkin;2nd(016.0..2035.P.11
Employee 0.01 0.01 /seat DESMAN Int(pop-rotary orrnation from AMC,2003.2009)and Shand Parkin:2nd Edition.,2005.0.11
LW estyry/E reertaininent Customer 6.60 5.50 /ksf GLA Shared Parking and Edition.Washington DC:UL)-Urban Land Institute,2005,p.11 and other contributors.
Employee 0.40 0.25 /ksf GLA Shared Parting 2nd Edition.Washington DC:0/I-Urban Land I rtstrtute,2005,p.11 and other contribNors.
Experiential Retail Customer 3.20 3.60 /ksf ALA Paned Patting 2nd Edition,Washington DC:1./0-The Urban Land Institute,2005,p.11
Employees 0.60 0.90 /ksf GLA Shand Parking 2nd Edkion.Washington 00:00-PD Urban Land Institute,2005,pall
Studto/lBR 0.12 0.12 /unit DESMAN Inc.
kilulti.BR 1.06 1.06 /unit DESMAN Inc.
Rmeived 1.00 1.00 /unit DES...inc.
Guest 0.05 0.05 N. DENMAN Inc.
General Off Oe Visitor 0.30 0.03 /0.00/A Shand annins:3nd Edition,Washington OC:ULI•Urban Land Institute,2005,p.11 •
Employee 3.50 0.35 pe GEA Shand Parkata:2nd Edann.Washington CC:VU-Urban Land Institute,2005.P.al
Surf Pah Visitor 1.25 1.33 //al G. DESMAN Inc.(per ADG,MIA and other contributors)
Employee 0.05 0.03 Nal G. DESMAN Inc(per ADG,WWA and other contributors)
Performing Arts Venue Visitor 0.30 0.33 /s.t Shand Padldna 2nsl Edna°.Washington 00:00-Urban Land Inst..,2005,0.11
Employ. 0.07 0.07 /seat_...:2161LIZ end Edition.Washinron LIU :Urban Land Institut e 2005,p.I1
August 14, 2018
53
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT PARKING DEMAND ANALYSIS
ITEM#68390
(Continued)
Here is an Overview of how the adjustments made to the land use value:
Adjustments
• Modal:the percentage of users arriving by means other than a single-
occupant vehicle
• Most often determined by U.S.Census Journey to Work data for workers
• Discretionary users are commonly less documented
• Capture:the percentage of users patronizing a particular land use
primarily and/or exclusively
• Almost always based on anecdotal data or observations from comparable
environments
• Local:the percentage variance between actual observed occupancy
and projected demand, after accounting for modal and capture
adjustments
• Determined by comparing projected demand to observed occupancy in an
existing development
3
Here is an Overview of the Gross Demand Projections(WI Event):
•
Gross Demand Projections (w/ Event)
W31-60476 wctitDay 390096s.
11[340 DAYS 944.3839,3 393919.
3..60.
StaN.Nu1E F
w6.. 5.63..8... Project r bProtect noM^..t
5 /2, /s, s h,i024 /.,c
a ,99
6,7*... 0 07 Col 610' /2.1630' 48 2 84 91.1 GUU' /WG,' 57
5o.au87G.uzevuton.7 3600G
p3 If u 910 Gu /1 As)CAA E /21630 ha.7 cn1s e s /104
6 '917 0 49 /57330' /5630
5 ' 5 MOA' 14
_ 0.K.w1 Dining 35.300 slw 30 hntu 6.27 MGu 73/FOG, 09 Ad.. 427
Fmdoew S /1.7330' 60 MGu' 03 /70630' 414 03 fled 131.4.Sa lcawiwnin a 4,300 2rGu hd GSA 7 AOI GSA 1 /32768A : MOF. 56
2 1m9o3e. 397 62135 7 Pal CSA' /1.69A 79 MGFA' 12
o.I,/Fake0ut Customer 4,300 sIaA 336 MGu F 56 /b76U /YOGA 3 OW WA 39
17,00,.. 230 he Gu 055 /187630' /3,5314 33 M0u' 1.
r#..,wn/n..aane tatom., 35.000 .7630 Mics 0 /1576, 9170, hs,62A
67.
F..po... M68A /22761A /,1604 .E M61A
$,8)0cj_
atom. 900 wn i4 h«t a /wt 301 4 /wt 49 0.19 hxt 148Emdo9.e 03 hat 0 /wt 1 /wt tF 01 /seat
estys.hntemin..n7 10A00s7 GSA 7/ 9127Gu / MGu 1 AOOeu : hd0u 42Emd see 3 hs76u' 3 MGu' C 91.03120 Ad6u'iential Reran Is,m3 sIG2A 36 /Isle, 3• 34 Mc+A 3.n A2t3u 57 M0u 3488737,.534 44 /141630 EG MGu 4 Ade, ant MGu 11snm.53 6d13/36R 133 3 /041 3 /u.t : /uni. u /40 34tOu4-117 132 meg 1 9, 134Rem,* 426 was I a /uni7 436 cc /9.t 07 /unit ¢ /u.t 426os Ann 05 /u.t 0' /unit 05 /,Gt 10_ /Office w 152.3.90 40A a AO SSA 9 /137630 03 /52138.3 Ce M39A
' • aw es Em7O..e 7608 3 /150680' a Mev.' 430 9 As,0..' 94 M30A'
44
116.030 2 5a /Id GFA 4s 1 hn 304 97 u hs76, a 4a /Id WA 04
02 91516. 310• a As,G74 13 03 9127 GSA ,4 06 MGM , ,
4I ,O. n..ts vena sin, i35c0/ 0660 a /4440 4 /w3 :•:39%, 5 A..7 316 /..t
8003753« 0.03 /w0 .1301 003 heat 'o ®6. /8�7 003 /on
.,; we n 3,333 26q 1440 1.769
I. 166 168 168SI 764 412 025305.00 TOTAL 436 4;T3 .s, 8
_ 1
August 14, 2018
54
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT PARKING DEMAND ANALYSIS
ITEM#68390
(Continued)
This graph depicts the fluctuation of the demands based on time of year:
Seasonal Presence
-Retail(Combined) —Grocery —Restaurant(Combined) Cinema Museum
p —lNastyle —Apartments
9.
ce —Surf Park —Performing Arts Venue
10.
- ""1‘ni."'0-A 11 P -<1 P1W I VI 0 r°\
.: E ,iO4,1P#, -do"' ''' .../....4 ...,..e.,:.4k
14* - '.411140:411" ,...
6%
761,
3W ,.x
. 66%
50% AIAN F. MAaaMAY MN AUG OCT NOV DEC nDY 1
a '.. � ..'161/'_..s —
This graph depicts the fluctuation of the demands based on the time:
Hourly Presence
Retail Combined) —Grocery —Resteurant(Combined) fanema Museum
lihstyle Apartments —Office —Surf perk —Perbrminb Arts Venue
, 95% '144re I I p p 4 II I pric
6%
14
Aill \VI
...if -'44K44%64
5094
36x ir
\
arm
2596
30% Y
1594 \
ow 6 8DO 9.m lam 1 x3.00 0. e10
m ]ro 1P00 3100 13.00 400 1500 16m 1].00 16.00 1900 3P ]]m x300 CO
August 14, 2018
55
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT PARKING DEMAND ANALYSIS
ITEM#68390
(Continued)
This graph depicts the demand of parking based on a Peak Weekday in December:
Peak Weekday (Non-Event, December)
•� ,:o, < •afetlaakOut :G .e _ OE. ma •lityle/aepmmen,
lafdrtakewt umnnt NIpNFnaC lifestyle/ante
•Surf Fart •Performing Arta Venue al Otho
2.300
UP 2,200
2,100
2,000
1,900 nww®SUPPLY.1596 6•6615 11111 111111111
dilIlIl101ik 8 8 8
r. . m . .. r . 11
This graph depicts the demand of parking based on a Peak Weekend in December:
Peak Weekend (Non-Event, December)
•Apammenn •Sbntlard Retail •Experiential Retail •Specialty Grocery •
•Fut Casual Omuta •Cali/Take Out •36,eten/Inhna0re NIgOEnd Cinema . ,n .....
•Surf Park •Performing 6R Venue •General OOke
2,300
2,x00
Y x,100
'Fi'�• 1.000 .
_ 1,600
MS
1.900 MMFROSUY. SPAMOSS SPAM
•3211 ague,
a0 I
�'
.Pari. - -
August 14, 2018
56
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT PARKING DEMAND ANALYSIS
ITEM#68390
(Continued)
This graph depicts the demand of parking based on a Peak Weekday with a sold-out event in July:
Peak Weekday (Sold-Out Event, July)
•Surf Park
1300
2 000 -110 cars
PE.E.81/WM8. s•Am
Ert, :000.
,00
!: IIIiiilHIII
13
"IA ear
This graph depicts the demand of parking based on a Peak Weekend with a sold-out event in July:
Peak Weekend (Sold Out Event, July)
•Catenake Out fAuseunt/interareve We End Onem• •Litester/Enter4onme,
•Surt Park •Perform,Arts Venue •General Offire
4197 cars
1st? 2 100
2 000
PLEMIED LAMY 0193838.ES
▪ 1*.rd•tde''' .°
▪ VIE%
800
ro---44"titj 4
8888888888888888888
s WANK
August 14, 2018
57
JOINT CITY COUNCIL/
DEVELOPMENT AUTHORITY BOARD BRIEFING
DOME PROJECT PARKING DEMAND ANALYSIS
ITEM#68390
(Continued)
Here are some Overflow Options:
Overflow Options
• 70 curbside spaces on adjacent streets
• 600 spaces in commercial lots on adjacent parcels
• 900 spaces within a three-block radius
• Satellite parking and shuttle options to Convention/Sports Center
• Improved shuttle service in process of being developed
• Potential to augment capacity on-site with assisted/valet parking
• Option to temporarily relocate/redirect non-discretionary users
Mayor Jones expressed his appreciation to Mr. Hill for this presentation.
August 14, 2018
58
GOA BBgC
O4ca -
G
Ur�i 4,, $-
*s'k`i. . ...
�'' OUP MIS 0
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
August 14,2018
Mayor Jones called to order the Virginia Beach City Council's SPECIAL FORMAL SESSION in
Building 19, Tuesday, August 14, 2018, at 5:18 P.M.
Council Members Present:
Jessica P. Abbott, M. Benjamin Davenport, Robert M Dyer, Barbara
M Henley, Mayor Louis R. Jones, Shannon DS Kane, John D. Moss,
John E. Uhrin, Rosemary Wilson, and Vice Mayor James L. Wood
Council Members Absent:
None
August 14, 2018
59
MAYOR'S CALL FOR
FORMAL SESSION
ITEM#68391
Mayor Jones read the Mayor's Call for the SPECIAL FORMAL SESSION:
August 9, 2018
"HONORABLE MEMBERS OF CITY COUNCIL
In accordance with the Virginia Beach City Code, Section 2-21, and by the
authority vested in me as Mayor of the City of Virginia Beach, I hereby call for
a SPECIAL FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL:
Tuesday, August 14, 2018
Building 19, Municipal Complex
2416 Courthouse Drive
Virginia Beach, VA
Following the WORKSHOP SESSION, which begins at 3:30 P.M on Tuesday,
August 14, 2018, there will be a SPECIAL FORMAL SESSION to convene into
CLOSED SESSION for the sole purpose of discussing the Dome Project.
Sincerely,
s/
Louis R. Jones
Mayor"
cc: City Manager
City Attorney
City Clerk
City Auditor
Deputy City Managers
MultiMedia Services
Media and Communications
FOI Office
August 14, 2018
60
ITEM#68392
Mayor Louis R. Jones, entertained a motion to permit City Council to conduct its CLOSED SESSION,
pursuant to Section 2.2-3711(A), Code of Virginia, as amended,for the following purpose:
PUBLIC CONTRACT: Discussion of the award of a public contract
involving expenditure of public funds, and discussion of terms or scope
of such contract, where discussion in an open session would adversely
affect the bargaining position or negotiating strategy of the public body
pursuant to Section 2.2-3711(A)(29).
• Dome Site Project
August 14, 2018
61
ITEM#68392
(Continued)
Upon motion by Council Lady Kane, seconded by Councilman Uhrin, City Council voted to proceed into
CLOSED SESSION at 5:20 P.M.
Voting: 10-0
Council Members Voting Aye:
Jessica P. Abbott, M Benjamin Davenport, Robert M Dyer, Barbara
M. Henley, Mayor Louis R. Jones, Shannon DS Kane, John D. Moss,
John E. Uhrin, Rosemary Wilson, and Vice Mayor James L. Wood
Council Members Absent:
None
(Closed Session 5:20 P.M. - 6:28 P.M.)
August 14, 2018
62
CERTIFICATION
ITEM#68393
Mayor Jones RECALLED the SPECIAL FORMAL SESSION to order at 6:28 P.M Upon motion by
Councilman Moss, seconded by Council Lady Kane, City Council CERTIFIED THE CLOSED
SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS
Only public business matters lawfully exempt from Open Meeting
requirements by Virginia law were discussed in Closed Session to which
this certification resolution applies.
AND,
Only such public business matters as were identified in the motion
convening the Closed Session were heard, discussed or considered by
Virginia Beach City Council.
Voting: 10-0
Council Members Voting Aye:
Jessica P. Abbott, M Benjamin Davenport, Robert M Dyer, Barbara
M. Henley, Mayor Louis R. Jones, Shannon DS Kane, John D. Moss,
John E. Uhrin, Rosemary Wilson, and Vice Mayor James L. Wood
Council Members Absent:
None
August 14, 2018
0N1''BE4c
Pif
X4..L - 5
`.4. 0E4
'OF OUR 140\0*S
RESOLUTION
CERTIFICATION OF CLOSED SESSION
VIRGINIA BEACH CITY COUNCIL
WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the
affirmative vote recorded in ITEM#68392 Page 61 and in accordance with the provisions of The Virginia
Freedom of Information Act; and,
WHEREAS: Section 2.2-3712 of the Code of Virginia requires a certification by the governing body
that such Closed 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 Closed Session to which this certification resolution
applies; and, (b) only such public business matters as were identified in the motion convening this Closed
Session were heard,discussed or considered by Virginia Beach City Council.
; i
r LL I i
A41! daBaVVe ,
City Clerk August 14,2018
63
ADJOURNMENT
ITEM#68394
Mayor Louis R. Jones, DECLARED the City Council SPECIAL FORMAL SESSION ADJOURNED at
6:30 P.M.
ius
Chief Deputy City lerk
manda Barnes,M C Louis R.Jones
City Clerk Mayor
City of Virginia Beach
Virginia
August 14, 2018