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HomeMy WebLinkAbout12-4-2018 AGENDA CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL N1,• MAYOR ROBERT M "BOBBY"DYER,At Large Jt4�'1 �C4 VICE MAYOR JAMES L. WOOD,Lynnhaven-District 5 6`4 3447"` JESSICA P.ABBOTT,Kempsville-District 2 M.BENJAMIN DAVENPORT,At Large BARBARA M.HENLEY Princess Anne—District 7 \` ` ` LOUIS R.JONES,Bayside—District 4 '. 1$ -17' /SHANNON DS KANE,Rose Hall—District 3 ` JOHN D.MOSS,At Large •* p MOO.' 5 OF JOHN E. UHRIN Beach—District 6 ROSEMARY WILSON,At Large SABRINA D. WOOTEN,Centerville-District 1 CITYL BUILDING 2401 COURTHOUSE DRIVE CITY COUNCIL APPOINTEES VIRGINIA BEACH, VIRGINIA 23456-9005 CITY MANAGER—DAVID L.HANSEN PHONE:(757)385-4303 CITY ATTORNEY—MARK D.STILES FAX(757)385-5669 CITY ASSESSOR—RONALD D.AGNOR E-MAIL:CITYCOUNCIL@vbgov.com CITY AUDITOR—LYNDON S.REMIAS CITY CLERK—AMANDA BARNES CITY COUNCIL AGENDA December 4, 2018 MAYOR ROBERT M. "BOBBY" DYER PRESIDING I. CITY MANAGER'S BRIEFINGS - Conference Room- 3:30 PM A. VB BIO UPDATE Ronald H. Williams, Jr., Deputy City Manager Steve Harrison, Business Development and Research Manager—Economic Development David Couch, Business Development Strategy Coordinator—Economic Development B. STORMWATER FUNDING REVIEW Mark Johnson, Director—Public Works II. CITY COUNCIL LIAISON REPORTS III. CITY COUNCIL COMMENTS IV. CITY COUNCIL AGENDA REVIEW V. INFORMAL SESSION - Conference Room- 4:30 PM A. CALL TO ORDER—Mayor Robert M. "Bobby" Dyer B. CITY COUNCIL ROLL CALL C. RECESS TO CLOSED SESSION VI. FORMAL SESSION - City Council Chamber- 6:00 PM A. CALL TO ORDER—Mayor Robert M. "Bobby" Dyer B. INVOCATION: Chaplain William "Bill" Craig Virginia Beach Police Department Second Precinct C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF THE CITY COUNCIL E. CERTIFICATION OF CLOSED SESSION F. MINUTES 1. SPECIAL FORMAL SESSION November 20, 2018 2. INFORMAL and FORMAL SESSION November 20, 2018 G. FORMAL SESSION AGENDA 1. CONSENT AGENDA H. BID OPENING 1. WIRELESS COMMUNICATIONS FACILITIES MASTER LICENSE AGREEMENT Attachment of Wireless Communications Equipment to City-owned Structures I. PUBLIC HEARINGS 1. WIRELESS COMMUNICATIONS FACILITIES MASTER LICENSE AGREEMENT a. Cellco Partnership d/b/a Verizon Wireless b. New Cingular Wireless PCS, LLC d/b/a AT&T Wireless 2. PROPOSED PROPERTY TAX EXEMPTIONS a. The Butterfly Society of Virginia, Inc. b. Christian News and Information Institute c. Community Outreach Ministries, Inc. d. Merakey Allos e. Merakey USA f. Second Chance Wildlife Rehabilitation g. The Tidewater Winds L. UNFINISHED BUSINESS M. NEW BUSINESS N. ADJOURNMENT *********************** PUBLIC COMMENT Non-Agenda Items Each Speaker will be allowed 3 minutes and each subject is limited to 3 Speakers ********************************** ******************************** If you are physically disabled or visually impaired and need assistance at this meeting, Please call the CITY CLERK'S OFFICE at 385-4303 *************************** 12/04/18 jag 3. SALE OF EXCESS CITY PROPERTY Portion of Property known as Lake Rudee adjacent to 601Goldsboro Avenue J. ORDINANCES/RESOLUTION 1. Ordinance to AMEND Section 35-64.1 of the City Code re Income Exclusions for the Elderly and Disabled Tax Relief Program 2. Ordinances to GRANT Non-Exclusive Long-Term Master License Agreement(up to 40 years) re attachment of wireless communications equipment to City-owned structures: a. Cellco Partnership d/b/a Verizon Wireless b. New Cingular Wireless PCS, LLC d/b/a AT&T Wireless 3. Ordinances to DESIGNATE as EXEMPT re Real and Personal Property Taxes: a. The Butterfly Society of Virginia, Inc. b. Christian News and Information Institute c. Community Outreach Ministries, Inc. d. Merakey Allos e. Merakey USA f. Second Chance Wildlife Rehabilitation g. The Tidewater Winds 4. Ordinance to DECLARE a portion of the property known as Lake Rudee adjacent to 601 Goldsboro Avenue to be in EXCESS of the City's needs and AUTHORIZE the City Manager to sell to The Allen Revocable Living Trust 5. Resolution to AUTHORIZE the City Manager to EXECUTE a Comprehensive Agreement re operation of the Virginia Beach Sports Center K. APPOINTMENTS BEACHES AND WATERWAYS ADVISORY COMMISSION BOARD OF BUILDING CODE APPEALS —ELECTRICAL DIVISION —NEW CONSTRUCTION DIVISION —PLUMBING AND MECHANICAL DIVISION COMMUNITY SERVICES BOARD DEFERRED COMPENSATION BOARD HISTORICAL REVIEW BOARD HUMAN RIGHTS COMMISSION INVESTIGATION REVIEW PANEL MINORITY BUSINESS COUNCIL PERSONNEL BOARD PLANNING COMMISSION RESORT ADVISORY COMMISSION STORMWATER APPEALS BOARD TRANSITION AREA/INTERFACILITY TRAFFIC AREA CITIZENS ADVISORY COMMITTEE VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION MAYOR ROBERT M. "BOBBY" DYER PRESIDING I. CITY MANAGER'S BRIEFINGS - Conference Room- 3:30 PM A. VB BIO UPDATE Ronald H. Williams, Jr., Deputy City Manager Steve Harrison, Business Development and Research Manager— Economic Development David Couch, Business Development Strategy Coordinator—Economic Development B. STORMWATER FUNDING REVIEW Mark Johnson, Director—Public Works II. CITY COUNCIL LIAISON REPORTS III. CITY COUNCIL COMMENTS IV. CITY COUNCIL AGENDA REVIEW V. INFORMAL SESSION - Conference Room- 4:30 PM A. CALL TO ORDER—Mayor Robert M. "Bobby" Dyer B. CITY COUNCIL ROLL CALL C. RECESS TO CLOSED SESSION VI. FORMAL SESSION -City Council Chamber- 6:00 PM A. CALL TO ORDER— Mayor Robert M. '`Bobby"Dyer B. INVOCATION: Chaplain William"Bill"Craig Virginia Beach Police Department Second Precinct C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF THE CITY COUNCIL E. CERTIFICATION OF CLOSED SESSION F. MINUTES 1. SPECIAL FORMAL SESSION November 20, 2018 2. INFORMAL and FORMAL SESSION November 20, 2018 G. FORMAL SESSION AGENDA 1. CONSENT AGENDA H. BID OPENING 1. WIRELESS COMMUNICATIONS FACILITIES MASTER LICENSE AGREEMENT Attachment of Wireless Communications Equipment to City-owned Structures e� -bC� �3 tit vQy� :`:L� REQUEST FOR PROPOSALS MASTER LICENSE AGREEMENT FOR ATTACHMENT OF WIRELESS COMMUNICATIONS EQUIPMENT TO CITY- OWN ED STRUCTURES The City of Virginia Beach has received a proposal for a non- exclusive long-term license agreement to attach wireless communications equipment to City-owned structures. A copy of the full text of the proposed ordinance is on file in the office of the City Clerk. Additional bids will be received by the City until the date below. All bids must be in writing. The right to reject any and all bids is hereby expressly reserved. Further information,including a copy of the proposed license, may be obtained by calling the Department of Information Technology at 385-8922. Bids shall be read by the Mayor of the City of Virginia Beach at the regular meeting of the City Council,which will be held in the Council Chambers, City Hall Building (Building 1) Municipal Center, Virginia Beach. Virginia on December 4, 201.8 at 6:00 p.m., and after reading of the bids, the Council will either proceed with the consideration of the ordinance awarding the aforesaid license or will defer the matter to a subsequent meeting. BIDS MUST BE RECEIVED NO LATER THAN FRIDAY, NOVEMBER 30,AT 5:00 P.M., EXTENDED FROM NOVEMBER 16,2018. All interested parties are invited to attend. Amanda Barnes,MMC City Clerk Beacon: Sunday,November 18 and 25,2018 I. PUBLIC HEARINGS 1. WIRELESS COMMUNICATIONS FACILITIES MASTER LICENSE AGREEMENT a. Cellco Partnership d/b/a Verizon Wireless b. New Cingular Wireless PCS, LLC d/b/a AT&T Wireless 2. PROPOSED PROPERTY TAX EXEMPTIONS a. The Butterfly Society of Virginia, Inc. b. Christian News and Information Institute c. Community Outreach Ministries, Inc. d. Merakey Allos e. Merakey USA f. Second Chance Wildlife Rehabilitation g. The Tidewater Winds 3. SALE OF EXCESS CITY PROPERTY Portion of property known as Lake Rudee adjacent to 60l Goldsboro Avenue *tiJ K a5) r, r---- : "KbFF"* °14 NOTICE OF PUBLIC HEARING On December 4,2018,at 6:00 p.m.. in the Council Chambers, City Hall Building (Building 1) Municipal Center, Virginia Beach, Virginia, the Virginia Beach City Council will hold a public hearing concerning the request of the following: •Cellco Partnership d/b/a Verizon Wireless, One Verizon Way, Mail Stop 4AW100, Basking Ridge, NJ 07920, •New Cingular Wireless PCS, LLC d/b/a/ AT&T Wireless, 575 Morosgo Drive,Atlanta, GA 30324 to be granted a master license agreement for attachment of wireless communications equipment to City-owned structures. At the conclusion of the public hearing, the City Council will either proceed with the consideration of the ordinance awarding the aforesaid license or will defer the matter to a subsequent meeting. Further information, including a copy of the proposed licenses may be obtained by calling the Department of Information Technology at(757)385-8922. If you are physically disabled or visually Impaired and need assistance at this meeting. please call 385-4303; Hearing impaired,TDD-711. All interested parties are invited to attend. Amanda Barnes,MMC City Clerk Beacon: Sunday,November 25, 2018 tiuY Egct ._ :., • � x �:csb .L ,7^ „.v, .,, ,,,,..i)s , . _„., �‘c` e14ii it fsteas°� NOTICE OF PUBLIC HEARING Proposed Exemptions from Local Property Taxation by Designation On Tuesday,December 4,2018 at 6:00 p.m.in the Council Chamber on the second floor of the City Hall building, Municipal Center, Virginia Beach,Virginia,the City Council of the City of Virginia Beach will hold a public hearing on an ordinance to exempt The Butterfly Society of Virginia, Inc., which has a real property tax assessment of$0 and taxes assessed at$0 and tangible personal property assessment of $1,500 and such taxes assessed at $24.00; Christian News and Information Institute,which has a real property tax assessment of$0 and taxes assessed at $0 and tangible personal property assessment of$2,510 and such taxes assessed at $40.16; Community Outreach Ministries, Inc., which has a real property tax assessment of $0 and taxes assessed at$0 and tangible personal property assessment of $2,700 and such taxes assessed at$108.00; Merakey Allos, which has a real property tax assessment of $0 and taxes assessed at$0 and tangible personal property assessment of $3,800 and such taxes assessed at $60.80; Merakey USA, which has a real property tax assessment of$959,900 and taxes assessed at $9,623.02 and tangible personal property assessment of$0 and such taxes assessed at $0; Second Chance Wildlife Rehabilitation, which as a real property tax assessment of$0 and taxes assessed at $0 and tangible personal property assessment of $1,100 and such taxes assessed at $17.60; and The Tidewater Winds,which has a real property tax assessment of$0 and taxes assessed at $0 and tangible personal property assessment of $184,636 and such taxes assessed at $2,954.18. A copy of a proposed ordinances are on file in the office of the City Clerk. All interested persons are welcome to appear at the hearing and present their views on the proposed exemptions. individuals desiring to provide written comments may do so by contacting the City Clerk's office at 385-4303. If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERKS OFFICE at 385.4303;hearing impaired, call Virginia Relay at 1-800-828- 1120. All interested parties are invited to attend. Amanda Barnes,MMC City Clerk BEACON:Sunday,November 25,2018 �u•e� .,...., . ,,,i bep� (V`rp.. g_S L4 ^° PUBLIC HEARING SALE OF EXCESS CRY PROPERTY The Virginia Beach City Council will hold a PUBLIC HEARING Tuesday,December 4,2018,at 6:00 p.m., in the Council Chamber, City Hall - Bldg. 1, Virginia Beach Municipal Center. The purpose of this hearing will be to obtain public input to determine whether the following City property should be declared excess of the City's needs and conveyed to The Allen Revocable Living Trust: Approximately 1,682.48 sq. ft. of property located adjacent to Lake Rudee and 601 Goldsboro Avenue(GPIN 2427-01-8759) If you are physically disabled or visually Impaired and need assistance at this meeting, please call the CITY CLERK'S OFFICE at 385-4303; Hearing impaired, call TDD 711 (TDD-Telephone Device for the Deaf). Any questions concerning this matter should be directed to the Public Works Real Estate Office, Municipal Center-Building#2, Room 392, phone number (757)385-4161. All interested parties are invited to attend. Amanda Barnes,MMC City Clerk Beacon: November 25,2018 J. ORDINANCES/RESOLUTION 1. Ordinance to AMEND Section 35-64.1 of the City Code re Income Exclusions for the Elderly and Disabled Tax Relief Program 2. Ordinances to GRANT Non-Exclusive Long-Term Master License Agreement(up to 40 years) re attachment of wireless communications equipment to City-owned structures: a. Cellco Partnership d/b/a Verizon Wireless b. New Cingular Wireless PCS, LLC d/b/a AT&T Wireless 3. Ordinances to DESIGNATE as EXEMPT re Real and Personal Property Taxes: a. The Butterfly Society of Virginia, Inc. b. Christian News and Information Institute c. Community Outreach Ministries, Inc. d. Merakey Allos e. Merakey USA f. Second Chance Wildlife Rehabilitation g. The Tidewater Winds 4. Ordinance to DECLARE a portion of the property known as Lake Rudee adjacent to 601 Goldsboro Avenue to be in EXCESS of the City's needs and AUTHORIZE the City Manager to sell to The Allen Revocable Living Trust 5. Resolution to AUTHORIZE the City Manager to EXECUTE a Comprehensive Agreement re operation of the Virginia Beach Sports Center CS `�vs ty CITY OF VIRGINIA BEACH AGENDA ITEM 1 ITEM: An Ordinance to Amend Section 35-64.1 of the City Code Pertaining to Income Exclusions for the Tax Relief Program MEETING DATE: December 4, 2018 • Background: City Council provides tax relief for elderly and disabled residents based upon certain income and net worth limitations. The Commissioner of the Revenue is charged with evaluation of need using predetermined criteria set by City Council. The Council sets the applicable thresholds for income and net assets, and it may prescribe restrictions or limitations upon the calculation of either. The Council has also allowed specific income deductions. Income of a relative living in the house (other than spouse) receives a $10,000 exclusion; a $10,000 income deduction is also provided for a permanently and totally disabled homeowner; income of care providers is exempt for use in financial calculations of the homeowner; and lastly, income derived from a reverse mortgage is excluded from local income calculations. • Considerations: The Commissioner of the Revenue is proposing that two additional income exemptions be considered for inclusion in the determination of income. They are: • disability payments from a governmental entity or agency; • payments made to foster care providers for or regarding the care of children in foster care. Based on a review by the Commissioner, these income exclusions will result in an estimated increase in tax relief of $6,000. The effective date of the exclusions will be for tax years beginning on July 1, 2019, so there is no impact in the current fiscal year. • Public Information: Normal Council agenda process. • Recommendations: Approval of the attached ordinance. • Attachments: Ordinance Recommended Action: Approval Submitting Depart I ent/Agency: Commissioner of Revenue City Manager: 1 1 AN ORDINANCE TO AMEND SECTION 35-64.1 2 OF THE CITY CODE PERTAINING TO INCOME 3 EXCLUSIONS FOR THE ELDERLY AND 4 DISABLED TAX RELIEF PROGRAM 5 6 Section Amended: § 35-64.1 7 8 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 9 BEACH, VIRGINIA: 10 11 1. That Section 35-64.1 of the City Code is hereby amended and reordained 12 to read as follows: 13 14 Sec. 35-64.1. - Income exclusions. 15 16 For purposes of calculating income in accordance with this article, the 17 Commissioner of the Revenue shall not include: 18 19 a. payments from a bank or other financial institution that result from a 20 reverse mortgage or similar instrument, provided the reverse mortgage is 21 an encumbrance upon the applicant's sole dwelling.-; 22 b. disability payments from a governmental entity or agency; 23 c. payments made to foster care providers for or regarding the care of 24 children in foster care. 25 26 2. This ordinance shall be effective for the qualification process applicable to 27 tax years beginning on July 1, 2019 Adopted by the Council of the City of Virginia Beach, Virginia, on the day of , 2018. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: I' CommPkiui of R e , - Cit : • • (s office CA14524 R-1 September 7, 2018 tiJ• Fq� wr~ CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance Granting a Non-exclusive Long-term Master License Agreement (up to 40 Years) to Cellco Partnership d/b/a Verizon Wireless for the Purpose of Attaching Wireless Communications Equipment to City-owned Structures MEETING DATE: December 4, 2018 • Background: On July 1, 2017, new laws went into effect in Virginia regarding access to public rights-of-way for the installation and maintenance of small cell facilities and wireless support structures (the "Statute"). Under the Statute, on September 5, 2017, City Council granted a non-exclusive franchise (ORD3517G), to wireless communications provider Cellco Partnership d/b/a Verizon Wireless ("Cellco"), for the purpose of installing small cell antennas and related equipment (the "Equipment") on existing and new structures in the right- of-way. This grant did not include attachment to City-owned structures. The Statute provides that localities may allow wireless providers and wireless infrastructure providers (collectively, "Providers") to attach small cell facilities on government-owned structures by negotiating mutually agreeable contract terms and conditions. Cellco requested to attach to City-owned structures, and over the past year Cellco representatives have met with the City Manager and staff on several occasions to negotiate this Master License Agreement and the procedures that will be enforced in order for Cellco to attach its Equipment to City-owned structures. • Considerations: Previously, the City has not allowed Providers to attach their equipment to any City-owned utility poles or other City-owned structures. Under the Statute, the City must allow Providers to install small cell facilities on existing structures (other than City-owned) as long as the Provider has permission from the owner of the structure and provides notice of the agreement and co-location to the City. In addition, the City must also allow Providers to install new structures in the right-of-way when there is no feasible existing structure in a particular location that the Provider needs to maintain its network integrity. As a result, there are existing City-owned structures that Providers may be able to use for Equipment attachment in lieu of placing new poles in the right-of-way. This Master License Agreement will provide Cellco with another option to densify its network. • Public Information: Because the proposed agreement is for a term in excess of five years, pursuant to Virginia Code §15.2-2101, the solicitation for bids must be advertised once per week for two successive weeks. The advertisement for bids was published on November 18 and 25, 2018, and the public hearing was advertised on November 25. • Recommendations: Approval • Attachments: Disclosure Statement, Ordinance, Summary of Terms Recommended Action: Adoption of ordinance Submitting De•art • - 'ublic Works he/ ,r City Manager: 1 AN ORDINANCE GRANTING A NON-EXCLUSIVE 2 LONG-TERM MASTER LICENSE AGREEMENT (UP 3 TO 40 YEARS) TO CELLCO PARTNERSHIP D/B/A 4 VERIZON WIRELESS FOR THE PURPOSE OF 5 ATTACHING WIRELESS COMMUNICATIONS 6 EQUIPMENT TO CITY-OWNED STRUCTURES 7 8 WHEREAS, Cellco Partnership d/b/a Verizon Wireless, a Delaware general 9 partnership ("Cellco"), is a wireless communications provider with its principal office 10 located at One Verizon Way, Mail Stop 4AW100, Basking Ridge, NJ 07920; 11 12 WHEREAS, Cellco desires to attach wireless communications equipment 13 ("Equipment") to city-owned structures ("City Poles") to densify and expand the current 14 network facilities for wireless communications within the City; and 15 16 WHEREAS, the City is agreeable to allowing Cellco to attach its Equipment to 17 City Poles for the aforesaid purposes, subject to the terms and conditions set forth in 18 the summary of terms attached hereto as Exhibit A and made a part hereof (the 19 "Summary of Terms"). 20 21 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 22 VIRGINIA BEACH, VIRGINIA: 23 24 That the City Council hereby authorizes the City Manager to execute a non- 25 exclusive long-term Master License Agreement with Cellco for an initial term of twenty- 26 five (25) years, with one (1) renewal option of fifteen (15) years, pursuant to the 27 requirements of Va. Code §56-484.31 and in accordance with the Summary of Terms, 28 and such other terms, conditions or modifications, as may be acceptable to the City 29 Manager and in a form deemed satisfactory by the City Attorney. Adopted by the Council of the City of Virginia Beach, Virginia, on this day of , 2018. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENC : DEPARTMEN OF PUBLIC WORKS CITY ATTORNEY'S OFFICE CA14391 November 20, 2018 R-1 \\vbgov.com\dfsl\applications\citylaw\cycom32\wpdocs\d021\p031\00483332.docx EXHIBIT A NON-EXCLUSIVE MASTER LICENSE AGREEMENT SUMMARY OF TERMS Parties: City of Virginia Beach ("City") and Cellco Partnership d/b/a Verizon Wireless ("Cellco") Term: Initial term of twenty-five (25) years, with one (1) option to renew for a term of fifteen (15) years. Fee: In accordance with the safe harbor amount adopted by the FCC on September 26, 2018, each attachment of a small cell and related equipment ("Equipment") to an approved City-owned structure ("City Pole") will be charged at a rate of $270 annually. Location: Each location proposed by Cellco will be evaluated for feasibility by City staff. Cellco will submit an individual application to the Planning Department, Permits & Inspections, before attaching Equipment to any City Pole. Relocation: Cellco is solely responsible for paying cost of removal or relocation of its Equipment if necessitated by a public project, 180 days after receiving written notice. Cellco must remove Equipment upon termination or City may remove Equipment at Cellco's sole cost and expense. Insurance: Commercial General Liability ($3 million per occurrence/$4 million general aggregate); Employer's Liability ($500,000); Workers' Compensation as required by law. Termination: City may terminate the license at the end of the initial or any renewal term by giving 90 days' notice; Cellco may terminate at any time with 90 days' notice. 'NB Virginia Beach APPLICANT'S NAME Cellco Partnership DISCLOSURE STATEMENT FORM The completion and submission of this form is required for all applications that pertain to City real estate matters or to the development and/or use of property in the City of Virginia Beach requiring action by the City Council or a board, commission, or other body appointed by the City Council. Such applications and matters include, but are not limited to, the following: Acquisition of Property Disposition of City Modification of by City Property Conditions or Proffers Alternative Economic Development Nonconforming Use Compliance, Special Investment Program Changes Exception for (EDIP) Board of Zoning Encroachment Request Rezoning Appeals Certificate of Floodplain Variance Appropriateness Street Closure (Historic Review Board) Franchise Agreement Chesapeake Bay Preservation Area Lease of City Property Subdivision Variance Board Conditional Use Permit License Agreement Wetlands Board The disclosures contained in this form are necessary to inform public officials who may vote on the application as to whether they have a conflict of interest under Virginia law. SECTION 1 / APPLICANT DISCLOSURE FOR CITY USE ONLY/All disclosures must be updated two(2)weeks prior to any Page 1 of 7 Planning Commission and City Council meeting that pertains to the application(s). 0 APPLICANT NOTIFIED OF HEARING DATE: 0 NO CHANGES AS OF DATE: ❑ REVISIONS SUBMITTED DATE: "\fi3, Virginia 13euc Ii I Check here if the APPLICANT IS NOT a corporation, partnership, firm, business, or other unincorporated organization. X Check here if the APPLICANT IS a corporation, partnership, firm, business, or other unincorporated organization. (A) List the Applicant's name:Cellco Partnership If an LLC, list all member's names: If a CORPORATION, list the the names of all officers, directors, members, trustees, etc. below: (Attach list if necessary) Tami A. Erwin, John Townsend, Steven Tugentman - Members, Board of Representives. (B) List the businesses that have a parent-subsidiary 1 or affiliated business entity 2 relationship with the Applicant: (Attach list if necessary) See next page for information pertaining to footnotes' and 2 SECTION 2 / PROPERTY OWNER DISCLOSURE Complete Section 2 only if property owner is different from Applicant. Check here if the PROPERTY OWNER IS NOT a corporation, partnership, firm, business, or other unincorporated organization. Check here if the PROPERTY OWNER IS a corporation, partnership, firm, business, or other unincorporated organization, AND THEN, complete the following. (A) List the Property Owner's name:City of Virginia Beach If an LLC, list the member's names: Page 2 of 7 1‘)/B- Virginia Beach If a Corporation, list the names ofall officers, directors, members, trustees, etc. below: (Attach list if necessary) (B) List the businesses that have a parent-subsidiary 1 or affiliated business entity 2 relationship with the Property Owner: (Attach list if necessary) 1 "Parent-subsidiary relationship" means "a relationship that exists when one corporation directly or indirectly owns shares possessing more than 50 percent of the voting power of another corporation." See State and Local Government Conflict of Interests Act,Va. Code § 2.2-3101. 2 ',Affiliated business entity relationship" means "a relationship, other than parent-subsidiary relationship, that exists when (i) one business entity has a controlling ownership interest in the other business entity, (ii) a controlling owner in one entity is also a controlling owner in the other entity, or (iii) there is shared management or control between the business entities. Factors that should be considered in determining the existence of an affiliated business entity relationship include that the same person or substantially the same person own or manage the two entities; there are common or commingled funds or assets; the business entities share the use of the same offices or employees or otherwise share activities, resources or personnel on a regular basis; or there is otherwise a close working relationship between the entities." See State and Local Government Conflict of Interests Act, Va. Code § 2.2-3101. SECTION 3. SERVICES DISCLOSURE Are any of the following services being provided in connection with the subject of the application or any business operating or to be operated on the Property. If the answer to any item is YES, please identify the firm or individual providing the service: IF THE OWNER AND APPLICANT ARE DIFFERENT, EACH MUST COMPLETE THE SECTION SEPERATELY Page 3 of 7 APPLICANT Virginia Beach YES NO SERVICE PROVIDER (use additional sheets if needed) LJAccounting and/or preparer of I��I your tax return X Architect / Landscape Architect / Land Planner Contract Purchaser(if other than the Applicant) - identify purchaser and purchaser's service providers Any other pending or proposed n n purchaser of the subject property (identify purchaser(s) and purchaser's service providers) XConstruction Contractors Information additional page XEngineers / Surveyors/ Agents Na&C Engineering Services,LLC;Clark Nexsen,Dewberry Financing (include current mortgage holders and lenders I^I selected or being considered to provide financing for acquisition or construction of the property) nLegal Services LeClair Ryan,LLC Real Estate Brokers / "— X Agents/Realtors for current and anticipated future sales of the subject property SECTION 4. KNOWN INTEREST BY PUBLIC OFFICIAL OR EMPLOYEE YES NO Does an official or employee of the City of Virginia Beach have X an interest in the subject land or any proposed development contingent on the subject public action? If yes, what is the name of the official or employee and what is the nature of the interest? Page 4 of 7 Virginia Beach CERTIFICATION: I certify that all of the information contained in this Disclosure Statement Form is complete, true, and accurate. I understand that, upon receipt of notification that the application has been scheduled for public hearing, I am responsible for updating the information provided herein two weeks prior to the Planning Commission, Council, VBDA meeting, or meeting of any public body or committee in connection with this Application. 5� dui ,[ Stefanie M. Lewis 11/21/18 APPLICANT'S SI ATURE PRINT NAME DATE Page 5 of 7 OWNER Virginia Beach YES NO SERVICE PROVIDER (use additional sheets if needed) Accounting and/or preparer of your tax return Architect / Landscape Architect / u Land Planner ❑ ❑ Contract Purchaser (if other than the Applicant) - identify purchaser and purchaser's service providers Any other pending or proposed ❑ purchaser of the subject property (identify purchaser(s) and purchaser's service providers) n Construction Contractors I I Engineers / Surveyors/Agents Financing (include current n mortgage holders and lenders selected or being considered to provide financing for acquisition or construction of the property) I I Legal Services Real Estate Brokers / n _ Agents/Realtors for current and ' anticipated future sales of the subject property SECTION 4. KNOWN INTEREST BY PUBLIC OFFICIAL OR EMPLOYEE YES NO Does an official or employee of the City of Virginia Beach have ❑ an interest in the subject land or any proposed development contingent on the subject public action? If yes, what is the name of the official or employee and what is the nature of the interest? Page 6 of 7 \/13 Virginia Beach CERTIFICATION: I certify that all of the information contained in this Disclosure Statement Form is complete, true, and accurate. I understand that, upon receipt of notification that the application has been scheduled for public hearing, I am responsible for updating the information provided herein two weeks prior to the Planning Commission, Council, VBDA meeting, or meeting of any public body or committee in connection with this Application. PROPERTY OWNER'S SIGNATURE PRINT NAME DATE Page 7 of 7 Construction Contractors Edward L Muller Construction Co Design Telecommunications FCI Towers Inc Ridge Equipment Co Inc KCI Technologies Inc Mountain Valley Tower Service Inc NAV Industrial Inc Shenandoah Tower Service Ltd Network Building & Consulting LLC NB&C Technical Services LLC Bowlin Group Arc Con Solutions Inc Wagstaff Construction Services Inc \5 7FS S7 i` _ l tet_.'""r" Lvli: CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: An Ordinance Granting a Non-exclusive Long-term Master License Agreement (up to 40 Years) to New Cingular Wireless PCS, LLC d/b/a AT&T Wireless for the Purpose of Attaching Wireless Communications Equipment to City-owned Structures MEETING DATE: December 4, 2018 • Background: On July 1, 2017, new laws went into effect in Virginia regarding access to public rights-of-way for the installation and maintenance of small cell facilities and wireless support structures (the "Statute"). Under the Statute, on August 15, 2017, City Council granted a non-exclusive franchise (ORD3515J), to wireless communications provider New Cingular Wireless PCS, LLC d/b/a AT&T Wireless ("New Cingular"), for the purpose of installing small cell antennas and related equipment (the "Equipment") on existing and new structures in the right- of-way. This grant did not include attachment to City-owned structures. The Statute provides that localities may allow wireless providers and wireless infrastructure providers (collectively, "Providers") to attach small cell facilities on government-owned structures by negotiating mutually agreeable contract terms and conditions. New Cingular requested to attach to City-owned structures, and over the past year City staff has been working with Providers to negotiate a standard Master License Agreement and the procedures that will be enforced in order for Providers to attach their Equipment to City-owned structures. • Considerations: Previously, the City has not allowed Providers to attach their equipment to any City-owned utility poles or other City-owned structures. Under the Statute, the City must allow Providers to install small cell facilities on existing structures (other than City-owned) as long as the Provider has permission from the owner of the structure and provides notice of the agreement and co-location to the City. In addition, the City must also allow Providers to install new structures in the right-of-way when there is no feasible existing structure in a particular location that the Provider needs to maintain its network integrity. As a result, there are existing City-owned structures that Providers may be able to use for Equipment attachment in lieu of placing new poles in the right-of-way. This Master License Agreement will provide New Cingular with another option to densify its network. • Public Information: Because the proposed agreement is for a term in excess of five years, pursuant to Virginia Code §15.2-2101 , the solicitation for bids must be advertised once per week for two successive weeks. The advertisement for bids was published on November 18 and 25, 2018, and the public hearing was advertised on November 25. • Recommendations: Approval • Attachments: Disclosure Statement, Ordinance, Summary of Terms Recommended Action: Adoption of ordinance Submitting Dep-rtme : 'ublic Works City Manager: 444 1 AN ORDINANCE GRANTING A NON-EXCLUSIVE 2 LONG-TERM MASTER LICENSE AGREEMENT (UP 3 TO 40 YEARS) TO NEW CINGULAR WIRELESS PCS, 4 LLC D/B/A AT&T WIRELESS FOR THE PURPOSE OF 5 ATTACHING WIRELESS COMMUNICATIONS 6 EQUIPMENT TO CITY-OWNED STRUCTURES 7 8 WHEREAS, New Cingular Wireless PCS, LLC, d/b/a AT&T Wireless, ("New 9 Cingular"), is a wireless communications provider with its principal office located at 575 10 Morosgo Drive, Atlanta, GA, 30324; 11 12 WHEREAS, New Cingular desires to attach wireless communications equipment 13 ("Equipment") to city-owned structures ("City Poles") to densify and expand the current 14 network facilities for wireless communications within the City; and 15 16 WHEREAS, the City is agreeable to allowing New Cingular to attach its 17 Equipment to City Poles for the aforesaid purposes, subject to the terms and conditions 18 set forth in the summary of terms attached hereto as Exhibit A and made a part hereof 19 (the "Summary of Terms"). 20 21 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 22 VIRGINIA BEACH, VIRGINIA: 23 24 That the City Council hereby authorizes the City Manager to execute a non- 25 exclusive long-term Master License Agreement with New Cingular for an initial term of 26 twenty-five (25) years, with one (1) renewal option of fifteen (15) years, pursuant to the 27 requirements of Va. Code §56-484.31 and in accordance with the Summary of Terms, 28 and such other terms, conditions or modifications, as may be acceptable to the City 29 Manager and in a form deemed satisfactory by the City Attorney. Adopted by the Council of the City of Virginia Beach, Virginia, on this day of , 2018. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: 4 DEPARTMENT OF PUBLIC WORKS CITY ATTORNEY'S 0 FILE CA14392 November 20, 2018 R-1 \\vbgov.com\dfs 1\applications\citylaw\cycom32\wpdocs\d016\p033\00518102.docx EXHIBIT A NON-EXCLUSIVE MASTER LICENSE AGREEMENT SUMMARY OF TERMS Parties: City of Virginia Beach ("City") and New Cingular Wireless PCS, LLC d/b/a AT&T Wireless ("New Cingular") Term: Initial term of twenty-five (25) years, with one (1) option to renew for a term of fifteen (15) years. Fee: In accordance with the safe harbor amount adopted by the FCC on September 26, 2018, each attachment of a small cell and related equipment ("Equipment") to an approved City-owned structure ("City Pole") will be charged at a rate of $270 annually. Location: Each location proposed by New Cingular will be evaluated for feasibility by City staff. New Cingular will submit an individual application to the Planning Department, Permits & Inspections, before attaching Equipment to any City Pole. Relocation: New Cingular is solely responsible for paying cost of removal or relocation of its Equipment if necessitated by a public project, 180 days after receiving written notice. New Cingular must remove Equipment upon termination or City may remove Equipment at New Cingular's sole cost and expense. Insurance: Commercial General Liability ($3 million per occurrence/$4 million general aggregate); Employer's Liability ($500,000); Workers' Compensation as required by law. Termination: City may terminate the license at the end of the initial or any renewal term by giving 90 days' notice; New Cingular may terminate at any time with 90 days' notice. Virginia Beach APPLICANT'S NAME NEW CINGULAR WIRELESSPCS, LLC DISCLOSURE STATEMENT FORM The completion and submission of this form is required for all applications that pertain to City real estate matters or to the development and/or use of property in the City of Virginia Beach requiring action by the City Council or a board, commission, or other body appointed by the City Council. Such applications and matters include, but are not limited to, the following: Acquisition of Property Disposition of City Modification of by City Property Conditions or Proffers Alternative Economic Development Nonconforming Use Compliance, Special Investment Program Changes Exception for (EDIP) Board of Zoning Encroachment Request Rezoning Appeals Certificate of Floodplain Variance Appropriateness Street Closure (Historic Review Board) Franchise Agreement Chesapeake Bay Preservation Area Lease of City Property Subdivision Variance Board Conditional Use Permit License Agreement Wetlands Board The disclosures contained in this form are necessary to inform public officials who may vote on the application as to whether they have a conflict of interest under Virginia law. • SECTION 1 / APPLICANT DISCLOSURE FOR CITY USE ONLY/All disclosures must be updated two (2)weeks prior to any Page 1 of 5 Planning Commission and City Council meeting that pertains to the application(s) ▪ APPLICANT NOTIFIED OF HEARING DATE: o NO CHANGES AS OF DATE: ▪ REVISIONS SUBMITTED DATE Virginia Beach ❑ Check here if the APPLICANT IS NOT a corporation, partnership, firm, business, or other unincorporated organization. 0 Check here if the APPLICANT IS a corporation, partnership, firm, business, or other unincorporated organization. (A) List the Applicant's name: New Cinnular Wireless PCS, LLC If an LLC, list all member's names: AT&T Mobility II LLC If a CORPORATION, list the the names of all officers, directors, members, trustees, etc. below: (Attach list if necessary) (B) List the businesses that have a parent-subsidiary 1 or affiliated business entity 2 relationship with the Applicant: (Attach list if necessary) AT&T Mobility II LLC owns all of the membership interest of the applicant. See next page for information pertaining to footnotes and 2 SECTION 2 / PROPERTY OWNER DISCLOSURE Complete Section 2 only if property owner is different from Applicant. ❑ Check here if the PROPERTY OWNER IS NOT a corporation, partnership, firm, business, or other unincorporated organization. x Check here if the PROPERTY OWNER IS a corporation, partnership, firm, business, or other unincorporated organization, AND THEN, complete the following. City of Virginia Beach (A) List the Property Owner's name: If an LLC, list the member's N/A names: Page 2 of 5 Virginia Beach If a Corporation, list the names ofall officers, directors, members, trustees, etc. below: (Attach list if necessary) (B) List the businesses that have a parent-subsidiary 1 or affiliated business entity 2 relationship with the Property Owner: (Attach list if necessary) "Parent-subsidiary relationship" means "a relationship that exists when one corporation directly or indirectly owns shares possessing more than 50 percent of the voting power of another corporation." See State and Local Government Conflict of Interests Act, Va. Code § 2.2-3101. 2 "Affiliated business entity relationship" means "a relationship, other than parent-subsidiary relationship, that exists when (i) one business entity has a controlling ownership interest in the other business entity, (ii) a controlling owner in one entity is also a controlling owner in the other entity, or (iii) there is shared management or control between the business entities. Factors that should be considered in determining the existence of an affiliated business entity relationship include that the same person or substantially the same person own or manage the two entities; there are common or commingled funds or assets; the business entities share the use of the same offices or employees or otherwise share activities, resources or personnel on a regular basis; or there is otherwise a close working relationship between the entities." See State and Local Government Conflict of Interests Act, Va. Code § 2.2-3101. 4 0 SECTION 3. SERVICES DISCLOSURE Are any of the following services being provided in connection with the subject of the application or any business operating or to be operated on the Property. If the answer to any item is YES, please identify the firm or individual providing the service: IF THE OWNER AND APPLICANT ARE DIFFERENT, EACH MUST COMPLETE THE SECTION SEPERATELY Page 3 of 5 1VB Virginia Beach YES NO SERVICE PROVIDER (use additional sheets if needed) ❑ ® Accounting and/or preparer of your tax return ❑ ❑ Architect / Landscape Architect / Land Planner Contract Purchaser (if other than ❑ ❑ the Applicant) - identify purchaser and purchaser's service providers Any other pending or proposed ❑ purchaser of the subject property (identify purchaser(s) and purchaser's service providers) ❑X El Construction Contractors Jacobs Engineering ❑X ❑ Engineers / Surveyors/ Agents Jacobs Engineering Financing (include current ❑ mortgage holders and lenders selected or being considered to provide financing for acquisition or construction of the property) El © Legal Services Real Estate Brokers / E l ® Agents/Realtors for current and anticipated future sales of the subject property SECTION 4. KNOWN INTEREST BY PUBLIC OFFICIAL OR EMPLOYEE YES NO Does an official or employee of the City of Virginia Beach have El ® an interest in the subject land or any proposed development contingent on the subject public action? If yes, what is the name of the official or employee and what is the nature of the interest? Page 4 of 5 Virginia Beach CERTIFICATION: I certify that all of the information contained in this Disclosure Statement Form is complete, true, and accurate. I understand that, upon receipt of notification that the application has been scheduled for public hearing, I am responsible for updating the information provided herein two weeks prior to the Planning Commission, Council, VBDA meeting, or meeting of any public body or committee in connection with this Application. Kristi Roper 11/6/2018 APPLICANT'S SIGNAT RU E PRINT NAME DATE PROPERTY OWNER'S SIGNATURE PRINT NAME DATE Page 5 of 5 AV.?'1 lic (..........." 4. ,0 ,v, [ , PJ 4r, ,,,.... ,."_,. ....::,...., CITY OF VIRGINIA BEACH AGENDA ITEM ITEMS: Ordinances to Designate The Butterfly Society of Virginia, Inc.; Christian New and Information Institute; Community Outreach Ministries, Inc.; Merakey Allos; Merakey USA; Second Chance Wildlife Rehabilitation; and The Tidewater Winds as Being Exempt from Local Property Taxation MEETING DATE: December 4, 2018 • Background: Article X, Section 6 (a)(6) of the Virginia Constitution provides that property used by its owner for religious, charitable, patriotic, historical, benevolent, cultural, or public park and playground purposes may be exempted from taxation by classification or designation by an ordinance adopted by the local governing body. Section 58.1-3651 of the Virginia Code sets forth the process for designating specific organizations as being exempt from local taxation and a list of factors for the local governing body to consider is set forth. They are: 1. Whether the organization is exempt from taxation pursuant to § 501 (c) of the Internal Revenue Code of 1954; 2. Whether a current annual alcoholic beverage license for serving alcoholic beverages has been issued by the Virginia Alcoholic Beverage Control Board to such organization, for use on such property; 3. Whether any director, officer, or employee of the organization is paid compensation in excess of a reasonable allowance for salaries or other compensation for personal services which such director, officer, or employee actually renders; 4. Whether any part of the net earnings of such organization inures to the benefit of any individual, and whether any significant portion of the service provided by such organization is generated by funds received from donations, contributions, or local, state or federal grants; 5. Whether the organization provides services for the common good of the public; 6. Whether a substantial part of the activities of the organization involves carrying on propaganda, or otherwise attempting to influence legislation and whether the organization participates in, or intervenes in, any political campaign on behalf of any candidate for public office; 7. The revenue impact to the locality and its taxpayers of exempting the property; and 8. Any other criteria, facts and circumstances that the governing body deems pertinent to the adoption of such ordinance. The City Council adopted a revised policy regarding applications for Tax Exemption by Designation on May 6, 2008. • Considerations: The Commissioner of the Revenue has received seven applications for tax exemption by designation. The Commissioner has reviewed the applications and finds each meets the City Council policy for Tax Exemption by Designation. • Alternative: City Council is not required to approve exemption requests. • Public Information: A public hearing for this item will be held on December 4, 2018, during the Council Formal Session. An advertisement for the public hearing appeared in the Beacon more than five days prior to that hearing as required by statute. Also, this item will be advertised in the normal Council Agenda Process. ■ Attachments: Ordinances (7); Commissioner of Revenue Summary of the Applications; Disclosure Forms; Council Policy Recommended Action: Approval of Ordinance Submitting Departme.t/Agency: Commissioner of the Revenue4 -_, , , ,, City Manager: I weft,a 1 AN ORDINANCE TO DESIGNATE THE BUTTERFLY 2 SOCIETY OF VIRGINIA, INC. AS BEING EXEMPT FROM 3 REAL AND PERSONAL PROPERTY TAXATION 4 5 WHEREAS, in accordance with § 58.1-3651 of the Code of Virginia, the Council of the 6 City of Virginia Beach has advertised and conducted a public hearing on the issue of granting an 7 exemption from local real and personal property taxes to the Butterfly Society of Virginia, Inc.; 8 9 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA 10 BEACH, VIRGINIA: 11 12 1. That the Council of the City of Virginia Beach, Virginia, hereby designates the 13 Butterfly Society of Virginia, Inc. as a charitable organization within the context of § 6(a)(6) of 14 Article X of the Constitution of Virginia and §58.1-3651 of the Code of Virginia. 15 16 2. That real and personal property owned by the Butterfly Society of Virginia, Inc. 17 located within the City of Virginia Beach that is used exclusively for charitable purposes on a 18 nonprofit basis is hereby exempt from local property taxation. 19 20 3. This exemption is contingent on the following: 21 22 (a) continued use of the property by the Butterfly Society of Virginia, Inc. for 23 exclusively charitable purposes; 24 25 (b) that each July 1, the Butterfly Society of Virginia, Inc. shall file with the 26 Commissioner of the Revenue a copy of its most recent federal income tax 27 return, or if no such return is required, it shall certify its continuing tax exempt 28 status to the Commissioner of the Revenue; 29 30 (c) that every three years, beginning on January 1, 2019, the Butterfly Society of 31 Virginia, Inc. shall file an exemption application with the Commissioner of the 32 Revenue as a requirement for retention of the exempt status of the property; and 33 34 (d)that the Butterfly Society of Virginia, Inc. cooperate fully with the Commissioner of 35 the Revenue with respect to audit of its financial records and compliance with the 36 terms of this ordinance. 37 38 4. That the effective date of this exemption shall be January 1, 2019. Adopted by the Council of the City of Virginia Beach, Virginia, on the day of , 2018. Requires an affirmative vote of three-fourths of the members of the City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL S F ENCY: /j I /7 ��v Commissioner of the Revenue Office CA14549/R-1/October 9, 2018 OVERVIEW OF NONPROFIT APPLICATION FOR EXEMPTION ENTITY NAME: The Butterfly Society of Virginia, Inc. T/A The Butterfly Society of Virginia, Inc. 3825 River Oak Circle Virginia Beach, VA 23456 SUMMARY OF NONPROFIT BUSINESS ACTIVITY: To raise the general consciousness of our members and the public regarding the survival problems of butterflies and moths through publicity, educational programs and activities for both children and adults. They also provide conservation habitats for Butterflies and moths. Activities and programs provide to the public, through sponsored events, garden clubs, church groups, civic groups and environmental groups. TAX IMPACT: Real Property Parcel: Assessment: None Tax: None Business Property: Assessment: $1,500.00 Tax: $24.00 Personal Property: Assessment: None Vehicle Tax: None RELEVANT INFORMATION: IRS Granted 501(c)3 Status May 1994 DISCLOSURE STATEMENT FORM 4 The completion and submission of this form is required for all applications wherein such applicant may utilize certain service providers or financial sacs tea•:����_- ;Ind -� _ Asti utio. And the �:i_y seeks to know ..tf the existence of such relationships in advance of any vote upon such application. SECTION 1 / APPLICANT DISCLOSURE Organization name: irri—aaatm 7 — —= grm Flier! �F� : ;. ■1. i alia 4r is • �^sa ■ �a4ie IOC v`i i r a .. 1.-;‘..s iP�.af i.r i•i L+L\i416.i i\6. Are any of the following services being provided in connection with the applicant? If the answer to any item is YES, please identify the firm or individual providing the service: IYES 1 I N0 I I SERVICE I ' PROVIDER Luse additional sheets if I needed) i 0 [7 Accounting and/or preparer of your tax return Financial Services (include ` 0 lending/banking institutions and n� - (�.�Ql�s ' '�d E current mortgage holders as applicable) I I i El DV Legal Services El 0..„ Broker/Contractor/Engineer/Other Service Providers CERTIFICATION: I certify that all of the information contained in this Disclosure Statement Form is complete, true, and accurate. 1 I understand I am responsible for updating information provided herein if the rma r it prior rhangec pri r to t e ('�,llncl action ••• on this 1�__�:tai_ one is !1- g w r.• . sil-)iire i ev P cl 54 inn Men rata APPLICANT'S SIGNATURE PRINT NAME pre 1 AN ORDINANCE TO DESIGNATE CHRISTIAN NEWS AND 2 INFORMATION INSTITUTE AS BEING EXEMPT FROM 3 REAL AND PERSONAL PROPERTY TAXATION 4 5 WHEREAS, in accordance with § 58.1-3651 of the Code of Virginia, the Council of the 6 City of Virginia Beach has advertised and conducted a public hearing on the issue of granting an 7 exemption from local real and personal property taxes to Christian News and Information 8 Institute; 9 10 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA 11 BEACH, VIRGINIA: 12 13 1. That the Council of the City of Virginia Beach, Virginia, hereby designates Christian 14 News and Information Institute as a charitable organization within the context of § 6(a)(6) of 15 Article X of the Constitution of Virginia and §58.1-3651 of the Code of Virginia. 16 17 2. That real and personal property owned by Christian News and Information Institute 18 located within the City of Virginia Beach that is used exclusively for charitable purposes on a 19 nonprofit basis is hereby exempt from local property taxation. 20 21 3. This exemption is contingent on the following: 22 23 (a) continued use of the property by Christian News and Information Institute for 24 exclusively charitable purposes; 25 26 (b) that each July 1, Christian News and Information Institute shall file with the 27 Commissioner of the Revenue a copy of its most recent federal income tax 28 return, or if no such return is required, it shall certify its continuing tax exempt 29 status to the Commissioner of the Revenue; 30 31 (c) that every three years, beginning on January 1, 2019, Christian News and 32 Information Institute shall file an exemption application with the Commissioner of 33 the Revenue as a requirement for retention of the exempt status of the property; 34 and 35 36 (d) that Christian News and Information Institute cooperate fully with the 37 Commissioner of the Revenue with respect to audit of its financial records and 38 compliance with the terms of this ordinance. 39 40 4. That the effective date of this exemption shall be January 1, 2019. Adopted by the Council of the City of Virginia Beach, Virginia, on the day of , 2018. Requires an affirmative vote of three-fourths of the members of the City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Commissioner'of e Revenue 4 • ? y's Office CA14550/R-1/October 9, 2018 OVERVIEW OF NONPROFIT APPLICATION FOR EXEMPTION ENTITY NAME: Christian New and Information Institute T/A Christian News and Information Institute 1385 Fordham Drive#105-234 Virginia Beach, VA. 23464 WEBSITE: http://cni.institute/ SUMMARY OF NONPROFIT BUSINESS ACTIVITY The purpose of the Christian News and Information Institute, Inc. is to glorify God through the use of the communications media; to develop and facilitate the flow of information, particularly to believers, about what God is doing in the world;to assist, train and encourage Christians using or desiring to use mass media; and to undertake other communication s projects for the purpose of generating income. TAX IMPACT Real Property Parcel Assessment: None Tax: None Business Property Assessment: $2,510 Tax: $40.16 Personal Property Assessment: None Vehicle Tax: None RELEVANT INFORMATION IRS Granted 501 (c) 3 status—December 17, 1992 Sep 10 18 11 : 38a James J. Southerland 757-481 -1714 p. 2 ^-o-_ .1:15: - .._ p Esc 3g S_418 r� TSaa'►'k § �. art r ^-S'rs. ._ v. tlev�s T... rvr►o-4to,n-T.4,4;4,44.,LAC (C.W LI� DISCLOSURE STATEMENT FORM The completion and submission of this form is required for all applications wherein such Applicant may utilize certain service providers or financial institutions,and the City seeks to know of the existence of such relationships in advance of any vote upon such application. d SECTION 1 /APPLICANT DISCLOSURE Organization name: C-nrs-k-ka.r.\NlewS (2,.• I.(\.coc,ma\-iov, T,m,),.;a-.) e t 5r4c, S SECTION 2.SERVICES DISCLOSURE re any of the following services being provided in connection with the applicant? If the answer to any item is YES, please fdentify the firm or individual providing the service: u r _ _ - VES NO SERVICE PROVIDER(a,e.ddi,i...I'beets it .ceded) MINI I INA;or,elle,-v. ,`N\orAcjoon. `' .L. L.0 . MilAccounting and/or preparer of your Us tehtrn _ FinancialServices(includelending/banking 5/%14 V"`0 institutions and current mortgage kidders a� T C S 1, • applicable) - c C>f uJ o,-J 1 e�e f u:1 `(e 4,� `.\Y1 .to". i Legal Services I� u' • Broker/Contractor/Englneer/Other Semite Providers 3t IrERTIFICATION: J certify that all of the information contained in this Disclosure Statement Form is complete, true,and accurate. cunderstand I am responsible for updating the information provided herein if it changes prior to ae Council action upon this Application. r m 744,4 ���►.� �-- 5"5".S ov+\n4>r Ion VI- l0-‘8 A7'YL1C,,. t . r � ',* PRINT NAME S--t DATE e n e C e S s a r Y t 0 1 AN ORDINANCE TO DESIGNATE COMMUNITY 2 OUTREACH MINISTRIES, INC. AS BEING EXEMPT FROM 3 REAL AND PERSONAL PROPERTY TAXATION 4 5 WHEREAS, in accordance with § 58.1-3651 of the Code of Virginia, the Council of the 6 City of Virginia Beach has advertised and conducted a public hearing on the issue of granting an 7 exemption from local real and personal property taxes to Community Outreach Ministries, Inc.; 8 9 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA 10 BEACH, VIRGINIA: 11 12 1. That the Council of the City of Virginia Beach,Virginia, hereby designates Community 13 Outreach Ministries, Inc. as a charitable organization within the context of§ 6(a)(6) of Article X 14 of the Constitution of Virginia and §58.1-3651 of the Code of Virginia. 15 16 2. That real and personal property owned by Community Outreach Ministries, Inc. 17 located within the City of Virginia Beach that is used exclusively for charitable purposes on a 18 nonprofit basis is hereby exempt from local property taxation. 19 20 3. This exemption is contingent on the following: 21 22 (a) continued use of the property by Community Outreach Ministries, Inc. for 23 exclusively charitable purposes; 24 25 (b) that each July 1, Community Outreach Ministries, Inc. shall file with the 26 Commissioner of the Revenue a copy of its most recent federal income tax 27 return, or if no such return is required, it shall certify its continuing tax exempt 28 status to the Commissioner of the Revenue; 29 30 (c) that every three years, beginning on January 1, 2019, Community Outreach 31 Ministries, Inc. shall file an exemption application with the Commissioner of the 32 Revenue as a requirement for retention of the exempt status of the property; and 33 34 (d)that Community Outreach Ministries, Inc. cooperate fully with the Commissioner 35 of the Revenue with respect to audit of its financial records and compliance with 36 the terms of this ordinance. 37 38 4. That the effective date of this exemption shall be January 1, 2019. Adopted by the Council of the City of Virginia Beach, Virginia, on the day of , 2018. Requires an affirmative vote of three-fourths of the members of the City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Commissioner c4. the Revenue C ' n: 's Office CA14547/R-1/October 9, 2018 OVERVIEW OF NONPROFIT APPLICATION FOR EXEMPTION ENTITY NAME: Community Outreach Ministries, Inc. T/A Community Outreach Ministries, Inc. 318 Gainsborough Road Virginia Beach, VA 23462 SUMMARY OF NONPROFIT BUSINESS ACTIVITY: To meet the physical and spiritual needs in low income areas of Virginia Beach by providing food and clothing on a monthly basis to those in need. They also provide a monthly worship service in the communities for those without transportation. The non- profit maintains a small food pantry. TAX IMPACT: Real Property Parcel: Assessment: None Tax: None Business Property: Assessment: None Tax: None Personal Property: Assessment: $2,700.00 Vehicle Tax: $108.00 RELEVANT INFORMATION: IRS Granted 501(c)3 Status July 29, 2014 DISCLOSURE STATEMENT FORM The completion and submission of this form is required for all applications wherein such applicant may utilize certain service providers or financial institutions, and the City seeks to know of the existence of such relationships in advance of any vote upon such application. SECTION 1 / APPLICANT DISCLOSURE Organization name: mw-ii SECTION 2. SERVICES DISCLOSURE Are any of the following services being provided in connection with the applicant? If the answer to any item is YES, please identify the firm or individual providing the service: YES I NO SERVICE PROVIDER (use additional sheets if needed) ❑ Accounting and/or preparer of your tax return 3 z r 4 Financial Services (include ❑ ❑ lending/banking institutions and current mortgage holders as applicable) ❑ ❑ Legal Services ❑ ❑ Broker/Contractor/Engineer/Other Service Providers CERTIFICATION: I certify that all of the information contained in this Disclosure Statement Form is complete, true, and accurate. I understand I am responsible for updating the information provided herein if it changes prior to the Council action upon this Application. kArrvii, R'aw.fit/ K2nnebk R, 1%03 l `� APPLICANT'S SIGNATURE PRINT NAME DATE 1 AN ORDINANCE TO DESIGNATE MERAKEY ALLOS AS 2 BEING EXEMPT FROM REAL AND PERSONAL PROPERTY 3 TAXAT I O N 4 5 WHEREAS, in accordance with § 58.1-3651 of the Code of Virginia, the Council of the 6 City of Virginia Beach has advertised and conducted a public hearing on the issue of granting an 7 exemption from local real and personal property taxes to Merakey Allos; 8 9 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA 10 BEACH, VIRGINIA: 11 12 1. That the Council of the City of Virginia Beach, Virginia, hereby designates Merakey 13 Allos as a charitable organization within the context of§ 6(a)(6)of Article X of the Constitution of 14 Virginia and §58.1-3651 of the Code of Virginia. 15 16 2. That real and personal property owned by Merakey Allos located within the City of 17 Virginia Beach that is used exclusively for charitable purposes on a nonprofit basis is hereby 18 exempt from local property taxation. 19 20 3. This exemption is contingent on the following: 21 22 (a) continued use of the property by Merakey Allos for exclusively charitable 23 purposes; 24 25 (b) that each July 1, Merakey Allos shall file with the Commissioner of the Revenue a 26 copy of its most recent federal income tax return, or if no such return is required, 27 it shall certify its continuing tax exempt status to the Commissioner of the 28 Revenue; 29 30 (c) that every three years, beginning on January 1, 2019, Merakey Allos shall file an 31 exemption application with the Commissioner of the Revenue as a requirement 32 for retention of the exempt status of the property; and 33 34 (d) that Merakey Allos cooperate fully with the Commissioner of the Revenue with 35 respect to audit of its financial records and compliance with the terms of this 36 ordinance. 37 38 4. That the effective date of this exemption shall be January 1, 2019. Adopted by the Council of the City of Virginia Beach, Virginia, on the day of , 2018. Requires an affirmative vote of three-fourths of the members of the City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUF - NCY: • l � � Commissions of the Revenue ;,,tl11•' er- = 's Office CA14574/R-1/November 6, 2018 OVERVIEW OF NONPROFIT APPLICATION FOR EXEMPTION ENTITY NAME: LOCATIONS ADDRESS: Merakey Allos 705 Avalon Woods Court T/A Merakey Allos Virginia Beach VA 23464 620 E. Germantown Pike Lafayette Hill, PA. 19444 WEBSITE: https://www.merakey.org/ SUMMARY OF NONPROFIT BUSINESS ACTIVITY Merakey Allos supports individuals with intellectual and developmental disabilities through both group home and day services. Staff assist people living in these homes with personal care, adult daily living activities, community integration and social skill development. In Virginia Beach, this location is being operated as a group home with up to 4 individuals at one time. Marakey Allos manages this location and owns the personal property. The real estate is owned by the parent company Merakey USA who will apply separately for exemption. TAX IMPACT Real Property Parcel Assessment: None Tax: None Business Property Assessment: 1,400.00 Tax: $22.40 Personal Property Assessment: None Vehicle Tax: None RELEVANT INFORMATION IRS Granted 501 (c) 3 status —December 17, 1992 This entity was formerly known as NHS Midatlantic, Inc. the entity name change occurred in April of 2018. OVERVIEW OF NONPROFIT APPLICATION FOR EXEMPTION ENTITY NAME: LOCATIONS ADDRESS: Merakey Allos 898 Cambridge Drive T/A Merakey Allos Virginia Beach VA 23454 620 E. Germantown Pike Lafayette Hill, PA. 19444 WEBSITE: https://www.merakey.org/ SUMMARY OF NONPROFIT BUSINESS ACTIVITY Merakey Allos supports individuals with intellectual and developmental disabilities through both group homes and day services. Staff assist people living in these homes with personal care, adult daily living activities, community integration and social skill development. In Virginia Beach, this location is being operated as a group home with up to 4 individuals at one time. Marakey Allos manages this location and owns the personal property. The real estate is owned by the parent company Merakey USA who will apply separately for exemption. TAX IMPACT Real Property Parcel Assessment: None Tax: None Business Property Assessment: $900 Tax: $14.40 Personal Property Assessment: None Vehicle Tax: None RELEVANT INFORMATION IRS Granted 501 (c) 3 status—December 17, 1992 This entity was formerly known as NHS Midatlantic, Inc. the entity name change occurred in April of 2018. OVERVIEW OF NONPROFIT APPLICATION FOR EXEMPTION ENTITY NAME: LOCATIONS ADDRESS: Merakey Allos 264 Coventry Road T/A Merakey Allos Virginia Beach VA 23462 620 E. Germantown Pike Lafayette Hill, PA. 19444 WEBSITE: https://www.merakey.org/ SUMMARY OF NONPROFIT BUSINESS ACTIVITY Merakey Allos supports individuals with intellectual and developmental disabilities through both group homes and day services. Staff assist people living in these homes with personal care, adult daily living activities, community integration and social skill development. In Virginia Beach, this location is being operated as a group home with up to 4 individuals at one time. Marakey Allos manages this location and owns the personal property. The real estate is owned by the parent company Merakey USA who will apply separately for exemption. TAX IMPACT Real Property Parcel Assessment: None Tax: None Business Property Assessment: $1,000 Tax: $16.00 Personal Property Assessment: None Vehicle Tax: None RELEVANT INFORMATION IRS Granted 501 (c) 3 status—December 17, 1992 This entity was formerly known as NHS Midatlantic, Inc. the entity name change occurred in April of 2018. OVERVIEW OF NONPROFIT APPLICATION FOR EXEMPTION ENTITY NAME: LOCATIONS ADDRESS: Merakey Allos 125 South Thalia Road T/A Merakey Allos Virginia Beach VA 23452 620 E. Germantown Pike Lafayette Hill, PA. 19444 WEBSITE: https://www.merakey.org/ SUMMARY OF NONPROFIT BUSINESS ACTIVITY Merakey Allos supports individuals with intellectual and developmental disabilities through both group homes and day services. Staff assist people living in these homes with personal care, adult daily living activities, community integration and social skill development. In Virginia Beach, this location is being operated as a group home with up to 4 individuals at one time. Marakey Allos manages this location and owns the personal property. The real estate is owned by the parent company Merakey USA who will apply separately for exemption. TAX IMPACT Real Property Parcel Assessment: None Tax: None Business Property Assessment: $500 Tax: $8.00 Personal Property Assessment: None Vehicle Tax: None RELEVANT INFORMATION IRS Granted 501 (c) 3 status—December 17, 1992 This entity was formerly known as NHS Midatlantic, Inc. the entity name change occurred in April of 2018. DISCLOSURE STATEMENT FORM 4 The completion and submission of this form is required for all applications wherein such applicant may utilize certain service providers or financial institutions, and the City seeks to know of the existence of such relationships in advance of any vote upon such application. SECTION 1 / APPLICANT DISCLOSURE Organization name: MERAKEY ALLOS SECTION 2. SERVICES DISCLOSURE Are any of the following services being provided in connection with the applicant? If the answer to any item is YES, please identify the firm or individual providing the service: YES NO SERVICE I PROVIDER (use additional sheets if 1 needed) Accounting and/or preparer of your tax return Financial Serviceslending/banking (include M & T BANK, TO BANK institutions and current mortgage holders as applicable) Legal Services 0 Broker/Contractor/Engineer/Other AUDIT SERVICES: -• Service Providers GRANT THORNTON, LLP CERTIFICATION: I certify that all of the information contained in this Disclosure Statement Form is complete, true, and accurate. I understand I am responsible for updating the information provided herein if it changes prior to the Council action upon this Application. LACHANTEE WEBB 5/11/18 APPLICANT'S SIGNATURE PRINT NAME DATE 1 AN ORDINANCE TO DESIGNATE MERAKEY USA AS 2 BEING EXEMPT FROM REAL AND PERSONAL PROPERTY 3 TAXATION 4 5 WHEREAS, in accordance with § 58.1-3651 of the Code of Virginia, the Council of the 6 City of Virginia Beach has advertised and conducted a public hearing on the issue of granting an 7 exemption from local real and personal property taxes to Merakey USA; 8 9 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA 10 BEACH, VIRGINIA: 11 12 1. That the Council of the City of Virginia Beach, Virginia, hereby designates Merakey 13 USA as a charitable organization within the context of§6(a)(6)of Article X of the Constitution of 14 Virginia and §58.1-3651 of the Code of Virginia. 15 16 2. That real and personal property owned by Merakey USA located within the City of 17 Virginia Beach that is used exclusively for charitable purposes on a nonprofit basis is hereby 18 exempt from local property taxation. 19 20 3. This exemption is contingent on the following: 21 22 (a) continued use of the property by Merakey USA for exclusively charitable 23 purposes; 24 25 (b) that each July 1, Merakey USA shall file with the Commissioner of the Revenue a 26 copy of its most recent federal income tax return, or if no such return is required, 27 it shall certify its continuing tax exempt status to the Commissioner of the 28 Revenue; 29 30 (c) that every three years, beginning on January 1, 2019, Merakey USA shall file an 31 exemption application with the Commissioner of the Revenue as a requirement 32 for retention of the exempt status of the property; and 33 34 (d) that Merakey USA cooperate fully with the Commissioner of the Revenue with 35 respect to audit of its financial records and compliance with the terms of this 36 ordinance. 37 38 4. That the effective date of this exemption shall be January 1, 2019. Adopted by the Council of the City of Virginia Beach, Virginia, on the day of , 2018. Requires an affirmative vote of three-fourths of the members of the City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUF ICIENCY: ( f r r/ • Commissio ''-"! the Revenue � 1. ey's O ice CA14573/R-1/November 6, 2018 OVERVIEW OF NONPROFIT APPLICATION FOR EXEMPTION ENTITY NAME: LOCATIONS ADDRESS: Merakey USA 705 Avalon Woods Court T/A Merakey USA Virginia Beach VA 23464 620 E. Germantown Pike Lafayette Hill, PA. 19444 WEBSITE: https://www.merakey.org/ SUMMARY OF NONPROFIT BUSINESS ACTIVITY Merakey USA supports individuals with intellectual and developmental disabilities in through both group homes and day services. Staff assist people living in these homes with personal care, adult daily living activities, community integration and social skill development. In Virginia Beach, this location is being operated as a group home with up to 4 individuals at one time. Merakey USA owns the real estate associated with the service provided in Virginia Beach. Merakey Allos runs the group home for Merakey USA. TAX IMPACT Real Property Parcel Assessment: 221,500.00 Tax: 2,220.54 Business Property Assessment: None Tax: None Personal Property Assessment: None Vehicle Tax: None RELEVANT INFORMATION IRS Granted 501 (c) 3 status—February 1982 This entity was formerly known as Northwestern Human Services, Inc. the entity name change occurred in April of 2018. OVERVIEW OF NONPROFIT APPLICATION FOR EXEMPTION ENTITY NAME: LOCATIONS ADDRESS: Merakey USA 898 Cambridge Drive T/A Merakey USA Virginia Beach VA 23454 620 E. Germantown Pike Lafayette Hill, PA. 19444 WEBSITE: https://www.merakey.org/ SUMMARY OF NONPROFIT BUSINESS ACTIVITY Merakey USA supports individuals with intellectual and developmental disabilities in through both group homes and day services. Staff assist people living in these homes with personal care, adult daily living activities, community integration and social skill development. In Virginia Beach,this location is being operated as a group home with up to 4 individuals at one time. Merakey USA owns the real estate associated with the service provided in Virginia Beach. Merakey Allos runs the group home for Merakey USA. TAX IMPACT Real Property Parcel Assessment: 286,000.00 Tax: 2,867.16 Business Property Assessment: None Tax: None Personal Property Assessment: None Vehicle Tax: None RELEVANT INFORMATION IRS Granted 501 (c) 3 status—February 1982 This entity was formerly known as Northwestern Human Services, Inc. the entity name change occurred in April of 2018. OVERVIEW OF NONPROFIT APPLICATION FOR EXEMPTION ENTITY NAME: LOCATIONS ADDRESS: Merakey USA 264 Coventry Road T/A Merakey USA Virginia Beach VA 23462 620 E. Germantown Pike Lafayette Hill, PA. 19444 WEBSITE: https://www.merakey.org/ SUMMARY OF NONPROFIT BUSINESS ACTIVITY Merakey USA supports individuals with intellectual and developmental disabilities in through both group homes and day services. Staff assist people living in these homes with personal care, adult daily living activities, community integration and social skill development. In Virginia Beach, this location is being operated as a group home with up to 4 individuals at one time. Merakey USA owns the real estate associated with the service provided in Virginia Beach. Merakey Allos runs the group home for Merakey USA. TAX IMPACT Real Property Parcel Assessment: 226,200.00 Tax: 2,267.66 Business Property Assessment: None Tax: None Personal Property Assessment: None Vehicle Tax: None RELEVANT INFORMATION IRS Granted 501 (c) 3 status—February 1982 This entity was formerly known as Northwestern Human Services, Inc. the entity name change occurred in April of 2018. OVERVIEW OF NONPROFIT APPLICATION FOR EXEMPTION ENTITY NAME: LOCATIONS ADDRESS: Merakey USA 125 South Thalia Road T/A Merakey USA Virginia Beach VA 23452 620 E. Germantown Pike Lafayette Hill, PA. 19444 WEBSITE: https://www.mera key.org/ SUMMARY OF NONPROFIT BUSINESS ACTIVITY Merakey USA supports individuals with intellectual and developmental disabilities in through both group homes and day services. Staff assist people living in these homes with personal care, adult daily living activities, community integration and social skill development. In Virginia Beach, this location is being operated as a group home with up to 4 individuals at one time. Merakey USA owns the real estate associated with the service provided in Virginia Beach. Merakey Allos runs the group home for Merakey USA. TAX IMPACT Real Property Parcel Assessment: 226,200.00 Tax: 2,267.66 Business Property Assessment: None Tax: None Personal Property Assessment: None Vehicle Tax: None RELEVANT INFORMATION IRS Granted 501 (c) 3 status—February 1982 This entity was formerly known as Northwestern Human Services, Inc. the entity name change occurred in April of 2018. DISCLOSURE STATEMENT FORM 4 The completion and submission of this form is required for all applications I wherein such applicant may utilize certain service providers or financial institutions, and the City seeks to know of the existence of such relationships in advance of any vote upon such application. SECTION 1 / APPLICANT DISCLOSURE Organization name: Merakey USA SECTION 2. SERVICES DISCLOSURE Are any of the following services being provided in connection with the applicant? If the answer to any item is YES, please identify the firm or individual providing the service: ( YES I I NO I I SERVICE I I PROVIDER (use ded)additional sheets If I nee Accounting and/or preparer of 40100 your tax return Financial Services (include 0 MI lending/banking institutions and current mortgage holders as applicable) Legal Services Broker/Contractor/Engineer/Other r Service Providers CERTIFICATION: I certify that all of the information contained in this Disclosure Statement Form is complete, true, and accurate. I understand I am responsible for updating the information provided herein if it changes prior to the Council action upon this Application. ge›727.-44_ `7r LaChantee Webb 09/25/18 APPLICANT'S SIGNATURE PRINT NAME DATE 1 AN ORDINANCE TO DESIGNATE SECOND CHANCE 2 WILDLIFE REHABILITATION AS BEING EXEMPT FROM 3 REAL AND PERSONAL PROPERTY TAXATION 4 5 WHEREAS, in accordance with § 58.1-3651 of the Code of Virginia, the Council of the 6 City of Virginia Beach has advertised and conducted a public hearing on the issue of granting an 7 exemption from local real and personal property taxes to Second Chance Wildlife Rehabilitation; 8 9 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA 10 BEACH, VIRGINIA: 11 12 1. That the Council of the City of Virginia Beach, Virginia, hereby designates Second 13 Chance Wildlife Rehabilitation as a charitable organization within the context of § 6(a)(6) of 14 Article X of the Constitution of Virginia and §58.1-3651 of the Code of Virginia. 15 16 2. That real and personal property owned by Second Chance Wildlife Rehabilitation 17 located within the City of Virginia Beach that is used exclusively for charitable purposes on a 18 nonprofit basis is hereby exempt from local property taxation. 19 20 3. This exemption is contingent on the following: 21 22 (a) continued use of the property by Second Chance Wildlife Rehabilitation for 23 exclusively charitable purposes; 24 25 (b) that each July 1, Second Chance Wildlife Rehabilitation shall file with the 26 Commissioner of the Revenue a copy of its most recent federal income tax 27 return, or if no such return is required, it shall certify its continuing tax exempt 28 status to the Commissioner of the Revenue; 29 30 (c) that every three years, beginning on January 1, 2019, Second Chance Wildlife 31 Rehabilitation shall file an exemption application with the Commissioner of the 32 Revenue as a requirement for retention of the exempt status of the property; and 33 34 (d)that Second Chance Wildlife Rehabilitation cooperate fully with the Commissioner 35 of the Revenue with respect to audit of its financial records and compliance with 36 the terms of this ordinance. 37 38 4. That the effective date of this exemption shall be January 1, 2019. Adopted by the Council of the City of Virginia Beach, Virginia, on the day of , 2018. Requires an affirmative vote of three-fourths of the members of the City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL S. FIC -NCY: Commissioner the Revenue Cit i Key's Office CA14548/R-1/October 9, 2018 OVERVIEW OF NONPROFIT APPLICATION FOR EXEMPTION ENTITY NAME: Second Chance Wildlife Rehabilitation T/A Second Chance Wildlife Rehabilitation 2905 Bamberg Place Virginia Beach, VA 23403 WEBSITE: http://www.2ndchancewildlife.org SUMMARY OF NONPROFIT BUSINESS ACTIVITY: Our mission is to give a second chance to wildlife native to the Commonwealth of Virginia. They works closely with Virginia Beach Animal Control, the Virginia Beach SPCA, Virginia Department of Game and Inland Fisheries, other government agencies, local Veterinarians, and other wildlife rehabilitation centers. The organization provides care for wildlife native to our area and when the animal is healthy enough, it is released back into the wild. They also provide educational programs that extends into the public and private school system as well as the community. TAX IMPACT: Real Property Parcel Assessment: None Tax: None Business Personal Assessment: 1,100 Property Tax: $17.60 Personal Property Assessment: None Vehicles Tax: None RELEVANT INFORMATION: IRS Granted 501 (c) 3 Status September 16, 2014 DISCLOSURE STATEMENT FORM The completion and submission of this form is required for all applications wherein such applicant may utilize certain service providers or financial institutions, and the City seeks to know of the existence of such relationships in advance of any vote upon such application. SECTION 1 / APPLICANT DISCLOSURE Organization name: SECTION 2. SERVICES DISCLOSURE Are any of the following services being provided in connection with the applicant? If the answer to any item is YES, please identify the firm or individual providing the service: YES NO I SERVICE I PROVIDER (use additional sheets if needed) ❑ Accounting and/or preparer of your tax return Financial Services (include ❑ ig lending/banking institutions and current mortgage holders as applicable) ❑ Legal Services ❑ Broker/Contractor/Engineer/Other Service Providers CERTIFICATION: I certify that all of the information contained in this Disclosure Statement Form is complete, true, and accurate. I understand I am responsible for updating the information provided herein if it changes prior to the Council action upon this Application. 64144t.j., . Connie L. Hi'efi 9/106 APPLICANT'S SIGNATURE PRINT NAME DATES 1 AN ORDINANCE TO DESIGNATE THE TIDEWATER 2 WINDS AS BEING EXEMPT FROM REAL AND PERSONAL 3 PROPERTY TAXATION 4 5 WHEREAS, in accordance with § 58.1-3651 of the Code of Virginia, the Council of the 6 City of Virginia Beach has advertised and conducted a public hearing on the issue of granting an 7 exemption from local real and personal property taxes to The Tidewater Winds; 8 9 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA 10 BEACH, VIRGINIA: 11 12 1. That the Council of the City of Virginia Beach, Virginia, hereby designates The 13 Tidewater Winds as a charitable organization within the context of § 6(a)(6) of Article X of the 14 Constitution of Virginia and §58.1-3651 of the Code of Virginia. 15 16 2. That real and personal property owned by The Tidewater Winds located within the 17 City of Virginia Beach that is used exclusively for charitable purposes on a nonprofit basis is 18 hereby exempt from local property taxation. 19 20 3. This exemption is contingent on the following: 21 22 (a) continued use of the property by The Tidewater Winds for exclusively charitable 23 purposes; 24 25 (b) that each July 1, The Tidewater Winds shall file with the Commissioner of the 26 Revenue a copy of its most recent federal income tax return, or if no such return 27 is required, it shall certify its continuing tax exempt status to the Commissioner of 28 the Revenue; 29 30 (c) that every three years, beginning on January 1, 2019, The Tidewater Winds shall 31 file an exemption application with the Commissioner of the Revenue as a 32 requirement for retention of the exempt status of the property; and 33 34 (d)that The Tidewater Winds cooperate fully with the Commissioner of the Revenue 35 with respect to audit of its financial records and compliance with the terms of this 36 ordinance. 37 38 4. That the effective date of this exemption shall be January 1, 2019. Adopted by the Council of the City of Virginia Beach, Virginia, on the day of , 2018. Requires an affirmative vote of three-fourths of the members of the City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUF IENCY: Commissione the Revenue et.-40'o ey's Iffice CA14551/R-1/October 9, 2018 OVERVIEW OF NONPROFIT APPLICATION FOR EXEMPTION ENTITY NAME: The Tidewater Winds T/A The Tidewater Winds 508 Harton Circle(Office use only) Virginia Beach VA 23452 WEBSITE www.tidewaterwinds.org SUMMARY OF NONPROFIT BUSINESS ACTIVITY: The mission of Tidewater Winds is to foster and maintain an organization dedicated to the making of music in the Sousa tradition. Furthermore, it is our charge to maintain the highest aspirations of musical art, creating performances and providing educational training programs for students at the highest level of excellence. Founded in 1985 as a 501 (c) 3 non-profit organization, the Winds present an average of 18 annual concert programs throughout the Hampton Roads community. Education is integral to our mission, and comprises two main components: the training of young musicians with professional guidance, and intern opportunities to provide students a background in arts management. Tidewater Winds presents programs to perpetuate the experience of superb musical performances to entertain and cultivate the broadest of audiences, to include all demographics inclusive of the elderly, the disabled, and lower income families, within and beyond our region. TAX IMPACT: Real Property Parcel Assessment: None Tax: None Business Property Assessment: 184,636 Tax: $2,954.18 Personal Property Assessment: None Vehicles Tax: None RELEVANT INFORMATION: Originally located in Norfolk VA as a non-profit and exempted from property tax. Organization moved to Virginia Beach in June of 2013. IRS Granted 501 (c) 3 Status November 21, 1987 DISCLOSURE STATEMENT FORM 4 S The completion and submission of this form is required for all applications wherein such applicant may utilize certain service providers or financial institutions, and the City seeks to know of the existence of such relationships in advance of any vote upon such application. SECTION 1 / APPLICANT DISCLOSURE Organization name: SECTION 2. SERVICES DISCLOSURE Are any of the following services being provided in connection with the applicant? If the answer to any item is YES, please identify the firm or individual providing the service: YES NO SERVICE PROVIDER (use additional sheets if needed) D Accounting and/or preparer of tr(ie_ '3 r1 ', Co(Ali l your tax return Financial Services (include a 0 lending/banking institutions and current mortgage holders as applicable) [� 0 Legal Services Broker/Contractor/Engineer/Other Service Providers CERTIFICATION: I certify that all of the information contained in this Disclosure Statement Form is complete, true, and accurate. I understand I am responsible for updating the information provided herein if it changes prior to the Council action upon this Application. omi l6 ex d- t. f>1.440 KtiA 12_///r7 APPLICANT'S SIGNATURE PRINT NAME DATE , r,. a� """'° y-6.0..,,,, Original Proposal rrc: 0417-71 ,,p-, -.-.- : .14 City Council Policy Title: City Council Policy Regarding Applications for Tax Exemption by Designation Date of Adoptiosr February 3, 2004 Dates of Revisions:May 6,2008 Page 1 of 4 1.0 Purpose and Need Purpose: To establish criteria for approval of resolutions by City Council to exempt, by designation, Iocal nonprofit organizations from real and personal property taxes. Need City Council has requested guidance as to criteria for considering exemptions as well as a procedure for reviewing requests for exemption from local property taxes. The Commissioner of the Revenue has offered revisions to Council's policy adopted on February 2, 2004 in an effort to streamline the exemption review process for local nonprofit organizations and provide necessary analysis and oversight of the application process. Legislative Background: The Virginia Constitution provides that, after January 1, 2003, local governments may, by designation, exempt the real and personal property of nonprofit organizations from local property taxes if used exclusively for religious, charitable, patriotic, historical, benevolent,cultural,or public park and playground purposes. However, as provided in Virginia Code § 58.1-3651, the local governing body must adopt an ordinance to exempt the Property. 2.0 Policy The City Council is not required to designate any organization properly applying for exemption from taxation, and every designation of an organization is conditioned upon compliance with the terms of this policy and any ordinance granting the exemption. If an organization does not comply with these requirements, the City Council may revoke the tax exemption after providing notice and a hearing to the organization. Any revocation of an exemption shall be effective at the beginning of the tax year during which the revocation occurs. The applicant or a representative of the applicant shall provide the Commissioner of the Revenue detailed information necessary to determine the benefits to the public that will result from granting tax exemption. In considering applications, the Commissioner of the Revenue shall employ the following guidelines: Tide: City Council Policy Regarding Applications for Tax Exemption by Designation Date of Adoption: February 3, 2004 Dates of Revisions: May 6, 2008 Page 2 .of 4 1. The organization must be exempt from federal income tax pursuant to Internal Revenue Code § 501(c). 2. Personal or real property for which an exemption is sought cannot be used by any member of the organization or other persons except for non-profit purposes benefiting the non-profit organization applying for exemption. 3. The organization must be in compliance with all City ordinances and regulations (including but not limited to building, property maintenance, and zoning codes) and all applicable tax obligations. 4. The organization must provide a service to the residents of the City that results in a benefit to the public (tangible or intangible). The following requirements apply to each entity exempted from local property taxes by the City Council: 1. Upon obtaining exemption, the organization must annually submit (by July 1 of each year) its Internal Revenue Service Form 990 or 990 EZ to the Commissioner of the Revenue. If not required to file Form 990 or 990 EZ, then the organization must annually certify on form(s) prescribed by the Commissioner of the Revenue its continuing tax exempt status. Loss of 501(c)status must immediately be reported to the Commissioner of the Revenue and City Attorney, and is grounds for revocation of tax exempt status. 2. Pursuant to Virginia Code§ 58.1-3605, each entity exempted from local property taxes shall, every three years, file an exemption application with the Commissioner of the Revenue as a requirement for retention of the exempt status of the property. The application form shall be approved as to form by the City Attorney. 3. Each entity exempted from local property taxes must cooperate fully with the Commissioner of the Revenue with respect to audit of its financial records,compliance with the terms of this policy, and compliance with any ordinance granting tax exemption. 3.0 Procedure to Accomplish Policy 1. Organizations applying for exemption must request a determination from the Commissioner of the.Revenue as to whether the organization is or may be tax-exempt by classification, pursuant to Article 2 (§58.1-3606 et seq.) or°Artide 3 (§58.1-3609 et seq.) of Title 58.1 of the Virginia Code. If the organization is not exempt, but meets the criteria of organizations that can be exempted by designation (see Virginia Code§58.1-3651), the organization will receive f , Title: City Council Policy Regarding Applications for Tax Exemption by Designation Date of Adoption: February 3, 2004 Dates of Revisions: May 5, 2008 Page 3 of 4 an application from the Commissioner of the Revenue. The application form shall request all information required by Virginia Code §58.1-3651 and be approved as to form by the City Attorney. 2. Applications for exemption shall be considered quarterly. Applications for exemption must be submitted to the Commissioner of the Revenue. Applications shall be submitted no later than October 1 of the year preceding the effective date of the exemption. Based on the criteria set forth in section 2.0 of this policy, the Commissioner of the Revenue will review each application and make a report to City Council regarding whether an organization qualifies for exemption under law and City policy. The Commissioner of the Revenue will not submit applications he deems incomplete to City Council for a determination. 3. The Commissioner of the Revenue shall forward copies of the applications along with his written findings to the City Attorney. The City Attorney shall prepare the necessary ordinances for City Council and coordinate with the City CIerk to ensure that the applications are properly advertised and placed on the City Council's agenda for a public hearing and formal consideration. 4. The City Council will conduct a public hearing and consider the criteria set forth in Virginia Code §58.I-3651, section 2.0 of this policy, and the findings of the Commissioner of the Revenue. 5. Any exemptions granted shall be effective as of the next January L 6. Exemptions, as well as any departure from these guidelines, shall require approval by three- fourths (3/4) of the members of City Council. 4.0 Responsibility and Authority Responsibility for initiating application for exemption and timely providing any information or application required by the Commissioner of the Revenue shall rest with the organization seeking exemption. Responsibility for making available information, application for exemption,verifying submitted tax information and reporting on the initial and continuing status of the taxpayer shall rest with the Commissioner of the Revenue. Responsibility for preparing required ordinances, arranging for.the advertising of public hearings, and placing items on the City Council's agenda for a vote on proposed exemptions shall rest with the City Attorney. Responsibility for the final determination of the public benefits resulting from tax exemption shall rest exclusively with the City Council. . l Title: City Council Policy Regarding Applications for Tax Exemption by Designation Date of Adoption: .February 3, 2004 Dates of Revisions: May 6,2008 Page 4 of 4 5.0 Definitions PUBLIC BENEFIT- Any benefit or advantage expected to be realized by the public, whether tangible or intangible, which may accompany the tax exemption. LOCAL PR DPERTY TAXES- Ad valorem taxes levied by the City of Virginia Beach on real estate or tangible personal property. 6.0 Specific Requirements In addition to the procedures and responsibilities set forth in paragraphs 3.0 and 4.0,respectively, documentation forwarded to the City Council shall include submission of an application form in form and substance substantially as presented in the attached Exhibit A, as well as any additional information that the applicant wishes to present to the City Council. I CITY OF VIRGINIA BEACH AGENDA ITEM I ITEM: An Ordinance Declaring Approximately 1,682.48 Sq. Ft. of City Property Located Adjacent to 601 Goldsboro Avenue to be in Excess of the City's Needs and Authorizing the City Manager to Sell the Property to The Allen Revocable Living Trust MEETING DATE: December 4, 2018 • Background: Gary W. Allen and Louise K. Allen, Trustees of the Allen Revocable Living Trust (the "Allen Trust"), own property located at 601 Goldsboro Avenue, in Virginia Beach (GPIN: 2427-01-8759). The Allen Trust's property is adjacent to a waterway known as Lake Rudee, owned by the City of Virginia Beach (the "City"). The Allen Trust desires to acquire approximately 1,682.48 sq. ft. of land along Lake Rudee (the "Excess Area") and incorporate said Excess Area into its existing property. City staff has reviewed the request and supports declaring the subject area in excess of the City's needs and conveying the same to the Allen Trust, with certain conditions, including the City's retention of (i) riparian rights, (ii) dredging rights channel-ward of the bulkhead, and (iii) a drainage and construction easement over the entire Excess Area. The Allen Trust would proceed with an encroachment application for any improvements located, or to be located, within the City's remaining property. The City and the Allen Trust have negotiated a sales price of$1,683.00 for the Excess Area. • Considerations: The Excess Area consists of land along the bank of Lake Rudee and has minimal value and use. Conveyance of the Excess Area to the Allen Trust to be incorporated into its existing property would allow the Allen Trust to access and maintain the existing riprap, pier and dock. The terms and conditions of conveyance of the Excess Area are set forth in the Summary of Terms attached to the Ordinance. • Public Information: Advertisement for a public hearing, as required Section 15.2-1800, Code of Virginia, and advertisement of City Council Agenda. • Alternatives: Approve the request subject to the terms of the Summary of Terms, deny the request, or add conditions as desired by Council. • Recommendations: Approval. • Attachments: Ordinance, Survey (Exhibit A), Summary of Terms (Exhibit B), Location Map, Disclosure Statement Form Recommended Action: Approval of the Ordinance Submitting Department/Agency: Public Works / Real Estate c",---= City Manager: ►‘01.4' \\vbgov.com\d Ls l\applications\citylaw\cycom32\wpdocs\d0l 5\p031\00517601.doc 1 AN ORDINANCE DECLARING APPROXIMATELY 2 1,682.48 SQ. FT. OF CITY PROPERTY LOCATED 3 ADJACENT TO 601 GOLDSBORO AVENUE TO 4 BE IN EXCESS OF THE CITY'S NEEDS AND 5 AUTHORIZING THE CITY MANAGER TO SELL 6 THE PROPERTY TO THE ALLEN REVOCABLE 7 LIVING TRUST 8 9 WHEREAS, the City of Virginia Beach (the "City") owns property known as Lake 10 Rudee (GPIN: 2427-01-8282); 11 12 WHEREAS, the Allen Revocable Living Trust (the "Allen Trust") owns 601 13 Goldsboro Avenue (GPIN: 2427-01-8759), which is adjacent to Lake Rudee; 14 15 WHEREAS, the Allen Trust desires to purchase approximately 1,682.48 sq. feet 16 of land along the border of its property (the "Excess Area") and incorporate the Excess 17 Area into its existing property, as shown on Exhibit A attached hereto; 18 19 WHEREAS, City staff has reviewed the request and supports conveying the 20 Excess Area to the Allen Trust, pursuant to the terms and conditions as set forth in the 21 Summary of Terms, attached hereto as Exhibit B; and 22 23 WHEREAS, the City Council is of the opinion that the 1,682.48 sq. ft. portion of 24 the City's property is in excess of the needs of the City. 25 26 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 27 VIRGINIA BEACH, VIRGINIA: 28 29 1. That the 1,682.48 sq. ft. portion of land located adjacent to Lake Rudee 30 and 601 Goldsboro Avenue, shown on Exhibit A, attached hereto and made a part 31 hereof, is hereby declared to be in excess of the needs of the City of Virginia Beach. 32 33 2. That the City Manager, or his authorized designee, is hereby authorized to 34 execute any documents necessary to convey the Excess Area to the Allen Trust, in 35 accordance with the Summary of Terms, attached hereto as Exhibit B and made a part 36 hereof, and such other terms, conditions or modifications as may be acceptable to the 37 City Manager and in a form deemed satisfactory by the City Attorney. 38 39 This Ordinance shall be effective from the date of its adoption. 40 41 Adopted by the Council of the City of Virginia Beach, Virginia, on the day 42 of , 2018. 43 44 THIS ORDINANCE REQUIRES AN AFFIRMATIVE VOTE OF THREE- 45 FOURTHS OF ALL COUNCIL MEMBERS ELECTED TO COUNCIL. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIEN itiffl" Public •rks / Real Estate City Attorney CA14417 \\vbgov.com\dfsl\applications\citylaw\cycom32\wpdocs\d015\p031\00517599.doc R-1 November 16, 2018 EXHIBIT A LAKE RUDEE N/F CVB PT. OF 2427-01-8282 INST: 20100915000966510 W E S 4-2.}-. . 0,*cir. EXCESS PROPERTY TO 44.1 7,„7,5„, BE CONVEYED -06700,_______---,,;�� '2� (1,682.48 SF/0.038 AC) �I� (HATCHED) PROPERTY LINE N � ,� IP' a 1-- M.B. FROM — PIN ,•3 3' 19.2 15.5 9 9 �,1� a, cn M.B. 7 PG. 14 �' 2So,'\I* cc 0 '- " z QF- O Z - J n > o V Q, > cv M CC in "e- D0) GC� Z N O CC ,-- Ci' I mO d,v,vo N ± 11 O 9 / il � q U V N. d 1- N O O • a / Ct Nm U..1 NN . . # 2 • I-- 0 z �',// °� j z , . //�. H 0�*PIN • • c,..ilpi ' L{�y c, N ` i!U . LOT 8 _GOLDSBORO AVE. 8 2427-01-8759 ' REGO'' 0.MILSTEAD w' • INST:200303070035885 ,o. 047323 (50' R/W) PIN S 82.45T W 88.00 (P) PIN ..00 10 dit7 `� N/F C RT R M-8 RP!N, JR. o�87 4,��I ���‘+� INST: #20101117001222560 ZONAL SCALE: 1" - 30' EXHIBIT 'A' — EXCESS PROPERTY REQUEST CHESAPEAKE BAY FOR SITE SOLUTIONS ALLEN REVOCABLE LIVING TRUST P.O. BOX 6663 LOT 8, BLOCK 29, SHADOW LAWN HEIGHTS VIRGINIA BEACH, VA 23456 PHONE/FAX: (757) 575-3715 BEACH DISTRICT VIRGINIA BEACH, VA (M.B. 7 PG. 14) DATE: SEPTEMBER 26, 2018 ` EXHIBIT B SUMMARY OF TERMS SALE OF APPROXIMATELY 1,682 SQ. FT. OF CITY PROPERTY ADJACENT TO LAKE RUDEE SELLER: City of Virginia Beach (the "City") BUYER: The Allen Revocable Living Trust PROPERTY: Approximately 1 ,682.48 square feet of land along Lake Rudee, located adjacent to 601 Goldsboro Avenue SALES PRICE: $1,683.00 CONDITIONS OF SALE: • The Buyer shall, at its sole expense, resubdivide the property, vacating internal lot lines and incorporating the approximate 1 ,682.48 square feet into its existing property located at 601 Goldsboro Avenue. • Upon resubdivision, the current R-5S zoning of the Buyer's existing property will be extended to the new lot line (per Section 102(b)(4(iv) of the Zoning Ordinance). • The City will reserve a drainage and construction easement over the Property. • The City will reserve its riparian rights. • The City will reserve its rights to dredge channel-ward of the bulkhead. • The Buyer shall submit any plans for future construction to the Planning Department for approval and obtain any necessary permits and inspections. • The Buyer shall proceed with an encroachment application for any improvements located, or to be located, within the City's remaining property. • The Purchaser shall adhere to all zoning ordinances. • Closing shall occur no later than one (1) year from the date the Agreement of Sale is fully executed. ra N4 t[ g Ci) b � n 4c1;D Eta) LL o� _ N g Q W —� Q ~ LI \---A ----\---j'- ZOm (Xq o 1 0F' Qpti I 00. U_._r'1�_11' QMONN S i 0 W J Z J .. r, Z 0 0 6: . , I 111 lill#. \______\\ a. u., ,_..., V W 2 H i1 r' ` 1, r-�� , 1— ilibk. ''''s srl •lit z. _____,_1 \._ ___ di „_, 00 , \„___,\______3 _,...______ , ---\, ,_______, &1ti, ' OL/( PZEss irfti • � o ' .r O _ ea Ca t \ \ j()\ :C51 8 g g il (f) G \ '1 °' L—;� N7+ �uy N ci Is- a °7 a O .i : •.".c.. . • y� S1 � WyOo o dy k, m � aNay Z d .. . ..).,, , ,. 101,0_0\1 , 1 C UN U H S >, _ \ j IIIM L\----\ . \ Sr 0 l ii; 0 :A. Virginia Beach APPLICANT'S NAME Gary W. Allen and Louise K. Allen, Trustees DISCLOSURE STATEMENT FORM The completion and submission of this form is required for all applications that pertain to City real estate matters or to the development and/or use of property in the City of Virginia Beach requiring action by the City Council or a board, commission, or other body appointed by the City Council. Such applications and matters include, but are not limited to, the following: Acquisition of Property Disposition of City Modification of by City Property Conditions or Proffers Alternative Economic Development Nonconforming Use Compliance, Special Investment Program Changes Exception for (EDIP) Board of Zoning Encroachment Request Rezoning Appeals Certificate of Floodplain Variance Appropriateness Street Closure (Historic Review Board) Franchise Agreement Chesapeake Bay Preservation Area Lease of City Property Subdivision Variance Board Conditional Use Permit License Agreement Wetlands Board 4 The disclosures contained in this form are necessary to inform public officials who may vote on the application as to whether they have a conflict of interest under Virginia law. 4 • SECTION 1 / APPLICANT DISCLOSURE FOR CITY USE ONLY/All disclosures must be updated troo(i) .:ecks prior to any Page 1 of 7 Planning Commission and Cit.;Council meeting that pertains to the application(s). o APPLICANT NOTIFIED OF HEARING DA L: ,49 'TO o NO CHANGES AS OF BATF: �n REVISIONS SUBMITTED DA I S SEP 2 8 `017 <.r., Dry el Virginia Beach Ei Check here if the APPLICANT IS NOT a corporation, parnership, firm, business, or other unincorporated organization. ElCheck here if the APPLICANT IS a corporation, partnership, firm, business, or other unincorporated organization. (A) List the Applicant's name: If an LLC, list all member's names: If a CORPORATION, list the the names of all officers, directors, members, trustees, etc. below: (Attach list if necessary) (B) List the businesses that have a parent-subsidiary 1 or affiliated business entity 2 relationship with the Applicant: (Attach list if necessary) See next page for information pertaining to footnotes and 2 4 SECTION 2 / PROPERTY OWNER DISCLOSURE Complete Section 2 only if property owner is different from Applicant. © Check here if the PROPERTY OWNER IS NOT a corporation, partnership, firm, business, or other unincorporated organization. Check here if the PROPERTY OWNER IS a corporation, partnership, firm, business, or other unincorporated organization, AND THEN, complete the following. (A) List the Property Owner's name: If an LLC, list the member's names: Page 2 of 7 Cris M Virginia Beach If a Corporation, list the names ofall officers, directors, members, trustees, etc. below: (Attach list if necessary) (B) List the businesses that have a parent-subsidiary or affiliated business entity 2 relationship with the Property Owner: (Attach list if necessary) "Parent-subsidiary relationship" means "a relationship that exists when one corporation directly or indirectly owns shares possessing more than SO percent of the voting power of another corporation." See State and Local Government Conflict of Interests Act,Va. Code § 2.2-3101. 2 "Affiliated business entity relationship" means "a relationship, other than parent-subsidiary relationship, that exists when (i) one business entity has a controlling ownership interest in the other business entity, (ii) a controlling owner in one entity is also a controlling owner in the other entity, or (iii) there is shared management or control between the business entities. Factors that should be considered in determining the existence of an affiliated business entity relationship include that the same person or substantially the same person own or manage the two entities; there are common or commingled funds or assets; the business entities share the use of the same offices or employees or otherwise share activities, resources or personnel on a regular basis; or there is otherwise a close working relationship between the entities." See State and Local Government Conflict of Interests Act, Va.Code § 2.2-3101. 4 SECTION 3. SERVICES DISCLOSURE Are any of the following services being provided in connection with the subiect of the application or any business operating or to be operated on the Property. If the answer to any item is YES, please identify the firm or individual providing the service: IF THE OWNER AND APPLICANT ARE DIFFERENT, EACH MUST COMPLETE THE SECTION SEPERATELY Page 3 of 7 APPLICANT Virginia Beach YES NO SERVICE PROVIDER (use additional sheets if needed) (n a Accounting and/or preparer of 1 your tax return Architect / Landscape Architect/ Land Planner Contract Purchaser (if other than the Applicant) - identify purchaser and purchaser's service providers Any other pending or proposed X purchaser of the subject property (identify purchaser(s) and purchaser's service providers) LIrxi Construction Contractors { /_ Uf Engineers / Surveyors/Agents i ire Iter f r o n t Consulting , Inc . Financing (include current ,, /'y mortgage holders and lenders n selected or being considered to VCS/4 c/ (14F.GeC provide financing for acquisition or construction of the property) Legal Services Janice Pickrell Anderson , Esq . Real Estate Brokers / n n Agents/Realtors for current and anticipated future sales of the subject property 1 SECTION 4. KNOWN INTEREST BY PUBLIC OFFICIAL OR EMPLOYEE YES NO Does an official or employee of the City of Virginia Beach have n r- an interest in the subject land or any proposed development contingent on the subject public action? If yes, what is the name of the official or employee and what is the nature of the interest? Page 4 of 7 RNA Virginia Beach CERTIFICATION: I certify that all of the information contained in this Disclosure Statement Form is complete,true, and accurate. I understand that, upon receipt of notification that the application has been scheduled for public hearing, I am responsible for updating the information provided herein two weeks prior to the Planning Commission, Council, VBDA meeting, or meeting of any public body or committee in connection with this Application. �( r /��% Gary 1,/ . Allen and S jdfiCy , " ` ,/-1-1.- Louise K. Allan TrustP =s APPLIC JS SIGNATURE PRINT NAME DATE 10 -36)-1S'" Le del' /IQ ci C1-iscic'sc,'r�. . ci-ri.Q_A :rii-1-7- (---- ...._-42 f rte Ait ,� ��;nc� I_ '� Ire Page 5 of 7 CITY OF VIRGINIA BEACH AGENDA ITEM _J ITEM: A Resolution Authorizing the City Manager to Execute a Comprehensive Agreement for the Operation of the Virginia Beach Sports Center MEETING DATE: December 4, 2018 • Background: The City of Virginia Beach received a consultant's study(the "Victus Study") in late 2016, which strongly indicated the capacity in the local market to support the development of a new indoor sports center (the "Sports Center") near the City's Convention Center. As discussed in the Victus Study, a new indoor sports center would have multiple favorable outcomes including additional hotel room nights, especially in the off-season, and reducing the sports tourism utilization of the Convention Center. In July, the City Council authorized a comprehensive agreement for the design and construction of the Sports Center. In regard to operations of the Sports Center, the Council authorized an interim agreement with Eastern Sports Management, LLC ("ESM") in March 2018, to provide detailed operations plans in furtherance of the negotiation of a long-term operation agreement for the Sports Center. The negotiation of the comprehensive agreement for operations (the "Comprehensive Agreement") is complete. The details of the Comprehensive Agreement, including a summary of material terms, were provided to the Council on November 2, 2018, and posted on the City's website to allow the public to review and offer comments. Because the Sports Center is funded using tax-exempt municipal debt, the form of the Comprehensive Agreement conforms to IRS regulations for "qualified management agreements," which requires the City maintain the operational risk for the Sports Center. The Comprehensive Agreement is structured with an initial term of 10 years, with two 5- year extensions with mutual agreement of the parties. A detailed summary of material terms of the Comprehensive Agreement and the text of the Comprehensive Agreement is attached. • Considerations: The resolution provides four related actions in furtherance of the Comprehensive Agreement. First, the resolution makes the findings required by the Public-Private Education Facilities and Infrastructure Act (the "PPEA"). Second, it authorizes the City Manager to execute the Comprehensive Agreement. Third, the resolution transfers funds within the Tourism Investment Program Fund or TIP Fund to make payments in the current fiscal year, and these payments will allow ESM, through its subsidiary, ESM VB, LLC, to begin programming and staffing for its responsibilities under the Comprehensive Agreement. Fourth, the resolution directs the City's Finance Director to make a reservation in the FY2018-19 fund balance to offset obligations in the Comprehensive Agreement for certain furniture and equipment for the Sports Center. The reservation will be reduced as such start-up costs are amortized. The furniture and equipment will become the property of the Sports Center, and the obligation to utilize the funds so reserved will only occur if the Comprehensive Agreement is terminated during the initial 10-year term. • Public Information: Normal Council agenda process. As required by the City's PPEA Procedures, the Comprehensive Agreement and a summary of the material terms of the Comprehensive Agreement was posted on the City's website. • Recommendations: Approve the resolution. • Attachments: Resolution; Summary of Material Terms; Comprehensive Agreement; November 2, 2018 Letter from the City Manager; Disclosure Form Recommended Action: Approval Submitting Department/Agency: City Manager's Office e7:/& City Manager: \ , %046161)go 1 A RESOLUTION AUTHORIZING THE CITY 2 MANAGER TO EXECUTE A COMPREHENSIVE 3 AGREEMENT FOR THE OPERATION OF THE 4 VIRGINIA BEACH SPORTS CENTER 5 6 WHEREAS, on September 26, 2017, the City received conceptual proposals under 7 the Virginia Public-Private Education Facilities and Infrastructure Act ("PPEA") from three 8 firms in response to a solicitation by the City for a sports center facility (the "Sports 9 Center"); 10 11 WHEREAS, the conceptual proposals were posted on the City's website 12 (www.vbgov.com) as required by the PPEA and the City's PPEA Guidelines; 13 14 WHEREAS, after receipt of detailed proposals, the City undertook detailed 15 negotiations with the three firms that responded to the City's PPEA solicitation; 16 17 WHEREAS, a public hearing was held on February 6, 2018 to allow the public to 18 provide input on the PPEA proposals as required by Virginia Code § 56-575.17.B; 19 20 WHEREAS, the City Council approved an interim agreement for preliminary plans 21 regarding operations and operator design coordination with Eastern Sports Management, 22 LLC ("ESM"), on March 20, 2018; 23 24 WHEREAS, after the approval by the Council of a comprehensive agreement for 25 the design and construction of the Sports Center, the staff undertook negotiations with 26 ESM, through its wholly owned subsidiary ESM VB, LLC, for the comprehensive 27 agreement for operations of the Sports Center (the "Comprehensive Agreement'); 28 29 WHEREAS, on November 2, 2018, the City Manager provided a copy of the 30 proposed Comprehensive Agreement to the City Council and authorized posting of the 31 proposed Comprehensive Agreement on the City's website; 32 33 WHEREAS, the Council was briefed at its November 27, 2018 Workshop with the 34 details of the proposed Comprehensive Agreement; 35 36 NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE 37 CITY OF VIRGINIA BEACH, VIRGINIA. THAT: 38 39 1 . Based upon the review of the proposals, the work from the Interim Agreement, 40 and advice provided by the City Staff, the City Council hereby determines that 41 entering into a Comprehensive Agreement for the operation of the Virginia 42 Beach Sports Center with ESM VB, LLC will serve the public purpose because 43 (i) there is a public need and benefit to be derived from such agreement, (ii) the 44 proposed fee arrangement is reasonable in relation to similar facilities, and (iii) 45 the agreement will result in the efficient operation of the Virginia Beach Sports 46 Center. 47 48 2. The City Manager or his designee is hereby authorized to execute, after 49 approval for legal sufficiency by the City Attorney or his designee, a 50 Comprehensive Agreement with ESM VB, LLC for the Sports Center Project. 51 52 3. A transfer of $105,000 is hereby authorized in the TIP Fund to make monthly 53 payments for FY2018-19. 54 55 4. The Director of Finance is directed to make a reservation upon the City's 56 financial records at the close of FY2018-19 in an amount estimated to be 57 $4,248,448 to have reserved against the obligations in the Comprehensive 58 Agreement for the Start-up Budget for the Sports Centers, and the Director of 59 Finance is further directed to reduce such amount based upon the reported 60 unamortized balance of the Start-up Budget as reported annually by ESM VB, 61 LLC. Adopted by the City Council of the City of Virginia Beach, Virginia, on this day of , 2018. Requires an affirmative vote by a majority of all of the members of the City Council. APPROVED AS TO CONTENT: APPROVED AS TO CONTENT: City Manager's Off•ice Dpa ment of Finance APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY •Department of Budget and 0. - - of the City Attorney Management Services CA14558 R-1 November 13, 2018 ✓" 'if,w' z City of Virginia Beach s ' 1o4gPts e,,o t Lt OUR NAr�NS y VB3,gov.com OFFICE OF THE CITY MANAGER MUNICIPAL CENTER (757)385-4242 BUILDING 1 FAX(757)385-5626 2401 COURTHOUSE DRIVE TDD(757)385-4305 VIRGINIA BEACH,VA 23456-9001 November 2,2018 The Honorable Louis R.Jones, Mayor and Members of City Council Subject: PPEA Comprehensive Agreement for the Operation of the Virginia Beach Sports Center Dear Mayor and Council Members: After the Council approval of the Comprehensive Agreement for Design-Build of the Sports Center in July, the staff has worked with John Wack, of Eastern Sports Management, to complete the negotiation of the Comprehensive Agreement to Operate the Virginia Beach Sports Center. That negotiation is complete. In accordance with the City's PPEA Procedures,the draft PPEA Comprehensive Agreement for the Operation of the Virginia Beach Sports Center is to be posted at least 30 days prior to execution. A summary of the material terms and a copy of the agreement are attached. The agreement will be posted in the Purchasing Office, at 2388 Liberty Way, for 30 days beginning November 2. Staff is scheduled to brief the terms of the contract at the November 27 City Council meeting with a tentative vote scheduled for the December 4 Formal Session. Please do not hesitate to contact me or Ron Williams with any questions. Respectfully, 1 David L.Hansen City Manager DLH/TA/lb Attachment PPEA COMPREHENSIVE AGREEMENT FOR THE OPERATION OF THE VIRGINIA BEACH SPORTS CENTER SUMMARY OF MATERIAL TERMS Parties: City of Virginia Beach ("City") ESM VB, LLC ("Manager") Term: 10 year initial term; two 5-year extensions with mutual agreement. Form: Qualified Management Agreement — this allows the City to finance the construction of the facility using tax-exempt bonds, which aligns with the City's CIP. Material Terms: Manager to be the sole operator of the Facility. The City's Convention and Visitor's Bureau to establish an office in the Facility for Sports Marketing. The Manager to develop an operating budget for the Facility, which is subject to approval by the City. The operation of the Facility is focused on tournaments, track meets, and other sports-related events that drive out-of- town visitation and provide positive economic impact for the City. The Manager to be compensated based on a fixed Management Fee and a variable Incentive Fee. During the construction of the Facility, the Fee is $15,000/month for the first 12 months and$20,000/month for the following 12 months. Once the Facility opens, the Management Fee is $30,000/month. The Incentive Fee is based on gross revenues of the Facility once opened. During the first 2 years after opening, the Incentive Fee is 6%of gross revenues. Thereafter, the Incentive Fee is stepped 4%of the first$2,500,000, 5%of the next$1,000,000,6%of the next$1,000,000, and 7% above $4,500,000. The City, through its Sports Marketing Division of CVB, books tournaments and sports-related events nine months out. These events are generally booked Friday-Sunday. Within nine months, the Manager controls the booking calendar, and the Manager will work to maximize the use of the Facility during Monday-Thursday though leagues, clubs, and other facility use agreements. For the out-fitting of the Facility, the Manager to present to the City a Start- up Budget. This Start-up Budget primarily intended for furniture, fixtures, and athletic equipment for the Facility, and such items will become the property of the Facility. If the City terminates the Agreement prior to the completion of the initial 10-year term, the City is required to pay the unamortized cost of the furniture, fixtures, and athletic equipment. The City will hold and control Operating Reserves and Capital Reserves for the Facility. The Manager is responsible for the initial Working Capital. The City will hold and control Operating Reserves and Capital Reserves for the Facility. The Manager is responsible for the initial Working Capital. The Manager will pay the City quarterly a sum equivalent to the gross revenues less operating expenses, Management Fee, Incentive Fee, repayment of the Operating Reserves, if use of Operating Reserves have been required,and repayment of the Start-up Budget. The repayment of the Start-up Budget is based on a schedule that amortizes the Manager provided property over a seven-year schedule. The City intends to use the quarterly payments to fund the Capital Reserve and/or other such purposes as directed by the City Council. City to retain control over approval of sponsorship and naming rights of the Facility. Parties agree to collectively pursue sponsorships and naming rights consistent with the City's intended purposes. All funds received for naming rights of the Facility, net of direct expenses, will go to the Capital Reserve. The City has a right to terminate the Agreement for Default. The City has the additional right to terminate for convenience with a specified buy-out amount. 2 MANAGEMENT AGREEMENT BETWEEN CITY OF VIRGINIA BEACH,VIRGINIA,a municipal corporation of the Commonwealth of Virginia (CITY) AND ESM VBSC,LLC, a Virginia limited liability company (MANAGER) Operation and Maintenance of the Virginia Beach Sports Center , 2018 i MANAGEMENT AGREEMENT THIS MANAGEMENT AGREEMENT ("Agreement") is made as of , 2018 ("Effective Date"), between the CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia (the "City"), as Owner, and ESM VBSC, LLC, a Virginia limited liability company(the "Manager"), as Manager. RECITALS A. City issued its unsolicited proposal (the "Solicitation") under the Public-Private Education Facilities and Infrastructure Act of 2002(the"PPEA")seeking the design,construction, operation and maintenance of an indoor sports facility to be known as the Virginia Beach Sports Center("Center"). B. After reviewing all responses to the Solicitation for construction of the Center; conducting a public hearing as required by the PPEA; and posting for review as required by the PPEA, the City has entered into a contract for the construction of the Center (the "MEB Contract")with MEB General Contractors, Inc. ("MEB"). C. As contemplated by the Solicitation, the City desires that a private party will operate and maintain the Center on behalf of the City. D. After a review of all responses to the Solicitation, the City has determined that Manager is best suited to operate and maintain the Center after it is constructed pursuant to the MEB Contract. E. Manager is owned by Eastern Sports Management("ESM"). F. Manager and City have agreed that Manager will manage the creation and start-up of the operating business for the center and operate and maintain the Center upon completion of the Center as set forth herein. NOW, THEREFORE, in consideration of the mutual covenants and promises contained in this Agreement, the City and Manager agree as follows: ARTICLE I RULES OF CONSTRUCTION Section 1.1. Rules of Construction. Except where the context otherwise requires, (i) singular words connote the plural number as well as the singular and vice versa, and (ii) pronouns inferring the masculine gender include the feminine and neuter genders, and vice versa. All references to particular articles or sections are references to articles or sections of this Agreement unless otherwise indicated. The headings in this Agreement are solely for convenience of reference and do not constitute a part of this Agreement or affect its meaning, construction, or effect. ARTICLE II REPRESENTATIONS Section 2.1. Representations by the City. The City makes the following representations as the basis for its undertakings under this Agreement: (a) The City is a municipal corporation of the Commonwealth of Virginia. (b) This Agreement is authorized by a resolution adopted by the affirmative vote of a majority of the members of the Council present at a meeting at which a quorum was present and acting throughout. (c) The City is fee simple owner of the Center. (d) The City is authorized to enter into and to carry out its obligations under this Agreement. (e) The execution, delivery, and compliance by the City with this Agreement will not conflict with or constitute or result in a default under or violation of any indenture, mortgage, deed of trust, lien, lease, contract, note, order,judgment, decree, or other agreement, instrument, or restriction of any kind to which the City or any of its assets is subject. (f) No litigation, inquiry, or investigation of any kind in or by any judicial or administrative court or agency is pending or, to the City's knowledge, threatened against it with respect to its execution and delivery of this Agreement. Section 2.2. Representations by Manager. Manager makes the following representations as the basis for its undertakings under this Agreement: (a) Manager has the power to enter into and to perform its obligations under this Agreement and by proper action has duly authorized the execution and delivery of this Agreement. (b) No litigation, inquiry, or investigation of any kind or by any judicial or administrative court or agency is pending or, to Manager's knowledge, threatened against it with respect to the execution and delivery of this Agreement or operation of the Center. (c) Manager is lawfully permitted to conduct business in the Commonwealth and enter into this Agreement. (d) Manager is a service provider (rather than the owner or tenant) for tax purposes and agrees that it will not claim any depreciation or amortization deductions,tax credits or rent deductions with respect to the City's ownership of the Center;provided that Manager may do so with respect to any personal property, equipment and related assets owned by Manager, located in the Center and used by Manager in the performance of his responsibilities under this Agreement. 2 ARTICLE III USE,OPERATION,CITY APPROVALS,MARKETING AND LEASE Section 3.1. Agreement. The City and Manager enter into this Agreement for Manager to manage as the sole operator of the Center on a daily basis in accordance with the policies, guidelines and procedures established herein. Section 3.2. Use,Operation and Compliance with Laws. Throughout the Term of this Agreement,Manager or any successor permitted under this Agreement shall be permitted to operate and maintain the Center as an indoor sports center in compliance with the Agreement and all applicable laws,regulations in any way affecting the Center.Manager shall obtain and keep in force all governmental licenses and permits necessary for such use. Manager shall at all times comply with all federal,state,and City laws,statutes,laws,regulations,requirements,codes,and ordinances applicable to Manager's management of the Center. Except as provided for in Sections 3.3 and 3.7, below, Manager shall manage and organize all aspects of the Center and its operation, including, but not limited to, the various recreational and athletic programs and competitive events for individuals and teams, including, but not limited to, rentals, leagues, tournaments and events for basketball,volleyball,field hockey,futsal(indoor soccer),track and field,gymnastics,cheer,dance, wrestling, grappling, and other indoor sports and in general conformance with the Business Plan attached as Exhibit A("Business Plan"). Section 3.3. City of Virginia Beach Convention and Visitors Bureau(VBCVB). The Parties intend for the City to establish an office for the VBCVB, a department of the City, in the Center. This office will occupy approximately 1,450 square foot portion of the Center(the "CVB Offices")and shall not be available to the Manager for events,rentals, etc. The City and VBCVB shall have an absolute right to use the CVB Offices and retain all rights to access of such space and any infrastructure(such as information technology)required for the operation of it. All reasonable and customary costs for utilities, consumables, and custodial for the CVB Offices shall be the responsibility of the Manager and to be paid from the operating accounts of the Center. Section 3.4. City Approvals and Budget. Manager shall develop for City's prior approval an initial operating budget setting forth an estimate of operating revenues and expenses (expenses to include all licenses,taxes,insurance,repairs,improvements,etc. of the Center),which operating budget shall be detailed and shall contain an explanation of operating revenues and expenses,all budget assumptions to be attached as Exhibit B(the"Operating Budget").Annually, thereafter, Manager shall deliver to the City for its prior approval,no later than forty five(45)days after the end of each calendar year(i.e.February 15th),an operating budget setting forth an estimate of operating revenues and expenses;a statement of cash flows for the Center; and projection of cash receipts and disbursements based upon the proposed expenditures and operating budgets in such detail required by City.The City shall have the right to approve(i)the annual Operating Budget for the Center; (ii)the disposition of real and personal property owned by the City; (iii) rates charged for the use of the Center and related programs,and(iv)the types of activities and uses in the Center. In addition, the City has the right to reduce or waive Center rental fees for events that provide significant economic activity for the community at City's discretion, and in such case, the calculation of the Incentive Fee shall be made with the amount of such waiver included in the gross revenue even though such amounts are not actually received. Manager shall also develop for the City's prior approval a pre-opening budget setting forth an estimate of expenses for the start-up 3 expenses of the Manager, including but not limited to furniture, fixtures, equipment, operating capital, operating reserves, and principal, interest and related finance charges (the "Start-up Budget"). The Start-up Budget will also include a schedule of when funds will be needed in the months prior to facility opening, and a list of the sources of the funds. The estimated, initial Manager's Start-up Budget is as set forth on Exhibit C. Any furniture, fixtures, or equipment purchased pursuant to the Operating Budget or the Start-up Budget shall be the property of the Center. Upon submission of the Operating Budget by the Manager, the City shall review and provide its approval or it may recommend changes specifying in reasonable detail the reasons for such changes. The approval or recommended changes shall be provided to Manager within fifteen (15) days of receipt of the Operating Budget. If the City does not respond within the fifteen (15) days or the recommended changes are not accepted by the Manager, the Parties agree to work expeditiously to resolve any issues regarding the Operating Budget. If no Operating Budget approval has been reached,the Parties agree to use the immediately preceding Operating Budget as the budget for the period of time required to reach agreement upon the Operating Budget. City and Manager agree to work together in good faith to reach agreement on the budgets as soon as reasonably possible. Section 3.5. Use of Operating Reserves. The Manager shall retain an operating reserve for the purpose of paying unanticipated operating costs(the"Operating Reserve"). The City will fund and hold the Operating Reserve account initially with $750,000. The parties will review quarterly the funding level of the Operating Reserve and any withdrawal(s) from the Operating Reserve will be restored in a reasonable period of time depending on the nature and cause of the need to make such withdrawal(s). The City may require Manager to add additional funds to the Operating Reserve from the net income of the Center. At least five(5)days prior to expenditure of such Operating Reserve,the Manager shall notify in writing the City,through its VBCVB. Manager shall also maintain a working capital account ("Working Capital") with an initial amount of $400,000 at Substantial Completion. The City shall be provided the opportunity to review the intended Working Capital account on a quarterly basis. As the working account of Manager's business, Manager will not need to obtain approval from the City for expenditures from this account. Any purchase of a single item between $5,000 and $10,000 from the Operating Reserve or otherwise shall be reported to the City quarterly. Section 3.6. Capital Reserves and Expenditure Thereof. The City will maintain a capital reserve for the Center in such amounts as are appropriated by the City Council of the City. For purposes of this Agreement, "capital expenditure" shall mean an expenditure for a purchase of additional or replacement machinery or equipment or similar expense,the cost of which is in excess of$10,000 and the depreciable life of which,according to generally accepted accounting principles, is in excess of one (1) year and any other item of expense that, according to generally accepted accounting principles, is in excess of$10,000 and not properly deducted as a current expense on the books of the Center,but rather should be capitalized. The Manager may include in the Budget a request for certain capital expenditures. The City shall retain sole discretion to approve such capital expenditures, but the City will give reasonable consideration to any capital expenditure request from the Manager in light of competing financial considerations. Any Capital Expense in an amount less than $10,000 required to be capitalized on the books of the Center in accordance with generally accepted accounting principles will be treated as an operating expense when calculating Quarterly Payments by Manager as defined below in Section 4.4. 4 Section 3.7. Booking Policy. In an effort to further the City's vision for the Center as an asset to attract sports participants,spectators,and their families to the City and,in turn,to provide a positive economic impact on the City, Manager agrees to work closely with the VBCVB to book tournaments and events that will maximize the economic impact on the City. Manager and the VBCVB will meet weekly to review marketing efforts of both Manager and the VBCVB and to schedule and reserve dates for committed and potential tournaments and events to include,but not limited to,the following: (a) Operator may book any open dates inside nine(9) months. The City shall control all other dates. Within nine (9) months, the Manager may book rentals, leagues, tournaments or other events in its discretion for any open dates with the shared goal with the City of maximizing utilization of the Center in support of sports tourism. The City without Manager's consent may not overbook any date booked by Manager inside of nine months. Any non-sports events require approval from the City in advance of booking. Manager agrees to cooperate with the VBCVB to adjust any Monday to Thursday scheduled leagues or rental arrangements in order to accommodate any week-long tournaments or events. City shall review all booking proposals and bids with Manager prior to submitting bids or proposals to ensure Manager can successfully execute any requirements and obligations created for Manager in any such bids or proposals. (b) Manager may enter into use agreements for Center utilization Monday through Thursday that have a term in excess of nine(9)months,provided that any such agreement will include language that will allow City to reclaim such time no later than nine(9)months from the event date. The general language of the Center use agreements will be reviewed and approved by the City and the City's bond counsel no less than nine (9)months prior to the Commencement Date. (c) Manager will work with VBCVB to set a pricing strategy that is competitive in the market; (d) Manager will work with VBCVB to create City-owned, operated and branded events; (e) Manager will work collaboratively with other management/operating groups in adjacent facilities for multi-venue opportunities; (f) Manager will work collaboratively on coordination of parking needs with adjacent facilities; and (g) Manager will present other creative collaborative opportunities that meet the City's objectives. (h) In the event that the Manager and City have created and established tournaments in the Center and a non-City owned event or tournament wishes to utilize the Center for the same date as the City owned tournament or event,the event to receive booking priority will be the event that will generate the greater economic impact using the City's current economic impact model. The City shall share the economic impact model with the Operator and any updates to such model. Any dispute as to the results of the economic impact methodology shall be elevated to the authorized representative of the Manager and the City's Deputy City Manager for resolution. 5 ARTICLE IV AGREEMENT TERM AND PAYMENT PROVISIONS Section 4.1. Term of Agreement;Delay. The Term of this Agreement shall commence upon Substantial Completion of the Center as defined in the MEB Contract ("Commencement Date"). Prior to the Commencement Date, Manager and City will finalize all exhibits to this Agreement. This Agreement shall remain in full force and effect for an initial term of ten(10)years (the "Initial Term"). Provided (a) Manager is not in default under this Agreement at the time of Manager's exercise of an extension option and at the commencement of the Renewal Term(defined below),(b)City has not terminated the Agreement as provided herein and(c)no event has occurred which is or would be a default pursuant to this Agreement with the passage of time and/or failure to cure, Manager and the City shall have the option to renew this Agreement for two(2) additional terms of five(5)years,(the"Renewal Term(s)"),by giving City written notice at least one-hundred and eighty(180)days prior to the expiration of the Initial Term. If such notice is not timely given, this Agreement shall automatically terminate at the end of the Initial Term. The Renewal Term shall be on the same terms and conditions applicable to the Initial Term. The Initial Term and any Renewal Term(s) may be collectively referred to herein as the "Term." Any occupancy of the Center by Manager prior to the Commencement Date shall be subject to this Agreement(including, without limitation, insurance and indemnity). If Substantial Completion does not occur and possession is delayed after November 1,2020,this Agreement shall not be terminable,but delivery and commencement shall be delayed a reasonable period to permit Substantial Completion in accordance with the MEB Contract. Section 4.2. Payment of Monthly Management Fee. Manager shall pay to Eastern Sports Management, LLC from the Center's operating account an annual management fee equal to three-hundred and sixty thousand dollars ($360,000.00) (the "Management Fee") payable in monthly amounts of thirty-thousand dollars ($30,000.00) beginning on the date of Substantial Completion and every month thereafter for the Initial Term and any Renewal Term, subject to an annual increase of the Consumer Price Index(CPI) or three percent(3%), whichever is lower, per year. During the pre-opening period from the Effective Date to the date of Substantial Completion, City will pay the Manager a Fee of fifteen thousand dollars ($15,000.00) per month for the first twelve (12) months after the Effective Date and then twenty thousand dollars ($20,000.00) per month thereafter until Substantial Completion. The Parties anticipate the Manager will pay the Fee during such pre-opening period to Eastern Sports Management, LLC. Section 4.3. Payment of Monthly Incentive Fee. Manager shall pay to Eastern Sports Management, LLC from the Center's operating account a monthly incentive fee ("Incentive Fee") equal to six percent (6%) of Gross Revenues during the first two years after the Commencement Date. After the first two years after the Commencement Date,Manager shall pay to Eastern Sports Management, LLC from the Center's operating account a monthly incentive fee equal to four percent (4%) of the first $2,500,000 of the Gross Revenues, five percent (5%) of the next $1,000,000 of Gross Revenues, six percent (6%) of the next $1,000,000 of Gross Revenues, and seven percent (7%) of any Gross Revenues above $4,500,000, and payable on a monthly basis. "Gross Revenues" shall mean money earned by the Center through the sale of goods, services, rents and other sources. To ensure the"Gross Revenues"includes all sales,the Manager shall have a single point-of-sale system to capture all sale transactions or multiple point-of-sale systems provided such multiple systems are compliable and auditable. If food trucks or other such vendors 6 are part of an event or tournament, the occupancy fee or other such fee shall be included in"Gross Revenues." Section 4.4. Quarterly Payments By Manager. Manager shall pay to the City,a sum equivalent to the Gross Revenues less (i) operating expenses, (ii) Management Fee, (iii) Incentive Fee,(iv)additions to the operating reserves and(v)and management fees,any expenses with respect to the Start-up Budget,including any acquisition costs,including payments of principal and interest on equipment purchased, for any personal property,equipment and related assets purchased,leased or owned by Manager and used by Manager in the performance of his responsibilities under this Agreement. Such amounts shall be collectible as and payable to the City promptly, but no later than 30 days after the end of each quarter. Section 4.5. Reports. Manager shall provide to the City on a quarterly basis a financial statement covering all income and expenses related to the Center during the preceding quarter, which is prepared in accordance with generally accepted accounting principles by an independent certified public accountant that is approved by the City and in a form as generally shown on Exhibit D ("Quarterly Report"), such approval not to be unreasonably withheld. In addition, Manager shall promptly provide upon the City's request, any additional information prepared by Manager regarding the income and expenses related to the Center that the City reasonably determines is necessary or appropriate. Section 4.6. Quarterly Review by the City. The City will provide a quarterly review of the Manager's performance as operator of the Center. This quarterly review will include: facility utilization, cleanliness, maintenance, staffing levels, customer service, and communication, according to the standards set forth in this Agreement, Exhibits or Amendments. The review will include one of the following conclusions: 1.The Manager met expectations for the previous quarter; or 2. The Manager failed to meet expectations for the previous quarter. Section 4.7. Annual Review by the City. The City will provide an annual review of the Manager's performance as operator of the Center. This annual review will include a summary of the preceding four quarterly reviews and an annual financial audit. The annual financial audit shall include the unamortized amount of any Start-up Costs. The review will include one of the following conclusions: 1. The Manager met expectations for the previous year; or 2. The Manager failed to meet expectations for the previous year. ARTICLE V OPERATION AND MAINTENANCE; INSURANCE Section 5.1. City Services. It shall be City's responsibility, at City's sole cost and expense and without reimbursement from Manager, to repair and replace, as necessary: (a) foundations and exterior roofs of the Center, (b)the stormwater management facilities serving the Center; and (c) electric, gas, water, and sewer facilities, as applicable, up to the edge of a utility easement or meter with Manager responsible from that point up to, and into,the Center. Except in an emergency, City shall use reasonable efforts to perform any repairs or replacements during the non-business hours of the Manager and in such a manner so as not to interfere with the normal operation of the Manager's business. Manager may, but shall not be obligated to, perform any of such repairs or replacements which are of an emergency nature or which are not completed by City 7 within a reasonable time after notification by Manager of the necessity therefor. In the event Manager performs any of such repairs or replacements,Manager shall be entitled to be reimbursed by City for the reasonable cost thereof,upon providing to City bills for the cost of any such repairs. Section 5.2. Operation and Maintenance by Manager. Manager will operate and maintain the Center (including, but not limited to kitchen equipment, elevators, mechanical, electrical, and plumbing systems), in good repair, attractive appearance, and good operating condition (City Services as provided in Section 5.1 excepted) in accordance with the interior and exterior maintenance plans as set forth in on Exhibit E ("Maintenance Plans") and shall pay the cost of such operation, maintenance, repair, and replacement, including, but not limited to, water, heat, air conditioning, light, electricity, repairs, replacements, interior security cameras,janitorial, cleaning and caretaking services(excluding utility installation and connection charges that the City will pay) all from the operating accounts of the Center. The City will not be required to make any repairs, renewals, or replacements of the Center of any nature whatsoever except as otherwise provided in herein.Any contractor for the maintenance of such systems shall be subject to the prior written consent of the City, which consent shall not be unreasonably withheld, conditioned or delayed. If Manager fails to start any maintenance,repairs,or replacement within 15 calendar days after written notice by the City or to promptly complete such maintenance,repairs,or replacement, then the City may provide such repairs or maintenance, and the City shall be reimbursed for such expenses from the operating accounts of the Center. The Manager shall maintain a maintenance log, and such maintenance log shall be subject to inspection by the City. In fulfilling the requirements of this Agreement, the Manager shall follow all manufacture schedules for maintenance of equipment and systems of the Center. Section 5.3. Insufficient Funds. If Manager believes there may be the requirement to seek additional funding from the City in the following sixty(60)days,the Manager shall submit to the City a notice providing the facts and circumstances for such diminished operating accounts(the "Low Funds Notice"). The City may request a meeting with the Manager to discuss remedial actions to address operational accounts. If subsequently there are not sufficient funds to meet the operating expense requirements of the Center, Manager shall immediately notify the City (an "Insufficient Funds Notification"). In the event of an Insufficient Funds Notification, the City shall have the option to: (i) provide Manager funds sufficient to meet the operating expense requirements of the Center. Should City elect to provide Manager funds, payment of the Incentive Fee shall be suspended until all funds provided by the City have been returned to the City by Manager; and (ii) require from Manager a six (6) month plan to increase revenues or decrease expenses such that the operating expenses of the Center are met and any funds advance by the City are returned . (iii) If Manager fails to meet the expenses of the Center after six (6) months from the receipt of the Insufficient Funds Notification,the City may deem such an occurrence an Event of Default as contemplated by Section 8.1 8 Section 5.4. Sponsorship and Signage. Manager shall have the right to sell sign and sponsorship packages for the Center, provided the sign or sponsorship packages relate only to the inside of the Center. The City consents to signage upon light poles. The City will have approval rights for all sign and sponsorship packages to ensure such are consistent with the City's desire that the Center be a family-oriented facility. To maintain flexibility for hosting events, there shall be no internally affixed signage promoting an athletic brand.Notwithstanding the City's consent,any signs installed by Manager shall comply with all applicable laws and regulations. Manager further agrees to maintain such signs, lettering, advertising matter or other thing as may be approved in good condition and repair at all times. Manager may sell naming and sponsorship rights for the entire Center with the advice and consent of the City provided any such arrangement is approved by the City and the City's bond counsel has provided an opinion that the naming and sponsorship rights will not adversely affect the tax exempt status of the municipal bonds issued for the Center. The City will include Manager in any discussion in which City is engaged for naming or sponsorship rights for the entire Center, as Manager shall be the party responsible for execution of any naming or sponsorship agreement. In any event,whether sold by City or Manager, sponsorship and naming revenue will be recognized as revenue of the Center by Manager. After deducting any direct expenses related to Manager's fulfillment of any naming or sponsorship agreements the net amount of any sponsorship or naming revenue will be paid by Manager to the City and applied to capital reserves until full-funded or refreshed, as the case may be. The direct expenses described in the preceding sentence shall not include any overhead or profit. If sold by the City, sponsorship and naming revenue will not be included in the calculation of the Incentive Payment. Section 5.5. Alcohol. Manager may routinely serve alcoholic beverages on the Center, pursuant to an on-Center license from the Virginia Department of Alcohol Beverage Control ("ABC"). This paragraph shall not exclude any third-party vendor, from serving alcoholic beverages on the Center episodically, provided the following are met: (1) a banquet or any other appropriate license is obtained from ABC; (2) the manner and location in which the alcoholic beverages are to be served and consumed, comply with the standards required by the City for alcohol service and consumption at other City-owned properties;and(3)Manager provides the City with five(5)day prior notice when a third party will have alcoholic beverages on the Center. Section 5.6. Ownership of Tournaments or Events. If a tournament or event is developed or otherwise created by the City,the City and the Manager jointly, or the Manager at the Center while working as the City's agent, the City shall have ownership of such tournament or event, and the City retains the right to limit the location of such tournament or event. Section 5.7. Taxes, Other Governmental Charges, and Utility Charges. Manager shall pay when due all taxes and governmental charges of any kind whatsoever lawfully assessed, levied, or imposed against the City or Manager with respect to the Center, or any machinery, equipment, or other property installed in or on, or brought by Manager to, the Center. Manager shall pay when due all utility and other charges incurred in the operation, maintenance, use, and occupancy of the Center,and all assessments and charges lawfully made by any governmental body for public improvements to the Center. Manager may, however, upon ten business days' written notice from the Manager to the City of the Manager's intention to do so, at its sole expense and in its own name or in the name of the City(but only with the City's written consent), contest in good faith any such tax, assessment, utility or other charge, in which event it may permit the charge to remain unpaid during the period of the contest and any appeal unless, in the sole opinion of the 9 City, the action may subject the City to loss or forfeiture, in which event the charge shall be promptly satisfied or secured by posting with the City or an appropriate court of record, or appropriate department or agency, a bond in form and amount reasonably satisfactory to the City, in its sole discretion. Section 5.8. Additional Rights of the Manager. Manager may from time-to-time, in its discretion and at its sole expense, install machinery, equipment, and furnishings at the Center. All machinery, equipment, and furnishings installed by Manager will remain the property of Manager and the City will not have any interest in them. Manager shall promptly pay all contractors and materialmen in full so as to avoid the possibility of any lien being asserted against the Center and if any such lien is asserted or filed, Manager shall take all action that is necessary to have such lien released within 30 calendar days after the Manager receives notice. Manager shall not make or cause to be made any alterations, additions, or improvements or install or cause to be installed any trade fixtures or equipment, floor covering, interior or exterior lighting, plumbing fixtures, or make any changes to the Center without the prior written consent and approval of the City, which approval and consent shall not be unreasonably withheld, conditioned or delayed. Manager shall present to the City plans and specifications for such work at the time such approval and consent is sought. The City, in its sole discretion, may request additional information from Manager about any proposed work, which Manager shall promptly provide to the City. Manager's contractor and any subcontractor shall be subject to the City's prior written approval. The City may, in its sole discretion, condition its approval on the contractor's or subcontractor's evidencing to the City that it maintains liability insurance in an amount satisfactory to the City. Notwithstanding the preceding, if machinery, equipment, of furnishings is to be paid for out of the operating accounts for the Center,the Center shall retain ownership of such machinery, equipment, or furnishings. Section 5.9. Personnel Standards. The staff of the Manager shall have clothing that identifies such personnel as the employees of the Manager. The Manager shall provide staffing sufficient to maintain the orderly operations of the Center and the cleanliness of the Center. The City shall provide to Manager the same training opportunities made available to City employees, such as active shooter training,and Manager agrees to provide such training to its employees. The staff of the Manager that interact with patrons of the Center shall have a background check,which is an operating expense of the Center. Section 5.10. Manager's Liability Insurance. During the Term of this Agreement, Manager at Manager's sole cost, shall obtain and maintain, with a reputable insurer reasonably acceptable to City, for the benefit of City and Manager as their respective interests may appear, commercial general liability insurance policy against any claim for damages which may result from the use or occupation or condition of the Center, in an amount of Two Million Dollars ($2,000,000.00)for combined single limit for bodily injury and property damage and a Five Million Dollar($5,000,000.00)umbrella liability policy. Manager shall name City as an additional insured as its interests may appear under said insurance policies and the Manager shall furnish the City with copies of the certificates of insurance evidencing coverage under the said policies. In addition to the foregoing,Manager shall not cancel such coverage without thirty(30)day's prior notice to City. Additionally, the Manager shall maintain in force and effect a Fidelity Bond in the amount of $10,000 to protect against thefts by employees. 10 Section 5.11. City's Insurance. The City shall maintain facility, fire, or premises insurance at the same levels as the City maintains for other City facilities utilized by the general public. Section 5.12. Indemnification.It is understood and agreed that Manager hereby assumes the entire responsibility and liability for any and all damages to persons or property caused by or resulting from or arising out of any tortious act or omission on the part of Manager, its agents or employees under or in connection with this Agreement, or the performance or failure to perform any work or services required by this Agreement. Manager agrees to indemnify and hold harmless the City and its agents, volunteers, servants, employees, and officials from and against any and all claims, losses, or expenses, including reasonable attorney's fees and litigation expenses incurred and suffered by any indemnified party or entity as the result of claims or suits due to,arising out of or in connection with (a) any and all such damages, (b) the violation of any law by Manager, its agents or employees applicable to this Agreement, and(c)the performance of the work or services by Manager or those for who the Manager is legally liable. Upon written demand by the City, Manager shall assume and defend at Manager's sole expense any and all such suits or defense of claims provided herein and made against the City,its agents,servants,employees or officials. With the written approval of the City, Manager may pay for such expenses from the operating accounts of the Center. Section 5.13. Advances by the City. If Manager fails to pay when due any amount which Manager is obligated to pay as provided in this Agreement following five (5) business days after written notice and opportunity to cure from City,the City,may(but will be under no obligation to) make the payment. If City makes any payment on behalf of Manager, Manager shall be obligated to reimburse the City within thirty(30)days. If Manager fails to perform any act required of it under this Agreement, following thirty (30)days after City gives Manager notice specifying the breach,or if such breach cannot,with due diligence, be cured within thirty (30) days, if Manager does not commence to cure such default within said thirty (30) day period and thereafter prosecute the cure of such default as quickly as reasonably practicable, the City, may (but will be under no obligation to)perform the act. If City performs makes such act on behalf of Manager, Manager shall be obligated to reimburse the City for costs incurred by the City to perform such act within thirty(30)days. Section 5.14. Liens. Manager shall have no right,authority,or power to bind the City,or any interest of the City in the Center,nor to render the Center liable for any lien or right of lien for the payment of any claim for labor, material, or for any charge or expense incurred to construct, maintain,repair,or to make alterations, additions, and improvements to the Center. Section 5.15. Assignment. Manager may assign this Agreement at any time during the Term,with prior written notice be provided to the City,to an affiliate owned or controlled by John M. Wack. Jr., provided that said entity can meet all terms of this Agreement, including but not limited to, the provision of liability insurance. Any other assignment will require the prior written consent of City, which consent shall not be unreasonably withheld, conditioned, or delayed. Manager shall not encumber its interest in this Agreement, dissolve or alter the corporate structure of Manager except as permitted herein,without first obtaining the written consent of the City,which consent shall not be unreasonably withheld, conditioned, or delayed. Any assignment, transfer, or 11 encumbrance without the City's prior written consent shall be void and, in City's sole discretion and election, shall constitute a default. In the event of any assignment or transfer with the City's prior written consent,Manager shall remain liable to the City for full performance and payment of all of the obligations of Manager under this Agreement. Manager shall give the City an executed assumption agreement whereby the transferee or assignee shall(i) assume Manager's duties under this Agreement from and after such assumption or transfer,and(ii)pay and perform all obligations, covenants, and conditions of Manager under this Agreement. Manager shall promptly forward a complete and signed copy of such permitted assignment, or transfer to the City. No such assignment, or transfer shall constitute a novation or a release of any claim the City may then or thereafter have against the Manager. Section 5.16. Audits. The City shall have the right to audit all books and records (in whatever form they may be kept,whether written, electronic or other)relating or pertaining to this Agreement (including any and all documents and other materials, in whatever form they may be kept,which support or underlie those books and records),kept by or under the control of Manager, including,but not limited to those kept by Manager,its employees, agents, assigns, and successors. Manager shall maintain such books and records, together with such supporting or underlying documents and materials, for the duration of this Agreement and for at least three years following the completion of this Agreement, including any and all renewals thereof. The books and records, together with the supporting or underlying documents and materials shall be made available,upon request, to the City, through its employees, agents, representatives, Managers or other designees, during normal business hours at Manager's office or place of business in Virginia Beach,Virginia. In the event that no such location is available, then the books and records, together with the supporting or underlying documents and records, shall be made available for audit at a time and location in Virginia Beach, Virginia, which is convenient for the City. This Section shall not be construed to limit,revoke,or abridge any other rights,powers,or obligations relating to audit which the City may have by state, city, or federal statute, ordinance, regulation, or agreement, whether those rights,powers, or obligations are express or implied. ARTICLE VI DAMAGE,DESTRUCTION, OR CONDEMNATION Section 6.1. Risk of Loss from Damage or Destruction. The City shall bear all risk of loss from damage or destruction to the Center other than damage caused by the Manager. Any damage caused by Manager shall be paid by the Manager, and the City consents to the use of the Center budget for such purpose. Any decision to rebuild or repair the Center in the event of damage or destruction shall be made by the City Council pursuant to a lawful appropriation of funds and/or authorization to issue municipal debt. Section 6.2. Effective Date of Termination. If the City or Manager elects to terminate this Agreement under this Article VI in connection with a casualty,Manager shall pay Management and Incentive Fees properly apportioned up to the date of the casualty, and the City shall be responsible for any then-outstanding or unamortized amounts of the Start-up Costs within sixty(60) days of the date of such termination. After the effective date of the termination, the City and 12 Manager shall be discharged of all future obligations under this Agreement, except for those provisions that, by their terms, survive the expiration or earlier termination of the Agreement. ARTICLE VII SPECIAL COVENANTS Section 7.1. Manager's to be Sole Operator of Center. Except as otherwise provided in this Agreement, Manager will be the sole operator of the Center during the Term. The City and its employees or agents shall be permitted to enter the Center to (a) inspect the Center, (b) make such alterations, maintenance, or repairs therein as may be required under this Agreement or pursuant to any law, (c) show the Center in furtherance of the City's marketing of itself or the Center,(d)serve or post all notices required by law or permitted by this Agreement,(e)service City information technology infrastructure or (f) conduct any other reasonable City related business. The City shall exercise its rights under this Section at such times and in such a manner as to minimize the impact of any interference on operations of the Center. If the City makes an emergency entry into the Center when no authorized representative of Manager is present,the City shall provide notice to Manager as soon as reasonably possible after that entry and shall take reasonable steps to secure the Center until a representative of Manager arrives at the Center. Section 7.2. Environmental Matters. Manager shall, at the Manager's sole cost and expense, comply with all applicable federal, state, and local environmental laws, statutes, rules, regulations, decisions, codes, orders, directives, requirements, and ordinances ("Environmental Laws") (including, without limitation, regulations regarding financial responsibility for, removal of, technical compliance of, and releases from, underground storage tanks) in effect during the Term, except for any conditions attributed to persons other than Manager or Manager's agents, employees,licensees,contractors,affiliates,successors,or assigns. Without limiting the foregoing, if the presence of any Hazardous Material on the Center caused or permitted by Manager results in any contamination of the Center,Manager shall promptly take all actions,at its sole expense, as are necessary to remediate the Center in accordance with Environmental Laws and,upon expiration or termination of this Agreement,as necessary for redevelopment of the Center provided that the City's approval of such actions shall first be obtained in writing,which approval shall not be unreasonably withheld or delayed so long as such actions would not potentially have any adverse, long-term or short-term effect on the Center. Manager does not assume responsibility under this Section 7.3, however, for any releases of Hazardous Material at, in, on or migrating from the Center that is the result of activities and operations of any person other than Manager or Manager's agents, employees, contractors, licensees, affiliates, successors, or assigns. Manager shall immediately notify the City of any of the following: (i)any correspondence or communication from any federal, state, or City Governmental Authority regarding the application of Environmental Laws to the Center or Manager's operation of the Center; (ii) any correspondence, communication, or notification as are required by either the Federal or State Emergency Planning and Community Right to Know Acts; (iii) any change in Manager's operations in the Center that will change or has the potential to change Manager's obligations or liabilities under the Environmental Laws; and/or(iv)releases,discharges, or spills in any form,of any and all Hazardous Material in violation of the Environmental Laws. 13 "Hazardous Material"means any substance,material, or waste which is toxic, ignitable, reactive, or corrosive, and which is or becomes regulated by any City or state Governmental Authority or the United States Government. "Hazardous Material" includes, without limitation, any material or substance which is (i) defined as a "hazardous waste," "extremely hazardous waste," "restricted hazardous waste," "hazardous substance," or "hazardous material," by any Environmental Law; (ii) oil and petroleum products and their by-products, (iii) asbestos, or asbestos-containing materials; (iv) designated as a"hazardous substance"pursuant to the Federal Water Pollution Control Act; (v)defined as a"hazardous waste"pursuant to the Federal Resource Conservation and Recovery Act; or (vi) defined as a "hazardous substance" pursuant to the Comprehensive Environmental Response, Compensation and Liability Act. ARTICLE VIII EVENTS OF DEFAULT; REMEDIES Section 8.1. Default by Manager. The occurrence of any one of the following events shall constitute an"Event of Default"under this Agreement: (a) Failure by Manager to perform or comply with any provision of this Agreement, or any duly executed amendments thereto, and such failure is not cured within thirty (30) days after written notice from the City of such default. If, however, the failure cannot reasonably be cured within the thirty(30) day cure period, Manager shall not be in default under this Agreement if(1)Manager commences to cure the failure within the cure period,(2)diligently and in good faith continues to cure the failure to completion,and(3)provides written notice to the City of Manager's actions to cure the failure, including Manager's anticipated timeline for completion; (b) Failure of the Manager to meet expectations as set forth in Sections 4.6 and 4.7 and noted in the Quarterly Review for two (2) successive quarters will put the Manager in a probationary status for the following four (4) successive quarters. If there is one failure of the Manager to meet expectations in the four(4) successive quarters after placement in probationary status, the Manager shall be in default, but the City has discretion to waive the default in this subsection b.; (c) John Wack no longer owns or controls ESM or Manager; or (d) Declaration of bankruptcy or insolvency by ESM or Manager. Section 8.2. Default by City. The occurrence of the following event shall constitute an Event of Default under this Agreement: Failure by City to perform or comply with any provision of this Agreement, or any duly executed amendments thereto, and such failure is not cured within thirty (30) days after written notice from the Manager of such default. If, however, the failure cannot reasonably be cured within the thirty(30)day cure period, City shall not be in default under this Agreement if(1)City commences to cure the failure within the cure period, (2)diligently and in good faith continues to cure the failure to completion, and(3)provides written notice to the Manager of City's actions to cure the failure, including City's anticipated timeline for completion. 14 Section 8.3. Remedies in the Event of Manager's Default. The City shall have any one or more of the following remedies after the occurrence of an Event of Default. These remedies are not exclusive. These remedies are in addition to any remedies allowed now or in the future by law,in equity, or otherwise: (a) The City may terminate this Agreement by giving thirty(30)calendar days written notice of termination to Manager, in which event Manager shall promptly surrender the Center to the City. If Manager fails to promptly surrender the Center, then the City, without prejudice to any other remedy it has for possession of the Center or other damages, may re-enter and take possession of the Center and expel or remove the Manager and any other person or entity occupying the Center or any part, without being liable for any damages, whether caused by negligence of the City or otherwise. No act by the City other than giving notice of termination to the Manager shall terminate this Agreement. (b) The City may re-enter and take possession of the Center without terminating this Agreement and without being liable for any damages. The City's action under this subparagraph(b) is not considered an acceptance of Manager's surrender of the Center unless the City notifies Manager in writing. (c) Whether or not the City terminates this Agreement or Manager's right to possession of the Center on account of any Event of Default, the City shall have all rights and remedies at law or in equity, including, but not limited to, the right to re-enter the Center and, to the maximum extent provided by law,the City shall have the right to terminate any and all licenses, concessions, or other arrangements for possession entered into by Manager and affecting the Center. In the City's sole discretion, it may succeed to Manager's interest in such subleases, licenses, concessions, or arrangements and, Manager assigns and transfers to the City all of Manager's right, title and interest in and to any such licenses, concessions and other consensual arrangements. (d) In the event that the City exercises its rights to terminate this Agreement or take possession of the Center as provided in this Section 8.3 or in any other section of this Agreement, the City shall be responsible for any then-outstanding or unamortized amounts of the Start-up Costs within sixty(60)days of the date of such termination or taking of possession of the Center. Upon payment in full of such costs,the City shall be the owner of such improvements. Section 8.4. Remedies in the Event of City's Default.The Manager shall have any one or more of the following remedies after the occurrence of an Event of Default. These remedies are not exclusive. These remedies are in addition to any remedies allowed now or in the future by law, in equity, or otherwise: If the City fails to cure the default as set forth in Section 8.2, the Manager may take such action as may be reasonably required to remedy such default and if the Manager is required to expend funds to cure such default, City shall promptly reimburse such amounts within thirty(30) days after Manager provides itemized written evidence confirming the costs incurred by Manager. Section 8.5. Election of Remedies. Pursuit of any of these remedies does not constitute an irrevocable election of remedies or preclude pursuit of any other remedy in this Agreement or 15 by applicable law. Likewise,forbearance by the either party to enforce one or more of the remedies available to it on an Event of Default does not constitute a waiver of that default or of the right to exercise that remedy later or of any payment,damages,or other amounts due to the non-defaulting party. Section 8.6. Termination for Convenience. The City may at any time, and for any reason, terminate this Agreement by written notice to Manager specifying the termination date, which shall be not less than sixty (60) days from the date such notice is mailed. Notice shall be given to Manager by certified mail/return receipt requested at the address set forth in this Agreement. In the event of such termination, Manager shall be paid such amount as shall compensate Contractor for the work satisfactorily completed, and accepted by the City, at the time of termination. Manager shall also be entitled to a liquidated amount equal to the following percentage of the Management Fee: if more than seven(7) and less than ten(10) years remain on the applicable term, four hundred thousand dollars ($400,000) plus twenty percent (20%) of the amount of the Management Fee for the remaining term of the Agreement; if less than seven (7) years remain on the applicable term,twenty percent(20%) of the amount of the Management Fee for the remaining term of the Agreement. Such amount shall be paid by the City after the City takes possession of the Center and control of all operating accounts.If the City terminates this Agreement pursuant to this Section 8.6, Manager shall withdraw its personnel and equipment, cease performance of any further work under this Agreement, and turn over to the City any work completed or in process for which payment has been made. ARTICLE IX MISCELLANEOUS Section 9.1. Successors and Assigns. This Agreement is binding upon, inures to the benefit of, and is enforceable by the parties and their respective successor and assigns. Section 9.2. Severability and Construction. If any provision of this Agreement is held invalid by any court of competent jurisdiction, the holding will not invalidate any other provision. The City and Manager acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any exhibits or amendments hereto. Section 9.3. Time of Essence. Time is of the essence as to all dates and times in this Agreement. Section 9.4. Governing Law. This Agreement will be governed by the Constitution and laws of the Commonwealth. Section 9.5. Counterparts. This Agreement may be simultaneously executed in several counterparts, each of which will be an original, and all of which taken together will constitute one and the same instrument. 16 Section 9.6. Notices. Unless otherwise provided in this Agreement, all demands, notices, approvals, consents, requests, opinions, and other communications under this Agreement must be in writing and will be deemed to have been given when(i)delivered in person,(ii)delivered by Federal Express or a comparable express courier service,or(iii)mailed by registered or certified mail,postage prepaid, addressed, as follows: If to Manager: 2020 Landstown Centre Way Virginia Beach, VA 23456 Attention: John M. Wack, Jr. with a copy to: John F. McManus, Esquire Hirschler Fleischer 725 Jackson Street, Suite 200 Fredericksburg,Virginia 22401 If to the City: City Manager 2401 Courthouse Drive Virginia Beach,Virginia 23456 With copy to: Convention and Visitor's Bureau 2101 Parks Ave. Virginia Beach,Virginia 23451 With a copy to: City Attorney 2401 Courthouse Drive Virginia Beach, Virginia 23456 The City and Manager may, by written notice given under this Agreement, designate any additional or different addresses or persons to which subsequent demands, notices, approvals, consents, requests, or other communications are to be sent. Section 9.7. Entire Agreement. This Agreement, including the attached exhibits, if any, set forth all the covenants,promises, agreements, conditions, and understandings between the City and Manager concerning the Center. There are no covenants, promises, agreements, conditions, or understandings, either written or oral, between the City and Manager other than as set forth in this Agreement. Section 9.8. Force Maieure. If either party shall be delayed or hindered in or prevented from the performance of any required act by reason of strikes,lock-outs,labor troubles, inability to procure materials, failure of power,riots, insurrection,war, or other reason of a like nature not the fault of the party delayed in performing work or doing acts required under this Agreement,then the 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. Section 9.9. Captions. The captions and section numbers appearing in this Agreement are inserted only as a matter of convenience and in no way define, limit, construe, or describe the scope or intent of such paragraphs of this Agreement. 17 Section 9.10. Amendments. This Agreement may be amended only by an instrument in writing signed by both parties to this Agreement. Section 9.11. Venue. The courts of the City shall be the exclusive venue for any legal action arising out of or related to this Agreement. Section 9.12. Calculation of Time Periods. Unless otherwise specified, in computing any period of time described herein,the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday in the Commonwealth of Virginia, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday, nor legal holiday. The last day of any period of time described herein shall be deemed to end at 5:00 p.m. ET or EST, as applicable. Section 9.13. SWaM Certified-Small Business Participation. The Manager shall comply with the requirements of Exhibit F, attached hereto, setting forth requirements for SWaM Certified-Small Business Participation efforts that shall be undertaken in connection with any improvements or constructions undertaken by Manager at the Center during the term of this Agreement. The Manager shall be responsible for collecting and submitting to the City the Subcontractor Participation Plan and required documentation as described in Exhibit [ ] and for conducting the information session for subcontractors described in Exhibit[]. Section 9.14. Non-Appropriation. Notwithstanding any provision herein to the contrary, the City's obligations under this Agreement are subject to the appropriation of sufficient funds to perform such obligations and to the performance by City. If adequate funds are not appropriated by the City, the City shall not be subject to any claim for damages,penalty or expense of any kind whatsoever, or otherwise liable for such consequence in any respect. 18 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on their behalf by their duly authorized officers. CITY OF VIRGINIA BEACH By: City Manager Approved as to form: City Attorney's Office Printed Name: Title: ESM VBSC, LLC, a Virginia limited liability company By: EASTERN SPORTS MANAGEMENT,LLC, a Virginia limited liability company, Manager [SEAL] By: John M. Wack,Jr.,President Exhibits: Exhibit A—Business Plan Exhibit B—Operating Budget Exhibit C -Manager's Start-up Costs Exhibit D—Maintenance Plans Exhibit E—Quarterly Report Form Exhibit F—SwaM Requirements 9105441.12 042601.00002 19 VIRGINIA BEACH SPORTS CENTER BUSINESS PLAN AND OPERATIONS MANUAL EASTERN SPORTS MANAGEMENT MARKETING TO OUR GUESTS 6 Pricing Strategies 6 Pricing Philosophy 6 Pricing Structure 6 Marketing Strategy 7 Grass Roots Marketing 7 Internal Marketing 8 PRODUCTS 9 Tournaments 9 Leagues 10 Youth Programming 10 Rentals 11 Concessions 11 Sponsorship 12 COST OF GOODS SOLD 12 EXPENSES 12 Administrative Expenses 12 Facility Expenses 12 Other Expenses 12 Staffing 13 General Manager 13 Tournament and Events Directors 13 Food and Beverage Director 13 Sport Directors 14 Youth Programming Director 14 Facilities Director 14 Human Resources&Finance Director 14 Sales&Marketing Director 14 Background Checks 15 Employee Ramp Up 15 VBSC Internship Program 15 2 GUEST SERVICE 16 Guest Service is Everyone's Responsibility 16 Be Welcoming 16 Communication 16 Sales 16 Other important notes 16 LEAGUES OPERATIONS 17 League Seasons 17 League Format 17 League Marketing 18 League Registration 19 League Guest Service 19 League Staffing and Utilization 19 League Crisis and Complaint Management 20 League Referee Assigning and Reconciliation Error! Bookmark not defined. YOUTH PROGRAMMING 20 Child Development Products Error! Bookmark not defined. Instructional Classes 21 Instructional Class Marketing 21 Daycare 22 Camps 22 In House Camps 22 Vendor Camps 23 Partner Camps 23 Residential Camps Error! Bookmark not defined. RENTALS 23 3 Block rentals for clubs and school 23 Tournaments 24 Tenants 24 Special Events 24 TOURNAMENTS 24 In-house Tournaments 25 Rental Tournaments 25 Partner/Revenue Share Tournaments 25 Tournament Operations 25 Scheduling 25 Parking 25 FACILITIES 26 Clean Facilities 26 Maintenance 26 Efficiencies 27 SPONSORSHIP 27 EMERGENCY OPERATIONS PROCEDURES 30 Statement of Purpose: 30 General Responsibilities of the Staff 30 Objectives of this Guide: 30 VBSC Staff: 30 General Manager/Manager on Duty: 31 Building Security 31 Building Maintenance Emergencies 32 Steps to be Taken: 32 Water Issues: 32 Electrical Problem: 32 4 Phone Issues: 32 Sewage Back-Up: 33 Release of Minors 33 Procedures for Licensed Child Care Programs: 33 Procedures for Youths Not Registered in Licensed Child Care Programs: 33 Parental Contact: 33 Non-Custodial Contact: 33 Media Relations 34 Steps of Action: 34 Sample Crisis Media Release: 34 Accident/Serious Injury/Medical Emergencies 35 Steps of Action: 35 Personnel Roles: 35 Child Abuse Suspicion 37 Steps of Action: 38 Violence with or without Weapons 38 Steps of Action: 38 Nuclear/Biological/Chemical Threats 39 Fire Evacuation 40 Steps of Action: 40 Alarm Monitoring Company Information 40 Personnel Roles: 40 Severe Weather 41 Definitions: 41 Staff Roles: 42 Bomb Threat 43 Steps of Action: 43 Personnel Roles 43 Facility Lockdown 44 Steps of Action: 44 Personnel Roles 44 Death of a Staff Member/Guest 45 Steps of Action: 45 Bomb Threat Report Form 46 Phone List 47 Fire DrilUTraining Record 48 5 Marketing The design of the Center makes it a local,regional,and arguably,a national facility. 12 basketball courts and 24 volleyball courts are rare under one roof,and even more rare as a continuous playing surface uninterrupted by columns.Large regional and national tournaments will come to the Center;however,local guests must also use the courts during the week if use of the asset is to be maximized. All four of ESM's facilities and management teams have strong records of serving their local communities while attracting regional and even national events. Pricing Strategies Pricing Philosophy ESM takes into consideration several factors when determining pricing for any of its offerings at any of its facilities: 1. What is happening in the community? What are the going rates for comparable field and court rentals locally? What are tournament entry fees and facility admissions regionally? 2. What are the facility's fixed costs that need to be covered? 3. What are the utilities,management payroll,and debt service or rent? 4. What are the variable costs or cost of goods sold for each of the products? 5. How do our price points match other products in the market that aren't sports?Does an hour in our facilities match with an hour at the bowling alley or the movie theatres? 6. What is a reasonable price for the value being given? How does that compare for different products of a comparable nature? 7. What are the goals of the owner of the facility? 8. What level of product is this intended to be?Is it a prestigious national event or a recreation level local event? 9. What is our mission? We will be sensitive to the fact that many of the users will be citizen's whose tax dollars have funded the facility.We have set prices in our Income and Expense assumptions generally at or below market points. Ultimately,however,the success of the Center both for the direct users and for the City will depend on the facility being well-run,well-maintained,well-staffed,and well-marketed,all of which require resources. ESM believes that it is fair that those who use assets,whether publicly or privately funded,pay for their use. All City residents are responsible in part for the funds used to create the assets,but those City residents who use them most should bear the greater share of their creation,care,and maintenance. Gas taxes and tolls are a good comparison. The pricing we set out in this facility will reflect our current understanding of these sometimes-competing considerations. These considerations may change as market conditions change. Pricing Structure The sports and recreation industry has a variety of pricing models,some of which are a reflection of the nature of the guests' use. For instance,some products are of a defined and limited schedule for both frequency and time. A league is usually eight games with one game per week for eight weeks. Personal training is priced for each occurrence. People are used to paying set prices for these products that they enjoy over the defined duration;then they decide whether to purchase another. They buy what they want 6 when they want it,a la carte. Other products are more suited to ongoing charges for ongoing use. Someone may have the time and energy to workout five times in a week but the next week they can only manage once. They want a pass to come whenever they like without restriction. Guests also don't like to pay for something they don't want and don't need. For large tournaments and events,pricing is usually structured around whole-facility rates,by-the-day or by-the-hour. We have structured our forecasts around an hourly rate and assumed a number of hours for the events to be held at the Center. This is discussed more fully below in the Income section. Marketing Strategy The marketing of the facility falls under the responsibility of the Sales and Marketing Director under the direction of the General Manager. Together they will establish a program of general branding and facility awareness using traditional outlets. However,all VBSC employees participate in marketing,primarily through the consistent delivery of quality products and the maintenance of clean,safe facilities,and by publicizing the products under their management. Individual managers pursue local and regional outlets for their products depending on the audience at the Center,the Tournament Director will create recreational level products for local residents,and competitive level products for regional guests. The Tournament Director will market basketball,volleyball,futsal and field hockey tournaments. The Youth Programming Director will attend local camp expositions,kids'conventions,and visit pre-schools and daycare centers to promote our camps and other programs. All hands are on deck for marketing the complex locally and regionally. The Center will work closely with the CVB to make sure the facility is filled to the greatest extent possible by events that draw out-of-town visitors to the City.We will commit to meeting weekly to coordinate efforts and to not scheduling anything on a weekend until 9 months prior to attract a regional or national event. Our combined efforts will ensure the greatest chance of maximizing the facility and its economic impact. There are many different philosophies for marketing. The thing to remember is that our local target market is within a 25 minute(15 miles)drive of the facility. There is no mistaking the single most successful and efficient marketing tool we will employ is running a quality program and providing quality guest experience. Below are the supplemental philosophies that are used to bring people to our programs. Grass Roots Marketing The foundation for the grass roots marketing plan is getting in front of the main players in our target market. This includes but is not limited to: • High&middle school coaches of every sport • Athletic directors • Club chairmen • Club directors of coaching • Local people/organizations that run leagues in the community • Tournament directors • Well known athletes in proximity • Influential parents • Businesses that employee large amounts of people in the area • Membership directors of large communities/home owners 7 • Mom groups • Stroller strides • Elementary&middle school field trip supervisors • Little league and rec associations • Local parks and rec directors The theme of these conversations is consistent. We will have several questions and talking points prepared. We should already have a good idea of what we want out of the meeting.We want to know how we can help them and how to take the meeting to that point. The goal is to find a way to work together to reach the goals of both parties. There are a few basic principles to keep in mind when having these meetings: • We are inclusive of other staff on our team. When trying to negotiate,it helps to have program opportunities from other departments. Bringing in the person that runs programs,sponsorships, rentals,etc.may provide a different perspective. Many times agreements work out to where we do not benefit on one program,but have tremendous upside in another program. • We ask open-ended questions and listen intuitively. If we know the end goal of the parties,it is much easier to find a way to help them,so we ask: What are you currently doing,where would you like to see it go,how can we help? • We make sure there are action steps to be taken from every meeting and a timeline to accomplish them. • We know when are we meeting again? • Sometimes it just will not work. The end goal is not to make a deal. The end goal is to grow our business. If it is not a good deal,we do not do it. Our risk is in the building. We cannot take more risks in other people's businesses. • We are not afraid to compete. Sometimes the deal does not work and we have competing products. We are professional and polite,and then out work them on the back end. Internal Marketing The second most important marketing strategy in our facilities is our internal marketing. Our facilities have a high volume of foot traffic and typically have deep penetration into the market. It is important to educate our guests on what other programs we have to offer. Here are some key points for internal marketing: • Where are our high volume areas? Front doors,bathrooms,F&B,spectator areas,tvs,etc. • What seasons are best to market what products? • Identifying what programs bring in new people and how to reach them. This is best illustrated by birthday parties. Most birthday parties bring in new guests. Hopefully their great party will make them want to do a party for their child,but even more than that,we need to get our information in front of them. • Information Centers—Information Centers are very important. We want to interact with our guests,but having our information readily available and presented professionally is a vital piece of the puzzle. These centers need to be organized,clean and stocked. • Sponsorships-Believe in the power of our sponsorship. We know the value of the sponsorships we sell,so we use them when there is free inventory. This could also lead to selling more sponsorships. • Digital Signage—We have several tvs throughout our facilities. We use them for frequency of our message and branding. • Email blasts/Newsletters-Email blasts are one of our most effective methods of marketing. However,it is important to remember not to overwhelm our client base. Guests are already going 8 to get emails from us communicating things about their programs. We typically send no more than two marketing emails per month. One of those emails should be a newsletter delivered on the first Tuesday or Wednesday morning at 10am. The other should be two weeks later and only if you have enough content to make it worthwhile. Newsletters should be consistent,informative and easy to navigate through all of the information. • Social media—We always have someone act as the conduit between our directors and our social media outlets. We continue to post pictures of activities. People love to look at themselves and their children. The more content we post the more likes and shares we get,the more marketing power we have. It is also good to run promotions and contests to drive activity,but this is not usually our focus. Products Tournaments The City will want the Center to be a first-class athletics event center.Events break down along the same lines: • Straight rentals by outside organizations. • Shared-risk partnerships where revenues and responsibilities are divided. • In-house events that are created,marketed,and run by the staff. The preference is always for the last, because the margins are highest for the facility. In any event, whether Tournament and Meet the meet or tournament is the result of a bid process or a negotiation, the Income Fields, host facility hopes to generate Courts, sufficient revenue and produce a �and Pools high-quality product. Over the past Net 13% 12 months,there have been about 60 Incomeit* tournaments at ESM facilities 35% Operations totaling about $2,500,000 in gross Expenses revenue and hosting 3,000 teams. Marketing The graph shows what percentage of Partner30 % gross income goes to the facility, to 22% the marketing partners, for expenses, and what's leftover. It is clear from this that being only the supplier of the facility misses nearly 87%of the tournament gross income. Tournament organizers have small facility budgets,not because they need to but because that is what they are used to. ESM will try to push all relationships to a shared risk model used frequently at the other four ESM facilities where the facility participates in the gross income and is not receiving a fixed fee. We see our job primarily to fill the courts and the track with leagues,meets and tournaments,but of equal importance is making sure the returns are as high as possible. Building in-house products accomplishes this. Again,for purposes of forecasting revenue,we assume that all the tournament revenue at the Center is on a net basis. That is,that we run no in-house tournaments and all events are straight rentals. We think this is 9 the most conservative way of forecasting that portion of income. We divide events into 2-day,3-day,and one week events. We are aware that Sports Tourism Departments and Municipal Convention Centers across the country frequently use their facilities as loss-leaders for the sake of the economic impact that visitors bring to communities. We know that strategy will be utilized by ESM and CVB in order to fill the facility to the greatest extent possible. We also know from experience that we can create enough higher-earning events and attract enough higher paying rentals that discounted court rentals will be offset. Leagues Leagues will be run year-round on hard court. Any and every sport that plays on a hard-court surface will be offered at some point.Leagues can have very high gross margins with as little as 20%needed for Cost of Goods Sold(COGS). More often than not,they can be run completely in-house. Most areas,however, already have leagues for both youth and adults across most sports. Successful sales strategy for leagues involves identifying: • Sports that have no viable local league for their participants. • Existing Leagues that have poor or inadequate facilities. • Youth sports that do not have good off-season league opportunities. • Existing adult leagues whose volunteer leadership would be interested in handing over league management to a professional third party. • Existing leagues whose management is poor enough that a better-run league would draw teams away. We will offer the following leagues at the Center: • Basketball • Volleyball • Futsal • Hard Court Field Hockey • Social Sports such as dodgeball,kickball,and cornhole In some instances,existing leagues will simply rent the track or courts to run leagues. The preference will always be to run leagues in-house,but if space must be filled and if the existing league is strong and well run,then we can sign a long-term rental agreement. These leagues are distinct from clubs and youth organizations renting the field to run games for leagues in which they participate. In the first instance,all league games are held at the complex. In the second,the club or organization rents the court for their home games and they travel elsewhere for their away games. Youth Programming Youth Programming broadly encompasses everything that we will do for children that is not a league. Included are summer camps,day camps,sports camps,before-and-after care,birthday parties,and drop-in usage,and all the youth development courses that we have offered at all of our facilities. The facility will be placed on the bus routes of the local public and private schools. With a high concentration of early morning commuters headed to Norfolk and to area bases, the facility will have a thriving before- and after-care program. The facility will pursue day care licensing and should achieve it prior to doors open. During the summer,we will have a strong day camp program. 10 Sports camps and clinics will be run during summer. These camps will also be run during school breaks, holidays and in-service teacher workdays. Center staff will nm most of these camps,but we will also have national camp organizations like US Sports Camps,Nike Camps,NXT lacrosse,and others to run vendor camps throughout the summer. All four ESM facilities are"Lil'Kickers"franchisees. VBFH alone has about 250 kids each session(of 4 annually)at$169 per participant. Lil'Kickers is more than just a great soccer program for kids. Its balanced and creative approach to coaching has a positive impact on children that goes far beyond the soccer field. The high-energy soccer classes are carefully designed to enhance a child's overall growth and well-being. The result is children with strong physical skills,who are well balanced and confident.The Center will have its own Lil'Kickers territory and franchise and should do numbers similar to VBFH. ESM has a similar product for basketball players called"Lil'Monster Ballers". Children aged 4-7 follow a curriculum designed to improve motor skills,social skills,and listening skills,all while learning basketball. With 24 recreation level baskets in the main play area,this will be a success. We also run"Lil Flyers" (cheer),"Lil'Laxers"(lacrosse),"Lil' Sluggers"(baseball),and Lil'Tacklers"(football),and"Lil' Sweepers"(field hockey). For each of these programs we assume price points and fill rates comparable to all of our existing facilities. Marketing the Youth Programs falls to the Youth Program Director. A full-year brochure will be created and camp conventions and expos will be attended. The Lil'Kicker franchisor supports their franchisees with their own marketing programs. The Center will also engage in its own campaign. Rentals Available space will be rented,but the staff will be committed to filling it with higher margin in-house programming. With such a large inventory of court space,we anticipate relationships with local volleyball, basketball,and soccer clubs who will want to rent court time Monday to Thursday from 5:00 PM to 7:30 PM.We assume a potential rental inventory of 2.5 hours/basketball court/day. 2.5 hours x 4 days x 12 courts x 4 weeks per month=480 hours/month. Concessions Concessions during athletic events can be very lucrative.The plans submitted here include space for a main level kitchen and lounge,as well as an upstairs kitchen and dining areas.In our pro-forma,we calculate concessions revenue by assuming an amount that is a percentage of other income. Other income is a good reference point for traffic through the facility,which drives concessions. The figure we assume is comparable to the percentages that we currently see at other ESM facilities,with an added amount due to the large concentration of tournaments that drive revenue. VBFH routinely has$8,000-$10,000 days when we run tournaments. We would expect to triple that number for most events. Like the Field Houses in Fredericksburg and Virginia Beach,this location will have an on-premise beer and wine license. 11 Sponsorship Sponsorship revenue at the complex could be substantial given the number of assets that could potentially be"named". For purposes of the pro-forma we assume simply signage revenue similar to what we see at Fredericksburg and Virginia Beach,most of which comes in the door without any marketing on our part. Cost of Goods Sold Any expenses that are directly related to the delivery of a product we list under Cost of Goods Sold. Examples are the expense of 1099 instructors for fitness,referees for leagues,t-shirts for campers, uncooked food and packaged drinks for concessions,et cetera. The exception to this is employees who may be devoted to one area or activity but who we list under wages rather than COGS so that we may keep close watch on our wages as%of gross income figure. For purposes of this pro-forma we list in the assumptions page the different COGS rates for the different products,as some are much higher than others. COGS averages between 20%in year one and 18%in year three. This is at the middle of the range of our other facilities.Considering the large portion of the income coming from Membership,a low-COGS income category,we are confident in this assumption. For tournaments,we have assumed a COGS number of 0%,reflecting the forecast of all tournament income as straight rental or net income as discussed above. Expenses As with staffing,ESM runs its facilities as efficiently as possible. Using data from the other four businesses,we establish the budget metrics that are used to forecast expenses. In most instances,they are a function of gross income,but sometimes they are a function of square footage,like utilities. Administrative Expenses All office expenses such as telephones,internet,website,bank fees,credit card processing fees,dues,legal fees,et cetera,fall under this heading. ESM has excellent merchant vendor relationships,which it will bring to the Center. Over the last two years our four facilities have ranged from 3.23%to 6.47%. We assume 4.84%. Facility Expenses Facility expenses include cleaning supplies,maintenance supplies,maintenance contracts,waste disposal, et cetera. Over the last two years our building and grounds expenses have run 3.56%to 6.3%of gross income,with Rouse being at the high end of the range. We assume at the middle of this range at 4.52%. Other Expenses The utilities are a blended rate using data from our other facilities. The insurance figure is based on a quote from the insurance broker we use at all other facilities.. The marketing figure is a function of gross income and is comparable to what we've historically found to be successful. Tax assumptions are drawn from our 12 worksheet calculating revenue to the City and list those taxes that hit the income and expense statement, such as admissions,property,and gross receipts. Staffing As stated before,ESM organizes staff around function and products,not sports or areas of the building. As a private small business,we run our staff more efficiently than most public recreation centers or non-profit organizations. For instance,one local facility in Fredericksburg has more than 50%of gross revenue spent on wages. Our facilities run between 28%and 49%. The outlier in that range is the Rouse Center because of the staffing required for the aquatics portion of the building is so intensive.Before we took over USTC, they were at 46%of gross income for wages. We brought them down in one year to 38%and brought it down to 34%in 2016. For this pro-forma,we have assumed 30%in year one,declining to 24%by year 3. With such a large portion of the income forecasted as net income(Tournaments),we feel comfortable with these assumptions. Any increase in wages from the operation of in-house tournaments and events will be offset by the increase in income. The organization chart shown divides the responsibility of the P&L along income categories with the exception of three positions,the general manager,the facilities manager,and all back office human resources and accounting. General Manager The General Manager oversees building operations and all staff of the Center. This staff is responsible for budgeting,establishing financial goals and networking within the community to help raise awareness of the Center. Tournament and Events Directors The Tournament and Event Directors are responsible for the day-to-day administration and promotion of all Center tournaments and events. This staff will be responsible for creating schedules,forming teams, facility promotion and rental of facility space. The Tournament and Event Directors will also oversee all of the Special Event staff and Tournament staff(vendor/in-house),work with a budget and monitor departmental financial spending,set sales goals and monitor monthly/yearly,coordinate with all staff to create a feasible schedule for events,negotiate and draft special event and tournament proposals and agreements,and directly supervise all Special Events and Tournament Interns. The lead Tournament and Event Director will report directly to the General Manager and will be the main liaison with the CVB. Food and Beverage Director The Food and Beverage Director oversees all Kitchen operations,including front of the house and back of the house operations. This staff will directly manage(interview,hire,train and evaluate)all Food and Beverage employees according to current labor conditions and needs and Health Department code. The Food and Beverage Director will also budget and monitor weekly food and labor costs,monitor quality control,monitor sales,generate daily and monthly financial reports as well as inventory reports and manage inventory and order Food and Beverage supplies as necessary. Additional responsibilities would include researching new food and beverage products,creating new menu and marketing ideas,inspecting equipment and food deliveries,coordinating kitchen equipment installation,evaluating health and safety practices,recording information about inventory and health practices and coordinating with other Center managers for special events and parties. The Food and Beverage Director will report directly to the General Manager. 13 Sport Directors The Sport Directors will oversee all league operations both on the hard courts and on the track surfaces. These Directors will be responsible for establishing relationships with youth and adult clubs and outdoor leagues,recruiting teams and individuals for league registration,setting schedules and allocating field and court time for maximum utilization,securing and managing referees,directing league operations staff,and providing top shelf guest service so that league retention is as high as possible.These positions are important to the success of the business. These Sport Directors will report to the General Manager. Youth Programming Director The Youth Programming Director organizes and supervises all youth programs,camps and parties in the facility and manages all Youth Programming Staff(interview,hire,train and evaluate). They need to be able to organize and instruct youth programs,camps and classes,write curriculums for classes and day camps,handle all issues and injuries in youth programs,camps and parties,collect payments,monitor inventory and order Youth Programming supplies,monitor and maintain Youth Programming equipment. This staff will need to abide by State Licensing Regulations and Franchised Program requirements. The Youth Programming Director reports directly to the General Manager. Facilities Director The Facilities Director is responsible for the overall appearance and functionality of the Center including the building and grounds maintenance,custodial support,and environmental and safety regulation compliance. This staff will oversee all facility maintenance staff(interview,hire,train and evaluate), monitor inventory and purchase supplies,create manuals for equipment operation and maintenance, maintain equipment service and chemical logs(in-house and contracted vendor services),monitor overall appearance and cleanliness of the building,and must have knowledge of building internals(sprinkler systems,HVAC systems,alarm systems,automation system controls and operations,etc.). The Facilities Director reports directly to the General Manager. Human Resources & Finance Director The Human Resources&Finance Director is responsible for the management of the Center's financial and accounting policies,including systems and processes,tax and regulatory requirements,payroll systems and processes,ongoing financial modeling and budgets. This position serves as the primary contact for all managers and employees as pertaining to human resources.They lead HR practices and objectives that will provide an employee-oriented,high performance culture that emphasizes quality,productivity and standards of a superior workforce.The Human Resources&Finance Director reports directly to the General Manager. Sales & Marketing Director The Sales and Marketing Director is responsible for all facets of marketing,advertising,sales,promotions and guest services.This position will build new relationships within the community to further the business, as well as maintain all current relationships. They will develop multi-media presentations and collateral that describes the demographics and success of the facility to compel sponsors and advertisers to desire access to our guests. In addition,they will maintain public relations with sports clubs,professional organizations,business leaders,business partners,and vendors. They will work hand in hand with the CVB to fill the facility with tournaments and events.The Sales&Marketing Director reports directly to the General Manager. 14 • Background Checks We run background checks to include state and federal records and sex offender checks on all perspective personnel that are 18 years of age and older. Employee Ramp Up ESM will begin hiring top management for the Center approximately 18 months prior to opening, beginning with the General Manager. Top staff will assist in the development of operations procedures and manuals,negotiate contracts with vendors,and most importantly,market the facility. About one month prior to doors opening,hourly staff will be hired. They will be trained on processes and systems,especially the facility management software,the key staff-guest interface. VBSC Internship Program All five ESM facilities participate in an internship program that started originally in VBFH. Across the country there has been dramatic growth in the number of undergraduate and graduate degree programs focused on the various facets of Sports Business: Marketing,Finance,and Management. These candidates are typically required to participate in a 400-hour internship to earn their degree. Early in the history of Fredericksburg Field House,we learned that hiring young people as front line staff and shift managers because they were exceptional athletes was not necessarily a formula for success. Good players don't always make good employees. We realized that we needed to employ those who were interested in long-term careers in the industry and who were serious enough about it to pursue the appropriate education and training. The ESM Internship Program takes advantage of the growth in Sports and Recreation Management degree candidates by taking on 10 to 20 interns for 10-week periods throughout the year across all four current facilities. These internships are unpaid,though we do provide some housing facilities to out-of-town students. The interns work 400 hours of which they spend time learning the business and working in the various sub-specialties that match their degrees. Some assist the finance manager,some the marketing director and many work in youth services,league,camp,and tournament operations. We receive about 300-400 applications each year for our program. Of this number,we bring on 30 to 40 annually. We hire about 4-5 to be hourly workers when their internship is done. Of those we promote 1-2 to be entry level managers,and a few of those have moved onto mid-level management. When opportunities present themselves,we'll hire interns in one location that served their internship in a different location. For instance,the Leagues Manager in USTC started as an intern in VBFH,was hired as an hourly assistant to a league director,was promoted to league director,and then was moved from VBFH to USTC to become a salaried League Manager. Most of the interns graduate and move onto other jobs in sports business. Consequently,ESM has a broad reach in terms of contacts and relationships regionally for those working in sports. The chart shows the different colleges and universities that have sent interns into our program. We've hired 25 of these 138. ESM has the ability through the Internship Program to attract the best upcoming sports and recreation business talent to its ranks,thoroughly vet them through 400 hours of training and initial work,and then pick the best to join the team. Each employee is completely aware of our culture,processes and procedures, and our emphasis on guest service. 15 Guest Service Guest Service is one of the pillars of our success. It can be difficult with a facility as big as VBSC and with as much traffic as we have to make staff feel welcome and at home. We can attack this task together with some basic strategies. First we need to know what our role is and then we need to know what our responsibilities are in that role. Guest Service is Everyone's Responsibility We are a big building,but a small business. We make people feel like they are walking in our living room, not a building with thousands of square feet. Every department comes in contact with our guests. Every person will convey this simple thought: "we are glad they came in/called,we appreciate their business and we are here to help". Below are the 3 pillars to convey that thought: Be Welcoming We take guest service to the guest. The guest does not come to us. We use the 10/5 rule. If a person is about 10 feet from us(or any person walking in the front doors)we make eye contact. If they make eye contact with us,we say hello. If they are within 5 feet we make eye contact with them and say hello either way. They need to know we are glad they came in/called,we appreciate their business and we are here to help. Nobody should walk through our front doors without getting a hello. Communication We are the conduit to any and all information at the facility. If we know the answer for sure,we give them the answer clear and set an expectation that we know we can meet as a facility. If we do not know the answer,we go find it. We do not make them wait. If we cannot get it quickly,we tell them we will get it and call them back. It is vital that we follow through. Our reputation is in our hands.They need to know we are glad they came in/called,we appreciate their business and we are here to help. Sales The sales rule is simple. If somebody is trying to give us money,we want to take it. However,we need to make sure that we can meet the expectation and that we are getting them to the right product at the right time. We ask open-ended questions to find out what they are looking for,what their goals are and how we can help. Then we get them to that product and make the transaction. Other important notes • We are in uniform and presentable • Only Managers may use their cell phones • We are present. This means on time and at our post ready to help • We talk to the guest more than other staff • We make sure our area is clean,stocked and ready to go. We go to the guest. The guest does not come to us. 16 Leagues Operations Internal leagues are a key component to the success of VBSC.Leagues provide steady revenue throughout the year while operating in five(5)true seasons per year:Holiday,Winter,Spring,Summer,and Fall. League Seasons The following are seasons in which leagues are offered as well as any important dates or issues to consider when planning and scheduling: • Holiday-Early November-Early January o (Thanksgiving,Christmas,New Year's Eve,and Snow) • Winter -Mid January-Mid March o (snow) • Spring-Late March-Late May o (Easter,Memorial Day,and Rain) • Summer-Mid June-Mid August o July 4th,Labor Day,and T-Storms • Fall-Mid August—Early November o Labor Day,Columbus Day League Format Generally,leagues are done on a 50-minute schedule. This is done with 20-22 minute halves. 2-3 minutes for a half time and 2-30 second time outs per game. Time outs should not be specific to a half,so teams do not call them due to a use it or lose it thought. We want to get a minimum of 10 teams per field per night on weekdays. In many cases in the high demand times,6 or 7 games are possible.For example:Monday through Friday use a 5:40 start time. We like to lay our schedule out like this: 5:40 6:30 7:20 8:10 9:00 9:50 This gives us 12 teams per field opportunity during the week. We should start our schedule with the later games and build to the earlier games as a habit. This allows us to sell the earlier time as rentals or for child developmental classes. If the space does not appear to get rented,prior to the league starting,we adjust the schedule for the best guest service. The higher the demand on the space the later the league can run. The schedule should work that a team only gets a late game once in an 8 team league. It is vital to keep games on schedule, as it shows that we are professionals at running our programs. On a Tuesday in the spring being 10 minutes behind may seem manageable,but staying on pace is vital at max capacity. There are 19 game times on a typical Saturday in the Winter. If we run 5 minutes behind schedule per game,the 19th game will start 1.5 hours late. That means the 10:50pm game will start at 12:20am,which is unacceptable from a guest service point of view. 17 League Marketing All of the above seasons should follow the same schedule with regards to marketing for leagues.Eight(8) weeks out from the start of each season,marketing begins with websites updated to provide information about the league.Websites will be up to provide the information at least all of the pertinent information eight(8)weeks out from the start of the league. Registration should be open at this point,but no later than six(6)weeks out from the start.We are cautious not to confuse the guest with seasons. We do not want them registering for the Winter season when they were trying to register for the Fall season. The website should consist of the following information: • Special League Announcements o Registration now Open, o Weather cancellations, o New night or other highlights • League Start Date • Early Registration Discount Deadline • Days,Times,and Surface where league will be played • Length of each game • Length of season • Rules • Divisions • League Contact Person • Refund Policy In addition to the website,we market in the following different ways to our participants: • In-Person-The most valuable and still most effective marketing of leagues is in person meetings and networking.Maintaining a network within our leagues is crucial to sustainability and growth of the league.A face-to-face meeting can be extremely effective in gauging interest and adding a personal touch to the recruitment.Word of mouth is still the most valuable marketing. Providing a great experience or great guest service will always provide the best ROI for the marketing effort. • Monthly Newsletter-Provide information and website links to the person who puts the newsletter together to ensure all pertinent league information is included in the newsletter that reaches our entire guest base.This is a great opportunity to do crossover marketing to guests in other programs that do not do a league. Example: Parents of a child in a gymnastics program that might want to join a volleyball league but did not know we offered it. • Flyers-Flyers can be placed around the building and provide exposure to foot traffic within the building to draw attention to our programs in highly traveled areas(bathrooms,food and beverage, front desk,etc.)Flyer will also be placed in the community on bulletin boards and parks in the area where the target market we are trying to reach may frequent(Churches,parks,bars, community boards,gyms,etc.).Flyers will not be posted as loose paper inside the building. Every flyer should be in some form of a display or plastic flyer holder. Targeted E-mail blasts-E-mail blasts are an important tool to reach out to participants that have played in the leagues in the past or are currently registered in a league.We can use our database to pull past participants and reach them all in one quick,concise email simply letting them know we are offering the program again,any new information,important dates,and that registration is now open. Local Newspapers and Sport Sites-Many small local newspapers offer a community section that will post sports information free-of-charge.It is worthwhile to reach out to these groups and include quick blurbs about our offering with a link to our website each season.This is generally a valuable task for an intern to take lead on if available. 18 Social Media-Social media is a great place to reach"fans"or"friends"of the facility directly,but also can be a valuable place to find community groups within your target market.For example,there are many homeschool groups that use Facebook regularly and may be an ideal place to reach out if you are trying to organize a homeschool league. League Registration The information page on the company website should include a link to the registration page in the current registration software.Whenever possible we should link to the main league registration landing page so the participant or parent may find the category/sport they are looking for and register accordingly. As league directors,we must set up the back end of the registration page through the software for all of our leagues.This requires several steps,but is not a difficult process.It is our responsibility to add a personal touch to the registration process,but at the same time,make it as effortless and systematic as possible. We want a guest to be able to reregister with as few clicks as possible on the website. League Guest Service Leagues are all about the experience.As league directors,it is our responsibility to ensure that we are doing our part to hear the participants. This is how we offer the best possible experience.Maintaining direct communication both on-site and digitally throughout the league is imperative. • Communication-Communication is the most important part of our job.When organizing leagues, participants and parents of participants need to receive periodical updates when building teams or making schedules.When people are left in the dark,they begin to feel uneasy.A quick note or email update can go a long way for guest service.Participants should be made aware of any schedule changes as soon as possible to help alleviate issues.Pre-season captains and coaches' meetings are an important offering to address any issues prior to the season,rule changes, clarifying any questions,and finding out what the participants truly want offered.Beginning of the season,weekly emails with updates,and end-of-season wrap-ups are all valuable ways of reaching our participants. • Presence at Games-A league director,field marshal,or MOD should always have a presence at all league games.The Director should be on-site when possible to address any issues,ensure events run smoothly,and create lasting impressions and relationships with league participants and families. • Why we are the Best Option-We offer a one-stop,centralized location for any sports that the participant or family may have interest in.Our leagues are highly organized with directors that have a passion for sports and organizing leagues.League Director are professional,creative and methodical in programming. This allows us to continue to think ahead and offer unique programming that sets us apart from other competition.Continuing to think of ways to improve existing leagues and creating new leagues,should be a part of all strategic planning.Stagnant leagues are boring leagues. League Staffing and Utilization Field marshals,the front desk staff and the manager on duty are integral pieces to keeping competition fair and fun. Field MarshaIs-These employees are used to monitor quality control,guest players,officials and field/court conditions during competition. A field marshal will check each team's roster to make sure other 19 players are not sneaking into games. They confirm that costs are managed and anyone not rostered goes to the front desk to sign a waiver and pay a designated sub fee.It is important to remember that this game and the time it is played is what we sell. It is easier to notice someone stealing a car from a car lot,but when you sell time or services,it can be more difficult to see or explain. These processes protect us from law suites and protect us financially. To protect competition during playoffs,any player not listed on the roster is not permitted to play. Front Desk-This part of the team is used to confirm if people have registered for the league if they are not appearing on a roster.The field marshal is able to radio in to confirm names and balances. If the player is not registered,the player comes to the front desk to sign a waiver and pay the applicable fee. Manager o n Duty-The manager on duty(MOD)is here to support the field marshal and front desk in any way possible. After they make sure the courts and track are set for any competition,the MOD is able to assist in check-ins and support the front desk if there are multiple people needing to sign a waiver and/or pay. The MOD is a primary guest interface. League Crisis and Complaint Management In any competitive setting,it is certain that there will be crisis and complaints. How we address any and all issues is what will set us apart from other facilities offering leagues. As league directors,it is our job to listen to any and all complaints from our participants,officials and employees and determine the best way to act to come to a resolution. • Crisis can range from injuries to fights and the proper steps must be taken to ensure safety for all. Incident/accident reports must be filled out in their entirety when necessary to protect the facility and those involved. Participants may never receive our incident/accident reports but may receive an official summary on company letterhead. • Complaints are most often received regarding referees. As league directors,we must make ourselves open and available to listen to our participants and support our officials. This can separate us from other facilities and will ensure our referees feel safe in our leagues.Our main job in these situations is to keep the situation calm and to let the guest know that we are listening,we take the complaint serious and we will address the problem. Many times the outcome will not be immediate. In fact,we should often take our time to gather information. This gives the guest time to decompress after intense competition. Officials and directors should remain professional at all times,no matter how upset a guest gets. Youth Programming Youth Programming Offerings • Instructional Classes o Lil'Kicker—Soccer(18 month—6 yrs.) o Skills Institute—Soccer(5 yrs.—12 yrs.) o Lil Sluggers—Baseball(2yrs.—5 yrs.) o Lil Laxers Lacrosse(4 yrs.—9 yrs.) o Lil Monster Ballers—Basketball(5 yrs.—12 yrs.) o Lil Tumblers—Tumbling(2 yrs.—12 yrs.) o Lil Sweepers—Field Hockey(4 yrs.—9 yrs.) o Sports Stars Academy—Variety Sports(5 yrs.—8 yrs.) • Daycare/Before and After School 20 • Parents Night Out • Birthday Parties • School/Church Field Trips • Preschool Play Days • Special Events Instructional Classes As seen above instructional classes can vary in sport. Some sports can be difficult to run with the younger ages. However,remember that these are entry level classes designed to be fun first and then teach movement and socialization through a sport. Seasons for Youth Programming can vary. These programs typically run 12 or 13 weeks, and cost between $13-$15 per class.We follow the National Calendar laid out by the Lil'Kicker franchisor,which has four seasons. Families are busier than they have ever been. The more flexible these classes are,the more revenue they will generate. The sweet spots for day/time of classes,is usually Saturday from 9am to Noon. However, classes like gymnastics and martial arts can run on weekdays,from 5:00pm to 8:30pm,as heavy or heavier than weekends. We should always be pushing to run as many classes as possible,but there is enormous value to these programs running weekday programs that are outside of prime time. Instructors do not need to be experts in the particular sport being taught,but they do need to be experts at having fun with kids. These classes should have a set curriculum that the instructor follows closely. Most facilities that fail with these programs do not have friendly and attentive staff or they do not follow the program like it is designed. Instructional Class Marketing Marketing is important for these programs,because your guests are constantly growing out of our programs and our potential new guests do not always know what programs are out there or where to look. Like any program,we have to be in tune with our target market. • We research all the outlets that parent with young children use. (Examples: Moms of multiples groups,blogs,stroller strides,Mommy and me groups,etc.)Build relationships with these groups for cross marketing purposes. We leverage off peak rental space for marketing,but be sure they are working to help you. These are small businesses that like getting something for nothing. • Grocery stores,animated movies,parks,etc.are all examples of places that we can advertise and get good penetration into our market.We always try to use coupon codes to track our ROI. • Mailers do not always provide a good ROI,but we usually do at least 1 per year to a targeted audience in our area,just to keep our brand in front of potential new guests. Many of the bigger programs do a 1000+count mailer every season.When you go to buy a list,the distributer can pinpoint families in your criteria: drive time,age of child,income,etc. • Open houses are vital as well. They will be scheduled the week before the start of the class. It is usually a free and fun day for the kids,but can yield 25%of our registration if done well. The open house should have all the instructors there teaching all the levels of classes. Balloons,music and cheap snacks like popcorn are easy and fun. Adding all of your programs can make for a fun family day. If you have the ability to attach an event to the open house,like a movie,you can make it a community event. Summer movie series-the last Friday of every month! • Every participant should receive a branded jersey. They will wear them everywhere and market for you. • Referral programs can incentivize word of mouth. This is always your highest ROI marketing effort. 21 • Internal graphics are very important as well. Many of your participants have siblings or children in the target market,but do not know you have programs for younger children. • Be sure to follow the internal marketing guidelines to expose your traffic to your programs. Daycare Daycare can be a great revenue stream,but can be very risky due to strict guidelines and transportation needs. Before and After school programs are the easiest to start,but typically require transportation. Our local Elementary and Middle schools will often allow us to claim our business as a bus stop,but only for one school. Most of the time that is not enough possible participants to attempt the licensure process. Daycare does not always require transportation,as many of the children have not started school. These programs are highly regulated and have strict guidelines we must follow. We will apply for licensing prior to opening.Parents are paying anywhere from$100-$300 per week for most of the year for daycare. If you have 20 children for 42 weeks of the year,we would bring in between$84,000-$252,000. These programs usually feed off of each other as well. 85%of the children in the daycare will participate in other programs in the facility.Thus the best place to market this program is in the programs we already run as well as the relationships we have to market those programs. The selling points for these programs are simple: • Is the program convenient? Is it close to my home or work? Do you have curbside pick up or drop off? • What is the cost? Is it affordable compared to other programs in the area? • Is my child safe?Can you be trusted to take care of the most important thing in that person's life? • Is it a quality program? Does it follow the state guidelines? What do you offer that is different? (usually we do all the sports that you already do.).What enrichment programs do we offer? Camps • School age summer camp(36 months to 12 is target market) 12+is CIT or adventure potential • In-service or holiday camps(school is out,we are in) • Sport specific camps o Recreational level o Competitive level • Rental Camps • Vendor Camps In House Camps • Traditional camp target market is 3-14 • Purchase is made with 4 main things in mind o Safety o Price o Quality program o Convenience • Specialty Camps o Sport,art,marine science,adventure specific o Higher price point 22 o If half day,transition to traditional camp option should be offered and seamless Rental Camps • Strict rental of space • Can be Elite training(Professional Players) • They do all of the marketing • Must be prices over In-house camps • Execute a signed agreement and get a COI prior to start of camp • Must go through camp orientation to ensure safety and seamless integration in to camp matrix • Held to all safety procedures of in house camps Vendor Camps • Often when vendor camps can not afford the rental or there is too much risk,we will partner with the company or operator of the camp • We have shared risk and reward(usually a revenue share of 60/40 with 40%intended to cover the rental rate.If it does not,the percentage increases until the rate is covered) • We help market they run camp • Remember our risk is in the building,not in their business • They must have a history and reputation for us to consider partnering • Having an application can weed out unqualified camp operators • Execute a signed agreement and get a COI prior to start of camp • Must go through camp orientation to ensure safety and seamless integration in to camp matrix • Held to all safety procedures of in house camps Rentals Block Rentals for Clubs and Schools Block rentals are great for locking up time in advance. It can become tricky to balance growth of internal programming and rentals,as rental groups often want peak hours that are needed for high margin internal programming. We all know that internal programming is historically the highest margin way to fill space, but we do not always have enough internal programming to fill all the space. In cases where there are chunks of open inventory,we try to sell it in blocks if possible. Example: The 2:30pm to 4:30pm time slots can be difficult to get adult league and/or referees to.So offering this time to local high schools at a discounted rate can bring in revenue that otherwise was very difficult,create a strong tie to the high schools in the area,create demand(or the appearance of demand)for all space,drive new concessions revenue,etc. 23 Tournaments Again,if we can develop an internal program we do it,but running 15 weeks of tournaments can be challenging in many ways. Using outside groups to fill inventory not used is a strong move. Be sure to do the calculations on gross margins before displacing current revenue. Understand,that moving current inventory can have greater affects than just dollar for dollar income moves. Tenants Tenant revenue is nice because it usually has minimal to no cost of goods. The only thing to watch here is that you are not using valuable programming space that could be a high gross and net at the end of the day. Special Events Special Events are great fillers of space. They also bring users into the facility that would not typically come. Be sure to use that traffic to your marketing benefit. Here are some examples of historical special events: • Concerts • Field Days • Consignment Sales • Firework Shows • Political Rallies • Disaster Trainings • Movie Nights • Circus • Church Services • Fairs • Expos Tournaments There are three main parts of running a tournament: • Facility-The facility is the venue at which the tournament will take place. This can be more than one location. • Operations-Operations represents how the function of actually running the tournament. This is from registration to evaluation and everything in between. • Draw/Marketing—The Draw is the leverage to bring in the teams needed for critical mass of running the tournament. In some cases this is about upside growth more than start up tournaments. Tournament Types For the purpose of finding a common denominator,think of tournaments in these three categories: • In-House • Rental • Partner/Revenue Share 24 In-house Tournaments • Highest upside • Can take years to build up to upside • Must invest in staff and technology to execute draw/marketing/execution Rental Tournaments • Lowest upside • Tournament company does not have buy-in to facility.They must be held to facility rules and regulations • Usually want best inventory at lowest price • Big relationships can help fill shoulder seasons Partner/Revenue Share Tournaments • Can be the most efficient way to grow large tournaments in a short period of time • Can save venue money on wages by not investing in staff to operate tournaments • Must find a company that understands your investment/risk is in the facility • These are usually long term relationships with non-competes • Co-Branding is vital as the tournament operator could have all the contacts and relationships to take the business as tournament matures. Tournament Operations Scheduling There are many things to consider when scheduling:How many games?What competitive level are the teams? Where are they coming from? How are the playoffs going to work? How many fields do we have? For how many game slots? What happens if there is inclement weather? With so many things to consider,it is important to control registration to a level that provides a quality experience to the participating teams. Schedules must be to the teams in enough time to plan and communicate to their players/parents. There will always be changes,and we should do everything we can to accommodate new participation. However,there is a time where allowing new entries can drastically affect the quality of the product. Each Tournament Director needs to ask themselves that question before adding a team after the schedule has been posted. Here are the main scheduling points to keep in mind when running a tournament: • Keep games competitive • Get schedule out in a timely manner • Over communicate with participants • Be as convenient as possible—Do not schedule a team driving 3 hours the day of the tournament, a 7:30am game. Parking It is easy to look at capacity of a tournament by looking at how much field/court space is available. In facilities with limited parking,this can cause an extreme drop in quality of the tournament. A safe metric is 25 100 parking spots per game surface(typical full sided long field game). Each sport is different,but if you start with this metric,it will red flag any areas where you might be running out of parking. In cases where parking is limited,be sure to have clear signage to steer parking. Fields that are used,can be lined to assure people do not double park or block major enter/exit veins. In some cases,hiring parking staff is required to keep parking under control. Be creative where parking is an issue. Local schools,train stations,shopping/grocery stores can all provide overflow parking in a pinch. Build those relationships way before the problem occurs. Know all of your local shuttling options,in case you have to call them with an emergency. Facilities We manage elite facilities!It is important to translate what we mean by elite facilities. Clean Facilities Whether a facility has the wow factor or not when you walk into it,the most controllable factor of having an elite facility is keeping it clean. Cleaning a facility should start with high traffic areas and work outward. The highest traffic areas are typically:bathrooms,entry ways,bottlenecks in egress,spectator areas,player benches and the parking lot/sidewalks. These areas should have routine cleaning schedules depending on your staffing size. A checklist means nothing without accountability. Whoever the facility staff report to,must check behind them frequently to ensure that the checklists are being executed. Keeping the building clean is everyone's responsibility. Managers will lead by example,when it comes to picking up trash,pitching in on spills,etc. Walk-throughs are very important for the overall health of the building. Managers will have a routine of walking the building inside and out,specifically looking at cleanliness,functionality,risk management,and efficiencies. Maintenance Maintaining hundreds of thousands of square feet of sports facilities and acres of sports fields with enormous amounts of foot traffic is no easy feet. It takes being acutely aware of the status of the whole facility. On one hand we are leveraging an asset to produce as much revenue as possible and on the other hand we are trying to protect the asset and make it last. This takes balance and constant communication between programs and facility staff,but almost as important is leadership from management to ensure that the balance is in place. Because there is always a list full of work,it is easy to be reactive to maintenance issues. The key to being successful long-term is getting ahead of the problems. This takes commitment to creating the system that takes care of the building. All assets that are on the books should have a detailed maintenance schedule that is kept in a log book and put into the calendar. Example 1:The facility work truck should have oil changes,inspections,pre-summer inspection,pre-winter inspection,etc.on the calendar. Example 2: Soccer goals should be checked for chipping paint,bolts that are getting loose,condition of nets,general 26 wear and tear from use,etc.before every season starts. It is a good exercise to have it in the GMs calendar as well. It is our goal for the whole facility to be our focus,but in order to accomplish this,we break the facility into zones. Depending on resources,have 1 or more zones be the focus for each month. Coming out of that month,that zone should be deep cleaned and refreshed. This is a great time to log any long-term issues and add to the capital expense plan. Be sure to budget expenses for these projects. If there is limited money for improvements,keep an ongoing list of items that need attention. In some cases,not putting money into these areas will be investing in failure down the road,but often projects can be pushed for timing purposes. When money is an issue,always set a date to revisit the list.This will keep it fresh in everyone's mind and could be a valuable resource to show ownership. Not all areas that are showing wear,need to be replaced. Be creative on how to keep the facility looking elite while being as cost efficient as possible. Example: Mirrors tend to wear on the edges over time. This makes the facility look old and tired,but replacing large mirrors can cost thousands of dollars. Since bathrooms are high traffic areas,create a banner to go around the edges of the mirror that advertise a constant in-house program(Little kids soccer class). Sharp graphics will brighten the area,hide the wearing spot on the mirror and only cost a couple hundred dollars installed. Efficiencies Managing efficiencies is an important part of the facilities department. Although the facilities department may steer the sponsorship team vendors,there is usually no revenue produced by the facilities department. Saving money on utilities and vendor contracts can have an even greater impact than those sponsorship dollars. In cases where there is software to help mange HVAC,lighting,etc.be sure to check the system that the timing is set appropriately. Look for am/pm mistakes,time zone discrepancies,occupied/non- occupied times as seasons change,etc. Putting seasonal events like daylight saving time changes in your calendar make catching these things effortless. In facilities that do not have software,it is even more important to keep these efficiencies in front of all of the staff. It is very easy for the instructor of a day time soccer class to manually turn the lights on and then forget to turn them off while cleaning up and debriefing parents on the progress of their child. Obviously we want it to be on the staff member's check list for breaking down the program,but it needs to be a team effort. In many cases the front desk staff member is a great person to manage the lighting in off peak times. They are greeting each person that enters and saying buy when they leave,so they know when the lights should be on/off. Constantly compare year versus year usage and rates for all utilities and contract services. This will help catch price increase that were not expected,leaks that are not apparent,and times to look for new partnerships. Sponsorship Sponsorship is an important part of every sports facility. It not only adds to the bottom line,but adds to the prestige of the programs/facility. Below are bullet points outlining Eastern Sports Management's philosophy for the sponsorship department: 27 • Sales—The development of the sales pipeline is critical for success. Although every market is different,there are 3 major areas that should be the foundation for development of the sponsorship sales pipeline. o Vendors/Tenants/Users-We give these businesses our money,so there is a natural trade component,but exclusivity and preferred vending could be exploited as well. We will explore all vendors(lending,food and beverage distributers,electrical,HVAC,plumbing, fencing,cleaning,energy providers,cable companies,equipment rental,etc.). Tenants are tied to our business and are there because they value our traffic. Getting them to expand that influence should be an option. Finally,we include users into our sales pipeline. Often travel teams,rental camps,wholesale leagues,etc.are looking to add to their business exposure and brand. o Direct and Indirect beneficiaries—Direct beneficiaries are companies that sell products that are required to run or participate in the program that we are running.A few examples of direct beneficiaries are: sporting equipment,apparel,sports drinks,supplies(nets, goals,balls,etc.),etc. Indirect beneficiaries are companies that provide services,and sometimes supplies,that are not required to participate but are still consumed as a result of the traffic. A few examples of indirect beneficiaries are: hotels,t-shirt sales, restaurants,shopping centers,communities,golf courses,movie theaters,etc. o Historic buyers in the market—this could be a moving target in each market,but there is data that can lump a few of these potential sponsors directly into your pipeline. We look at our local stadiums and listen to local sports radio to determine who is spending marketing dollars in our area,as well as whom values sports marketing. A few examples of businesses that consistently buy sponsorships from sports facilities are:auto dealerships,hospitals,physical therapy and rehab facilities,private educators,hotels, restaurants,banks,beverage distributers. • Education of industry/business/traffic—one of the biggest hurdles for landing big sponsorships is educating the potential sponsor about our business. We have to go into every meeting with the assumption that they know nothing of the industry. Some educating points are: o $2.2 billion industry o Reach—3 out of every 4 families within 20 minutes use the facility in some capacity o Frequency—Most users use the facility at least once a week o Saturation of market—Over 90%of local athletes within a 20-minute drive have used our facility • Identify needs of sponsor—Working with the sponsor to reach their goals is a key. In order to help them reach their goals,we need to ask them what they are trying to accomplish and internalize these goals. There are many different reasons to buy a sponsorship from a sports facility: o Increase in sales o Block competition from sponsoring o Branding o Community outreach o Reach a different demographic o Etc. • How can sponsoring a sports facility help a company reach their goals? o Reach o Frequency 28 o Prestige o Branding o Exclusivity o Creativity/Customization to specific demographic or service • See it through—All levels of sponsorship deserve our attention. We have to do everything we can to steer our traffic to sponsors and try to impact their bottom line. It is important to keep them aware of the buzz around the facility and how hard their dollars are working for them. There are a few key components to this process that must be accomplished: o Sponsors should be reached throughout the term of their sponsorship. The rule of thumb is 7 times a year minimum. Big sponsors should see you much more. o At the end of each quarter of the fiscal year you should send each sponsor a quarterly report that shows the traffic,events and any other highlights that have happened around the facility. This keeps the sponsorship fresh in the sponsor's mind and lets them know we are still working hard for them. o Traffic/Season/event updates are a good way to keep the buzz in the air. This also allows us to quickly quantify the impact of their dollars at different points of the year. This could lead to a specific event sponsor as well. o Invites to special events. Inviting sponsors to big events and busy times allow the sponsor to feel appreciated or special and to see how the traffic is first hand. The investment of snacks in the conference room or a golf outing for top sponsors will be well worth the investment when all said and done. Make them feel a part of the buzz. Fluffing the decision maker is sales 101. 29 Emergency Operations Procedures XXXX 19th Street Virginia Beach, VA 23451 Phone: (757) XXX-XXXX Statement of Purpose: These Emergency Operations Procedures have been developed to provide Facility staff with a set of thumbnail responses for a variety of crisis situations that could easily develop. These procedures should be referred to whenever necessary. Each staff member should keep this booklet in a convenient location. These plans shall be reviewed on an annual basis to ensure they are accurate and up-to-date. General Responsibilities of the Staff Virginia Beach Sports Center recognizes its responsibility for the safety of guests and staff during natural and man-made disasters. Through planning, training and preparation we can handle emergency situations. All staff will be trained upon hiring and will be reviewed annually. Objectives of this Guide: • To promote a standardized,minimum emergency procedure plan that will assist staff to meet both ethical and legal responsibilities to their peers, guests, and community in times of emergency. • To provide suggestions for meeting minor emergencies, as well as recommendations for action during major natural disasters or man-made disasters. • To provide suggested forms to be used. • To improve communication among staff. VBSC Staff: • All staff will become familiar with the various alarm signals and react immediately, calmly, and appropriately. If evacuation is necessary,make sure the process is as orderly and prompt as possible. Also, make sure all doors are closed and that guests and staff are relocated to the designated area appropriate to the nature of the emergency. • If a hazard to the safety of staff and guests is identified, or if staff or guests are in danger in any way,the first priority of all staff should be to take whatever action is prudent and necessary for the safety of all. The second priority will be to notify supervisors as soon as possible. 30 • Staff should make every effort not to leave guests unattended. • Staff members trained in CPR and/or First Aid should go to any part of the VB SC where guests or staff injuries are reported. Their major responsibility should be to apply first aid to the injury. Each unit and office should keep a well-stocked, portable First Aid kit and working flashlight on hand at all times. • All staff not immediately responsible for taking action should standby at the onset of any emergency to receive directions from the supervisory personnel. General Manager/ Manager on Duty: • The senior supervisor present should supervise all procedures during the initial stages of the emergency. As soon as the nature of the emergency is identified, he/she should make sure that: • The appropriate alarm is sounded or EAP is enacted. • Procedures to ensure safety of the guests and staff are being implemented. • Proper authorities and agencies are notified. • Internal communication channels are established within the building and at higher levels. • Planned role assignments are reinforced. • External communications are established. • The general manager/designee will be on site during an emergency. • The general manager, in conjunction with supervisors, should also assume the responsibility for ensuring that all personnel are trained in the contents of this emergency plan. Building Security In order to maintain a safe environment,the following procedures are to be adhered to: • Staff shirts/uniforms will be used to designate staff authorized to be in the building. • All guests and staff must enter front lobby door,unless authorized by facility general manager or designee. • All exterior doors except the front lobby doors will be locked at all times. • The general manager/designee will conduct periodic exterior door checks throughout the day. • Walkie-Talkies will be provided to all units and must be operational during all operating hours. • The General Manager, Facilities Manager and Manager on Duty will carry a walkie-talkie at all times. • Walkie-Talkies will be housed in facility safe room. • All criminal incidents, disciplinary incidents and security violations will be reported to the General Manager/Manager on Duty. • A "Drug-Free,Tobacco-Free,Gun-Free,Profanity-Free, Workplace" will be communicated and enforced. 31 Building Maintenance Emergencies Steps to be Taken: • Assign staff to isolate problem. Minimize safety risks. Clear the area if necessary. • Contact the Manager on Duty for immediate assistance. • Call the General Manager and Facility Manager to inform them of the issue. Water Issues: • Clean up the excess water and place a wet floor sign over the area to warn guests of a slip hazard. • Inform the General Manager and Facility Manager of the issue and place it in the MOD report at the end of the night. Electrical Problem: • If power to the entire building is interrupted, make sure the egress lighting and exit signs are lit. Evacuate the building immediately. If egress lighting is working call Dominion Virginia Power at 1-888-667-3000 to determine if the problem is isolated to the Virginia Beach Sports Center or if the problem is widespread. • If the power is isolated to the Virginia Beach Sports Center, ask for a service call from Dominion Virginia Power. • If power is out to a portion of the Virginia Beach Sports Center, check all the circuit breaker panels for tripped breakers. Check to see if the circuit has been tripped. If so,try to flip it back on. • There are multiple circuit panels located in the Group Exercise Room,Fitness Office, Kitchen and Electrical Room in the back of the facility. • If there is not enough light in a program area, shut the program area down until the situation has been corrected. • If the Air Conditioning/Heating is off for an extended period of time,the General Manager and Facility Manager/MOD will determine whether or not to close a program area due to slick floors, temperature of building or other concerns. • Keep General Manager and Facility Manager abreast of the VBSC emergency and document this on the MOD report at the end of the day/night. Note: If the power is out,the phone system could shut down. Use a cell phone to make needed calls. Phone Issues: • For internet connection, reset the router in the AV room, located in the office behind the front desk. The router is by the back wall (small black box). Disconnect the power cord, wait 15 seconds and plug it back in. Internet should reset and phones should be re-established. • If this does not work, Report the problem to the General Manager/MOD and document issue on the MOD report. 32 Sewage Back-Up: • If sewage comes up through the drains, call the General Manager and Facility Manager. • Secure the area. Don't let any guests or staff come in contact with the sewage. • Alert the facilities staff. Make sure they use proper blood-borne pathogens techniques to clean the area. Release of Minors Procedures for Licensed Child Care Programs: • Minors will only be released to those adults who are listed on the Camp Registration Forms filled out for the program located in the Camp Coordinator's camp filing cabinet. • Adults may be required to show picture I.D. before the minor is released to them. Camp/Management staff must do the verification. • If a parent/guardian are listed as "not authorized to pick-up" legal papers(i.e., court orders,protective orders, restraining orders)prohibiting contact by an individual with a minor must be on file. • Minors will only be released to authorized individuals. The authorized individual(s) must indicate the time of departure and provide a signature. Procedures for Youths Not Registered in Licensed Child Care Programs: • Minors involved in incidents will be separated from other guests and escorted to supervised offices. Two staff should be present while the minor is being questioned and detained. • The parent/guardian or other adult as listed in the Virginia Beach Sports Center database will be called about the incident. If the contact cannot be reached, the child may voluntarily call other adults to pick them up. Do not release the minor to another minor no matter the relationship. • Fill out an incident report and document the name, address, and telephone of the adult picking the minor up. Parental Contact: • Parents of minors shall be contacted for the following purposes: illness, injury, natural or man-made emergencies, discipline, unattended child or questioning by law enforcement. Non-Custodial Contact: • Unless a legal document is on file restricting contact, a non-custodial parent may check out his/her child. The non-custodial parent may receive information about or review the records of his/her child. However, if the child has been legally 33 adopted,the natural parent loses those parental rights, which are gained by the adopting parent. Media Relations News departments monitor police, fire and ambulance radio dispatch scanners; therefore, reporters are aware of most emergency calls and often arrive on the scene very quickly. Steps of Action: • Notify the General Manager.If the General Manager is not present, call his/her cell phone or at his/her home number. Phone lists have been provided to all managers. Inform him/her of the situation. • Do not make any statements to the press and make sure all staff are aware to answer with"I will have to get back with you on this matter." • Gather the following information: • Who the reporter was and which station or publication they represent. • The date of the contact. • Who was interviewed(staff, guests,both). • What was discussed? • Were photographs or video taken? If so,of whom or what? • When will the anticipated coverage occur? • Is the coverage likely to be positive, negative or controversial? Sometimes,however, management staff/MOD must respond. In dealing with the media during or after a crisis, remember these important points. • Be accessible. • Designate an area for the media,both inside and outside the VBSC. • Know what is being done to help guests and staff cope with the situation. • Be prepared. Be honest. Be brief. Stick to the facts, and stress safety. • Confidentiality must be maintained to protect guests and staff rights. Only general information may be released. • Never say, "No Comment". Instead say, "I will have to get back with you on this matter". • Remember, few things are ever "off the record" and the interview is not over until the reporter leaves. Sample Crisis Media Release: "Thank you for your concern. Our staff is assessing the situation at this time. We are keeping the General Manager and our Owner apprised of everything that is taking place, so we ask that you contact them for any information and arrangements necessary for your coverage. It is important that we protect the privacy and welfare of our staff and guests, so we also ask that you please not tie up our building phone lines with calls, attempts to take pictures, 34 or conduct interviews without contacting our General Manager/Ownership at 757-XXX- XXXX. We appreciate your cooperation." Accident/Serious Injury/Medical Emergencies Steps of Action: • The situation should be assessed for personal risk factors for assistance and intervention. • Gloves should be donned before any contact is made with an individual. • Do not have the victim move or allow movement of the injury,unless there is a danger to life or limb. • In case of a serious injury or illness send someone to the VBSC for help if a walkie-talkie is not available at your location. Call for a"First Responder to victim's location" if the victim is unconscious or having breathing/heart issues. • If it is an emergency,dial 911. • If the situation does not require CPR or an AED response,walkie-talkie for"Staff needed in victim's location". The Virginia Beach Sports Center staff should handle minor First-Aid. • If First Responders are called,the front desk staff should call 911 and relay information from the staff to the 911 Operator. MOD should report to the site of the accident/incident and send a staff member to stand outside to wait for the EMT's. • Upon arrival of the EMT's the staff member will escort them to the site of the accident. • All staff involved, must complete an incident report and also place the information in the MOD report. Personnel Roles: 1st Staff on the Scene: • Assess the situation. • Inform the General Manager/MOD of the accident and call for emergency assistance by way of walkie-talkie, "First Responder or Staff to Victim's location". General Manager/MOD • Coordinate appropriate services. Assign the front desk staff to contact emergency services and contact the victim's personal emergency contacts. All Staff: • Assist with necessary communications, secure the area, crowd control, and assist or administer First-Aid if directed by the General Manager/MOD. • If EMT's are called, a staff member must wait for their arrival and escort them to the location of the victim. Unconscious Victim: • Survey the scene for safety. • Approach the victim. Tap and shout for a response. 35 • Check the victim for breathing and a pulse. • If victim is unconscious,there is no breathing or pulse, call for a"First Responder" to the victim's location and begin steps for an unconscious victim. Not Breathing: • Walkie-talkie "First Responders" to victim's location. • Follow steps for rescue breathing. • Use your protective barriers, i.e. gloves and pocket mask. Cardiac Arrest: • Walkie-talkie "First Responder"to victim's location • Walkie-talkie "AED"to victim's location • Follow steps for CPR/AED care • Use your protective barriers, i.e. gloves and pocket mask. Choking: • Call for a "staff member" to the victim's location. • Follow steps from First-Aid training. • If the victim is coughing, encourage them to keep coughing. DO NOT INTERFERE. • If the victim is unable to breathe and stops coughing,begin to perform abdominal thrusts until the victim coughs up the object,becomes unconscious or help arrives to take over. Heart Attack: • Walkie-talkie for a "First Responder" to victim's location. • Follow steps for Heart Attack Care. • Use your protective barriers, i.e. gloves and pocket mask. • Be prepared to perform CPR if they become unconscious/go into Cardiac Arrest Seizures: • Call for a "First Responder"to the victim's location. • Protect the victim from injury by removing nearby objects with which they may come in contact. • Protect the victim's head by placing something soft underneath it. • Do not place anything in the victim's mouth. • After the seizure, if the victim is breathing on his/her own,monitor the victim until EMS arrives. Asthma Attack: • Reassure and calm the victim down. Have them get into a comfortable position, i.e. sitting or lying down. • Call for a"staff member" to the victim's location. • If they have an inhaler,have them use it. You are not allowed to administer or assist with the administering of the inhaler. • Call 911 if necessary. • Contact the victim's emergency contact to notify them of the situation. Bleeding: • Follow your Blood Borne Pathogens Procedures. Put on your protective gloves. • If severe, call 911. Walkie-talkie a "staff member" to the victim's location. 36 • Give the victim sterile gauze and have them apply pressure over the wound and elevate the limb if possible so that it does not cause any further pain. • If bleeding does not cease, apply a pressure bandage. • NEVER APPLY A TOURNIQUET TO THE VICTIM. • If it is minor bleeding,have the victim clean out the wound with soap and water. Do not apply any ointments or creams to the wound. • Dispose of the blood soaked materials in a Red Biohazard Bag. Do not dispose of the Red Biohazard Bags in the trashcan. Coordinate with the Fire Department for proper disposal. Sprains/Breaks: • If the victim is unable to move, secure the area around the victim. • Call for a "staff member" to victim's location. • Only immobilize the victim if you need to move him/her. Wrap the injured limb, apply ice pack and have the victim get comfortable. • Elevate injured area if it does not cause further pain or harm. • Ask the victim if they would want to have someone called to pick them up. • Off them help from EMS. Dislocations: • Minimize movement to the affected area. • Do not try to pull or reset the joint. • Call for the "staff member"to the victim's location. • Ask the victim if they would want to have someone called to pick them up. • Offer them help from EMS. Head Wounds: • Call for the "staff member"to victim's location for suspected spinal injury. • Control any bleeding and immobilize head and neck. • Talk to the victim to fmd out if they are having any pain or numbness in the neck and back. Check for disorientation and any unusual behaviors. • Have the victim verbally answer your questions. Tell them to keep their head still,no nodding. • Ca11911. In all medical situations, an INCIDENT FORM must be completed.In all cases,if a minor is involved,parents or guardians must be notified. Child Abuse Suspicion State statutes and Virginia Code 63.1-248.3 require reporting suspicions regarding injury physical abuse, sexual abuse, or neglect to children. Reporting is to be directed to the Department of Social Services(Child Protective Services)in the County in which the suspected injury occurred. 37 Steps of Action: • Any staff employed in the Virginia Beach Sports Center will report any cases of suspected child abuse or neglect immediately to the appropriate managers. • Appropriate managers should be consulted prior to making a call to Child Protective Services(CPS). • If a CPS employee should meet with the child, CPS identification along with the child's information should be verified and documented by the manager. • A room maintaining privacy and confidentiality will be secured for the CPS worker and the child. • Maintain the child's and the family's confidentiality. CPS Hotline: Call State Child Protective Services, 1-800-552-7096. Violence with or without Weapons Goal: To remain calm and orderly to not disrupt the VBSC any more than necessary. Steps of Action: Trespassers: • Staff is to stop all patrons and scan their card or retrieve their day pass upon entering the building. • Sign in all others at the scanning desk. • A supervisor should be notified of trespassers who fail to stop when asked or are observed entering through an unauthorized door. • If a trespasser is in the hallways, contact a supervisor and inform them of the location. • If the trespasser is in an activity area, use the walkie-talkie to inform the supervisor. • If the trespasser refuses to leave after being asked, call police, 911. • If danger exists, evacuate patrons to a safe area and follow "patron out of control" or"Weapons threat"procedures as applicable. Patron(s)Out of Control: • Do not approach the situation alone. Radio that "Assistance is needed in(state location)". • Move other patrons out of the area. • Alert other staff nearby and call police if necessary. • Talk to the patron(s) in a calm manner. Use team approach. Other staff can assist in helping the patron gain control. • Do not attempt to restrain the patron. • Document the event in an Incident Report. Weapon Spotted but not being used to threaten others: 38 • Identify the weapon type if known and person in possession of the weapon. • Call the General Manager/MOD to make them aware of the situation. • Manager/MOD notify patron that weapons are not allowed in facility. They must place weapon in their car. • If necessary, call the police at the non-emergency number, 757-mu-xxxx. State the situation and have a police officer call you back or ask for assistance. • Other staff should not approach person seen with a weapon. Let the Manager/MOD/police do this. • Document the event in the Incident Report. Weapon being used to threaten the safety of others: • Radio that"Assistance is needed in(state location)" and have the front desk call the police and advise them that a weapon is involved. Give them a description of the intruder noting clothing,race, gender, distinguishing marks and features, etc. • Take measure to protect self and patrons as necessary. • Evacuate facility staff and patrons away from shooter's location. • No staff should attempt to struggle with the intruder or attempt to disarm the intruder. • If General Manager is not present, notify them of the situation immediately. • Document the event in an Incident Report. In a weapons situation, police assume jurisdiction upon arrival. • Follow their instructions and stay clear of all of their activities. Emergency Telephone Numbers: Police,Fire,EMS 911 Nuclear/Biological/Chemical Threats • Call 911 to report the incident. • Shut off the ventilation systems. You may want to shut off the thermostats in each area. Main Thermostat controls are located in office behind the front desk. • If the threat is outside,close all the doors. • Move all patrons and staff to inner areas of the building with limited ventilation. • If inside,close all doors to contain the threat and evacuate the building. • Keep exposed individuals away from others until medical authorities are on site. Radio to alert all staff that a"Medical emergency in(state location)". • Do not use water or chemicals on spills unless directed by EMS/Hazmat staff. If we experience this type of threat,we will be interacting with the Virginia Beach County Fire Department,Police,and the Public Health Department to respond appropriately to each situation.These organizations have jurisdiction on the scene and will direct us in all further activities. 39 Fire Evacuation signal: Continuous ringing of the fire alarm. Steps of Action: • When the fire alarm sounds, assume it is a real fire and immediately evacuate the building of all persons. • Staff needs to direct the public to the nearest fire exit and check all the areas of the building for stragglers. Fire Alarm Procedures: 1. When the alarm sounds staff will check the alarm panel behind the front desk 2. Please read the error code, Ex"Pull Station 25" 3. Phone will ring from the monitoring station-ANSWER THE PHONE 4. Alarm company will ask for the passcode-4901 5. If the alarm is a false alarm,please tell them when they call. If not fire department will come 6. If it is a false alarm,please silence the alarm announcement 7. If not a false alarm continues to evacuate the VBSC Alarm Monitoring Company Information Central Station 1-800-356-2222 Account#-TBD Passcode-TBD • All patrons should be escorted outside of the facility. • No one is to re-enter the building until the General Manager/MOD is notified by the fire department that it is okay to do so. • Please remember to remain calm and level headed. The public will look to you for guidance. • If there is no fire and dispatch has been stopped,turn off the alarm and allow guests to return to the building. Personnel Roles: General Manager/MOD Go to the fire panel box located behind the front desk, locate the activated zone,notify the staff as to location, inform the Fire Department upon arrival. If the fire can be put out or contained,use a fire extinguisher. After Fire Department gives an all clear, a Fire Fighter/General Manager/MOD will go to the panel box behind the front desk and press the silence button. They will then oversee re-entry of the facility and complete incident report. Front Desk Staff 40 Call the Fire Department if it is a known false alarm. If not, check the lobby restroom, lobby, offices and help direct patrons out the front doors. Secure cash drawers and cabinets and take radio, walkie-talkie, and megaphone to safe area. Field Marshals Evacuate gymnasium and assist and direct all patrons and staff to county fields. Take account for all children in programs without parents present and escort them to county fields. Remain with children until parent or legal guardian accounts for them. Kitchen Staff Evacuate the lounge and kitchen and assist and direct all patrons and staff outside of the building. Youth-Club Evacuate the program areas, including Youth-Club and multi-purpose room. Bring sign- in/out clipboard and all children to county fields. Once parents have evacuated, they will be expected to come and assist with their children during the emergency. Parents will be allowed to sign out their child at the assembly point. Group Fitness/Cycling Evacuate group fitness studio/cycling room and escort patrons outside of the building. Fitness Center Staff Evacuate all patrons and escort them outside of the building. Do not leave fitness area until all members have left. Facility Staff Check and evacuate the locker rooms, direct them outside of the building. False Alarm • If a staff person witnesses someone pulling the alarm inadvertently or by playing around, the General Manager/MOD is to be notified immediately. • The false alarm will be announced over the radio so staff can relay that information to the guests. • After the Fire Department gives an all clear, the General Manager/MOD will go to the panel box behind the front desk, and press the silence button. This will silence the horns in the building. Police, Fire, EMS 911 Non-Emergency TBD Severe Weather Definitions: "Watch" means that conditions are favorable for severe weather. "Monitor"means to take action as needed. "Warning"means that severe weather is imminent. Take shelter. Monitor weather reports continuously. "Safe Areas"are internal rooms that do not have any windows or roof to the outside. Virginia Beach Sports Center's safe areas are the men's and women's locker rooms and the kitchen. 41 Signals: • Weather broadcasts of severe weather watches and warnings will be monitored through the National Weather Service emails and updates. • Inform each unit of"Warnings and Watches" as they become available. Steps of Action: • If imminent, the warning will be announced over the radios. • Patrons and staff should proceed to a wall in a designated safe area(locker rooms or aquatic storage area) and assume a sitting position,head down,with their hands on their head. • Showers are not to be used during sever weather evacuation procedures • Persons in unsafe, outside locations should seek cover in the building. • Staff are to close all doors. • Wait for all clear signals before leaving safe areas. Staff Roles: General Manager/MOD: Supervise the steps of action and maintain contact with all staff.Assign roles to staff as needed. Take a cell phone and walkie-talkie to safe area.Use walkie-talkies to assign staff to check restrooms,respective program areas and classrooms to make sure all patrons and staff have moved to safe area. A battery-operated radio should be located within hearing distance of supervisory staff if at all possible. Front Desk Staff Check and evacuate the lobby restroom and main offices. Coordinate crowd control in the main offices. Secure cash drawers and cabinets and take radio,walkie-talkie, and megaphone to safe area. Field Marshals: Evacuate gym area and evacuate to the men's and women's locker rooms. Kitchen Staff: Evacuate the lounge and kitchen to the men's and women's locker room. Youth Services Evacuate the Youth-Club and multi-purpose room to the men's and women's locker room. Take the sign in/out clipboard and account for all children. Group Fitness/Cycling Evacuate group fitness/cycling studio and escort patrons to men's and women's locker room. Fitness Center Staff Evacuate fitness area and direct patrons to men's and women's locker rooms. Facility Staff Coordinate the crowd control in the men's and women's locker room. Police, Fire, EMS 911 National Weather Service (Sterling) 703-996-2200 42 Bomb Threat Signal: Upon receiving a bomb threat,Front Desk Staff will be responsible for verbally notifying the General Manager/MOD. The GM/MOD will start the process of evacuating the building if necessary. Steps of Action: • Consider and treat all threats as real. • If a phone threat is made, obtain as many details as possible from the caller before they hang up. • Try to complete the checklist attached. • Immediately notify someone to call 911. • Evacuate the building to the assigned areas. • Do not search or disturb items. • Bring walkie-talkie to the evacuation site,but do not use them until told to by the General Manager/MOD and be at least 100 yards from the bomb site. Inform staff and guests not to use any cell phones within 600 feet of the building. • Staff and guests will receive permission to re-enter the building from the safety officials when it is determined that the building is safe. Personnel Roles General Manager/MOD: Determine the need for evacuation and notify staff accordingly. Gather information from staff on anything suspicious. Assign staff assistance at evacuation sites. Secure the scene. Meet the police upon their arrival. Inform staff and guests not to use any cell phones within 600 feet of the building. Front Desk Staff: Call police as directed. Staff the telephones until a decision is made to evacuate. Give the police the checklist filled out by the person who received the call. Secure cash drawers and cabinets and take radio, walkie-talkie, and megaphone to safe area. Field Marshals Evacuate gym area out of nearest fire exit and direct outside of the building. Take all unattended children and keep accounted until parents arrive. Kitchen Staff Evacuate the lounge and kitchen patrons outside of the building. Youth Services Evacuate Youth-Club and multi-purpose room patrons outside of the building. Take sign in/out clipboard with you and keep all children accounted for until the parent assumes responsibility. Group Fitness/Cycling Evacuate group fitness/cycling studio and escort patrons outside of the building. Fitness Center Staff Evacuate fitness center and direct patrons outside of the building. 43 Facility Staff Check and evacuate the main restrooms/locker rooms. Police, Fire, EMS 911 Facility Lockdown Signal: Upon receiving a threat or direction from police, Front Desk Staff will be responsible for verbally notifying the General Manager/MOD. The GM/MOD will start the process of locking the building down. Steps of Action: • Consider and treat all threats as real. • Immediately notify someone to call 911. • Lock all exterior doors so that no one is able to enter the building • Bring all patrons to the inner most part of the facility • Advise patrons not to leave the building • Staff and guests will receive permission to leave the building from the safety officials when it is determined that the surrounding area is safe. Personnel Roles General Manager/MOD: Determine the need for lockdown and notify staff accordingly. Gather information from staff on anything suspicious. Assign staff assistance. Secure the scene. Front Desk Staff. Call police as directed. Staff the telephones at an interior location. Field Marshals Evacuate gym area to an interior location. Take all unattended children and keep accounted until parents arrive. Kitchen Staff Evacuate the lounge and kitchen to an interior location. Youth Services Evacuate Youth-Club and multi-purpose room to an interior location. Take sign in/out clipboard with you and keep all children accounted for until the parent assumes responsibility. Group Fitness/Cycling Evacuate group fitness/cycling studio and escort patrons to an interior location. Fitness Center Staff Evacuate fitness center and direct patrons to an interior location. Facility Staff Check the main restrooms/ locker rooms. Police, Fire, EMS 911 44 Death of a Staff Member/Guest In the event of a death of a staff member or guest, the General Manager/MOD shall notify the appropriate personnel. Steps of Action: • In the event of a sudden death of an individual in the building, the General Manager/MOD should be notified immediately. • The area immediately surrounding the individual must be secured and closed off, making sure that nothing is touched,moved, or removed until authorities have arrived. • If in an activity area, other guests should be directed to another area. • If in a hallway, lobby, commons area, or outside the building, the area immediately surrounding should be blocked off, and the public directed elsewhere. • The General Manager/MOD should make contact with emergency personnel and maintain a line of communication with them. • The General Manager/MOD/designee will contact the staff or guest's emergency contact. • Other staff should be contacted to assist with directions of onlookers and emergency personnel. Staff can also assist with any individuals affected by the situation. • All media contacts should be referred to the General Manager/MOD. See Media Information section for details. Police, Fire, EMS 911 45 Bomb Threat Report Form Virginia Beach Sports Center Caller Identification Data: Number at which call was received: Staff Receiving: Date Call Received: Time Call Received: Time Caller Hung Up: Exact Words of Caller: I uestions to Ask: Description of Caller's Voice:Tone of Voice When is the bomb set to explode? Precissly where is the bomb location? What kind of bomb is it? What does it look like? Where did you place the bomb? — — Did the caller have an accent?i Other Voice Characteristics? Were there any background noises? Signature: 46 Phone List TBD 47 Fire Drill/Training Record Date Time Type Notes Signature 48 Virginia Beach Sports Center Five Year Income and Expense Year 1 Year 2 Year 3 Year 4 Year 5 Income Leagues $353,070 $487,160 $617,240 $635,757 $654,830 Youth Programming $556A20 $737,770 $918,530 $946,086 $974,468 Rentals _ $207,680 $282,640 $356,480 $367,174 $378,190 Tournaments $1,422,083 $1,809,924 $2,068,484 $2,130,539 $2.194,455_ Concessions $1,496,802 $1,926,450 $2,243,986 $2,311,305 $2,380,644 Sponsorship $120,000 $144,000 $168,000 $173,040 $178,231 Total Income $4,156,055 $5,387,944 $6,372,720 $6,563,901 $6,760,818 Cost of Goods Sold $750,162 $978,789 $1,167,101 $1,196,279 $1,226,186 Gross Profit $3,405,892 $4,409,154 $5,205,619 $5,367,623 $5,534,633 Expenses _ Administrative $202,324 $262,294 $310,235 $316,439 $322,768 Facility $190,675 $247,193 $292,374 $298,221 $304,186 Insurance $93,716 $121,494 $143,700 $146,574 $149,505 Marketing $83,121 $107,759 $127,454 $130,003 $132,604 Salaries and Wages $1,656,823 $1,931,222 $2,141,957 $2,163,376 $2,185,010 Utilities $475,950 $490,229 $504,935 $515,034 $525.335 Taxes $130,570 $159,451 $183,472 $187,141 $190,884 Management $609,363 $683,277 $742,363 $757,210 $772,355 Equipment Expense $382,360 $382,360 $382,360 $382,360 $382,360 Total Expenses $3,824,903 $4,385,278 $4,828,850 $4,896,360 $4,965,006 Net Income -$419,010 $23,876 S376,769 $471,263 $569,626 ESM FFE Budget Details FFE $3,480,185 Lounge Furniture $412,500 Office and Room Furniture $322,500 Kitchen Equipment $992,995 Buses(Three) $194,700 Food Truck $59,990 Benches and Seating $66,550 Goals $312,551 Portable Flooring $645,000 Taxes $112,484 Track Equipment $211,639 Janitorial Equipment(Allowance) $40,000 Forklift,Jacks,and Carts $47,987 Track Surface Scrubber(Tennant M20) $42,000 Grounds Equipment $19,289 IT/AV/WIFI $768.263 ESM Network+Cabling+Phones+Wifi $343,319 AV $263,487 Sound System $42,673 Meeting Rooms AV/IT $118,784 Total ESM Investment $4,248,448 EXHIBIT D MAINTENANCE PLANS [TBD AFTER DESIGN OF FACILITY] EXHIBIT E QUARTERLY REPORTS Parking Lots Date Checked Within Tolerance Issues Actions Taken/Date over head lighting in working order Spaces clearly marked including Handicap spaces Sidewalks in good and safe condition ADA sidewalk ramps in sae condition Landscaping up kept Trash recepticles in good condition Signage in good condition Shuttle Stops clean and good condition Pressure washing needed Outside Patio Area Date Checked Within Tolerance Issues Actions Taken/Date over head lighting in working order Sidewalks in good and safe condition ADA sidewalk ramps in sae condition Landscaping up kept Trash recepticles in good condition Patio pavers in good condition Entertainment Stage in good condition Lake fountain working properly lake free of debris and trash Bus drop off lane clearly marked seating in good condition Pressure washing needed exterior ticket booth in good condition Building Exterior Date Checked Within Tolerance Issues Actions Taken/Date facade clean lighting in working order signage clean and in good apperance Window clean windows sealed properly pressure washing needed First Floor Pre-Function/Dinning Date Checked Within Tolerance Issues Actions Taken/Date Bathrooms clean Bathroom parts in working order Vendor spaces clean Lighting in working order area clean of debris and stains Elevators in working order Fire Exits and stairwells clear Electrical outlets in working order and safe TV's/Technology Components working properly Trash Recepticles in good condition Mechanical/Electrical/IT rooms clean Info Desk clean Signage in good apperance Café area clean and in good apperance chairs and tables clean chairs and tables in good condition trash recepticles in good condition Mezzanine Level Date Checked WithinV/Nerance Issues Actions Taken/Date Bathrooms clean Bathroom parts in working order Lighting in working order area clean of debris and stains Elevators in working order Fire Exits and stairwells clear Electrical outlets in working order and safe TV's/Technology Components working properly Trash Recepticles in good condition Signage in good apperance Café area clean and in good apperance chairs and tables clean DISCLOSURE STATEMENT FORM The completion and submission of this form is required for all applications wherein such applicant may utilize certain service providers or financial institutions, and the City seeks to know of the existence of such relationships in advance of any vote upon such application. SECTION 1 / APPLICANT DISCLOSURE Organization name: Eastern Sports Management, LLC SECTION 2. SERVICES DISCLOSURE Are any of the following services being provided in connection with the applicant? If the answer to any item is YES, please identify the firm or individual providing the service: YES NO SERVICE PROVIDER (use additional sheets if needed) u Accounting and/or preparer of PB Mares your tax return Financial Services (include Union Bank, Community Bank 0 El lending/banking institutions and of the Chesapeake, SONA Bank current mortgage holders as applicable) Hirschler Fleischer a Legal Services Broker/Contractor/Engineer/Other Service Providers CERTIFICATION: I certify that all of the information contained in this Disclosure Statement Form is complete, true, and accurate. I understand I am responsible for updating the information provided herein if it changes prior to the Council action upon this Application. John Wack 11/20/2018 APPLICANT'S SIGNATURE PRINT NAME DATE K. APPOINTMENTS BEACHES AND WATERWAYS ADVISORY COMMISSION BOARD OF BUILDING CODE APPEALS -ELECTRICAL DIVISION -NEW CONSTRUCTION DIVISION -PLUMBING AND MECHANICAL DIVISION COMMUNITY SERVICES BOARD DEFERRED COMPENSATION BOARD HISTORICAL REVIEW BOARD HUMAN RIGHTS COMMISSION INVESTIGATION REVIEW PANEL MINORITY BUSINESS COUNCIL PERSONNEL BOARD PLANNING COMMISSION RESORT ADVISORY COMMISSION STORMWATER APPEALS BOARD TRANSITION AREA/INTERFACILITY TRAFFIC AREA CITIZENS ADVISORY COMMITTEE VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION L. UNFINISHED BUSINESS M. NEW BUSINESS N. ADJOURNMENT *********************** PUBLIC COMMENT Non-Agenda Items Each Speaker will be allowed 3 minutes and each subject is limited to 3 Speakers ********************************** ******************************** If you are physically disabled or visually impaired and need assistance at this meeting, Please call the CITY CLERK'S OFFICE at 385-4303 *************************** CITY OF VIRGINIA BEACH SUMMARY OF COUNCIL.4CTIOAS DATE: 11/20/18 PAGE: I D A AGENDA V ITEM# SUBJECT MOTION VOTE A E H W W B N E J U I 0 B P DNOK MH L W0 O O Y TN AOR S 0 T T R E E I_ N S I 0 0 E TT R Y S ESN NDN CITY COUNCIL'S BRIEFING A. FIVE-YEAR FINANCIAL FORECAST Greg Grootendorst, Chief Economist- HRPDC David Bradley, Director-Budget and Management Services Farrell Hanzaker, Chief Financial Officer-Schools 11. CITY MANAGER'S BRIEFINGS A. VB Bio Update RESCHEDULED Ronald H.Williams, Jr., Deputy City Manager Steve Harrison, Business Development and Research Manager David Couch, Business Development Strategy Coordinator- Economic Development 111 IV VCERTIFICATION CERTIFIED 10-0 Y A Y YYY YY Y Y Y VI F,G MINUTES APPROVED 7-0 Y A Y Y Y A Y A Y Y A November 13,2018 B B B S S S T T T A A A I I 1 N N N E E E D D D H BID OPENING HA NON-EXCLUSIVE FRANCHISE FOR THE USE OF CITY RIGHTS-OF-WAY Constructing, installing, and maintaining network services for telecommunications PUBLIC HEARING 1.1 NON-EXCLUSIVE FRANCHISE USE NO SPEAKERS Globalinx Data Center,LLC CITY OF VIRGINIA BEACH SUMMARY OF COUNCIL ACTIONS DATE: 11/20/18 PAGE: 2 D A AGENDA V ITEM# SUBJECT MOTION VOTE A E H W W B N E J U I 0 B P DN OK MH L W0 O O Y L N AOR S 0 T TR EEENSI O O E TT R Y S ESN NDN 1.2. LEASE OF CITY PROPERTY NO SPEAKERS a. 3180 New Bridge Road b. 2865 Indian River Road c. 2325 Salem Road J. J.1. Resolution to MOVE/RESCHEDULE the ADOPTED,BY 10-0 Y A Y Y Y Y Y Y Y Y Y January 1,2019 Regular meeting of the City CONSENT Council to January 8,2019 with the time and location to remain the same J.2. Ordinances to AMEND City Code Sections: a. 21-353 / 21-354 re Cavalier Shores DEFERRED TO 10-0 Y A Y Y Y Y YY Y Y Y Neighborhood Residential Permit FEBRUARY 5,2019, Parking (Deferred from November 7, BY CONSENT 2017)- Requesting to Deferred to February 5,2019 b. 23-48/23-50 re open storage of rusted, DEFERRED 10-0 Y A Y Y Y Y YY Y Y Y junked machinery,equipment,grass and INDEFINITELY,BY weeds on parcels of land zoned for or in CONSENT active farming operation J.3. Ordinance to AUTHORIZE the City ADOPTED 10-0 Y A Y Y Y Y YY Y Y Y Manager to EXECUTE an Amendment to the Non-Binding MOU between the City and the African American Cultural Center,Inc. J.4. Ordinances to AUTHORIZE the City Manager to EXECUTE a Lease of City- Owned property for up to five(5)years: a. Dawley Family Farms,LLC at 2865 Indian ADOPTED,BY 10-0 Y A Y Y Y Y YY Y Y Y River Road CONSENT b. Scott Moms Farms, LI.0 at 3180 New ADOPTED,BY 10-0 Y A Y Y Y Y YY Y Y Y Bridge Road CONSENT c. Dawley Family Farms,LLC at 2325 Salem ADOPTED,BY 10-0 Y A Y Y Y Y YY Y Y Y Road CONSENT J.5. Ordinance to GRANT a Non-Exclusive ADOPTED,BY 10-0 Y A Y Y Y Y YY Y Y Y Franchise to Globalinx Data Center,LLC CONSENT re install, maintain and operate telecommunications facilities within the public streets/ rights-of-way J.6. Ordinance to AUTHORIZE temporary ADOPTED,BY 10-0 Y A Y Y Y Y YY Y Y Y encroachments into a portion of City CONSENT Property known as Sand Broad Inlet at 2821 Wood Duck Drive re construct and maintain an open pile pier and boat lift CITY OF VIRGINIA BEACH SUMMARY OF COUNCIL ACTIONS DATE: 11/20/18 PAGE: 3 D A AGENDA V ITEM# SUBJECT MOTION VOTE A E H W W B N E J U I 0 B P DN 0 K MH L WO O 0 Y L N AOR S 0 T TR EEENSI 0 0 E TT R Y S ESN NDN J.7. Ordinances to ACCEPT and APPROPRIATE: a. $15,570 to Emergency Medical Services ADOPTED,BY 10-0 Y A Y Y Y Y YY Y Y Y (EMS)re purchase additional equipment CONSENT /medical supplies b. $1-Million from the FEMA to the FY2018- ADOPTED 10-0 Y A Y Y Y Y YY Y Y Y 19 Fire Department Operating Budget re mobilization of the Virginia Task Force 2 Urban Search and Rescue Team for Hurricanes Florence/Michael J.8. Ordinances to APPROPRIATE: a. $3.5-Million in General Fund Balance and ADOPTED,BY 10-0 Y A Y Y Y Y Y Y Y Y Y TRANSFER$900,000 from Upton Drive CONSENT Extended / Dam Neck Station Improvements to Beach Replenishment II b. $150,000 from the Sheriff Office Commissary Account to the FY-2018-19 ADOPTED,BY 10-0 Y A Y Y Y Y Y Y Y Y Y Operating Budget re replacement of the CONSENT CareMart Warehouse Management System c. $25,000 donation from the Dowley Family ADOPTED,BY 10-0 Y A Y Y Y Y YY Y Y Y Foundation as a contribution to the CONSENT refurbishment of the 7'"Street Stage/to AUTHORIZE a plaque upon the stage honoring Pharrell and Helen Williams K. K.1. 1625 GENERAL BOOTH BLVD,LLC/ APPROVED/ 10-0 Y A Y Y Y Y YY Y Y Y SUNTRUST BANK for a CUP re car CONDITIONED,BY wash facility at 1625 General Booth CONSENT Boulevard DISTRICT 7 — PRINCESS ANNE K.2. ROY E.&IVY C.CASKEY for a CUP APPROVED/ 10-0 Y A Y Y Y Y YY Y Y Y re residential kennel at 133 South Kellam CONDITIONED,AS Road DISTRICT 4—BAYSIDE REVISED,BY CONSENT K.3. BMVS,LLC for a CUP re bulk storage DEFERRED TO 10-0 Y A Y Y Y Y YY Y Y Y yard at 2572 Horse Pasture Road DECEMBER 1 I,2018, DISTRICT 3—ROSE HALL BY CONSENT K.4. SECTORSITE, LLC/ DRD, LLC for a APPROVED/ 10-0 Y A Y Y Y Y YY Y Y Y CUP re communication tower at 3386 CONDITIONED,BY Holland Road DISTRICT 3—ROSE HALL CONSENT K.5. LARAE TUCKER/ROAN,LLC for a APPROVED/ 10-0 Y A Y Y Y Y YY Y Y Y CUP re automobile service station a CONDITIONED,BY portion of 1093 Laskin Road DISTRICT 6— CONSENT BEACH CITY OF VIRGINIA BEACH SUMMARY OF COUNCIL ACTIONS DATE: 11/20/18 PAGE: 4 D A AGENDA V ITEM# SUBJECT MOTION VOTE A E B N E J U I 0 B P DNOK MH L W O O O Y LN AOR S 0 T TR EEENSI 0 0 E TT R Y S _ E S N NDN K.6 Ordinances to AMEND the CZO: a. Section 111 re definition of dwelling, APPROVED,BY 10-0 Y A Y Y Y Y YY Y Y Y attached/townhouses CONSENT b. Section 402(A) re single-family APPROVED,BY 10-0 Y A Y Y Y Y YY Y Y Y dimensional requirements CONSENT ITEMS RECONSIDERED FROM OCTOBER 16,2018 CITY COUNCIL MEETING K.1. CRESPO ENTERPRISES, INC. d/b/a APPROVED,AS 10-0 Y A Y Y Y Y YY Y Y Y ROADRUNNER TOWING & AC AMENDED/ ENTERPRISES, INC.d/b/a LOGAN'S CONDITIONED,BY TOWING/ 5312 VIRGINIA BEACH CONSENT BOULEVARD,LLC for a CUP re bulk storage yard at 5312 Virginia Beach Boulevard DISTRICT 2—KEMPSVILLE K.2. GRIER HAHN ENTERPRISES, INC.! APPROVED/ 10-0 Y A Y Y Y Y YY Y Y Y POOLE'S DOCKSIDE, LLC for a MODIFIED,BY Modification of Conditions re commercial CONSENT marina at 3311 Shore Drive (Approved April 22, 1974) DISTRICT 5 — LYNNHAVEN K.3. NOFISAT TAYO& BOLUDE JONES APPROVED/ 10-0 Y A Y Y Y Y YY Y Y Y KOMOLAFE for a CUP re family day- CONDITIONED,BY care home at 1961 Arlington Arch Drive CONSENT DISTRICT 1— CENTERVILLE K.4. MARY BOZARD/ THOMAS LEE APPROVED/ 10-0 Y A Y Y Y Y YY Y Y Y BOZARD for a CUP re residential kennel CONDITIONED,BY at 2880 Indian River Road DISTRICT 7— CONSENT PRINCESS ANNE K.5. MAVIS BAHADOSINGH & APPROVED/ 10-0 Y A Y Y Y Y YY Y Y Y NICHOLAS GRADY fora CUP re family CONDITIONED,BY day-care home at 1605 Cliffwood Drive CONSENT DISTRICT 3—ROSE HALL K.6. THE EDGE SPORTS, LLC/ APPROVED/ 10-0 Y A Y YYY YY Y Y Y FAIRFIELD TIC,LLC;BCP TIC,LLC; CONDITIONED,BY DMF TIC,LLC; GCK TIC,LLC for a CONSENT CUP re indoor recreational facility at 5258-A Fairfield Shopping Center DISTRICT 2—KEMPSVILLE K.7. PRINCESS ANNE MEADOWS, LLC/ APPROVED/ 10-0 Y A Y Y Y Y YY Y Y Y WILLIAM&JAMES SNOWDEN for a MODIFIED,AS Conditional Change of Zoning from AG-1 PROFFERED,BY Agricultural to Conditional R-10 Residential CONSENT and Modification of Proffers at the 2800- 2900 Block of Princess Anne Road(Dated September 22, 2015) DISTRICT 7 — PRINCESS ANNE CITY OF VIRGINIA BEACH SUMMARY OF COUNCIL ACTIONS DATE: 11/20/18 PAGE: 5 D A AGENDA V ITEM# SUBJECT MOTION VOTE A E H W W B N E 1 U I 0 B P DN 0 K MH L W0 O O Y L N A OR S 0 T TR E E EN SI O O E TT R Y S E S N N D N K.8. ANDERSON'S VIRGINIA BEACH, APPROVED/ 10-0 Y A YYYY YY Y Y Y LLC/AGI-VB HOLDINGS, LLC for a CONDITIONED,BY CUP re outdoor recreational facility at CONSENT 1925 Fisher Arch DISTRICT 7 — PRINCESS ANNE K.9. JASMEEN GOULD/ CRUZ LIVING APPROVED/ 10-0 Y A YYYY YY Y Y Y TRUST for a CUP re family day-care CONDITIONED,BY home at 4440 Pissarro Drive DISTRICT 3— CONSENT ROSE HALL K.10. KYLE W. & BAILEY B. FETT for a APPROVED/ 10-0 Y A YYYY YY V Y Y Variance to Section 4.4(b) of the CONDITIONED,BY Subdivision Regulations re lot width at 633 CONSENT Princess Anne Road DISTRICT 7 — PRINCESS ANNE K.11. Ordinance to ADOPT/INCORPORATE ADOPTED,BY 10-0 Y A Y Y Y Y YY Y Y Y into the Virginia Beach Comprehensive CONSENT Plan the Burton Station Strategic Growth Area Master Plan 2018 which will supersede the Burton Station Strategic Growth Area Master Plan 2009 and AMEND the Executive Summary,Sections 1.2 (Urban Areas), and Chapter 3 (Plan Implementation and Agenda for Future Action) of the Comprehensive Plan 2016 pertaining to the Burton Station Strategic j Growth Area Plan ITEMS DEFERRED FROM NOVEMBER 13, 2018 CITY COUNCIL MEETING K.I. KIRBOR,LLC for a Variance to Section APPROVED/ 10-0 V A Y Y Y Y Y Y Y Y Y 4.4(b)of the Subdivision Regulations re lot CONDITIONED,AS width at 3716 West Neck Road DISTRICT REVISED,BY 7—PRINCESS ANNE CONSENT K.2. DAM NECK STORAGE PARTNERS, DEFERRED TO 10-0 Y A YYVVVY Y V Y LLC for a Modification of Proffers to a DECEMBER 11,2018, Conditional Change of Zoning from R-20 BY CONSENT Residential to I-1 Industrial and a Modification of Conditions re storage container size at the southeast corner of Harpers Road and Dam Neck Road DISTRICT 7—PRINCESS ANNE APPOINTMENTS: RESCHEDULED BYCONS ENS US BEACHES AND WATERWAYS ADVISORY COMMISSION BOARD OF BUILDING CODE APPEALS —ELECTRICAL DIVISION —NEW CONSTRUCTION DIVISION —PLUMBING AND MECHANICAL DIVISION COMMUNITY SERVICES BOARD DEFERRED COMPENSATION BOARD HISTORICAL REVIEW BOARD HUMAN RIGHTS COMMISSION INVESTIGATION REVIEW PANEL PERSONNEL BOARD PLANNING COMMISSION CITY OF VIRGINIA BEACH SUMMARY OF COUNCIL ACTIONS DATE: 11/20/18 PAGE: 6 D A AGENDA V ITEM# SUBJECT MOTION VOTE A E H W W B N E J U 1 0 B P DN 0 K MH L WO O O Y LN AOR S 0 T TR EEENSI 0 0 E TT R Y S E SN NDN RESORT ADVISORY COMMISSION STORMWATER APPEALS BOARD TRANSITION AREA/INTERFACILITY TRAFFIC AREA CITIZENS ADVISORY BOARD VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION BEACHES AND WATERWAYS Appointed: 10-0 Y A Y Y Y Y YY Y Y Y ADVISORY COMMISSION Chris Hamilton 3 Year Term 11/20/2018-10/31/2021 BOARD OF BUILDING CODE Reappointed: APPEALS -ELECTRICAL DIVISION Scott Cole 10-0 Y A Y Y Y Y YY Y Y Y Steven Koziol Michael Swindell 2 Year Term 1/1/2019-12/31/2020 -NEW CONSTRUCTION DIVISION Armond Reich 10-0 Y A Y Y Y Y YY Y Y Y Chris Ettel Richard Hudson Rick Savino 2 Year Term 1/1/2019-12/31/2020 -PLUMBING AND MECHANICAL Griffith Brinkley 10-0 Y A Y Y Y Y YY Y Y Y DIVISION Richard Corner Michael Lathrop Peter Striffler 2 Year Term 1/1/2019-12/31/2020 BOARD OF ZONING APPEALS Appointed: 10-0 Y A Y Y Y Y YY Y Y Y Robert Thorton 5 Year Term 1/1/2019-12/31/2023 CHESAPEAKE BAY PERSERVATION Reappointed: 10-0 Y A Y Y Y Y YY Y Y Y AREA BOARD Wayne Mccoy 3 Year Term 1/1/2019-12/31/2021 Appointed: Al Wallace 3 Year Term 1/1/2019-12/31/2021 COMMUNITY SERVICES BOARD Reappointed: 10-0 Y A Y Y Y Y YY Y Y Y Carrollyn Cox Geraldine Hunt 3 Year Term 1/1/2019-12/31/2021 HAMPTON ROADS ECONOMIC Appointed: 10-0 Y A Y Y Y Y YY Y Y Y DEVELOPMENT ALLIANCE David L.Hansen,City Manager-Alternate No Term CITY OF VIRGINIA BEACH SUMMARY OF COUNCIL ACTIONS DATE: 11/20/18 PAGE: 7 D A AGENDA V ITEM# SUBJECT MOTION VOTE A E H W W B N E J U I 0 B P D N 0 K MH L WC/ O 0 Y L N A OR S 0 T TR EEENSI 0 0 E TT R Y S E SN NDN HISTORICAL PRESERVATION Reappointed: 8-0 Y A Y Y Y Y AY Y Ay COMMISSION William Gambrell B B James Jordan S S Katherine Paulson T T Sharon Prescott A A I I James B.(Jimmy) N N Wood E E 3 Year Term D D 1/1/2019-12/31/2021 HISTORICAL REVIEW BOARD Appointed: 10-0 Y A Y YYY YY Y Y Y Josh Canada Richard Poole 3 Year Term 11/20/2018-10/31/2021 Reappointed: Mary Schmidt Damian Seitz 3 Year Term 11/1/2018-10/31/2021 MINORITY BUSINESS COUNCIL Appointed: 10-0 Y A Y Y Y Y YY Y Y Y Damon Watson 2 Year Term 11/20/2018-10/31/2020 PLANNING COMMISSION Appointed: 10-0 Y A Y Y Y Y YY Y Y Y George Alcaraz-Beach Walter(Whitney) Graham-Lynnhaven 4 Year Term 1/1/2019-12/31/2022 Reappointed: David Redmon- Bayside Jack Wall-Rose Hall 4 Year Term 1/1/2019-12/31/2022 PUBLIC LIBRARY Reappointed: 10-0 Y A Y Y Y Y YY Y Y Y Michael Summers 4 Year Term 9/1/2018-8/31/2022 WETLANDS BOARD Appointed: 10-0 Y A Y Y Y Y YY Y Y Y Cindy White Katie Crum 5 Year Term 11/20/2018-10/31/2023 M/N/O ADJOURNMENT 6:42 PM