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Home My WebLink AboutMARCH 19, 2019 FORMAL SESSION MINUTES 61: • � �s Sada ♦yes ,��r °F OUR X-410 VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia March 19, 2019 Mayor Robert M Dyer called to order the CITY COUNCIL'S BRIEFINGS in in the City Council Conference Room, Tuesday, March 19, 2019, at 1:00 P.M Council Members Present: Jessica P.Abbott,Mayor Robert M.Dyer,Barbara M.Henley,Louis R.Jones, Shannon DS Kane,John D.Moss,Aaron R. Rouse,Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None 2 CITY MANAGER'S BRIEFINGS CENSUS 2020 COMPLETE COUNT ITEM#69018 1:00P.M. Mayor Dyer welcomed Jolilda Saunders, Administrative Services Manager—Planning and Kevin Krigsvold, Regional Census Director— United States Census Burue 2020. Ms. Saunders expressed her appreciation to City Council for their continued support and turned the presentation over to Mr. Krigsvold: Census 2020 Complete Count Committee City Council Briefing City of Virginia Beach, Virginia Kevin Krigsvold, Raquel Cepeda, Colin Louis Partnership Specialists March 19, 2019 United States- us.o.a.s.saca+..a. Bureau Census Here is the purpose of the 2020 Census: 2020 Census ✓U.S. Constitutional Mandate,Article 1, Section 2 ✓Apportion seats in the U.S. House of Representatives ✓Conduct redistricting at the federal,state,and local levels ✓Distribute over$675 billion federal dollars to state and local governments ✓Provide statistical support for grant applications ✓Help community plan for future needs United States " " '° Census March 19, 2019 3 CITY MANAGER'S BRIEFINGS CENSUS 2020 COMPLETE COUNT ITEM#69018 (Continued) Here is 2020 Census Goals—50 Ways Census Data Are Used: 2020 Census Goals- 50 Ways Census Data Are Used •DereloraIng•Intell.re maps for government end business •Decision making at all levels of government •ProvidIng proolof age relatonshIp.or residence certificates provided Py Census Bureau •Drawing federal,state,and local leg....diStriCts •Pat..,meal research •Attracting new businesses to state and local areas •Reappordcning seats In the House offiepresematives. •Distributing over$675 billmo in federal funds and even more in state funds •Planning a.researching for media as backup.news stories •forecastmg future transportabon needs for all segments of the populatan •Prodfdlng emeen.In FfigatIonInvoirIng land use.young dela.and epos,opportunity •Planning for hospitals,nursmg homes,Clin.and the location of°trier health services •Drawing school chstricthounearies. •ForecasOng hiture housing needs br all segments of the PON.. •Planning budgets for government stall levels •Directing funds br services for people in poverty •SPohng trends in the economic well.being of the nation •Planning fof publkc transparionsercces • in public sahty strategies •Planning n.itn educe...ma*P•00...eisebP,bes •Development of rural areas •Establishing fair market rents a.enfordng falr lending practices •Analyzing local trends •Directing services to children a.adults with limited English language prof-leen, •Estimating the number of people displaced by natural disasters •Planning urban la.use •Developing assistance programs br American Indians a.Alaska Ma., •PlannIng outreach strategies •Creating maps to spL-ea emergency services to households ii 0 of assistance •Understanding labor supPY •Delivering goods and services to local mariets •Assessingthe potential,.spread of communicable diseases •Designmg facilMes for people with cbsabilities,the chiefly,or children •Planrung future government seroces. •Understandinsconsurner needs •Planning mvespnents and evaluaong financtal risk •Planck.for congregations •Publishing economic and statistical reports about the United States and its people. •Ice...factory sites ard distrIbunon centers •f acrid:Ring scientrfic research •DIsolhutIngcatalossand developIngelrect mall pieces •Setting a standard for crest,borh ou5lican0 nrIvate secior surveys ,valua,M6Pmgrarns differentgeogyaphicareas United States U.P•Pennnt Cr.... • evniogi.reus Census --- Buren flaw •Oedelaqing adult...on programs The 2020 Census will incorporate online strategies to collect data and only use traditional mail and door-to-door approaches when necessary: The 2020 Census A New Design for the 2111 Century The 2020 Census•A New Design for the 21'Century Motivate People to Respond M.P.G.• Count the Population A 4.1.111**••••• FOLLOW., RE SPA,. coneren non eeseetne,money sad..and eew mcisa lip ,newer iQ.,esaono ,Bef vTari...00/01 n‘a•age peep.m use Vie porno. Week well ace, to iiiSpre parti,P.P. MEW, REVaCenE *as.*most,ceene,ave seat,ic on.n, Establish Where to Count • ,• I 41; needing, ...f.rr am mann nen CPI 0.1.OFFICE °M114' #.1.;" R0140a$0 COWS ROSY tti nt6 " --.AMINOW Alma 01'iC01100.100 T:=1,7ar 0 :0 100,11.4. !iv pabloc ge Mons grotlenelt _ . NolknIte held then..ova 101,.../KldreSschange. UM W.peemon..poll United State Census March 19, 2019 _ _ _ • • _ _ • _ 4 CITY MANAGER'S BRIEFINGS CENSUS 2020 COMPLETE COUNT ITEM#69018 (Continued) This is an example of Response Outreach Area Mapper(ROAM) that displays the different levels of response areas in the City. Historically, the light areas have a good response while the dark areas have a low response: 1,11 United States VS-aeeerm.m at Commerce Census MOISMIDIF --- ewe_ The next two slides provide examples of randomly selected areas and the predicted percentage of the group who will not complete the census: Census hast 448.05 Virginia Beech drys Virginia Low Response Scan(%):31.8 2012.2016 ACS 5-year estimates Total Population:3,430 Median Household Income(S):46,167 Population Under 5(%):7.38 Population 18-24 1%):28.54 Population 65 and Over(Si:2.10 Below Poverty Level(%):920 Not High School Graduate(%):6.88 Non-Hispanic,Black(%):24.34 Non-Hispanic,White(%):54.96 Hispanic(5):13.12 American Indian or Alaska Native(%):2.16 Asian(%):2.19 Native Hawaiian or Other Pacific Islander(5):0.00 Some Other Race(%):0.17 Foreign Born(5):4.40 No One in Household Aga 14+Speaks English'Very Well'(5):0.00 Population 5+Who Speak English Less Than'Very Well'and Speak Spanish(%):1.51 Population 5+Who Speak English Less Than'Very Well'end Speak Russian(%):0.00 Population 5+Who Speak English Less Than'Very Well'end Speak Chinese(%):0.41 Population 5+Who Speak English Less Than'Very Well.and Speak Korean(%):0.00 Population 5+Who Speak English Less Than'Very Wall'and Speak Vietnamese 1%):000 Population 5+Who Speak English Less Than'Very Well'and Speak Tegslog(%):0.00 Population 5+Who Speak English Less Than'Very Well'and Speak Arabic 1%):0.00 Total Housing Units:1.697 Total Occupied Housing Units:1.508 Renter Occupied Housing Units(%):98.21 Family Occupied Housing Units with Related Children Under 6(5):2422 Population 1+Who Moved From Another Residence Within the Last Year(%):42.93 United States u.e,neeermnm of Commerce Vacant Housing Units l%):11.14 Censusfpsgnee.eaw.iessiva "ee. Multi-Unit(10+)Housing(5):3347 March 19, 2019 5 CITY MANAGER'S BRIEFINGS CENSUS 2020 COMPLETE COUNT ITEM#69018 (Continued) Census Tract 442 Virginia Bead,dy,Virgkda Low Responee Score 1%):27.9 2012-2016 ACS 5-year estimates Total Population:7311 Median Household Income(SI:47,202 Population Under 5(%)-951 Population 18-24(%):10.63 Population 65 and Over(%):6.30 Below Poverty Leval(%):23.03 Not High School Graduate(%):12.93 Non.Hispa nic.Black(%):26.19 Non-Hispanic,White(%):5229 Hispanic(%):8.63 American Indian or Alaska Native(%).037 Asian(%):252 Native Hawaiian or Other Pacific Islander(%):0.00 Some Other Race(%):0.00 Foreign Born(%I:524 No One in Household Age 14+Speaks English'Very Well'(%):2.19 Population 5+Who Speak English Lass Than'Very Well'and Speak Spanish(%):138 Population S+Who Speak English Less Than'Very Well'end Speak Russian(%):0.00 Population 50 Who Speak English Less Than'Very Well'and Speak Chinese 1%):0.00 Population So Who Speak English Less Than'Very Well'and Speak Konen 1%):0.00 Population S+Who Speak English Less Than'Very Well'and Speak Vietnamese(%):0.00 Population 50 Who Speak English Less Than'Wry Well'and Speak Tagalog(%):0.00 Population 5+Who Speak English Less Than'Very Well'and Speak Arabic(%):088 Total Housing Units:3,076 Total Occupied Housing Units:2.883 Renter Occupied Housing Units(%):64.10 Family Occupied Housing Units with Related Children Under 6(%I:3419 Population 1 t Who Moved From Another Residence Within the Last Year(%).2330 Vacant Housing Unita(%):6.23 Multi-Unit(10+)Housing(%):11.83 United States- Census taten us.o.n��acps.ro Census .AUMW.NA..�.,dw — Census respondents have strict confidentiality and privacy protection laws in place to protect their identity and is not shared with anyone including the police, ICE, FBI, CSI, Housing Authority, etc: Confidentiality & Privacy • It is important that individuals know their responses to the census have legal protections. The law requires the Census Bureau to keep private citizens' information confidential and use their responses only to produce statistics. The Census Bureau cannot publicly release an individual's responses in any way that could identify them,their business,organization,or institution. • All information collected by the Census Bureau under the authority of Sec. 9,Title 13 of the U.S. Code(13 U.S.C. 9) is strictly confidential.The same law that requires individuals to respond to the census also guarantees the confidentiality of respondents. United States- 0epw%nar0ef Ce^wA. Census .me. and 1M000'6116N.e.10. US.MOUS WWI March 19, 2019 6 CITY MANAGER'S BRIEFINGS CENSUS 2020 COMPLETE COUNT ITEM#69018 (Continued) Confidentiality & Privacy (Continued) • By law the Census Bureau cannot share individual responses with anyone.That includes the Federal Bureau of Investigation,the Central Intelligence Agency,the Internal Revenue Service,state or federal welfare departments,or governments and programs. • Census workers must pass a security check.They are sworn to uphold a pledge of confidentiality.The penalty for violating the confidentiality of responses is up to a$250,000 fine and up to a 5- year prison term. • No court of law can have access to individual census responses. Not even the President of the United States can get access to this information. United Statess- uc c.•...+a�em.nwc. Censu : To assist in collecting data, the Census Bureau is requesting the establishment of a CCC: Complete Count Committee (CCC' •The Census Bureau has asked governments/organizations to set up a CCC if feasible. Establishing a CCC which represents a broad range of community interests, will play a major role in conducting census outreach and promotion activities for its community and it's members. United States us Demeeme et C,s w. Census11./INNIMOIAKAU e March 19, 2019 7 CITY MANAGER'S BRIEFINGS CENSUS 2020 COMPLETE COUNT ITEM#69018 (Continued) Why Form A Complete Count Committee? • Increase the response rate for residents returning their questionnaire through a focused,neighbor-to neighbor program. • Utilize the local knowledge,expertise,and influence of each Complete Count Committee member to design and implement a census awareness campaign targeted to the community. • Bring together a cross section of community members whose focus is 2020 Census awareness. Census United States '•b.•Erbn.K of comnno. s Here is a sample of the Committee's composition: Sample Complete Count Committee tiUGOL I h;t%I,I ., ~tor Molotov CCC MEMBERSHIP Hoods of Public (Oak) Meads•E•EI•s••Public sdad•YNam d•�••••taE••d•E aM OapsninM4 Moods of od.of MMdamm� IbCo t �rNnlr+tloM Candi Mambwsfimn Priority Tareat Maar Hoods of Lame 0.epraaanratl.+ 11 universal./ CvWn *Po'Mar aMp Specialist Is advisor and ' EtoMIw mol Census liaison M Munktpal CCCs �•�•r op..., Kokos.Aree4lie�s j em United States- ~. Census United States f-•�•6"- =' Bureau Census Buten aMa.,ae March 19, 2019 8 CITY MANAGER'S BRIEFINGS CENSUS 2020 COMPLETE COUNT ITEM#69018 (Continued) Here are some of the CCC Subcommittee Types: CCC SUBCOMMITTEE TYPES •Innena O.e..md.l .to noN.ea.noun.S Winn I..M.�,d Innen sena ovens• able end bofen Op Men.rethe,No. *USINE SS wenn et . dot tones MIANNUOER r.nown.M from Me MOWRY WOW SS...r..aa. In... nen hone/Int wenn to [.Moly and Ned so ton. Pend tee non for •�. apnoeas we •Re.eiwyd..aMs.l COMMUNXATIONS. •g•.'ANA .,ononshone An nano tend MverY[e.nin,nnnYOW *noon Mt nano(the the o-50.cowman MEDIA ANP loan ninon.. Ceram wont.Mennen end lECtUItINGomen CaMte one no=beet TECHNOLOGY wenn firer to PM.rn. °nanoomnoenn,s o•• ..a_—r_a.m nor n•wNr .Aln....••10, •Care....10•WasatM. •on Lennon nMt-DMyMI Ion Mod tenni COMMUHtri '''.."2" 0OVt US/6Vf ••��•to o.e.M. SEMIOiI QEEEEN Mod tenni reASM ORGANUATIONS e•aeerO..M.Wr.Mdd ...Ape N Ont denneen In•e ae.Nl...nt 4.5r.Rrpne.•M MIOeOpd o.Y.nmeren an neon end S.Wa.nds o.r..pr or r.caw..•0 G.••.{.[for NW. • IMdw6r.stanne when 0s • Inn.One Weed Kann •The Mdn nen 0 .•edon one,nen mete bonne. mer pew tort.... ..•N•dpddte rpt DATA AND MAPS rep subenoneln amen. ono..rbn Innen SPECIAL HOUSING US•ea4aon by 2020 t•ord Ow tW .o0. 4.0.610110.90.,bornr.OS Notary M O . No ewe. NotaOQ•dn. to 10 40 wawa..ca.[ Wm.wan..R54 k M •M 0s 0010050.nNY neon. warm motEOUCATIO.• •P.O.U.S.wo.deeldn Y,.<weew 20y)23 Nor • On.22.rte venom Monti wenn end NOM {MESWOO[ 0.105 te.enoon d ken, NOM 55 e.nownmwMw shelters. VITERMES Nen nee Vend Mon tonne name GRADE 521 n..[,.epr,d.r. 000oo,01400....•WI Wenn end n.ro0•.food non 0wot./,o[Me 50 own •Sat own*nen nowt •O.of the noon endow. ern...My EWUTWN Masi -Dena.dwi®ra0•e Nor•Owns ener.roe at on•...Id.4•drsno rod SECONO4RTt ednotesneon off-cern..Modena 060waw ....n nee, Io Io perm g•Donna 0on.NoM toads Mahn United States- U3.OM._n of Comm.Census Mr. Krigsvold advised the Census Bureau will conduct the count but needs support from the City to spread awareness of the importance for citizens completing the Census: OUTREACH AND PROMOTION • The primary goal for outreach and promotion is to develop community support and increase participation in the 2020 Census and increase self-response. Implementation of outreach activities will vary from one community to another. • Each community or organization needs to consider relevant factors in the design of its census outreach and promotion initiatives United States 0A 0.9.1...,0 C...41. Census •deYN• ' Meer ONNOL M I. March 19, 2019 9 CITY MANAGER'S BRIEFINGS CENSUS 2020 COMPLETE COUNT ITEM#69018 (Continued) An Area Census Office (ACO) will open in early fall and hire approximately forty(40)people: 2020 Census Timeline Fall 2018 Recruitment begins for early census operations. Fall 2019 Recruitment begins for peak operations in 2020. August—October 2019 In-field address canvassing where needed. March—July 2020 Internet Self-Response. March—July 2020 In-person or follow-up interviews. March—September 2020 Census Questionnaire Assistance via telephone. April 1,2020 Census Day—Respondents will be able to respond via intemet,telephone or paper questionnaire. December 2020 U.S.Census Bureau delivers population counts to President for apportionment. March 2021 U.S.Census Bureau delivers redistricting data to states. ited States ua o.o.rrKacw.+r�v Census .. Philadelphia Region ACOs (Area Census Offices) Wave I:April 2019 "Fairfax,VA Wave 2:October 2019 "Alexandria,VA "Fredericksburg,VA "Virginia Beach,VA "Roanoke,VA /Richmond,VA "Towson,MD "Hagerstown,MD "Baltimore,MD "Annapolis,MD ✓District of Columbia United States- vs.o.ormrKercee+naee Census . March 19, 2019 10 CITY MANAGER'S BRIEFINGS CENSUS 2020 COMPLETE COUNT ITEM#69018 (Continued) Here is an overview of ACO Job Title&Descriptions with a salary range of$12.00- $20.00 per hour: ACO Job Title & Descriptions V Area Census Office Manager-Responsible for the general supervision and administration of the office. ✓Census Field Manager/Lead CFM-Responsible for accomplishing production and quality goals in field operations under their span of control.Conducts individual and group training sessions for their personnel as necessary. Administration Manager-Responsible for administrative functions,such as personnel,payroll and supply.Manages and monitors all office requisitioning,equipment and shipping. ✓IT Manager-Leads all office computing environment,mobile computing environment,and automation support efforts. ✓Recruiting Manager-Oversees the recruiting and testing of job applicants for field position and clerks. ✓Recruiting Assistant-Assists in recruiting and testing of job applicants. ✓Census Field Supervisor-Appoints,trains,and supervises enumerators that are engaged in data collection. ✓Office Operations Supervisor-Coordinates,supervises,and oversees the work of office clerks in specific functional areas. ✓ Enumerator-Locally hired workers who perform field enumeration activities in and around their respective neighborhoods. ✓Clerk-Office clerks perform a wide variety of clerical functions in support of field data collection,recruiting, payroll/personnel,automation technology,and quality assurance operations. United States OS.OW.4...I 0,Comm.. Census Here is 2018 ACO Pay Rates for the D.C., Maryland and Virginia area: 2018 ACO Pay Rates (pay ranges for the D.C., Maryland,Virginia area) Position Pay Rate(subject to change) I Staffing Timeline I (Peak Operations) D.C. Maryland Virginia Area Census Office Manager Sit 00-Sit co 131 CO$33 00 520 00$ia CO June 2019 Census Field Manager SM02$3200 52300,528.00 $1949.53100 lune 2019 Administration Manager 330.00 53200 $2320 528.03 510.00 532.00 June 2019 IT Manager 53000.53202 51300 528/1 $19.00.53200 June 2019 Recruiting Manager slow.53203 52320.02500 5/900.51100 June 7019 Recruiting Assistants $2s.00-518.20 $1000 524-10 #1.21-12810 August 2019 Census Field Supervisor 52s00.11100 31000.51400 5152-52800 February 2020 Office Operations Supervisor 521.03.51000 51900.$11.00 523 o0-52603 July 2019 Enumerator 52100 5235 51522 52000 5132)-323a, March 2020 Clerk Sotto•526 co 51500 Pa Sia $11.02-522.02 September 2019 March 19, 2019 11 CITY MANAGER'S BRIEFINGS CENSUS 2020 COMPLETE COUNT ITEM#69018 (Continued) Here are the links for the 2020 Census: 2020 Census Resources and Legislation www.ncsl.org http://www.ncsl.org/research/red istricting/2020-census-resources-and- Iegislation.aspx Information about the 2020 Census,including state legislation,creating complete count committees and commissions,identifying and reaching hard-to-count populations,the importance of the census,and state-level funding for census promotion,outreach and completion. United States- esc.v..bu.e ercen..r.e Censusus.mous. Questions 2020 Census? Contact us: Kevin Krigsvold—1-757-985-7976 kevin.k.krigsvold @2020census.gov Philadelphia Regional Census Center-1-844-507-2020 Recruiting Phone—1-888-480-1639(USA JOBS)and 1-855-562-2020(ACO) Email us at-Philadelphia.rcc.partnership@2020census.gov United States "°� a "� Census Bore- ::..e"""' .. March 19, 2019 12 CITY MANAGER'S BRIEFINGS CENSUS 2020 COMPLETE COUNT ITEM#69018 (Continued) Connect with Us • sign up for and managealertsivery.cat 19 facebook.com/uscensusbureau R https://public.govdelom/accounts/U S CENSUS/subscriber/new • More information on the 2020 Census ty twitter.com/uscensusbureau _4 Memorandum Series: http://www.census.gov/programs- surreys/decennial-census/2020- census/planning-management/memo- Youtube.com/user/uscensusbureau ��f__ series.Mml t us • More information on the 2020 Cercus: 2020 • http://www.census.gov/2020Census instagram.com/uscensusbureau • More information on the American 4., Community Survey: (s.aA1tr htto://www.census.gov/programs- suraeys/acs/ pinterest.com/uscensusbureau United States w 0. Csus aa . a Mayor Dyer expressed his appreciation to Ms. Saunders and Mr. Krigsvold for the presentation. March 19, 2019 13 CITY COUNCIL'S BRIEFING APPOINTMENT PROCESS—BEACH DISTRICT ITEM#69019 1:19 P.M. Mayor Dyer opened the discussion for the Appointment Process for the Beach District Council seat. There is a 3:00 P.M deadline to submit the ad to the paper in order to meet the legal advertising requirement to post the Beach District Vacancy. Council Member Moss expressed concern about the reason for the deadline. City Attorney Stiles addressed the deadline, advising earlier today he received the order from the Virginia Beach Circuit Court declaring the Beach District Council seat vacant which a copy was distributed to City Council, attached hereto and made a part of the record. City Attorney Stiles advised, by state law and the City Charter, there is a fifteen (1 5)day deadline to adopt a Resolution to file a Writ of Special Election and forty-five(45)days for City Council to appoint a new Beach District Council Member. Mr. Stiles advised the Resolution is prepared and can be added to the Agenda this evening for consideration with an affirmative vote. Mayor Dyer advised this is an important decision and asked City Council to proceed in a way that is equitable,fair and transparent and would be in everyone's best interest. Council Member Moss understands Mr.Nygaard has filed an objection to the Circuit Court's order and asked how that effected this Council moving forward. City Attorney Stiles advised that the objection to the order preserves error should the case be appealed but does not change the deadline requirements of City Council. Mayor Dyer asked if the fifteen (15)day deadline was to request a Special Election during the upcoming November F'general election or to declare a Special Election on a date City Council agrees on?Mayor Dyer believes it would be in the best interest of the public to have it during the general election when there would be a high turn-out of voters. The City Attorney advised City Council can choose, if they would like, to go with the standard and hold the Special Election during the next general election or they can choose a separate date. Council Member Moss advised when a vacancy occurs in the House of Representatives, they hold an election within sixty(60)days regardless of the day because it allows for the people to decide instead of a political appointment. Council Member Moss feels no matter how small the turn-out of votes, it will be more than the ten (10) Council Members deciding. Vice Mayor Wood asked the Council Members if anyone objected to holding the Special Election during the next general election and add the Resolution to file a Writ of Special Election to tonight's Agenda for consideration? Mayor Dyer, hearing no objection, advised they would proceed with the vote to add the Resolution to the Agenda. The next order of business is the invitation for citizens to submit applications to fill the Beach District vacancy. Mayor Dyer advised the precedence has been to solicit the resumes and then hold public interviews in Council Chamber for the public to see and asked Council Members if they agree to that process? March 19, 2019 14 CITY COUNCIL'S BRIEFING APPOINTMENT PROCESS—BEACH DISTRICT ITEM#69019 (Continued) Council Member Moss advised he wants to ensure all applicants have filed the Statement of Economic Interests (SoEI)form. Vice Mayor Wood advised the draft ad lists the directions on how to file and the requirements which includes; letter of interest, resume, SoEI form and completed questionnaire. Vice Mayor Wood advised the City Clerk provided copies of the past ads and questionnaires which is similar to what is proposed today. Vice Mayor Wood advised the main difference is the ability to push information through social media and reach more citizens. Council Member Moss advised he would like to have an online map with enough granularity to show the Beach District area for applicants to verify their address is in the Beach District. Council Member Abbott requested a "targeted ad"on social media go directly to the residents within the Beach District. Council Member Kane requested having a "landing page"online to provide all of the information and links relevant to the appointment process and requirements. Mayor Dyer asked for a consensus on the application deadline of April 8th? Council Member Wilson requested the dates for the budget hearings? City Manager advised City Council is scheduled for budget hearings the next five (5) Tuesday's. Council Member Abbott expressed concern with Spring Break coming up the public may not be engaged until after April 22nd Council Member Moss requested once City Council narrows the applicants down to a "short list", there should be a public hearing so citizens can provide their public input. Mayor Dyer advised in the past, the applicants have been interviewed and voted on the same night. While he values the public input, this is a City Council decision and City Council should proceed expeditiously. Council Member Moss advised he cannot support that process. Vice Mayor Wood advised he has been through this process with at least five (5)previous Council Members and supports the process as it becomes clear who has done their homework and is prepared. Council Member Moss is aware how it was done in the past, but believes the expectation today is different. While he appreciates traditions, when it disenfranchises people the right to be heard on who is going to represent them before City Council votes, he feels it is presumptuous on City Council's part and sends the message that we do not need the public's input. Mr. Moss expressed expediency on picking the next Council Member is not a criteria which should be embraced. March 19, 2019 15 CITY COUNCIL'S BRIEFING APPOINTMENT PROCESS—BEACH DISTRICT ITEM#69019 (Continued) Council Member Wilson advised City Council will hear from a lot of people through this process just like on other issues City Council votes on. Council Member Abbott asked what day is forty-five (45)days from today. City Attorney advised that is May 3rd Council Member Abbott understands a Council Member needs to be appointed prior to adopting the budget but does not appreciate being rushed to make a decision, she would be willing to have a Special Session after the public comment on the 24th to vote. Council Member Abbott advised the "short list"of applicants being considered could be published on social media for the public to provide comments. Council Member Henley asked when the public would know what applicants are being considered. City Attorney advised that could be on April 9th Council Member Henley advised there will be two (2)weeks to hear from the public and her concern is for the new Council Member to have ample time to get comfortable to make the very important decision on the budget. If the new Council Member was appointed on April 23rd they would be able to attend the public meeting as a Council Member and not a spectator. Council Member Rouse advised the election was very contentious from the onset and understands the need to have someone appointed, however,feels City Council needs to do their due diligence, take their time, and should come with the approval of the Beach District. Council Member Rouse advised this is the first time a Council Member has been removed by the Court and there should be more public input. Council Member Jones asked when the "short list"will be made public and asked if City Council will vote for an appointment the same night as the public comment? Council Member Henley advised the "short list"will be made available on April 91h and suggested having the public comment that night, holding the interviews on April 16t during the Workshop Session, and voting for the appointment during the Formal Session on April 23rd Council Member Moss advised he does not agree with the process suggested. Council Member Abbott suggested calling for a Special Session on April 24`h since they will be meeting for the Budget Hearing that day. Council Member Jones does not agree with that suggestion as it is not a good idea to mix the appointment with the budget hearing. Council Member Jones feels the schedule suggested by Council Member Henley is a good idea. Vice Mayor Wood advised he agrees with Council Member Henley's proposed schedule and feels there will be plenty of time to review the applications. March 19, 2019 16 CITY COUNCIL'S BRIEFING APPOINTMENT PROCESS—BEACH DISTRICT ITEM#69019 (Continued) Council Member Moss advised he does not agree with holding public comment without first telling the public who is being considered. Mayor Dyer took final comments from each Council Member to decide on a general consensus on the suggested timeline below: April 8`"5:00 P.M. - Application deadline April 9th - Closed Session to review applications/create the "short list"and release names to public April 16" -Public comment on "short list" April 23rd- Conduct public interviews and possible vote on appointment of Beach District Council Member Council Members Wooten, Kane, Wilson, Jones, Henley, Vice Mayor Wood and Mayor Dyer agreed with the proposed schedule. Vice Mayor Wood collected and read aloud the questions proposed by each Council Member, a copy of which is attached hereto and made a part of this record. Mayor Dyer closed the discussion. March 19, 2019 VIRGINIA: IN THE CIRCUIT COURT OF THE CITY OF VIRGINIA BEACH John Uhrin, Petitioner, v. Case No. CL18-5644 David Nygaard, Respondent. FINAL ORDER This matter came on for trial by the three-judge Court, sitting without a jury pursuant to Code § 24.2-810, on February 21 and 22,2019.1 For the reasons set forth in the letter opinion dated March 5, 2019, which is incorporated by reference,the Court finds that respondent David Nygaard did not satisfy residency requirements and was not eligible to run for City Council as a representative for the Beach District. Accordingly, the Court, pursuant to Code § 24.2-812, determines that there has been no valid election of any person to the City Council of the City of Virginia Beach for the Beach District at the election held on November 6, 2018, and orders such election void and the vacancy shall be filled in conformity with Code §24.2-226. Rule 1:13 dispensed with by the Court.2 Any objections to the Order may be filed in the clerk's office within 14 days of the entry date of this Order. A copy of this Order shall be provided to counsel of record by mail and electronic transmission. The Clerk of Court shall send a certified copy of this Order to the City Attorney for the City of Virginia Beach, to the Director of Elections/General Registrar for the City of Virginia Beach, and to the State Board of Elections. ct I , ENTER: 3 1 ) yz_ The Honorable Glenn R. Croshaw OtillAft AA/a The Honora.le W. Allan Sharrett The Honor: . effrey W. Shaw 1 Proceeding recorded by a court reporter. 2 Counsel is fully aware of the court's decision by opinion letter dated 03/05/2019. Counsel for the petitioner submitted an unendorsed proposed final order.The Court has prepared and entered this order to expedite a timely resolution of this matter and to conform to its ruling. v3City of Virginia Beach A Community for u Lifetime VIRGINIA BEACH CITY COUNCIL CANDIDATE QUESTIONNAIRE 1. What would you consider to be the City's top three (3) priorities? 2. Why do you want to serve on City Council? 3. Once the Council has decided the formulation of the budget in reconciliation, will you vote for it? 4. Do you support the Agricultural Reserve Program? Why or why not? 5. When there is a pushback of "not in my backyard," how can we address the need for affordable housing? 6. Would you vote to stop the City Council from continuing to circumvent the City's charter limitations on Council's ability to issue debt by using the Virginia Beach Development Authority to issue debt in its name that taxpayers are responsible for repaying? 7. What is your understanding of the financial mechanics of the resort to include: Tourism Investment Program (TIP), Residential Parking Permit Program (RPPP), the budget process, expectations of development projects currently underway in the resort, including open space? 8. Do you plan to run in November for the seat to which you are asking to be appointed? 9. Describe your thoughts on the City's current voting system. Would you like to see it changed? 10. What does 'team' mean to you? 17 CITY MANAGER'S BRIEFING HOUSING RESOURCE CENTER UPDATE ITEM#69020 2:28P.M. Mayor Dyer welcomed Andrew Friedman, Director—Housing and Neighborhood Preservation, Ruth Hill, Housing Resource Center Administrator, and Pam Shine, Housing Systems Manager. Mr. Friedman expressed his appreciation to City Council for their continued support: • Housing 444, Resource Center - 1PP —11101- Results to Date&How Our Community '% •'t I diwije -- - System Connects People to Services +w ''` ■ March 19,2019 Andrew Friedman,Director Ruth Hill,Homeless Services and Housing Resource Center Administrator •= n--. .-- �.;� Pamela SRomeless Service System Manager This graphic shows the decline in homelessness between 2011 and 2018: Virginia Beach Point-in-Time Count Number of Persons PROGRESS IN 517 446 484 MAKING 533 440 556 445 427 419 HOMELESSNESS 399 RARE, BRIEF & 49 2_, NONRECURRING CeJi�e'S the ..n.'t c. '.;l,e e>s persc-s curing 3,,]1-201'. March 19, 2019 18 CITY MANAGER'S BRIEFING HOUSING RESOURCE CENTER UPDATE ITEM#69020 (Continued) Here is the Housing Resource Center's Purpose&Goals: Housing Resource Center PURPOSE & GOALS Provide a one-stop shop that significantly enhances our system of housing and services Be a place where the community can continue and grow efforts to -- make homelessness rare, brief and nonrecurring mut' Be a good neighbor , Reduce impact of homelessness in the resort area 4,4 e�+a a . Efficiency apartment and d:Nng halt classrooms The Role of HRC in the System of Services includes many partners and resources: Role of HRC in IN 2017,COUNCIL ADOPTED THE"COMMUNITY OF ONE"STRATEGIC PLAN TO MAKE HOMELESSNESS RARE,BRIEF AND NONRECURRING the System of ''1a}or par.or"Goa."-.T:onsform our Service System" Services IT IS NOT THE SYSt EM,BUT A MAJOR ENHANCEMENT OF OUR SYSTEM • New s`elte-and perrtane-:t'-ocs-e, • Co-locotio"'of parccers acd resp rces • Comp ete i to zt'oc c`services=a -cC providers wo< toge:der to achieve t.ce best possible outcomes - Provide a new or e-hanced way'Cr ma-y t':e community c cent-,e hec'ng CITY SUPPORT FOR COMMUNITY EFFORTS Not mea-t to scpc are or replace ten March 19, 2019 19 CITY MANAGER'S BRIEFING HOUSING RESOURCE CENTER UPDATE ITEM#69020 (Continued) Mr. Friedman turned the presentation over to Ms. Shine. Ms. Shine advised the new services model to getting people from being homeless into a home of their own encompasses three (3)pillars, Access, Assessment and Assignment: Pathways Out of Hamel - LITERALLY HOMELESS(ON THE STREET) Call RWbnal O HOYSbtg Cnsfs Not. 4_ Planed in shMter ot HRC Or NOnprORtS (757)227.5932 �T eas<amca�cm d,e K��e.wuty Tnax ma screams �� M•F,liAM-71751 I I gi Visit NuTate ualrtg Mrs RoureesOe8Center C1.oordinM ated Atlnent p Placetl on By-rums Prioritization List Merrer6 �aa� oaaP 8Ms:bernan059095a35. Fn6petertbeUP.O. a .F.SMI.3Z PM 2Assesslr,p homing r,cedE 3.Relerrekb housing ant shelter oa e' •� all Engaged by OUtreacll Mobile arty and coordinated assessment Placed M HOOSIW M 18HRC or Nonprofits M-F.tAM-SPM r • N soca on c000530 xertretiW Diverted to Alternative i 1 u 1 HoueMg Artanget 08. • 50091.5 cell3COC —ee' /� (7571395-2535 L AFTER HOURS, TT HOLIDAYS& Fermiers Call Placed in shatter WEEKENDS !�, SM.whan House Based onawteesy /1�r('1�1 SAM-a PM.(757)3!62691 6 PM.6 AM.(757)3050450 This model is for those who are in imminent risk of losing housing within two (2) weeks: Pathways Out of Homelessness IMMINENTLY LOSING HOUSING (E.G. DOUBLED-UP, STAYING FACING EVICTION) Call Cfisls RWHmalNotIIM < ate. Housing (757)2275932 ina9e antl saeen;rvg for relertals r.•gD 885ed on eligibility and /1/ . H.F,a AM•7 PM availability Of funding, Based on assessment, referred tO: provided: •Samaritan House, er f+ .Financial a55istan09, er Y g➢ Vlalt Housin Stably Named 9 .LEST Life Center,or •CaSe management Homelessness ornOd Resource tinter •Virginia Beach HOusfng 4 servtce5,anNor a� is presented infirm and i+ Neighborhood Preservation .Assistanceinbeating a®a sveFC br12PMs -F.6 Md.12 PM Asses5xq needs housing March 19, 2019 20 CITY MANAGER'S BRIEFING HOUSING RESOURCE CENTER UPDATE ITEM#69020 (Continued) Ms. Shine turned the presentation over to Ms. Hill. Ms. Hill advised there have been 5,674 visits to the HRC: 5,674 ---1 ir iii visits ill 0T SEPTEMBER 2018-JANUARY 201A9 People seeking health services,day support, ii k \ socia'services,horsing and shelter Here is an overview of Results ofIAC Services: Results of HRC Services I- .,IIle p INTERIM FAMILY SINGLES SHELTER APARTMENTS„, �„ D kY SSRVICES HOUSING • 5,240 ted niq:-its.c= • 21 in?,:.c R ptovuieA • 381;aei „i¢:ec cervices • IC5 duplca,ed - 11,'undupdcated _widuel,served mdrvlduoir.sen,.�d • 32 - - • 10 fa.n•Jlies mo--c c:^.c March 19, 2019 21 CITY MANAGER'S BRIEFING HOUSING RESOURCE CENTER UPDATE ITEM#69020 (Continued) -------111111111111111111.111111111WIIMMINWEir— Results of HRC Services wir ?ii HEALTH CENTER DINING HALL INTEGRATED SERVICES (HUMAN SERVICES) • 212 patients served • 13,559 meals • Services:routine check-ups,sick (breakfast,lunch and • 322 referrals made visits,case management,family dinner)served • 152 referrals to Financial Aid Division planning,labs,imrnunieations/flu (e.g.SNAP,TANF) Shots,well woman,,'chiid exams, • 105 referrals to Employment Services referrals to specialty care,STD screenings,hospital follow-ups • 87 referrals to Behavioral Health/PATE, September 2018-January 2019 From August 2018—January 2019, there were 241 volunteers contributing a total of 1,791 hours: �I , .f a i olunteers & �� Community ic Resources , '• 241 VOLUNTEERS 1,791 VOLUNTEER HOURS . • • hor- Or, f i • eceptio, s s amass-ado s.iii dives ' Holiday me s rvce • Point-i'- me Count an:'r Cy: Ho-•elese :.N. -, onnecc - - .Ar F, U. O 3po-tunities to b ng .:is-`a 1111 i.S. ., �', se v s.o oartitipants r , `" 'Y A s:c 2016 January 2019 `, +i , March 19, 2019 22 CITY MANAGER'S BRIEFING HOUSING RESOURCE CENTER UPDATE ITEM#69020 (Continued) VB Home Now is a community foundation that has helped raise$630,000 for the Prevention and Diversion Program: F COMMUNITY FINANCIAL SUPPORT VB Home Now was formec tc support 'PI'and enhance our _- I r community system of se-v ces,programs and facilities tor:: r t,,,,,,- ,...._____ '.0 t ,<,4- l prevent and end homelessness. 5 "' -- More than$630,000 has been raised.to December 2018,the board awarded$50,000 to various organizations,including s ft $25,000 to the City for homelessness prevention assistance at ' - the NRC. COMMUNITY IN-KIND SUPPORT '` V 4- Our generous community donatednave-'n kits to scpp'.y as •" HRC aaartm nt units with basic hoz-sehold items._.We continue " to receive donation offers o`food,toiletries,dog kicg and ,, household items for the homeless po?uiation.Due to limited storage space at the NRC,we re`er the community to system partners. VB Home Now check presentation Bayside Bailers baseball teams donated move-in kits for the HRC residents Ms. Hill highlighted a success story and showed a short video: 1 JOURNEY HOMEt t y TROY'S STORY — : r tat \ �,. • L -3 • o Niultipl ge.:cies. i t-:e I-:ousin;. �� :,,�- `• Resource,.e.te-N e able to help `, i f .in anc c nnec Troy to she:ter, - • `, I d e-ice aisle ante social services, �.: pp a ' i[ s.:-TI--'os.importantly,his fao.iiv. ;. ' � h a IR 1 & : ,4 March 19, 2019 23 CITY MANAGER'S BRIEFING HOUSING RESOURCE CENTER UPDATE ITEM#69020 (Continued) THANK YOU City Council and the Cy;Manager have ;IT i " i provided the resources to make this ';''''' i- --- —j poss'bie. III III-.00 =- •, — s We and a!I our payers are making the �„- ^- most of it! gym. � - Y ; .I 110. ♦ • Your Questions & Comments ANDREW M. FRIEDMAN 757.385.5752 efriecmzavbaov.com RUTH D. HILL PAMELA SHINE a"t 757.385.6349 757.385.5761 lh ,vbcov.ccm psh'negvbgov.com E HOUSING RESOURCE CENTER 757385.5157 vnvw.vbgov.com/iou ny resoc-ce-certe Mayor Dyer expressed his appreciation to Mr. Friedman, Ms. Shine and Ms. Hill for the presentation and their hard work at the HRC. March 19, 2019 24 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER PUSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 3:02 P.M. Mayor Dyer welcomed Alice Kelly,Interim Director—Finance. Ms. Kelly expressed her appreciation to City Council for their continued support: Combined Briefing: FY 2019 Interim Financial Statement—February, Debt Management, and Other Post Employment Benefits March 19,2019 I3 IIE�ItE Here is the Agenda for today: Agenda Interim Financials for February Popular Annual Financial Report Other Postemployment Benefits (OPEB) Bonded Debt Summary Next Steps March 19, 2019 25 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER POSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) FY2018 PAFR ,_.-1 _,..., ,,..- :-.. .;_ , e‘ _, ,.,:. :1,7, i.: ,0.1.., „„. . , ‘,... ,,,,,„0 4- t-s.,..4- ... CITY Of VIRGINIA BEACH,VIRGINIA The FY 2019 Revenues and Expenditures are tracking similar to previous years: FY2019 YTD General Fund Revenues and Expenditures Comparison ACTUAL REVENUES YTD=$570.5 M I s:r ACTUAL EXPENDITURES YTD=$837.0 M eo.f% i `68.1% y 00% 4'i" 61.9% 5.0% Si.tl90 49.2 55.3% 44.5",. 40.3% 42.3% 49.1% 40% 45.5% 45.0% i e 278 36.1%82 32.5% 9.0% 20. E 20% 34/% 3^% 1a.1- Z 1�,.. 134% i 13.5% 4.5% 1.3% 0.2% Ni0% Aug Sep Oct Nov Dec Mo Feb Moo Apr Roy h. ----%ofFY2019 Wap Boddet-.-B[p Tre.".%"DY"1913.,Baadpet—.-IW Tr.eq March 19, 2019 26 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER POSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) The FY 2019 General Fund Revenue is$570.5-Million as of February 28, 2019: FY 2019 General Fund Revenue Through February 28, 2019 BUDGETED REVENUES YTD=$1,160.3M ACTUAL REVENUES YTD=$570.5M Other Commonwealth Federal Revenues $70.3 Government $47.9 $14.7 Other Taxes $126.5 Unrealized $589.8 50.8% Personal Property Taxes $19.7 Real Estate Taxes Transfers S amounts In millions $282.9 $8,5 The FY 2019 General Fund Expenditures total$837-Million as of February 28, 2019: FY 2019 General Fund Expenditur- Through February 28, 2019 BUDGETED EXPENDITURES YTD=$1,229.9M ACTUAL EXPENDITURES YTD=$837.0M Capital Projects Transfers to Other $60.3 Funds$28.9 Debt Service $37.9 ncumbered $393.0 31.9% Operating $151.8 Personnel $251.8 School Support $306.2 5 amounts in millions March 19, 2019 27 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER POSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) Long-Term Liabilities -Accrued Compensated Leave Liabilities determined by -Estimated Claims&Judgements Actuaries and Engineers -Landfill Closure using estimates and -Net Pension Liability assumptions -Net OPEB Liability Bonded Debt Liability is the actual dollar amount sold to investors The next two (2)slides provide the OPEB Liability Key Terms: OPEB Liability Key Terms • Single-Employer,Defined Benefit Plan • Administered by City of Virginia Beach-through Deferred Comp Board • Retiree Health Insurance • Assets held in VML/VACO Trust • Multiple-Employer,Cost Sharing Defined Benefit Plan • Administered by VRS • Group Life Insurance(GLI)-City and Schools • Local Disability Program(VLDP)-City and Schools • Health Insurance Credit(HIC)-Schools only ADC=Normal Cost+Amortization of Unfunded Liability March 19, 2019 28 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER POSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) OPEB Liability Key Terms • Actuarially Determined Contribution(ADC) • Normal Cost—Active participant benefits that are to accrue during the plan year—Retirement,Termination,Disability and Death benefits • Amortization of Unfunded Liabilities • Actuarial Assumptions • Investment Rate of Return(Discount Rate) • Inflation • Payroll growth rate • Mortality rates • Health Care Cost Combined with the School, the Net OPEB Liability totals$118-Million: Net OPEB Liability and Expenditures Retiree Health Insurance For the period ending June 30,2018 in millions CITY SCHOOL TOTAL Total OPEB Liability $ 96.8 $ 93.8 $ 190.6 Net Position-Assets in VML/VACO Trust 42.2 30.4 72.6 Net OPEB Liability $ 54.6 $ 63.4 $ 118.0 Percent Funded-GASB Valuation 43.6% 32.4% 38.1% Total OPEB Contributions $ 7.4 $ 7.4 $ 14.8 Note:Total Net OPEB Liability increased$26.0 million from June 30,2017 due to changes in assumptions March 19, 2019 29 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER PUSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) Here is the Net OPEB Liability and Expenditures for the City: Net OPEB Liability and Expenditures GLI, LODA and VLDP-City For the period ending June 30,2018 in millions GLI LODA VLDP TOTAL Total OPEB Liability $ 50.6 $ 25.3 $ 0.3 $ 76.2 Net Position-Assets in VRS Trust 24.7 0.4 0.1 25.2 Net OPEB Liability $ 25.9 $ 24.9 $ 0.2 $ 51.0 Percent Funded-GASB Valuation 48.9% 1.3% 38.4% 33.1% Total OPEB Contributions $ 4.3 $ 1.1 $ 0.3 $ 5.7 Note:ADC for GLI and VLDP include normal cost and amortization on unfunded liability.ADC for LODA only consist of pay-go funding. Here is the Net OPEB Liability and Expenditures for the Schools: Net OPEB Liability and Expenditure GLI,VLDP and HIC-Schools=: For the period endingJune30,2018 in millions GLI VLDP HIC TOTAL Total OPEB Liability $ 71.2 $ 0.3 $ 69.1 $ 140.6 Net Position-Assets in VRS Trust 34.8 0.1 4.9 39.8 Net OPEB Liability $ 36.4 $ 0.2 $ 64.2 $ 100.8 Percent Funded-GASB Valuation 48.9% 35.3% 7.0% 28.3% Total OPEB Contributions $ 3.1 $ 1.1 $ 0.3 $ 4.5 Note:ADC for GU,VLDP and HIC Include normal cost and amortization on unfunded liability. March 19, 2019 30 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER POSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) Net OPEB Liability Projection Retire Health Insurance $60 $50 2 $40 $30 $20 $10 2018 2022 2026 2030 2034 2038 2042 2046 Fiscal Year Ending June 30, —City Unfunded liablity —.School Unfunded Liability Here is an overview of Categories of Virginia Beach Bonds: Categories of Virginia Beach Bonds rs' Tax Supported Debt • General Obligation Bonds(GO)-full faith and credit - Charter bonds—$10m+retired principal($59m 2018)max authorized each year - Referendum Bonds - Agricultural Reserve Program - State Literary Fund • Appropriation Backed Debt-subject to annual appropriationnot full faith and credit)&usually rated lower(1-to-2 notches)than GO Bonds Public Facility Revenue Bonds Fee&Self Supported Debt • Enterprise Revenue Bonds—self supporting(not full faith and credit) - Water and Sewer - Storm Water Bonds March 19, 2019 31 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER POSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) Here is the Summary of Outstanding Indebtedness Fiscal Year Ending June 30: Summary of Outstanding Indebtedness Fiscal Year Ended June 30 Tax Supported (millions) General Obligation Bonds(GO) Schools Full Faith&Credit $300.1 $270.1 $263.8 General Government Full Faith&Credit 355.1 325.1 336.1 Public Facility Revenue Bonds(PFRB) Schools Annual Appropriation 23.4 22.4 42.0 General Government Annual Appropriation 317.0 309.0 290.2 Agriculture Reserve Program Full Faith/Strips 42.4 46.1 46.1 Fee Supported Revenue Bonds Water&Sewer(W&S) Fees&Charges 218.9 211.1 202.2 Storm Water(SW) Fees&Charges 45.2 43.5 41.8_ Total Debt $1,302.1 $1,227.7 $1,222.2 Less:Revenue Bonds&ARP Self-supporting/fees 306.5 300.7 290.1 Net Tax Supported Debt' $995,4 $927.0 $932.1 'used in Debt Guidelines calculations. is This chart provides a graphic of the previous chart showing the distribution of outstanding debt: Outstanding Debt by Purpose June 30, 2018 Agrfeuhun Reserve Ptognm Govern]Government 546,101,662 5626,291,167 3.8% 51.2% Storm Wnter 541,780,000 r117,215,276". ter cvd Snvey $202,235,276 16.6% Schools 5305,817,303 25.0% Total Debt:$1,222,226,408 March 19, 2019 32 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER POSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) The Total Debt service increased$4.1-Million from FY 2018 to FY 2019: Debt Service(in millions) FY 2018 Actual Total Debt Type Principal Interest Service General Obligation Bonds $ 56.3 $ 25.3 $ 81.6 Public Facility Bonds 32.6 14.4 47.0 Revenue Bonds 10.6 10.7 21.3 ARP - 2.4 2.4 Total $ 99.5 $ 52.8 $152.3 FY 2019 Estimates Total Debt Type Principal Interest Service General Obligation Bonds _ S 57.3 $ 26.1 5 83.4 Public Facility Bonds 34.8 14.3 49.1 Revenue Bonds 11.0 10.5 21.5 ARP - 2.4 2.4 Total $ 103.1 $ 533 $156.4 Reflects•a eats•tanned and be •made for FY 2019. Summary of Recent Bond Activity New Bonds Issued FY 2018 $67.6M GO $33.4M PFRB FY 2019 $29.5M SW Rev Bonds Refinanced(Refunded) FY 2018 $71.5M GO FY 2018 Authorized but Unissued Bonds-(GO&PFRB) $444.2 M Authorized but Unissued Revenue Bonds(W&S&SW) $166.3 M March 19, 2019 33 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER POSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) The next two (2)charts depict the red line as the Percentage of Principal Retired and is an indicator of the City's strong credit: Percentage of Principal Retired As of June 30, 2018 General Obligation and Public Facility Revenue Bonds 94.5% 100.0% $1,000 100% $900 - 791 $Boo 80% $700 e $600 47.5% 60% $500 $400 40% $300 $200 20% $100 So 0% Sy. r0 {{ t0 =Amount Maturing +Percentage of Debt Retired Percentage of Principal Retired As of June 30,2018' Water&Sewer and Storm Water Revenue Bonds 100.0% $300 90:7%. __ - 100% $250 71.3% 80% $200 49.4% $195.2 60% B $150 $100 $135.0 40% 23.0% $50 20% $0 0% S r0 Zs* is is he°? y°As yes yet =Amount Maturing -.-Percentage of Debt Retired Includes Series 2019 Storm Water Bonds sold February 27,2019 March 19, 2019 34 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER POSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) Here are some of the factors in maintaining a Triple-A rating: City's GO Bonds Rated Triple -A • Ninth consecutive year by all three major ratings agencies:Fitch,Moody's,and Standard&Poor's • Strong economy • Excellent financial management practices • Very strong management with the demonstrated ability to control expenditures and achieve balanced results from operations • Strong capacity to meet financial obligations resulting in favorable interest rates • Modest debt liability The City remains the only city in South Hampton Roads with a Triple-A rating from all three rating agencies: Virginia Beach Ratings Rating Agency GO PFRB Water& Storm Sewer Water Standard&Poor's AAA AA+ AAA Not Applicable/ Not Rated Moody's Investors Aaa Aal Aal AalI Service Fitch Ratings AAA AA+ AAA AAA Reflects credit rating upgrade from"Aa2"by Moody's February 5,2019 with the series 2019 Storm Water Utility Revenue Bond issuance. March 19, 2019 35 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER POSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) Here is the Rating Agency Criteria: Rating Agency Criteria: Tax-Supported Debtl 1. Economy/Tax Base • Real Estate,Personal Property • Trustee taxes(sales,restaurant meal tax,amusement,hotel) 2. Finances - Fund Balance as a%of Revenues - Cash Balance as a%of Revenues 3. Management • Operating History • Institutional Framework-flexibility 4. Debt/Pensions - Net Direct Debt/Full Value • Net Pension Liability/Full Value Climate Event and Risk Mitigation-a major consideration 'Fere supported Re‘cone Bond debt has additional criteria:coverage,liquiditt, reser cs. Here is a quote from Moody's Report on January 17, 2019: Moody's Report US Cities`Heightened Focus on Mitigating Climate Risk is Credit Positive January 17,2019 "Virginia Beach:Comprehensive sea level rise study will be basis for billions of dollars in resiliency projects. The City of Virginia Beach(Aaa stable)is located in Virginia's Hampton Roads region and lies at the intersection of various major bodies of water,increasing its vulnerability to sea level rise and flood risk.The city projects sea level rise up to three feet by 2100 and as much as one and a half feet in the next 20 years.In response,it is conducting a Comprehensive Sea Level Rise Study.The study will include an impact assessment and serve as the basis for long-term adaptation strategies.Ultimately,the study will form the foundation for billions of dollars in flood mitigation projects tied to the city's long-term resiliency plan.The city is also incorporating sea level rise and flood mitigation strategies in its Stormwater Master Plan and stormwater management regulations. Virginia Beach has a history of strong financial management and adherence to policies to maintain satisfactory reserves,liquidity and debt levels despite significant capital plans to mitigate environmental risk primarily associated with flooding." March 19, 2019 36 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER POSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) Here is a Summary of City's Debt Management Policies: Summary of City's Debt Management Policies Established As of Ratio Description Guidelines June 30,2018 Annual Debt Service to General No greater than 10% 7.7% Government Expenditures Overall Net Debt to Estimated Actual Full Value of Taxable No greater than 3.5% 1.7% Property Overall Net Debt Per Capita No greater than $2,042 $3,000 Overall Net Debt Per Capita to No greater than 6.5% 3.7% Per Capita Personal Income Source:City of Virginia Beach,Department of Finance,FY 2018 CAFR Debt Service as a %of General Government Expenditures is the most restrictive debt indicator: Debt Service as % of General Government Expenditures Compared to Guideline 12.0 No greater than 10%of Gen Gov't Expenditures 10.0- 8.7 8.6 8.1 8.5 8.5 8.4 8.4 8.2 8.2 7.7 8.0- `e 6.0- o. 4.0- 21111111111 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 For Year Ended June 30th Ratio of Annual Debt Service to General Government Expenditures —L'un8 Source:City of Virginia Beach,Department of Finance March 19, 2019 37 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER POSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) Net Debt Per Capita is commonly used as the debt affordability indicator, showing how much debt the City has per person: Net Debt Per Capita Compared to GuineIine $3,500 15 000 per $3,000 $2,500 .._ ---- D � $2,000 g $1,500 $1,000 $500 FY FY FY FY FY FY FY FY FY FY 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Debt per Capita 2,244 2,256 2,271 2,244 2,162 2,256 2,258 2,195 2,040 2,042 Limit 2,400.2,400 2,400 2,800 2,800 2,800 2,800.3,000 3,000 3,000 Source:City of Virginia Beach,Department of Finance,FY 2018 CAFR Virginia Beach has the second lowest ratio of debt service and highest per capita personal income in South Hampton Roads: South Hampton Roads Cities SII, FY 2018 Debt Indicators VirginiaIMIN Beach Norfolk Portsmouth Suffolk TotWOMINEWMMINMEMEN Less Self Supporting Debt(in $290,118 $641,631 $448,974 $127,387 $200,870 thousands) Net Debt(in thousands) $932,108 $812,787 $297,006 $395,690 $443,366 Net Debt per Capita $2,042 $3,307 $1,218 $4,167 $4,782 Ratio of Net Debt to Assessed Value 1.7% 3.7% 1.0% 5.4% 4.1% Ratio of Debt Service to GG 7.7% 12.4% 4.8% 7.9% 8.1% Expenditures Per Capita Personal Income $55,108 $40,094 $48,569 $40,026 $49,779 Sources:FY 2018 CAFRs for South Hampton Roads Cities March 19, 2019 38 CITY MANAGER'S BRIEFING UNAUDITED FINANCIAL RESULTS/ OTHER POSTEMPLOYMENT BENEFITS(OPEB)/LONG TERM DEBT ITEM#69021 (Continued) Here is Long-Term Liabilities Summary: Long-Term Liabilities Summary • Continued conservative financial management is key to Triple-A ratings • Meeting obligations: • Making Actuarially Determined Contributions to trust funds • Paying Annual Debt Service • Annual review: • Status of debt indicators • Actuarial calculations with updated assumptions Here are the Next Steps: Next Steps Proposed Budget March 26, 2019 i March Interim April 23,2€#19 i Adopted Budget .................................. ..... ..................... May 1 ,2019 i FY 2019 Closeout ..... . .......................... .......................... ... . .. ..... . ... Aut Via, 29 Mayor Dyer expressed his appreciation to Ms. Kelly for the presentation. March 19, 2019 39 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— STORMWATER UTILITY FUND ITEM#69022 3:38 P.M. Mayor Dyer commenced the briefings and welcomed Mark Johnson, Director—Public Works. Mr. Johnson expressed his appreciation to City Council for their continued support: PUBLIC WORKS Stormwater Enterprise Fund Mark A.Johnson Director of Public Works March 19,2019 STORMWATER Here is an overview of today's presentation: PUBLIC WORKS Overview • Operating Budget • CIP Funding yam STORMWATER March 19, 2019 40 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— STORMWATER UTILITY FUND ITEM#69022 (Continued) Here is an Overview of the Stormwater Management System: PUBLIC WORKS Overview of Stormwater System Stormwater Management System is comprised of man-made and natural features: • 550 miles of roadside&152 off road ditches • 61 canals �,q • 1,110 miles of Stormwater pipe R• • 43,566 Manholes/Basins 1 , g i _ • 15 Stormwater Pump Stations • 38 Dams/Spillways • 448 Lakes &Ponds ' 75:' STORMWATER The Integrated Stormwater Program encompasses Water Quality&Regulatory Compliance, Flood Control and Operations&Maintenance: PUBLIC WORKS Integrated Stormwater Program Water Quality& Regulatory Flood Control Compliance t 1, ' fa Operations&Maintenance ,141 Operations STORMWATER March 19, 2019 41 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— STORMWATER UTILITY FUND ITEM#69022 (Continued) Here is an overview of the FY19 Approved Budget: PUBLIC WORKS FY19 Approved Budget Revenue Expenditure Opeeeep*,,,i trees OpenOau-CDnswcmn FnBneennlSudaa 5267,597 50001 Sry 6fnameenrx Wrtm6egaamry 0,63% 1.15% $2977,794 51939536 $1,47.136 Fae-W 7.01 4.57% 347% $6,000,000 OpennansMos9uito Translers 88M / <onbd $19,673 $1,613,716 41K0.07% ree H,110rllunn: since, DelmSern¢ $1,655,608 �- 9.33% \� $161,064 0.3616 m rs $3,309,761 alx _/ Total-$42,402,136 __-- Operettas-05M513,6a4,483 32.27% Management .nel�1en •• .'. ~!� FTE-204 STORMWATER 0.207.764 737. The current Equivalent Residential Unit(ERU) is 45.8 cents and scheduled to increase 2A cents each year beginning in FY20. One cent of the Real Estate Tax will be dedicated to the Stormwater CIP and $990,000 from the Agriculture Reserve Program will support the Southern Canals Project: PUBLIC WORKS FY19 Stormwater Funding-Current Storm Water Fee:Cents per ERU per Day FY19 FY20 FY21 FY22 FY23 Daily 45.81 48.31 50.81 53.31 55.81 Rate Monthly $13.93 $14.69 $15.45 $16.21 $16.97 Rate Real Estate Tax Dedication 11(CIP) FY19 FY20 FY21 FY22 FY23 $5,586,510 $5,723,653 $5,877,516 $6,034,850 $6,196,077 Agricultural Reserve Program(CIP) FY19 FY20 FY21 FY22 FY23 Funding supports the ect � _' $990,000 $990,000 $990,000 $990,000 $990,000 Southern Canal CIP P791 ;N STORMWATER March 19, 2019 42 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— STORMWATER UTILITY FUND ITEM#69022 (Continued) Here is an overview of the FY20 Proposed Operating Budget: PUBLIC WORKS FY20 Proposed Operating Budget 1.Increase CIP funding by shifting operational expenses to the General Fund 2.Transfer$14.2M of Stormwater Operating expenses to the General Fund paid for by the Real Estate Tax dedication. This allows for the increase of Enterprise Fund revenue bonding capacity • The 1 cent Real Estate Tax Dedication(FY18)is re-directed to the General Fund to cover the transfer of Stormwater Operating expenses-45.7M • Proposed FY20 Real Estate Tax increase of 1 X cents-48.5M 3. Additional 1 cent rate increase in ERU for a total proposed rate increase of 3 K cents each year over the next 6 years remains in the Enterprise Fund FY20 Proposed Budget Expenditures Remaining in $24,337,883 Stormwater Fund Amount Available for CIP $21,554,151 Projects(Pay-Go)/Debt Service payments Total Proposed Budget $45,892,034 STORMWATER The goal of the FY20 Proposed Operating Budget is to increase the funding in the Pay-Go for CIP's and future debt service: PUBLIC WORKS FY20 Proposed Operating Budget Revenue Expenditure Transfers Operation-08M Openti,,- $3,358,889 $13,005,109 InpectIo' federal 7% - _.:; $919,592 Retiree Health $267,597• x% 1% 1511),093 1% ransfers $159,873 Debt Service 0% - 55,500,000 12% Reserve 51,317,201 Pay6o(or Capital 3% Projects/Future Debt Service 521,554,151 47% Total-$45,892,034 --'"o" STORMWATER FTE-99 March 19, 2019 43 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— STORMWATER UTILITY FUND ITEM#69022 (Continued) Here is the comparison of FY19 vs FY20 Budget: PUBLIC WORKS FY19 vs FY20 Budget FY19 FY20 Budget Unit Current Enterprise Fund General Fund Project Management $ 3,207,764 $ - $ 3,941,292 Street Sweeping $ 2,972,784 $ - $ 2,972,784 Construction&Engineering $ 1,939,536 $ - $ 2,073,375 Surface Water Regulatory Compliance $ 1,470,136 $ - $ 2,281,921 Mosquito Control $ 2,613,716 $ - $ 2,415,222 Operations&Maintenance $ 13,684,483 $ 13,005,109 $ 609,946 Inspections&Environmental Spill Response $ 910,152 $ 979,592 $ - Retiree Health Insurance $ 177,092 $ 177,092 $ Debt Service $ 3,955,648 $ 5,500,000 $ - Reserve $ 161,064 $ 1,317,201 $ - Pay-Go for Capital Projects $ 8,000,000 $ 21,554,151 $ - Transfer to Other Funds $ 3,309,761 $ 3,358,889 $ `U Totals $ 42,402,136 $ 45,892,034 $ 14,294,540 STORMWATER The ERU Fee History graph shows the blue line as the current rate and the red line being the 31/2 cent increase: PUBLIC WORKS ERU Fee History 66 8 9.8 2.8 83.3 83.3 36.6 31.6 24.1 STORMWATER March 19, 2019 44 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— STORMWATER UTILITY FUND ITEM#69022 (Continued) Here is an overview of the ERU Study currently in progress: PUBLIC WORKS ERU Study • Goals of study • Recommend adjustments to promote fair and equitable distribution of costs among residential property owners Per the City Code,all property is classified into one of the following categories • Residential • Multi-Family • Non-Residential • Undeveloped • Agricultural • Re-examine the credit/adjustment policy • Applying GIS and spatial analysis to closely examine residential property attributes and compare regional/national trends • Complete study and analysis-January 2020 STORMWATER PUBLIC WORKS Capital Improvement Funding STORMWATER March 19, 2019 45 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— STORMWATER UTILITY FUND ITEM#69022 (Continued) This Historical CIP 6 YR Funding chart illustrates the increase in CIP funding for flood control: PUBLIC WORKS Historical CIP 6 YR Funding $403.000,000 5350,000,000 $300000,000 $350.000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 Increase between FY17 $0 and FY18 is due the first FY17 FY18 FY19 Fv20 year of the ERU fee ■O&M •Water quality •Flood control increase and changing the fa amount of Pay-Go STORMWATER The chart provides information in the below graph for the FY20 CIP Proposed Funding: PUBLIC WORKS FY20 CIP Proposed Funding Transfer$14.2M of expenses to the General Fund • 1 cent of Real Estate Tax Dedication re-directed to the General Fund to cover the transfer of expenses • Proposed Real Estate Tax increase of 114 cents • Additional 1 cent rate increase in ERU for a total proposed rate increase of 314 cents each year over the next 6 years FY 2020 07/13 FY 2021 07/20 FY 2022 07/21.FY 2023 07/22 FY 2024 07/23 FY 2025 07/24 I Total 6-Year I I Food Control $24,994,064 $34,233,428 $41,817,691 $41,916,884 $42,045,999 $42,045,999 $227,054,065 O&M $21,394,174 $17,154,810 $18,820,547 $18,721,354 $18,592,239 518,592,239 $113,275,363 Water Quality $8,611,762 $8,611,762 $9,361,762 $9,361,762 $9,361,762 $9,361,762 $54,670,572 Total $55700,000 $60,030,000 $70,000,000 $70,000700 170,000,000 $70,000,000 $395,000,000 CIP Funding-41%increase from FY19 or$115M increase CIP Funding-191%increase from FY17 or$259M increase STORMWATER March 19, 2019 46 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— STORMWATER UTILITY FUND ITEM#69022 (Continued) PUBLIC WORKS Long Term CIP Funding Strategies 43a STORMWATER -. Here is the current Stormwater CIP Program Need which is$200-Million under budget shown in the center circle. The outer circles show the proposed strategy to increase funding over the next thirty-five (35)years: PUBLIC WORKS Stormwater CIP Program Need 35 Plus Years Sea Level Rise $2-$5 B LQ rj 0 , $o�vv tyry s;'hr awaoa STORMWATER March 19, 2019 47 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget) — STORMWATER UTILITY FUND ITEM#69022 (Continued) This graph depicts the current ERU rate (red line)and the 31/2 cent increase(green line) between FY26- 32: PUBLIC WORKS Fee Increase 913 37.8 81 3 77 3 73 8 70 3 60 86.3 52 8 49.3 ass Legend Blue is the current rate Red is the FY20-FY25 rate STORMWATER Green is the FY26FY32 rate Here is an overview of CIP Funding Strategy-#1: PUBLIC WORKS CIP Funding Strategy-#1 Goal Expand CIP to a 13 year program from FY20-FY32 Execution of Goal 1. Proposed FY20 CIP Funding 2. Extends 3%cents ERU from FY26-FY32 Available CIP Funding $395M FY20-FY25 $490M FY26-FY32 $885M Total STORMWATER March 19, 2019 48 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)- STORMWATER UTILITY FUND ITEM#69022 (Continued) PUBLIC WORKS Funding Strategy#1 Estimated cv 20-25 FT 26-32 Remaining Project Total Project ATO Balance to Funding Funding Cost Complete Aragon $4.4 M $3.8 M _ $0.6 M $0.0 M $0.0 M Ashville Park Phase I $12.0 M $9.0 M $3.0 M $0.0 M $0.0 M Ashville Park Phase II $18.9 M $0.0 M $0.0 M $0.0 M $18.9 M Central Resort $113.0 M $0.8 M $20.2 M _ $26.5 M $65.5 M College Park and Level Green $2.3 M $0.5 Ni $1.8 M $0.0 M $0.0M Eastern Shore Drive Drainage $725 M $17.3 M $47.0 M $5.7 M $2.5 M Lake Bradford/Chubb Lake $32.0 M $2.2 M $6.5 M $23.3 M $0.0 M Neighborhood SW Infrastructure $10.7 M $4.7 M $2.9 M $3.2 M North Lake Holly $23.5 M $19.9 M $3.6 M $0.0 M $0.0M Princess Anne Plaza $172A M $5.1 M $47.7 M $43.3 M $76.4 M Sea Level Rise/Recurrent Flooding Analysis $5.0 M $3.8 M $1.2 M $0.0 M $0.0 M Sherwood Lakes $3.0 M $3.0 M $0.0 M $0.0 M $0.084 South Lake Holly Watershed $16.6 M $16.6 M _ $0.0 M $0.0 M $0.0 M Southern Canal/Lead 08th and Culvert Improvements $34.8 M $3.7 M_ $14.3 M $16.7 M SWM Master Planning,Analysis,_and Inventory $14.8 M $9.8 M $5.0 Al $0.0 M $0.0 M The Lakes _ $28.7 M $2.0 M $15.1 M_ _ $5.2 M $6.4M Watershed Stormwater Projects j $96.9 M $0.0 M $7.6 M $28.9 M $60.4 M Windsor Woods $152.8 M $12.7 M $50.6 M $22.8 M _ $66.7 M Totals for Flood Control $814.1 M $114.8 M $227.1 M $175.6 M $2867 M Total For Operations and Maintenance $99.5 M__ $113.3 M $243.6 M_ p�v a Total For Water Quality Regulatory $35.0 M $54.]M $70.8 M o <„ Totals $814.1 M $2693 M $395.0 M $490.0 M $296.7 M k,.- TOTAL $885.0 M -5: STORMWATER cc PUBLIC WORKS Projected CIP Expenditures FY20-FY32 for Strategy #1 Projected Expenditures Projected Funding $885 M O&M ($356.9 M) Subtotal $528.1 M Water Quality ($125.5 M) Subtotal $402.6 M Flood Control ($699.3 M) Flood Control Shortfall ($296.7 M) 8. ;ofa STORMWA TER March 19, 2019 49 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)- STORMWATER UTILITY FUND ITEM#69022 (Continued) Here is an overview of CIP Funding Strategy-#2: PUBLIC WORKS OP Funding Strategy-#2 Goal Expand CIP to a 13 program from FY20-FY32 Execution of Goal 1. Proposed FY20 CIP Funding 2. Strategy#1 3. Proposed additional 2 cent Real Estate Tax increase in FY23,FY26,and FY30 Projected Funding $885M FY20 CIP/Strategy#1 $420M Additional 2 cent Real Estate Increase in FY23,FY26 and FY30 $1.3B Total Note:$420M is General Government Debt Amount dependent on coverage ratios and Charter Bond � j capacity/limits l�" v STORMWATER ... PUBLIC WORKS Funding Strategy#2 "`' Estimated Remaining FY 20-25 FY 26-32 ,.Project Total Project AID Balance to Cont Funding Funding P Com lete Aragona $4A M $3.8 M $0.6 M $0.0 M $o.0M Ashville Park Phase l $12.OM $9.OM $3.0M $O.OM $0.0M Ashville Park Phase II $16.9 M SO.O M $O.O M 518.9 M $O.O M Central Resort $113.0 M $0.8 M $30.3 M $81.9 M $0.0 M College Park and Level Green $2.3 M $0.5 M $1.8 M S0.0 M $0.0 M Eastern Shore Drive Drainage $72.5 M $17.3 M $48.5 M $6.7 M $0.0 M Lake Bradford/Chubb Lake $32.0 M $2.2 M $13.9 M $16.0 M $0.0 M Neighborhood SW Infrastructure $11.6 M $4.7 M $3.064 $3.9 M North Lake Holly $23.5 M $19.9 M $3.6 M $0.0 M $0.0 N Princess Anne Plata $172.4 M $5.3 M $62.4 M _ $104.9 M $0.0 M Sea Level Rise/Recurrent Flooding Analysis $5.0 M $3.8 M $1.2 M $0.0 M $0.0 M Sherwood Lakes $3.0 M $3.0 M $O.O M I $0.0 M $0.0 M South Lake Holly Watershed $16.6 M $16.6 M $0.0 M $0.0 M $0.0 M Southern Canal/Lead Ditch and Culvert Improvements $34.8 M $3.7 M $14.3 M $16.7 M SWM Master Planning,Analysis,and Inventory $14.8 M $9.8 M $5.0 M $0.0 M $0.0 M The Lakes $28.7 M $2.0 M $17.3 M I $9.4 M $0.0 M Watershed Stormwater Projects _ $96.9 M $0.0 M _$48.4 M I $484 M I $0.0 M Windsor Woods $152.8M $12.7M $63.0 M $77.1 M - $0.0 Totals for Flood Contrd $815.0 M $114.8 M _$316.3 M $383.9 M $0.0 M Total For Operations and Maintenance $99.5_M_ $154.0 M $261.6 M Total For Water Quality Regulatory $35.0-M $54.7 M $74.8 M Totals $815 M $249.3 M 5525.0 M $720.3 M $0-0 M 13 �- TOTAL $1245.3 M ov 31 STORMWATER March 19, 2019 50 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— STORMWATER UTILITY FUND ITEM#69022 (Continued) PUBLIC WORKS Projected CIP Expenditures FY20-FY32 for Strategy #2 Projected Expenditures Projected Funding $1305 B O&M ($415.6 M) Subtotal $889.4 M Water Quality ($129.5 M) Subtotal $759.9 M Flood Control ($700.2 M) Amount available for On-going Flood Control and Sea $59.7 M Leve Rise projects STORMWATER Here is an overview of CIP Funding Strategy-#3: PUBLIC WORKS OP Funding Strategy-#3 Goal Expand CIP to a 21 year program from FY20-FY40 Create capacity beyond current flood control projects to address Sea Level Rise Execution of Goal 1. Proposed FY20 CIP 2. Strategy#1 3. Strategy#2 4. Expand CIP to FY40 5. Redirect$26.7M per year beginning in FY28-FY40 from the Roadway CIP Projected Funding $885M FY20 CIP/Strategy#1 $1.3B Strategy#2 $560M FY32-FY40 Note:$766.6M Is General Government Redirection of Roadway CIP Debt $346.6M Funding Amount dependent on coverage ratios j and Charter Bond capacity/limits E $2.211B Total STORMWATER March 19, 2019 51 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)- STORMWATER UTILITY FUND ITEM#69022 (Continued) PUBLIC WORKS Funding Strategy#3 Estimated Project Total Project ATD FY 20-25 FY 26-32 FY 33-40 Cost Funding Funding Funding _ Aragona $4AM $3.8M $0.6M $0.0M $0.0M Ashville Park Phase l $12.0 M $9.0 M $3.0 M _ SOON $O.O M Ashville Park Phase II $18.9 M $0.0 M_ $0.0 M _$18.9 M $0.0 M Central Resort $1130M $0.8M __$30.3M __ $81.9M $0.0M College Park and Level Green $2.3 M $0.5 M $1.8 M $0.0 M $0.0 M Eastern Shore Drive Drainage $72.5 M $17.3 M $48.5 M $6.7 M $0.0 M Lake Bradford/Chubb Lake _ $32.0 M_ $2.2 M $13.9 M _ $16.0M $0.0 M Neighborhood SW Infrastructure $19.6M_ $4.7 M $3.0 M _ $3.9M $8.0M North Lake Holly $23.5 M $19.9 M $3.6 M $0.0 M $0.0M Princess Anne Plaza $172.4 M $5.1 M $62.4 M _$104.9 M $0.0 M Sea Level Rise/Recurrent Flooding Analysis $13.0 M _ $3.8 M $1.2 M $0.0 M $8.0 M Sherwood Lakes $3.0 M $3.0 M $0.0 M $0.0 M $0.0 M South Lake Holly Watershed $16.6 M $16.6 M $0.0 M $0.0 M _ $0.0 M Southern Canal/Lead Ditch and Culvert Improvements $53.9 M $3.7 M $14.3 M $16.7 M $19.1 M SWM Master Planning,Analysis,and Inventory $22.8 M $9.8 M $5.0 M $0.0 M $8.0 M The Lakes $28.7 M $2.0 M $17.3 M $9.4 M $0.OM Watershed Stormwater Projects $96.9 M $0.0 M $48.4 M $48.4 M $0.0 M Windsor Woods $152.8 Ai_ $12.7 M $63.0 M $77.1 M $0.011A Totals for Flood Control $858.1 M $114.8 M $316.3 M $383.9 M $43.1 M Total For Operations and Maintenance t_.f $99.5 M $154.0 M $261.6 M $350.4 M Total For Water Quality Regulatory $35.0 M $54.7 M $74.8 M Saga M °A4' Totals $858.1 M $249.3 M $525.0 M $720.3 M $490.4 M STORMWATER TOTAL $1735.8 M PUBLIC WORKS Projected CIP Expenditures FY20-FY40 for Strategy #3 Projected Expenditures Projected Funding $2.212 B O&M ($766 M) $1.446 B Water Quality ($226.4 M) $1.2196 B Flood Control ($743.3 M) Amount available for Sea Level Rise $476.3 M ov STORMWATER March 19, 2019 52 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— STORMWATER UTILITY FUND ITEM#69022 (Continued) Here is a comparison chart of the Funding Strategy Summary: PUBLIC WORKS Funding Strategy Summary FY20-FY25 Strategy#1 Strategy#2 Strategy#3 Proposed 6-Year CIP 13-Year 13-Year 21-Year FY20-FY32 FY20-FY32 FY20-FY40 Flood Control $227.0 M $402.6 M $700.2 M $743.3 M Operations& $113.3 M $356.9 M $415.6 M $766.0 M Maintenance Water Quality $54.7 M $125.5 M $129.5 M $226.4 M Total $395.0 M $885.0 M $1.245 B $1.736 B Available Funding $395.0 M $885.0 M $1305 B $2.211 B Remaining for $0 $0 $59.7 M $476.3 M Sea Level Rise STORMWATER PUBLIC WORKS Funding Strategy Summary Continued • Proposed FY20 CIP continues City Council's goals to increase funding for Stormwater program • Strategy#1 expands CIP to a 13 year program from FY20-FY32 • Strategy#2 fully funds all known flood control projects and begins to provide capacity for Sea Level Rise • Strategy#3 creates capacity beyond flood control and begins to fund Sea Level Rise projects STORMWATER March 19, 2019 53 CITY MANAGER'S BRIEFING FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— STORMWATER UTILITY FUND ITEM#69022 (Continued) PUBLIC WORKS Discussion O - STORMWATER Mayor Dyer expressed his appreciation to Mr.Johnson for the presentation March 19, 2019 54 CITY COUNCIL COMMENTS ITEM#69023 4:37 P.M. Council Member Wilson advised she attended a Broadband meeting on March 15, 2019, with representatives from the five (5)participating cities to discuss governance issues. The next step will involve each of the City Managers working together in determining the best program. March 19, 2019 55 CITY COUNCIL COMMENTS ITEM#69024 (Continued) Council Member Wilson advised March 171h was the kick offfor the 5`h Annual "Crush Cancer"event with 14 year old Michaela Nadeau delivering a powerful and emotional speech where there was not a "dry eye in the house"after her speech. Council Member Wilson advised Michaela is a local student from Allenton who is diagnosed with cancer and went online to choose the doctor who would amputate her leg. The Crush Cancer event will be held on May 5`h at One Life Fitness. This event has raised$5- Million in five (5)years. Council Member Wilson invited everyone to attend as it is a wonderful way to help raise awareness and money for an important cause. March 19, 2019 56 CITY COUNCIL COMMENTS ITEM#69025 (Continued) Council Member Wooten expressed her appreciation to City Council for allowing the two (2) week deferral on the TCC Hotel. Council Member Wooten held a forum on March 18`''and expressed appreciation to City Staff who attended and answered questions and felt the forum was a wonderful opportunity for citizen engagement. March 19, 2019 57 CITY COUNCIL COMMENTS ITEM#69026 (Continued) Council Member Moss expressed his appreciation to City Council for allowing him and Council Member Wooten to serve as Liaisons to the 2040 Vision to Action Community Coalition. Council Member Moss advised, in preparation for the upcoming meeting with the Chair and Vice Chair, he prepared a guidance from what he took away from the City Council Retreat. Council Member Moss'understanding is the need to re-baseline the 2040 Report to reflect the next steps for transit and pull the timeline to 2030 in order to align with other priorities. Council Member Moss asked for confirmation that his understanding is correct so he can provide accurate parameters to the Chair and Vice Chair. March 19, 2019 58 CITY COUNCIL COMMENTS ITEM#69027 (Continued) Council Member Moss advised he requested the City Attorney provide information on the legal authority regarding the three (3)parking permits at 43rd Street. Council Member Moss advised once he receives the information he would like to have a discussion on future decisions based on the legal opinion from the City Attorney. March 19, 2019 59 AGENDA REVIEW SESSION ITEM#69028 4:44 P.M. BY CONSENSUS, the following shall compose the Legislative CONSENT AGENDA: J. ORDINANCES/RESOLUTIONS 1. Ordinance to GRANT two (2)franchise agreements re Open Markets On Public Property to the Old Beach Farmer's Market and Old Beach Art and Eco Market in the 700 Block of 18th Street in ViBe Park 2. Ordinances to AUTHORIZE the City Manager to EXECUTE a Lease of City-Owned Property at Virginia Beach Farmers Market: a. Building 6, Space 1 to Lisa Preuss, d/b/a Lisa's Tinker Treasures b. Building 8, Spaces 23 &24 to Angela C. Surgeon, d/b/a Moosewood Creek Primitives 3. Ordinances to GRANT twelve (12)franchise agreements re Open Air Cafés in the Resort Area: a. Baja Taco, Inc., t/a Baja Cantina Café re Atlantic Avenue Side Street Cafe at 206 23rd Street b. Chix Sea Grille, LLC, t/a Chix Café re Connector Park Cafe at 701 Atlantic Avenue c. Fish-N-Bones, Inc., t/a Fish Bones Café re Boardwalk Café at 1211 Atlantic Avenue d. Dandrea, LLC, t/a II Giardino Café re Atlantic Avenue Side Street Cafe at 910 Atlantic Avenue e. Jumpin Shrimp,Inc., t/a Jumpin Shrimp Café re Connector Park Café at 1211 Atlantic Avenue f Karpathos, Inc., t/a King of the Sea Café re Atlantic Avenue Side Street Cafe at 2612 Atlantic Avenue g. 9th Street Grill, Inc., t/a Manhattan re Atlantic Avenue Sidewalk Café at 812 Atlantic Avenue h. Scrambled,Inc., t/a Scrambled re Atlantic Avenue Sidewalk Café at 910 Atlantic Avenue i. Dunes Investment Associates, LLC, t/a The Beach Club re Boardwalk Cafe at 901 Atlantic Avenue j. Gold Key/PHR Food Services, LLC, t/a Tortugas Cafe and Tiki Bar re Boardwalk Cafe at 3400 Atlantic Avenue k. Gold Key/PHR Food Services, LLC, t/a Tortugas Café and Tiki Bar re Connector Park Cafe at 3400 Atlantic Avenue 1. Fogg's Seafood Company, t/a Waterman's re Connector Park Cafe at 415 Atlantic Avenue 4. Ordinance to DECLARE approximately 6.4 acres of City Property located at the intersection of Princess Anne Road and Community College Place to be in EXCESS of the City's needs and AUTHORIZE the City Manager to enter into a purchase agreement with option for the sale of the property to Princess Anne Hotel, LLC re development of a hotel and restaurant(Deferred from March 5, 2019) March 19, 2019 60 AGENDA REVIEW SESSION ITEM#69028 (Continued) 5. Ordinance to AMEND the Economic Development Investment Program (EDIP)Policy and Procedure re process for making and paying awards, and enhance reporting requirements 6. Resolution to SUPPORT the City's application for the 2019 Virginia Dam Safety Flood Prevention and Protection Assistance Fund Grant from the Virginia Department of Conservation and Recreation 7. Ordinance to APPROPRIATE$650,000 in local vehicle license revenue to Department of Finance FY2018-19 Operating Budget re collection costs of local vehicle registration fees 8. Ordinances to ACCEPT and APPROPRIATE: a. $1,494,816 from the Virginia Department of Transportation (VDOT) re traffic signal rehabilitation and maintenance of roadways b. $3,000 from GEICO to Police Department FY2018-19 Operating Budget re Every 15 Minutes Program c. $183,569 from Federal Emergency Management Agency (FEMA) to Fire Department FY2018-19 Operating Budget re purchase and maintenance of communications equipment for Virginia Task Force 2 Urban Search and Rescue Team d. $98,620 from Virginia Department of Behavioral Health and Developmental Services (DBHDS) to Human Services FY2018-19 Operating Budget re creation of two (2) new positions to provide enhanced Behavioral Health Services COUNCIL MEMBER MOSS WILL VOTE VERBAL NAY ON ITEM#4 COUNCIL MEMBER MOSS WILL VOTE VERBAL NAY ON ITEM#5 ITEM#6 WILL BE CONSIDERED SEPARATELY March 19, 2019 61 AGENDA REVIEW SESSION ITEM#69028 (Continued) BY CONSENSUS, the following shall compose the Planning CONSENT AGENDA: K. PLANNING 1. CLEAR CREEK HOLDINGS,LLC for a Conditional Change of Zoningfrom R-10 Residential& I-1 Light Industrial to Conditional I-1 Light Industrial at a vacant parcel off of South Birdneck Road, approximately 680 feet from Carissa Court re construct three (3) buildings for industrial office/warehouse units DISTRICT 6—BEACH(Deferred from February 5, 2019 and February 19, 2019) 2. JANET T.RESPASS& TERESA TATEMfor a Variance to Section 4.4(b) of the Subdivision Regulations re lot width at 1965 Gum Bridge Road and an adjacent vacant parcel DISTRICT 7— PRINCESS ANNE 3. C AND C DEVELOPMENT CO,INC./ETCPAC,LLC for a Special Exception for Alternative Compliance to the Oceanfront Resort District Form-Based Code re lot width, lot area, and parking setbacks at 2508 Pacific Avenue & 302 26t11 Street DISTRICT 6—BEACH 4. VIRGINIA BEACH DEVELOPMENT AUTHORITY(VBDA)for a Conditional Change of Zoning from Conditional B-2 Community Business to Conditional I-1 Light Industrial, and Conditional I-1 Light Industrial to Conditional B-2 Community Business at the corner of Corporate Landing Parkway and General Booth Boulevard DISTRICT 7—PRINCESS ANNE 5. TRADITIONAL CONCEPTS,LLC& VICTORY BAPTIST CHURCH OF VIRGINIA BEACH,INC.for a Conditional Change of Zoning from R-15 Residential to Conditional R-10 Residential re 13 single-family dwellings and a Modification of Conditions re religious use at 4125 Indian River Road DISTRICT 7—PRINCESS ANNE ITEM#1 WILL BE CONSIDERED SEPARATELY COUNCIL MEMBER ABBOTT WILL ABSTAIN ON ITEM#2 ITEM#3 WILL BE CONSIDERED SEPARATELY ITEM#4 WILL BE CONSIDERED SEPARATELY March 19, 2019 62 ITEM#69029 Mayor Robert M. Dyer entertained a motion to permit City Council to conduct its CLOSED SESSION, pursuant to Section 2.2-3711(A), Code of Virginia, as amended,for the following purpose: PUBLICLY-HELD PROPERTY: Discussion or consideration of the, acquisition of real property for public purpose; or of the disposition of publicly-held property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body pursuant to Section 2.2-3711(A)(3). • Beach District PERSONNEL MATTERS: Discussion, consideration, or interviews of prospective candidates for employment, assignment, appointment, promotion, performance, demotion, salaries, disciplining or resignation of specific public officers, appointees or employees of any public body pursuant to Section 2.2-3711(A)(1) • Council Appointments: Council, Boards, Commissions, Committees, Authorities, Agencies and Appointees • Evaluations of Appointees March 19, 2019 63 ITEM#69029 (Continued) Upon motion by Council Member Kane, seconded by Council Member Wooten, City Council voted to proceed into CLOSED SESSION at 4:51 P.M. Voting: 10-0 Council Members Voting Aye: Jessica P.Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None Break 4:52 P.M. —4:59 P.M. Closed Session 4:59 P.M. —5:59 P.M. *Council Member Moss stepped out during the Public Held Property—Beach District discussion due to a potential conflict. March 19, 2019 64 FORMAL SESSION VIRGINIA BEACH CITY COUNCIL March 19, 2019 6:00 P.M. Mayor Dyer called to order the FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the City Council Chamber, City Hall, on Tuesday, March 19, 2019, at 6:00 P.M. Council Members Present: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None INVOCATION: Pastor Barbara St. Jean Free Spirit Worship Church PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Council Member Rosemary Wilson DISCLOSED that she is a real estate agent affiliated with Howard Hanna Real Estate Services("Howard Hanna'), who's Oceanfront Office is located at 303 34`''Street Suite 102, Virginia Beach, VA 23451. Because of the nature of realtor and real estate agent affiliation, the size of Howard Hanna, and the volume of transactions it handles in any given year, Howard Hanna has an interest in numerous matters in which she is not personally involved and of which she does not have personal knowledge. In order to ensure her compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act(the "Act"), it is her practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifying any matters in which she might have an actual or potential conflict. If during her review of the agenda for any given meeting of the Council, she identifies a matter in which she has a `personal interest,"as defined in the Act, she will file the appropriate disclosure letter to be recorded in the official records of the City Council. Council Member Wilson regularly makes this disclosure. Her letter of February 20, 2018, is hereby made part of the record. March 19, 2019 65 Council Member Rosemary Wilson also DISCLOSED she has a personal interest in Dixon Hughes Goodman and receives income from the firm as a result of her late husband's employment. The income is proceeds from the sale of his partnership interest,paid out over an extended period of time. She is not an employee of Dixon Hughes Goodman, does not have any role in management of the company and does is not privy to its client list. However, due to the size of Dixon Hughes Goodman and the volume of transactions it handles in any given year,Dixon Hughes Goodman may have an interest in matters of which she has no personal knowledge. In that regard, she is always concerned about the appearance of impropriety that might arise if she unknowingly participates in a matter before City Council in which Dixon Hughes Goodman has an interest. In order to ensure her compliance with both the letter and spirit of the State and Local Government Conflict of Interests Act (the `Act'), it is her practice to thoroughly review each City Council agenda to identify any matters in which she might have an actual or potential conflict. If, during her review of an agenda, she identifies a matter in which she has a `personal interest", as defined by the Act, she will either abstain from voting, or file the appropriate disclosure letter with the City Clerk to be included in the official records of City Council. Council Member Wilson's letter of June 2, 2015, is hereby made a part of the record. March 19, 2019 66 ITEM— VI-E. CERTIFICATION ITEM#69030 Upon motion by Council Member Moss, seconded by Council Member Kane, City Council CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS Only public business matters lawfully exempt from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies. AND, Only such public business matters as were identified in the motion convening the Closed Session were heard, discussed or considered by Virginia Beach City Council. Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 4 OG1N BFAc , ,; i. '/j�;._ '� 2 Sq%40',.-7,,,,, S ..t?..,,,.*`'N,,,O*S RESOLUTION CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded in ITEM#69029,Page 63 and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3712 of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virginia law. NOW,THEREFORE,BE IT RESOLVED:That the Virginia Beach City Council hereby certifies that,to the best of each member's knowledge,(a)only public business matters lawfully exempted from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Closed Session were heard, discussed or considered by Virginia Beach City Council. 1 ,A JI, AWanda Barnes, i C City Clerk March 19, 2019 67 ITEM— VI-F.1 MINUTES ITEM#69031 Upon motion by Council Member Wilson, seconded by Vice Mayor Wood, City Council APPROVED the MINUTES of the INFORMAL and FORMAL SESSION of February 19, 2019 Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent.• None March 19, 2019 68 ITEM- VI-G. MAYOR'S PRESENTATION ITEM#69032 PROCLAMATION VIRGINIA BEACH CLEAN COMMUNITY COMMISSION FOUNDERS DAY Mayor Dyer introduced and welcomed Clean Community Commissioners; Daniel Baxter - Chair, Larry Banks - Vice Chair and Nancy Degges — Secretary and presented a Proclamation declaring March 19, 2019 as, "VIRGINIA BEACH CLEAN COMMUNITY COMMISSION FOUNDERS DAY". Mayor Dyer called upon all citizens to commend them for their endeavors in service to our City. Daniel Baxter expressed his appreciation to City Council for their continued support of the Clean Community Commission and their programs. March 19, 2019 � _ r 2 o�99'F8 �6 Op OUR NP 0 firodamation Whereas 'The Virginia Beach Clean Community Commission ('i'BCCC) is a City Council-appointed group formed in 1980 to undertake the task of promoting litter prevention, recycling, 6eautation and general environmental awareness through educational projects designed to reach all segments of our community;and Whereat 7-laving been active with the VBCCC from its inception,Daniel-Batter—Chair,Larry Banks -'Vice Chair,and-Nancy'egges—Treasurer,were officially appointed to their positions with the'VBCCC,6y council to serve onApril-13,2010;and Whereat These three founding commissioners were instrumental in the development of the`uBCCC and worked with the City to foritt the following programs: • The Mel-ping Mane Program which coordinates resources and volunteers with the goat of providing assistance to senior citizens and physically challenged residents who are financially unable to do so themselves • 'he AdoptA-Program which encourages individual responsibility for our environment through scheduled latter pickups • The Earth Day Celebration, presented in partnership with Virginia Beach Parks sZ &creation, Waste Management and the 'VBCCC a tIay that is intended to inspire awareness and appreciationfor the earth's natural'resources • And the Clean the Bay Day Picnic which follows the annual Clean the Bay Day Cleanup event and allows the'VBCCC to say thanks to volunteers for their commitment to keeping our waterways clean Now?Traefare,I&ben Y. Dyer, Mayor of the City of Virginia Beach,'Virginia,do hereby proclaim: March 19, 2019 Virginia Beach Clean Community Commission 'Founders Day In'Virginia Beach, in recognition of Daniel Baxter, Larry Banks, and Nancy cDegges; and I call upon all citizens to commend them for their endeavors in service to our City. In Witness'Whereof I have hereunto set my hand and caused the Official Seal of the City of Virginia Beach, 'Virginia,to be affr.qd this Nineteenth day of Warch 2019. - - Robert 31. 'Bobby"Dyer Mayor 69 ITEM- VI-H.1 PUBLIC HEARINGS ITEM#69033 Mayor Dyer DECLARED A PUBLIC HEARING: 1. LEASE OF CITY PROPERTY—OPEN AIR MARKETS a. 700 Block of 18`h Street in ViBe Park to Old Beach Farmers Market b. 700 Block of 18`h Street in ViBe Park to Old Beach Farmers Market, t/a Old Beach Art and Eco Market There being no speakers, Mayor Dyer CLOSED the PUBLIC HEARING March 19, 2019 70 ITEM- VI-H.2 PUBLIC HEARINGS ITEM#69034 Mayor Dyer DECLARED A PUBLIC HEARING: 2. LEASE OF CITY PROPERTY—FARMERS MARKET a. Building 6, Space 1 to Lisa's Tinker Treasures b. Building 8, Spaces 23 &24 to Moosewood Creek Primitives There being no speakers, Mayor Dyer CLOSED the PUBLIC HEARING March 19, 2019 71 ITEM- VI-H.3 PUBLIC HEARINGS ITEM#69035 Mayor Dyer DECLARED A PUBLIC HEARING: 3. OPEN AIR CAFE FRANCHISE AGREEMENTS a. Baja Taco, Inc., t/a Baja Cantina Cafe re Atlantic Avenue Side Street Café at 206 23rd Street b. Chix Sea Grille, LLC, t/a Chix Café re Connector Park Cafe at 701 Atlantic Avenue c. Fish-N-Bones, Inc., t/a Fish Bones Café re Boardwalk Cafe at 1211 Atlantic Avenue d. Dandrea, LLC, t/a Il Giardino Cafe re Atlantic Avenue Side Street Cafe at 910 Atlantic Avenue e. Jumpin Shrimp, Inc., t/a Jumpin Shrimp Cafe re Connector Park Café at 1211 Atlantic Avenue f Karpathos, Inc., t/a King of the Sea Cafe re Atlantic Avenue Side Street Cafe at 2612 Atlantic Avenue g. 9th Street Grill, Inc., t/a Manhattan re Atlantic Avenue Sidewalk Cafe at 812 Atlantic Avenue h. Scrambled, Inc., t/a Scrambled re Atlantic Avenue Sidewalk Café at 910 Atlantic Avenue i. Dunes Investment Associates, LLC, t/a The Beach Club re Boardwalk Cafe at 901 Atlantic Avenue j. Gold Key/PHR Food Services, LLC, t/a Tortugas Café and Tiki Bar re Boardwalk Café at 3400 Atlantic Avenue k. Gold Key/PHR Food Services, LLC, t/a Tortugas Cafe and Tiki Bar re Connector Park Cafe at 3400 Atlantic Avenue 1. Fogg's Seafood Company, t/a Waterman's re Connector Park Café at 415 Atlantic Avenue There being no speakers, Mayor Dyer CLOSED the PUBLIC HEARING March 19, 2019 72 ADD ON RESOLUTION ITEM#69036 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council ADDED a Resolution to "DIRECT the City Attorney to file a petition for Writ of Special Election re Beach District vacancy" Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 73 ITEM- VI-i FORMAL SESSION AGENDA ITEM#69037 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council APPROVED, BY CONSENT,Agenda Items J: Ordinances/Resolutions, 1, 2a/b, 3a-1, 4(MOSS VERBAL NAY), 5(MOSS VERBAL NAY), 7, and 8a/b/c/d and Planning Agenda Items K:2(ABBOTT ABSTAIN) and 5 Voting: 10-0 Council Members Voting Aye: Jessica P.Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None ORDINANCES/RESOLUTIONS: ITEM J. 6 WILL BE CONSIDERED SEPARATELY PLANNING: ITEM K.1 WILL BE CONSIDERED SEPARATELY COUNCIL MEMBER ABBOTT WILL ABSTAIN ON ITEM K.2 ITEM K.3 WILL BE CONSIDERED SEPARATELY ITEM K.4 WILL BE CONSIDERED SEPARATELY March 19, 2019 74 ITEM— VLJ.1 ORDINANCES/RESOLUTIONS ITEM#69038 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council ADOPTED, BY CONSENT, Ordinance to GRANT two (2)franchise agreements re Open Markets On Public Property to the Old Beach Farmer's Market and Old Beach Art and Eco Market in the 700 Block of 18`x' Street in ViBe Park Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 1 AN ORDINANCE GRANTING TWO 2 FRANCHISE AGREEMENTS FOR OPEN 3 MARKETS ON PUBLIC PROPERTY 4 5 WHEREAS, City Council adopted an ordinance on May 3, 2016 granting three 6 franchise agreements for Old Beach Farmers Market, Eco Maniac Company, Inc. and 7 Old Beach Art Market to operate open air markets in the public right-of-way in the 600 8 block of 19th Street; and 9 10 WHEREAS, the franchise agreements had a term of one year, with the option for 11 two additional one-year extensions; and 12 13 WHERES, Old Beach Farmers Market, Eco Maniac Company, Inc. and Old 14 Beach Art Market operated open air markets in the public right-of-way from 2016 until 15 2019; and 16 17 WHEREAS, two of the previous franchisees (Old Beach Art Market and Eco 18 Maniac Company, Inc.) merged to form a new entity called Old Beach Art Market t/a Old 19 Beach Art and Eco Market; and 20 21 WHEREAS, the new entity, Old Beach Art Market, along with the previous 22 franchisee, Old Beach Farmers Market, wish to continue operating markets on public 23 property (collectively, "Franchisees"); and 24 25 WHEREAS, the Franchisees can no longer operate at the previous location in 26 the 600 block of 19th Street due to construction on 19th Street; and 27 28 WHEREAS, as an alternative, the Franchisees are requesting that the markets 29 be moved to the 700 block of 18th Street in ViBe Park ("New Location"); and 30 31 WHEREAS, the Resort Advisory Commission reviewed and approved moving the 32 markets to the New Location; and 33 34 WHEREAS, the Franchisees are requesting to use the New Location for open air 35 markets for a one-year period with the option for two one-year extensions; and 36 37 WHEREAS, the term of the proposed franchise agreements is one year, 38 commencing on June 1, 2019 and ending at midnight on May 31, 2020, on each 39 Saturday during the months of June 2019, July 2019, August 2019, September 2019, 40 October 2019 and May 2020, and on the third Saturday of each month during the 41 months of November 2019, December 2019, January 2020, February 2020, March 2020 42 and April 2020. 43 44 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 45 VIRGINIA BEACH: 46 47 1. That the City Council hereby authorizes the grant of two franchise agreements 48 for open markets on public property for Old Beach Art Market and Old Beach 49 Farmers Market. 50 51 2. That the City Manager, or designee, is hereby authorized to execute Franchise 52 Agreements for open air markets with Old Beach Art Market and Old Beach 53 Farmers Market in accordance with the attached Summary of Terms and such 54 other terms and conditions deemed necessary and sufficient by the City Manager 55 and in a form approved by the City Attorney. 56 Adopted by the City Council of Virginia Beach, Virginia on this 19th day of March , 2019. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: ; ..� Convention & Visitors Bureau City Attorney's Office CA14618 R-1 February 21, 2019 Summary of Terms Franchise Agreements for Open Markets on Public Property Franchisees: (1) Old Beach Farmers Market; and(2)Old Beach Art Market. Nature of Franchise: Operate open markets on public property in the 700 block of 18`h Street in ViBe Park. Term: June 1, 2019 through May 31, 2020, with the option for 2 one-year renewals. Franchisees are authorized to operate on each Saturday during the months of June 2019, July 2019, August 2019, September 2019, October 2019 and May 2020, and on the third Saturday of each month during the months of November 2019, December 2019,January 2020,February 2020,March 2020 and April 2020. Franchise Fee: $100 for the term. Non-Exclusive Franchise: The City is authorized to grant other franchises in the subject area. Relocation option: The City has the right, at its sole discretion,to relocate the markets to the 600 block of 18th Street. The City may only exercise this right at the end of the initial term or the end of the first extension term. If the City elects to relocate the markets, the parties are required to execute an amendment to the franchise to address issues such as exclusion dates, street closures and traffic control plans. Operational Criteria: The Agreement stipulates operational standards and safeguards such as: a. Franchisee shall design the open air market site to allow for emergency vehicle access at all times. b. No City streets shall be closed and all activities shall occur within ViBe Park during the term of the franchise. c. Franchisee shall adhere to the operational parameters and public safety concerns established by City departments, including, but not limited to, Police, Fire, EMS, Public Works and Resort Management. This includes providing adequate DCJS certified private security personnel or certified traffic monitors, as required. d. Franchisee shall provide one portable ADA restroom facility for each one hundred and fifty (150) patrons on the premises, or shall install signs on City property directing patrons to existing restrooms located in an adjacent business establishment. e. A minimum of three waste disposal containers and three recycle containers shall be installed by Franchisee on the premises. f. Franchisee shall remove all temporary structures, clean all City property and properly dispose of waste and recycle materials by 1:00 pm each day. Hold Harmless: Franchisee indemnifies and holds harmless the City for loss and liability. Insurance: $1,000,000 combined single limits. Termination: City may terminate agreements with or without cause. 75 ITEM— VLJ.2a ORDINANCES/RESOLUTIONS ITEM#69039 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE the City Manager to EXECUTE a Lease of City-Owned Property at Virginia Beach Farmers Market: a. Building 6, Space 1 to Lisa Preuss, d/b/a Lisa's Tinker Treasures Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 1 AN ORDINANCE AUTHORIZING THE CITY 2 MANAGER TO EXECUTE A LEASE FOR UP TO 5 3 YEARS WITH LISA PREUSS, D/B/A LISA'S TINKER 4 TREASURES, FOR CITY-OWNED PROPERTY 5 KNOWN AS BUILDING 6, SPACE NUMBER 1, IN THE 6 VIRGINIA BEACH FARMERS MARKET 7 8 WHEREAS, the City of Virginia Beach (the "City") is the owner of the City of 9 Virginia Beach Farmers Market located at 3640 Dam Neck Road in Virginia Beach, 10 Virginia (the "Farmers Market"); 11 12 WHEREAS, Lisa Preuss, d/b/a Lisa's Tinker Treasures ("Lisa's Tinker 13 Treasures"), would like to enter into a new lease with the City for Building 6, Space 14 Number 1 in the Farmers Market, consisting of 310 square feet (the "Premises"); 15 16 WHEREAS, the Premises will be utilized for the sale of jewelry, decor, gifts and 17 related items, and for no other purpose; and 18 19 WHEREAS, Lisa's Tinker Treasures has agreed to pay the City an initial rental 20 rate of$425.00 per month ($5,100.00 per year) subject to a five percent(5%) annual 21 rent escalation for each renewal year for the use of the Premises. 22 23 NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 24 OF VIRGINIA BEACH, VIRGINIA: 25 26 That the City Manager is hereby authorized to execute a lease for up to 5 years 27 between Lisa's Tinker Treasures and the City for the Premises, in accordance with the 28 Summary of Terms, attached hereto as Exhibit A and made a part hereof, and such 29 other terms, conditions or modifications as may be acceptable to the City Manager and 30 in a form deemed satisfactory by the City Attorney. 31 32 Adopted by the Council of the City of Virginia Beach, Virginia on the 19th day of 33 March , 2019. APPROVED AS TO LEGAL APPROVED AS TO CONTENT SUFFICIENCY AND FORM City Attorney Public Works/Facilities Management CA14423 \\vbgov.com\dfs t\applications\citylaw cycom32\wpdocs\d005\p031\00545234.doc R-1 March 8, 2019 EXHIBIT A SUMMARY OF TERMS LEASE FOR BUILDING 6, SPACE NUMBER 1 AT THE VIRGINIA BEACH FARMERS MARKET LESSOR: City of Virginia Beach LESSEE: Lisa Preuss, d/b/a Lisa's Tinker Treasures PREMISES: Building 6, Space Number 1 consisting of 310 square feet TERM: Initial Term —April 1, 2019 — March 31, 2022 (3 years) Renewal Term 1—April 1, 2022 — March 31, 2023 (1 year) Renewal Term 2—April 1, 2023 — March 31, 2024 (1 year) RENT: Initial rent of$425.00 each month totaling $5,100.00 for the first year, subject to five percent (5%) annual rent escalation for each renewal year. RIGHTS AND RESPONSIBILITIES OF LESSEE: • Use Premises for the sale of jewelry, decor, gifts and related items and for no other purpose. • Maintain Premises, including heating and air conditioning units and/or heat pump units. • Payment of all assessed fees and taxes. • Purchase and maintain commercial general liability insurance. RIGHTS AND RESPONSIBILITIES OF CITY: • Maintain common areas of the Farmers Market and structural elements of the Premises. • Provide electrical service. TERMINATION: • City has special right to terminate if necessary for a public purpose by giving sixty (60) days' advance written notice. • Lessee may terminate by giving ninety (90) days' advance written notice. 76 ITEM— VLJ.2b ORDINANCES/RESOLUTIONS ITEM#69040 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE the City Manager to EXECUTE a Lease of City-Owned Property at Virginia Beach Farmers Market. b. Building 8, Spaces 23 & 24 to Angela C. Surgeon, d/b/a Moosewood Creek Primitives Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 1 AN ORDINANCE AUTHORIZING THE CITY 2 MANAGER TO EXECUTE A LEASE FOR UP TO 5 3 YEARS WITH ANGELA C. SURGEON, D/B/A 4 MOOSEWOOD CREEK PRIMITIVES, FOR CITY- 5 OWNED PROPERTY KNOWN AS BUILDING 8, 6 SPACE NUMBERS 23 & 24, IN THE VIRGINIA 7 BEACH FARMERS MARKET 8 9 WHEREAS, the City of Virginia Beach (the "City") is the owner of the City of 10 Virginia Beach Farmers Market located at 3640 Dam Neck Road in Virginia Beach, 11 Virginia (the "Farmers Market"); 12 13 WHEREAS, Angela C. Surgeon, d/b/a Moosewood Creek Primitives 14 ("Moosewood Creek Primitives"), would like to enter into a new lease with the City for 15 Building 8, Space Numbers 23 & 24 in the Farmers Market, consisting of approximately 16 1,125 square feet (the "Premises"); 17 18 WHEREAS, the Premises will be utilized for the sale of primitive decor items 19 including candles, ceramics, textiles, furniture and related items, and DIY classes in 20 crafting the same, and for no other purpose; and 21 22 WHEREAS, Moosewood Creek Primitives has agreed to pay the City an initial 23 rental rate of$950.00 per month ($11,400.00 per year) subject to a five percent (5%) 24 annual rent escalation for each renewal year for the use of the Premises. 25 26 NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 27 OF VIRGINIA BEACH, VIRGINIA: 28 29 That the City Manager is hereby authorized to execute a lease for up to 5 years 30 between Moosewood Creek Primitives and the City for the Premises, in accordance 31 with the Summary of Terms, attached hereto as Exhibit A and made a part hereof, and 32 such other terms, conditions or modifications as may be acceptable to the City Manager 33 and in a form deemed satisfactory by the City Attorney. 34 35 Adopted by the Council of the City of Virginia Beach, Virginia on the 19th day of 36 March , 2019. APPROVED AS TO LEGAL APPROVED AS TO CONTENT SUFFICIENCY AND FORM GuaR, ffit;1747,0,) City Attorney Public Wor s/Facilities Management CA14420 \\vbgov.com\dfs t\applications\city)aw\cycom32\wpdocs\d001\p027\00544534.doc R-1 March 8, 2019 EXHIBIT A SUMMARY OF TERMS LEASE FOR BUILDING 8, SPACE NUMBERS 23 & 24 AT THE VIRGINIA BEACH FARMERS MARKET LESSOR: City of Virginia Beach LESSEE: Angela C. Surgeon d/b/a Moosewood Creek Primitives PREMISES: Building 8, Space Numbers 23 & 24 consisting of approximately 1,125 square feet TERM: Initial Term — May 1, 2019 —April 30, 2022 (3 years) Renewal Term 1— May 1, 2022 —April 30, 2023 (1 year) Renewal Term 2— May 1, 2023 —April 30, 2024 (1 year) RENT: Initial rent of$950.00 each month totaling $11,400.00 for the first year, subject to five percent(5%) annual rent escalation for each renewal year. RIGHTS AND RESPONSIBILITIES OF LESSEE: • Use Premises for the sale of primitive decor items including candles, ceramics, textiles, furniture and related items, and DIY classes in crafting the same, and for no other purpose. • Maintain Premises, including heating and air conditioning units and/or heat pump units. • Payment of all assessed fees and taxes. • Purchase and maintain commercial general liability insurance. RIGHTS AND RESPONSIBILITIES OF CITY: • Maintain common areas of the Farmers Market and structural elements of the Premises. • Provide electrical service. TERMINATION: • City has special right to terminate if necessary for a public purpose by giving sixty (60) days' advance written notice. • Lessee may terminate by giving ninety (90) days' advance written notice. 77 ITEM— VLJ.3a-1 ORDINANCES/RESOLUTIONS ITEM#69041 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council ADOPTED, BY CONSENT, Ordinance to GRANT twelve (12)franchise agreements re Open Air Cafés in the Resort Area: a. Baja Taco, Inc., t/a Baja Cantina Café re Atlantic Avenue Side Street Cafe at 206 23rd Street b. Chix Sea Grille, LLC, t/a Chix Café re Connector Park Cafe at 701 Atlantic Avenue c. Fish-N-Bones, Inc., t/a Fish Bones Café re Boardwalk Cafe at 1211 Atlantic Avenue d. Dandrea, LLC, t/a II Giardino Café re Atlantic Avenue Side Street Cafe at 910 Atlantic Avenue e. Jumpin Shrimp, Inc., t/a Jumpin Shrimp Café re Connector Park Cafe at 1211 Atlantic Avenue f Karpathos, Inc., t/a King of the Sea Café re Atlantic Avenue Side Street Cafe at 2612 Atlantic Avenue g. 9th Street Grill, Inc., t/a Manhattan re Atlantic Avenue Sidewalk Cafe at 812 Atlantic Avenue h. Scrambled, Inc., t/a Scrambled re Atlantic Avenue Sidewalk Cafe at 910 Atlantic Avenue i. Dunes Investment Associates, LLC, t/a The Beach Club re Boardwalk Cafe at 901 Atlantic Avenue j. Gold Key/PHR Food Services, LLC, t/a Tortugas Café and Tiki Bar re Boardwalk Cafe at 3400 Atlantic Avenue k. Gold Key/PHR Food Services, LLC, t/a Tortugas Café and Tiki Bar re Connector Park Cafe at 3400 Atlantic Avenue 1. Fogg's Seafood Company, t/a Waterman's re Connector Park Café at 415 Atlantic Avenue Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 1 AN ORDINANCE GRANTING TWELVE 2 FRANCHISE AGREEMENTS FOR OPEN AIR 3 CAFES IN THE RESORT AREA 4 5 WHEREAS, by resolution adopted November 25, 1985, City Council authorized 6 the City Manager to promulgate Open Air Café Regulations, which have been amended 7 from time to time, for the operation of open air cafés on public property; and 8 9 WHEREAS, the City Council has traditionally granted initial franchises for one- 10 year terms; and 11 12 WHEREAS, if an open air café is successfully operated during the initial one- 13 year term, the franchisee may return to Council and request a five-year franchise 14 agreement; and 15 16 WHEREAS, the following twelve entities have successfully operated open air 17 cafés pursuant to either one-year or five-year franchise agreements, and are seeking 18 renewal of their franchise agreements for five-year terms: (1) Baja Taco, Inc., t/a Baja 19 Cantina Café, for operation of an Atlantic Avenue Side Street Café; (2) Chix Sea Grille, 20 LLC, t/a Chix Café, for operation of a Connector Park Café; (3) Fish-N-Bones, Inc., t/a 21 Fish Bones, for operation of a Boardwalk Café; (4) Dandrea, LLC, t/a II Giardino, for 22 operation of an Atlantic Avenue Side Street Café; (5) Jumpin Shrimp, Inc., t/a Jumpin 23 Shrimp, for operation of a Connector Park Café; (6) Karpathos, Inc.,. t/a King of the 24 Sea, for operation of an Atlantic Avenue Side Street Café; (7) 9th Street Grill, Inc., t/a 25 Manhattan, for operation of an Atlantic Avenue Sidewalk Café; (8) Scrambled, Inc., t/a 26 Scrambled, for operation of an Atlantic Avenue Sidewalk Café; (9) Dunes Investment 27 Associates, LLC, t/a The Beach Club, for operation of a Boardwalk Café; (10) Gold 28 Key/PHR Food Services, LLC, t/a Tortugas Café and Tiki Bar, for operation of a 29 Boardwalk Café; (11) Gold Key/PHR Food Services, LLC, t/a Tortugas Café and Tiki 30 Bar, for operation of a Connector Park Café; and (12) Fogg's Seafood Company, t/a 31 Waterman's, for operation of a Connector Park Café; and 32 33 WHEREAS, the Convention & Visitors Bureau/Resort Management recommends 34 that the above-named entities be granted open air café franchise agreements. 35 36 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 37 VIRGINIA BEACH: 38 39 That the City Council hereby grants five-year franchise agreements to: (1) Baja 40 Taco, Inc., t/a Baja Cantina Café, for operation of an Atlantic Avenue Side Street Café; 41 (2) Chix Sea Grille, LLC, t/a Chix Café, for operation of a Connector Park Café; (3) Fish- 42 N-Bones, Inc., t/a Fish Bones, for operation of a Boardwalk Café; (4) Dandrea, LLC, t/a 43 II Giardino, for operation of an Atlantic Avenue Side Street Café; (5) Jumpin Shrimp, 44 Inc., t/a Jumpin Shrimp, for operation of a Connector Park Café; (6) Karpathos, Inc.,. t/a 45 King of the Sea, for operation of an Atlantic Avenue Side Street Café; (7) 9th Street Grill, 46 Inc., t/a Manhattan, for operation of an Atlantic Avenue Sidewalk Café; (8) Scrambled, 47 Inc., t/a Scrambled, for operation of an Atlantic Avenue Side Walk Café; (9) Dunes 48 Investment Associates, LLC, t/a The Beach Club, for operation of a Boardwalk Café; 49 (10) Gold Key/PHR Food Services, LLC, t/a Tortugas Café and Tiki Bar, for operation of 50 a Boardwalk Café; (11) Gold Key/PHR Food Services, LLC, t/a Tortugas Café and Tiki 51 Bar, for operation of a Connector Park Café; and (12) Fogg's Seafood Company, t/a 52 Waterman's, for operation of a Connector Park Café. 53 Adopted by the City Council of Virginia Beach, Virginia on this 19thday of March 2019. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Mike Eason Aimee Sullivan Convention and Visitors Bureau/ City Attorney's Office Resort Management CA14595 R-1 January 17, 2019 78 ITEM— VLJ.4 ORDINANCES/RESOLUTIONS ITEM#69042 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council ADOPTED, BY CONSENT, Ordinance DECLARE approximately 6.4 acres of City Property located at the intersection of Princess Anne Road and Community College Place to be in EXCESS of the City's needs and AUTHORIZE the City Manager to enter into a purchase agreement with option for the sale of the property to Princess Anne Hotel, LLC re development of a hotel and restaurant(Deferred from March 5, 2019): Voting. 9-1 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Voting Nay: John D. Moss Council Members Absent: None March 19, 2019 1 AN ORDINANCE 1) DECLARING APPROXIMATELY 6.4 2 ACRES OF CITY PROPERTY LOCATED AT THE 3 INTERSECTION OF PRINCESS ANNE ROAD AND 4 COMMUNITY COLLEGE PLACE TO BE IN EXCESS OF 5 THE CITY'S NEEDS AND 2) AUTHORIZING THE CITY 6 MANAGER TO ENTER INTO A PURCHASE AGREEMENT 7 WITH OPTION FOR THE SALE OF THE PROPERTY TO 8 PRINCESS ANNE HOTEL, LLC FOR THE DEVELOPMENT 9 OF A HOTEL AND RESTAURANT. 10 11 WHEREAS, the City of Virginia Beach (the "City") owns two parcels of property 12 located at the intersection of Princess Anne Road and Community College Place, 13 adjacent to Tidewater Community College, consisting of approximately 6.4 acres 14 (GPINs: 1485-34-9414 and 1485-44-2154) (collectively, the "Property"); 15 16 WHEREAS, the City issued a Request for Proposals ("RFP") on April 30, 2017 17 for the sale of a portion of the Property and development of a hotel and related site 18 improvements; 19 20 WHEREAS, the City received two responsive proposals, and after review and 21 evaluation, it was determined that the proposal of Princess Anne Hotel, LLC, a Virginia 22 limited liability company ("PA Hotel"), presented the best opportunity to develop the 23 Property as desired by the City; 24 25 WHEREAS, PA Hotel's proposal includes the purchase of a portion of the 26 Property for the construction of a limited service hotel, with a minimum of 110 rooms, 27 and a free-standing restaurant (the "Project"); 28 29 WHEREAS, PA Hotel has also requested the option to purchase the remainder of 30 the Property for the construction of a second hotel, which would include conference 31 space; 32 33 WHEREAS, PA Hotel and City staff have negotiated the terms by which PA Hotel 34 would purchase and develop the Property, the terms of which are set forth in the term 35 sheet attached hereto as Exhibit A (the "Term Sheet"); and 36 37 WHEREAS, the City Council is of the opinion that the Property is in excess of the 38 City's needs and the sale of the Property to PA Hotel would provide much needed 39 accommodations in this area of the City. 40 41 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 42 VIRGINIA BEACH, VIRGINIA: 43 44 1. That the Property is hereby declared to be in excess of the needs of the City of 45 Virginia Beach. 46 2. That the City Manager is hereby authorized to execute any documents 47 necessary to sell the Property to PA Hotel (including granting an option to purchase), so 48 long as such documents are in substantial conformity with the Term Sheet, attached 49 hereto as Exhibit A, and made a part hereof, and such other terms, conditions or 50 modifications deemed necessary and sufficient by the City Manager and in a form 51 deemed satisfactory by the City Attorney. 52 53 This Ordinance shall be effective from the date of its adoption. 54 55 Adopted by the Council of the City of Virginia Beach, Virginia, on the 19th day 56 of March , 2019. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: --- • Eco : is Development City Attorney's Office CA14430 \\vbgov.com\DFS1Wpplications\CityLawProd\cycom32\W pdocs\D030\P011\00013007.DOC R-1 February 22, 2019 EXHIBIT A 12-21-18 TERM-SHEET PRINCESS ANNE COMMONS HOTEL Representatives of the City of Virginia Beach (the "City") and Princess Anne Hotel, LLC ("PA Hotel")have discussed the development of a limited service hotel to be constructed adjacent to the Virginia Beach campus of Tidewater Community College in the Princess Anne Commons area of Virginia Beach(the "Project"). This Term-Sheet is intended to reflect the shared understanding of all parties and their respective commitments going forward. The Term-Sheet is not intended to be a legally binding agreement, and all proposals outlined are subject to approval and future appropriation by City Council and approval by PA Hotel. 1. PROJECT DESCRIPTION a. The Project will be developed on approximately 3.90 acres of property currently owned by the City and shown as the"Hotel Property- on Exhibit A attached hereto. b. The Hotel Property is adjacent to an approximately 2.51 acre parcel of City- owned land "Option Property" (also shown on Exhibit A). c. The Project will consist of a limited service hotel with at least 110 keys (the "Hotel"), a free-standing restaurant (the "Restaurant") and all infrastructure (including stormwater and parking) necessary for the operation of the Hotel and the Restaurant. d. The Hotel will initially be a Home2 Suites by Hilton or similar flag acceptable to the City. The Restaurant will initially be a national restaurant chain or other restaurant reasonably acceptable to the City. 2. SALE TERMS a. PA Hotel will purchase the Hotel Property from the City prior to the commencement of construction on the Hotel. The terms of the purchase will be evidenced by a"Purchase Agreement". b. City will sell the Hotel Property to PA Hotel for five hundred and seventy-eight thousand dollars per acre ($578,000/acre). c. PA Hotel will be responsible for all costs associated with designing, constructing, accessing and equipping the Project. d. PA Hotel shall be responsible for the extension of sewer force mains, public water line(s) and stormwater outfall pipe(s) to the Hotel Property (the "Utility 1 12-21-18 Extension"). The City shall reimburse PA Hotel's actual costs for the Utility Extension up to$475,000. The parties will enter into a cost participation agreement in an approved form to be attached to the Purchase Agreement to document the Utility Extension and payment therefore. e. The City shall not be responsible for any other costs or expenses related to the development of the Hotel Property or the Option Property. f. The Project will be designed in a manner consistent with the Princess Anne Commons Architectural Guidelines, attached hereto as Exhibit B. g. The Hotel Property will be restricted to prevent any use other than for the operation of a hotel and/or restaurant and ancillary uses thereto for a period of twenty (20) years. h. All design and construction plans must be reviewed and approved by the City. 3. OPTION PROPERTY a. The City shall grant PA Hotel a first right of refusal to acquire the Option Property (the "Option") for the purpose of constructing a second hotel which will be evidenced either in the Purchase Agreement or in a separate `'Option Agreement'. b. As a condition to the grant of the Option, PA Hotel shall construct an access across the Hotel Property to the Option Parcel and will establish and dedicate such cross- access easements or other instruments as necessary to insure the Option Parcel has access to College Place Drive. Such access shall be built to standards acceptable to the City and will have, at a minimum, two lanes for vehicular traffic, sidewalks (as needed) and LED lighting. c. The Option shall allow PA Hotel to match any offer to purchase the Option Property made to City within three (3) years of the opening of the Hotel so long as: i. The price offered the City by PA Hotel is at least the price per acre specified in the offer for the Option Property, and ii. PA Hotel commits to the commencement of construction of the second hotel with conference space, of a size and flag reasonably equivalent or superior to that specified in the offer for the Option Property, with such construction to commence within twelve months of the exercise of the Option. For the avoidance of doubt,the City expects that the hotel constructed on the Option Property will be larger both in terms of keys and meeting space than the hotel to be constructed on the Hotel Parcel. iii. If exercised, the City will retain the right to review and approve the plans for the construction of improvements on the Option Property to insure such improvements are acceptable to the City. 2 12-21-18 iv. Notwithstanding the foregoing, the City expressly reserves the right to decline to sell the Option Property to any party (including PA Hotel) for less than $578,000 per acre. 4. COMPLETION MILESTONES a. The Purchase Agreement will have a Due Diligence Period starting from the earlier of (i) execution of the Purchase Agreement, or (ii) the rezoning of the Hotel Property and continuing for sixty(60)days. PA Hotel will also have an"Approvals Period" of four (4) months thereafter to finalize plans, obtain pricing and construction permitting and approvals, with up to two (2) extensions of thirty (30) days each if applications for permits and approvals are pending and are being diligently pursued. Closing will occur within thirty(30) days after such Approvals Period (as it may be extended). The Purchase Agreement will require commencement of construction on the Hotel, as evidenced by the issuance of a building permit, within 90 days after Closing (the "Construction Commencement Date"). The Purchase Agreement will also have an outside closing date agreeable to both parties (which will be thirty (30) days after the Approvals Period as extended unless the parties otherwise agree). b. The Purchase Agreement will also require PA Hotel to complete the Project (as evidenced by a final certificate of occupancy for the Hotel) within eighteen (18) months from the commencement of construction(the"Outside Completion Date"). c. If PA Hotel does not commence construction by the Outside Commencement Date, the City will have the right to re-acquire the Hotel Property for the amount paid by PA Hotel to the City in the Purchase Agreement. d. If PA Hotel does not complete construction by the Outside Completion Date, PA Hotel shall pay to the City any amounts previously credited against the $578,000 per acre purchase price as contemplated by Section 2 d., above. e. All the above deadlines shall be subject to extension for force majeure and for any time as may be necessary for any construction lender for the Project to obtain possession of the Property by foreclosure or otherwise and recommence construction of the Project. 3 12-21-18 5. MISCELLANEOUS a. The parties hereto agree to meet and confer as necessary in furtherance of the objectives expressed in this Term-Sheet. b. The parties recognize and agree that if the proposal outlined in this Term Sheet moves forward, more detailed development agreement and supporting documents will be negotiated and prepared that will contain additional terms, conditions and obligations to the terms stated herein. c. The obligations of the City will all be made subject to appropriation of sufficient funds by the City Council of the City of Virginia Beach. d. In development of all elements of the Project (including the Hotel), PA Hotel will comply with the City's Small Business Supplier Diversity program("SBSD"). The requirements of the SBSD program are set forth on Exhibit C, attached hereto. e. The City will not approve any additional curb cuts along Princess Anne Road in connection with the Project or any development on the Option Property. Access to the Hotel Property and the Option Property shall be from Community College Place (with the Option Property's access first being across the Hotel Property). 4 12-21-18 EXHIBIT A (Property Location Map) I ; F.'::„T, !. i 1 ilgil 2 2 2 2 2 2 2 2,8.- ! 1-1.- 2 2 2 8 8,8 8,g: ''''.1 1 i A a ig 2,, A', 5 eilif,1 !� n - ala 5 i'■ S - 9' CS a 81 s;. '`4 x i •A ID a4;, 4 4/i ,--'., '_,, `tAt,� 1 _ i`^ ' MUNfTY CO \ ;' iu ,c„.0.24.,,1 ». Z uf, o j o.o• � wn 3 r ma.na nru �; g LlF - 1;i i-a - r- ii i ''''''c, OY " 0.t- )5-L.' a q° A7 Y.. d, s o sf ^i. E ars; :17,, •,�tt ygx � P4., -2../: ::1 <!- ° P'° /' o> ' �• iXz •z .,5- zi . 9. ▪ € p . 7 i 1i ia 1 '7▪ 4� i n ; 9 a to .'• ;ii �. m -T7. riiia 3' �' n SEF :`^' i m Z - _ i�:--'� 4 z R y ;gg S �'i Z m !10-1 4 0 - Z r. ■ _ x o A O ,. / `-- I,,§ a s s - iYI 88W !` I it t• 1 *. Vs 5 66!L (}Ol d cyy w U N I L >-. U 2in co N X K.) 71- Z Q 1 Q 12 0 CL co /E U �co �' + r . 0.) / / Luaj- f 1.0 • f X r /• r" ire 7. Z Q * (y: 0 - — 5 ' r ? II Iy N ; * . ** ti, N 7 ________: \i=t)4'1 -----1 r v / * Ut ; _ .) 11 ......71: Cclill * * 1\1111 / � b' —* a a * I / 44` Y` }I1 ki) II I ./0/1/Ptree,,,,,, 79 ITEM-VI-J.5 ORDINANCES/RESOLUTIONS ITEM#69043 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council ADOPTED, BY CONSENT, Ordinance to AMEND the Economic Development Investment Program (EDIP) Policy and Procedure re process for making and paying awards, and enhance reporting requirements Voting. 9-1 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Voting Nay: John D. Moss Council Members Absent: None March 19, 2019 1 ORDINANCE TO AMEND THE ECONOMIC 2 DEVELOPMENT INVESTMENT PROGRAM 3 ("EDIP") POLICY AND PROCEDURE 4 5 WHEREAS, on January 25, 1994, the City Council of the City of Virginia Beach 6 (the "City Council") and the City of Virginia Beach Development Authority (the 7 "Authority") approved the Economic Development Investment Program Policy and 8 Procedure (the "EDIP Policy") to ensure that the expenditure of Economic Development 9 Investment Program ("EDIP") funds is made in the public interest and is in furtherance 10 of the purposes for which the EDIP was established; 11 12 WHEREAS; on March 21, 2006 and March 28, 2006, the Authority and City 13 Council approved amendments to the EDIP Policy to further the City's goals to convert 14 certain property in APZ-1 and Clear Zones area to uses that conform to the APZ-1 15 Ordinance (the "APZ-1 Amendments"); 16 17 WHEREAS, on September 21, 2010 and September 28, 2010, the Authority and 18 City Council approved further amendments to the EDIP Policy to allow for 19 reimbursement of additional expenses, to allow incentives for additional job creation and 20 to clarify the APZ-1 Amendments; and 21 22 WHEREAS, on January 15, 2019, subject to City Council concurrence, the 23 Authority approved additional amendments to the EDIP Policy including clarification of 24 the process for making and paying awards, addition of certain reporting requirements, 25 and other modifications. 26 27 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 28 VIRGINIA BEACH, VIRGINIA: 29 30 1. That the amendments to the EDIP Policy are hereby approved in the form 31 attached hereto as Exhibit A; and 32 33 2. That the Mayor is hereby authorized to execute the amended EDIP Policy 34 on behalf of the City. 35 36 Adopted by the City Council of the City of Virginia Beach, Virginia, on the 19th 37 day of March , 2019 APPROVED AS TO CONTENT: APPROVED AS TO :L SUFFICIENCY: Eco 914 is Development City Attorney — CA 14398 \\vbgov corn\DFS1\Applications\CityLawProd\cycom32\W pdocs\D016\1.008100071334.DOC January 25, 2019 R-1 EXHIBIT A 2019 Revision (3-5-19) ECONOMIC DEVELOPMENT INVESTMENT PROGRAM POLICY AND PROCEDURE WHEREAS, the City of Virginia Beach Development Authority (the "Authority") was created pursuant to Chapter 643 of the Acts of Assembly of 1964, as amended and as codified by § 15.2-4900 et. seq. of the Code of Virginia (collectively, the "Act"); WHEREAS, one of the primary purposes of the Act is to enable development authorities "to promote industry and develop trade by inducing manufacturing, industrial, governmental, nonprofit and commercial enterprises to locate in or remain in the Commonwealth...."; WHEREAS, pursuant to § 15.2-4905(6), the Authority has the power, inter alia, "to sell, exchange, donate and convey any or all of its facilities or properties whenever its board of directors shall find any such action to be in furtherance of the purposes for which the authority was organized"; WHEREAS, pursuant to §7 of the Act, "the Authority may foster and stimulate the development of industry in the area within its jurisdiction... [and] may accept, and expend for the purposes stated above, money from any public or private source...."; WHEREAS, pursuant to § 10 of the Act, the City of Virginia Beach (the "City") "is authorized and empowered to make appropriations and to provide funds for the operation of the Authority and to further its purposes"; WHEREAS, the economic development goals and objectives of the City include achieving a higher ratio of nonresidential to residential real estate assessments, investing in land and infrastructure to benefit future economic growth, and maximizing the return of economic development efforts through the development and implementation of programs and strategies that facilitate new business investment and encourage retention and expansion activities thereby improving the overall quality of life in the City; WHEREAS, while the Authority and City desire to promote all sectors of growth, the Authority and the Department of Economic Development (the "Department") have identified certain industries to target for growth and expansion in the City (the "Key Industries"), and the Key Industries,which may be updated from time to time, are identified on the Department's website, www.yesvirginiabeach.com ; 1 WHEREAS, other than JEB Little Creek Fort Story, NAS Oceana is the single largest employer in the City, and investments and economic development efforts aimed at retaining NAS Oceana as a master jet base are critical to the City's economic "health"; WHEREAS,the City has established the Economic Development Investment Program ("EDIP") as part of its overall effort to enhance the City's ability to accomplish these goals and objectives; WHEREAS, pursuant to the authority and empowerment set forth in §10 of the Act, City Council has determined that it would be in the best interests of the City to provide EDIP appropriations to the Authority to enable the Authority to more effectively continue its efforts to foster and stimulate economic development by (i) inducing businesses to locate or remain in the City; and (ii) providing incentives to qualifying developers and property owners for the development or redevelopment of under improved or underdeveloped properties, or brownfields, grey fields, or abandoned or blighted properties in areas of the City which have been designated as "Strategic Growth Areas". "Special Economic Growth Areas", "Economic Redevelopment Areas" or "Opportunity Zones"(as defined in the Internal Revenue Code), including infill development within such areas. Collectively, Strategic Growth Areas, Special Economic Growth Areas, Economic Redevelopment Areas, and Opportunity Zones may be referred to herein as"Target Areas;" and WHEREAS, the City and the Authority have agreed that the provision of funds in the EDIP account to the Authority for economic development purposes, and the subsequent provision of such funds by the Authority to qualifying recipients, should be subject to policies and procedures which will ensure that the expenditure of such funds is in the public interest and is in furtherance of the purposes for which the EDIP was established; and WHEREAS, awards made under this Policy are at the sole legislative discretion of the Authority, and nothing herein should be deemed or interpreted as an entitlement to an award. NOW, THEREFORE, the City of Virginia Beach and the City of Virginia Beach Development Authority hereby adopt the following Economic Development Investment Program Policy and Procedures (the "Policy'): DEFINITIONS: Unless otherwise defined, the following terms shall have the following meanings in this Policy: 2 a. "Capital Investment" means a capital expenditure in taxable real property, taxable tangible personal property, or both at the Project in the City of Virginia Beach. The Authority may, in its discretion, determine that the value of machinery and equipment leased under an operating lease will qualify as a capital investment. The Authority may also, in its discretion, consider Capital Investments made by third parties at the Project for the overall benefit of the Project, and/or the value of moveable equipment retained by a business that was considering relocating outside of the City of Virginia Beach. b. "New Job" means a permanent full-time employment of an indefinite duration at the Project, for which the standard fringe benefits are provided by the company for the employee. Each new job must require a minimum of either(i)35 hours of an employee's time per week for the entire normal year of the company's operations, which "normal year" must include at least 48 weeks, or (ii) 1,680 hours per year. c. "Project" means the facility or facilities where a recipient of an award under this Policy has located from outside the City of Virginia Beach, or remained in the City of Virginia Beach or expanded its operations within the City of Virginia Beach and for which Capital Investment, New Jobs or direct tax revenues returned to the City are considered as a basis for an award under this Policy. d. "Applicant" means the business, owner, or developer that submits an application pursuant to this Policy. PART A: POLICY AND PROCEDURE FOR THE PROVISION OF EDIP FUNDS TO QUALIFYING BUSINESSES. 1. PURPOSE AND INTENT. The animating purpose of Part A of the EDIP shall be to enhance the ability of the Authority to implement the purposes set forth in the Act including, without limitation, to foster and stimulate economic development in the City by inducing (i) new businesses to locate in the City, (ii) existing businesses to remain in the City, and (iii) existing businesses to expand their operations. 2. INVESTMENT CRITERIA. Except as otherwise provided in paragraph 4 of this Part A, EDIP funds may be awarded pursuant to Part A of this Policy where the Director of the Department(the "Director")has determined, and has advised the Authority that one or more of the following criteria have been met: a. The net amount of direct tax revenues returned to the City by a Project to which EDIP funds are provided will exceed the amount of EDIP funds so 3 provided no later than thirty-six (36) months from the date on which the Project commences operations at a new or renovated facility; and/or b. For every one dollar ($1) in EDIP funds provided, at least twenty-five dollars ($25) of Capital Investment will be made or if appropriate, retained, at the Project for which the award is granted; and/or c. Every one thousand dollars ($1,000) in EDIP funds provided will yield at least one (1) New Job in the Project to which such EDIP funds are provided. However, (i) up to two thousand dollars ($2,000) shall be available for a Project that creates New Jobs in the Project for which such EDIP funds are provided, where such employment opportunities pay an average of $35,001 to $50,000, excluding benefits, (ii) up to three thousand dollars ($3,000)shall be available for a Project that creates New Jobs in the Project for which such EDIP funds are provided, where such employment opportunities pay an average of $50,001 to $75,000, excluding benefits, and (iii) up to four thousand dollars ($4,000) shall be available for a Project that creates New Jobs in the Project for which such EDIP funds are provided, where such employment opportunities pay an average of over $75,001, excluding benefits. For New Jobs paying an average up to $35,000 the business must demonstrate associated workforce development training costs. For any job to qualify for an award, that position must be filled for at least one year. These criteria shall be reviewed by the Director and the Director of the Department of Department of Management Services on a biennial basis. Specifically included in such review is the examination of whether the dollar thresholds in this Section 2 require adjustment to reflect changes in the CPI or cost of construction. The Director shall recommend any appropriate revisions to the City Council and the Authority for further consideration and action. In addition to the foregoing criteria, it is the goal of the Authority to approve EDIP awards to Projects that pay an average annual salary of at least $35,000 (excluding benefits). However,the Authority reserves the right to deviate from this goal in exceptional cases and for good cause shown. 3. QUALIFYING USES FOR PART A FUNDS. EDIP funds under Part A of this Policy may be used throughout the City for the following purposes: office, industrial, commercial and mixed-use development, or such other uses where the Director has demonstrated a need for the proposed use in that part of the City. In determining whether to award EDIP funds for other uses, the Authority shall consider (i) whether the proposed use is consistent with the goals of the SGA or SEGA where the Project is located, and (ii) whether the Project meets the City's Investment Partnership Guidelines, and (iii) 4 whether the Project will meet an underserved need in the City or further the growth of the Key Industries. 4. APPLICATION FOR EDIP AWARD. An Applicant who desires EDIP funds for a Project in the City of Virginia Beach may apply for that purpose through the Department. The form of the application is attached hereto as Exhibit A. The Applicant shall also complete the City of Virginia Beach Disclosure Statement Form, also attached hereto as Exhibit B. The Applicant shall identify in writing any confidential or proprietary information contained in or provided with the application at the time of submission. The failure to mark such materials may result in the disclosure by the City or the Authority pursuant to applicable open records laws. If, on review by the City, it is determined that the designated information may not be kept confidential by the City, the document containing same will be redacted or returned to the party submitting it. The Applicant shall submit such additional information and documentation concerning its application as may be required by the Director. The Director shall review the application and information submitted and may, if the Director finds that the Project described in the application meets the requirement of this Part A, recommend to the Authority that it award EDIP funds for the Project. The Director's recommendation shall be in writing and shall include the proposed amount of the award and basis therefore under this Policy. This recommendation may take the form of the written presentation made to the Authority in a closed session. As set forth more fully in Section 6, an EDIP award must be approved by a formal vote in an open session of the Authority. Once an award is approved, the recommendation of the Director and all non-confidential or proprietary portions of the application will become public records. 5. COUNCIL APPROVAL OF CERTAIN EDIP AWARDS. If the Director, acting on behalf of the Authority, determines the need to provide EDIP funds for the Project, but the criteria set forth in paragraph 2 of this Part A have not been met, the Authority shall obtain specific approval from City Council prior to its approval of the provision of EDIP funds for such purpose 6. AUTHORITY FINDINGS AND ACTION. Upon consideration of the recommendation of the Director, the Authority may, by a recorded majority vote at a public meeting, approve the proposed provision of EDIP funds for the Project. The Authority shall not be required to approve the Director's recommendation, but shall exercise its legislative discretion in determining whether, and to what extent, the Applicant's proposed Project satisfies Part A of this Policy and the Authority's objective of fostering and stimulating the development of industry in the City. Provided, however, that prior to approval, the Authority must make all the following findings: a. That the animating purpose of the proposed provision of EDIP funds for the Project is to serve the public purpose of fostering and stimulating economic development in the City of Virginia Beach; 5 b. that the expenditure of such EDIP funds will only incidentally enure to the benefit of private interests, if at all; c. That the proposed provision of EDIP funds for the Project is in furtherance of the purposes for which the Authority was created; d. That without the stimulus of the EDIP award, it is unlikely that the Applicant would locate, remain or expand in the City; and e. That as of the date the Director presents his or her recommendation to the Authority in closed session, the Project has not yet commenced construction of its proposed improvements. Consideration in a closed session does not indicate approval and any investment or expenditure made by the Applicant is done at the sole risk of the Applicant. Further, if an award is not approved within seventy (70) days of the date of closed session, no investments made prior to seventy (70) days of the date of the approval of the award in open session will be considered for reimbursement under the award. f. The Applicant for an award shall certify to the Authority that the findings in section (d) and (e), above, are true and accurate at the time of the Authority's vote on an award. 7. APPROVAL OF AWARD OF EDIP FUNDS. Approval by the Authority of the provision of EDIP funds to a specific business pursuant to this Part A shall be in the form of a resolution which shall include the following information: a. The name of the Applicant, and the location and a brief description of the Project to which the funds will be provided; b. The amount of EDIP funds that will be provided; c. The purpose or purposes for which the EDIP funds will be provided; d. A statement that the criteria set forth in paragraph 2 of this Part A have been met; or, in the alternative, that City Council has specifically approved provision of EDIP funds for such purpose pursuant to paragraph 5 of this Part A; and e. A statement that the findings set forth in paragraph 6 of this Part A have been made by the Authority. 6 PART B: POLICY AND PROCEDURE FOR THE PROVISION OF EDIP FUNDS TO QUALIFYING DEVELOPERS AND PROPERTY OWNERS FOR THE DEVELOPMENT OR REDEVELOPMENT OF PROPERTIES IN STRATEGIC GROWTH AREAS, SPECIAL ECONOMIC GROWTH AREAS, ECONOMIC REDEVELOPMENT AREAS, OR OPPORTUNITY ZONES. 1. PURPOSE AND INTENT. It is recognized that within the City there are areas that are currently brownfields, greyfields or vacant, abandoned, under improved or underdeveloped with improvements or land uses which are not economically viable,but, if developed, should stimulate industry and economic development within the City. Moreover, such properties and areas, if developed or redeveloped, may reasonably be expected to (i) generate additional tax revenue as a result of Capital Investment; (ii) create additional job opportunities; (iii) influence similar redevelopment and additional investment in nearby properties;(iv) further the goals of the Comprehensive Plan and be consistent with the City's Economic Development Strategy and good zoning principles; and (v) lead to the establishment of safe and convenient neighborhoods and workplaces. Accordingly, it is the animating purpose of the Economic Development Investment Program under Part B of this Policy to enhance the ability of the City of Virginia Beach Development Authority to foster and stimulate economic development in the City by providing incentives for the development or redevelopment of properties described herein. 2. ECONOMIC REDEVELOPMENT AREAS, SPECIAL ECONOMIC GROWTH AREAS, STRATEGIC GROWTH AREAS AND OPPORTUNITY ZONES. The Directors of the Department and the Planning Department shall identify areas of the City (i) that are currently brownfields, greyfields, or vacant, abandoned, under improved or underdeveloped, and (ii) which should be considered for redevelopment or special development opportunities, but may lie outside of the Strategic Growth Areas as set forth in the City's Comprehensive Plan. Such areas shall be known as "Economic Redevelopment Areas". Once identified, an Economic Redevelopment Area must be submitted to the City Council for designation as such by ordinance. To qualify for EDIP funds under Part B of this Policy, a developer or owner of property must demonstrate that the subject property is located within a Target Area. For purposes of this Policy, the term "brownfields" means vacant, abandoned or under improved real property large enough to support significant expansion, redevelopment or reuse,but for which such expansion,redevelopment or reuse is complicated by the presence of a substantial amount of hazardous substances, pollutants, or contamination. The term "greyfields" means underperforming, declining or vacant real estate. 3. QUALIFYING LAND USES. EDIP funds under Part B of this Policy may be provided for office, industrial, retail, hotel and mixed use development (including high density and multi-family residential uses). 7 4. INVESTMENT CRITERIA. EDIP funds may be awarded pursuant to Part B of this Policy in such instances where the Director has determined, and has advised the Authority, that both of the following criteria have been met: a. The net amount of direct tax revenues returned to the City as a result of the Project for which the EDIP funds are provided will exceed the amount of the EDIP funds provided no later than 48 months following the payment of the EDIP award; or where flexibility for tax abatement has been granted by the City, the amount of direct tax revenues not abated as a result of the Project for which EDIP funds are provided will exceed the amount of the EDIP funds provided no later than 48 months following the payment of the EDIP award; and b. For every one dollar ($1) in EDIP funds provided, twelve and 50/100 dollars ($12.50) or more in new Capital Investment will be made at the Project. The foregoing investment criteria and required return to the City shall be interpreted as being a threshold for consideration for the award of EDIP funds. No award of such EDIP funds may be made unless all other requirements of Part B of this Policy are satisfied and all findings stated in Part B of this Policy are made. The Authority shall have complete discretion as to the award of EDIP funds and the amount of EDIP funds awarded, as well as whether or not the criteria have been met. 5. AVAILABILITY OF FUNDS. EDIP funds may be authorized for use pursuant to Part B of this Policy only to the extent that they have been appropriated by the City Council. Further, provided that in any given fiscal year, the Authority shall not award more than fifty percent (50%) of its annual appropriation for EDIP use pursuant to Part B of this Policy without authorization of the City Council. 6. APPLICATION FOR EDIP AWARD.An Applicant who desires EDIP funds for a Project located in a Target Area may apply for that purpose through the Department. The form of the application is attached hereto as Exhibit A. The Applicant shall also complete the City of Virginia Beach Disclosure Statement Form, also attached hereto as Exhibit B. The Applicant shall identify in writing any confidential or proprietary information contained in or provided with the application at the time of submission. The failure to mark such materials may result in the disclosure by the City or the Authority pursuant to applicable open records laws. If, on review by the City, it is determined that the designated information may not be kept confidential by the City, the document containing same will be redacted or returned to the party submitting it. The Applicant shall submit such additional information and documentation concerning its application as may be required by the Director, including any certifications as required by this Policy. The Director shall review the application and information submitted and may, if the Director 8 finds that the Project described in the application satisfies all requirements of this Part B, recommend to the Authority that it award EDIP funds for the Project. The Director's recommendation shall be in writing and shall include the proposed amount of the award and basis therefore under this Policy. This recommendation may take the form of the written presentation made to the Authority in a closed session. As set forth more fully in Section 7, an EDIP award must be approved by a formal vote in an open session of the Authority. Once an award is approved, the recommendation of the Director and all non- confidential or proprietary portions of the application will become public records. In determining whether to recommend that EDIP funds be awarded for the Project, the Director shall find as follows: a. Whether the provision of EDIP funds is necessary to stimulate the development or redevelopment of the Project area; and b. Whether the Project satisfies the investment criteria set forth in paragraph 4 of this Part B. Additionally, the Director may consider the following: c. The amount of EDIP funds remaining and available for use pursuant to this Part B of the Policy for the fiscal year. d. The economic return to the City generated by the Project in addition to the criteria set forth in paragraph 4 of this Part B e. The expertise and experience of the Applicant in redeveloping brownfields, greyfields, abandoned, blighted, under improved and underdeveloped properties. f. The degree to which the Project may influence development or redevelopment within the applicable Target Area and adjacent or nearby properties. g. The extent to which the Project may serve to implement a change in use which is consistent with and/or furthers the goals of the Comprehensive Plan, the City's Economic Development Strategy. h. The number and types of jobs which the development or redevelopment may expect to generate. i. The amount of the Applicant's Capital Investment in the Project. 9 j. The extent to which the Project incorporates mixed uses, provides open space and focuses on transportation and transit accessibility. 7. COUNCIL APPROVAL OF CERTAIN EDIP AWARDS. If the Director, acting on behalf of the Authority, determines the need to provide EDIP funds for the Project, but the criteria set forth in paragraph 4 of this Part B have not been met, the Authority shall obtain specific approval from City Council prior to its approval of the provision of EDIP funds for such purpose 8. AUTHORITY FINDINGS AND ACTION. Upon consideration of the recommendation of the Director,the Authority may, by a recorded majority vote at a public meeting, approve the award of EDIP funds to the Applicant. The Authority may attach conditions to the approval of the award of EDIP funds. In the case of a brownfield property, the Authority shall attach the condition that prior to receiving EDIP funds, the recipient of EDIP funds shall provide to the Authority evidence of all permits or approvals as required by state, federal and local regulatory agencies and compliance therewith The Authority shall not be required to approve the Director's recommendation, but shall exercise its legislative discretion in determining whether, and to what extent, the Applicant's proposed Project satisfies Part B of this Policy and the Authority's objective of fostering and stimulating the development of industry in the City. Provided, however, that prior to approval of the award of EDIP funds for the Project,the Authority must make the following findings: a. That the animating purpose of the proposed provision of EDIP funds for the Project is to serve the public purpose of fostering and stimulating economic development in the City of Virginia Beach; and b. That the expenditure of such EDIP funds will only incidentally enure to the benefit of private interests, if at all; c. That the proposed provision of EDIP funds for the Project is in furtherance of the purposes for which the Authority was created; d. That without the stimulus of the EDIP award, it is unlikely that the Applicant would locate, remain or expand in the City; e. That as of the date the Director presents his or her recommendation to the Authority in closed session, the Project has not yet commenced construction of the proposed improvements. Consideration in a closed session does not indicate approval and any investment or expenditure made by the Applicant is done at the sole risk of the Applicant. Further, if an award is not approved within seventy (70) days of the date of closed session, no investments made prior to seventy (70) days of the date of the 10 approval of the award in open session will be considered for reimbursement under the award; f. The Applicant for an award shall certify to the Authority that the findings in section (d) and (e), above, are true and accurate at the time of the Authority's vote on an award; g. That the property has been designated (or is in an area which has been designated) as a Target Area; h. That the Project is consistent with the City's Comprehensive Plan, and the City's Economic Development Strategy, as amended; and i. That the Project as proposed, will serve to influence redevelopment and additional capital investment in adjacent or nearby properties. 9. APPROVAL OF THE AWARD OF EDIP FUNDS. Approval by the Authority of the provision of EDIP funds pursuant to this Part B shall be in the form of a resolution which shall include the following information: a. The name of the Applicant , and the location and a brief description of the Project; b. The amount of EDIP funds that will be provided; c. The purpose or purposes for which the EDIP funds are to be provided; d. A statement that the criteria set forth in paragraph 4 of this Part B have been met; e. A statement that the findings set forth in paragraph 7 of this Part B have been made by the Authority; and f. Any conditions to the approval of the award of the EDIP funds by the Authority. 10. ALTERNATIVE USES OF PART B FUNDS BY THE AUTHORITY TO PURCHASE AND IMPROVE PROPERTY IN A STRATEGIC GROWTH AREA, SPECIAL ECONOMIC GROWTH AREA ECONOMIC REDEVELOPMENT AREA OR AN OPPORTUNITY ZONE. The Authority may use EDIP funds to purchase and improve property within a Target Area. Prior to the approval of the use of EDIP funds for such acquisition, the Authority must find that: 11 a. The property is located within a Target Area; and b. The acquisition and/or improvement of the property by the Authority and its subsequent development or redevelopment will be in conformity with and/or furthers the goals of the City's Comprehensive Plan, the City's Economic Development Strategy,the APZ-1 Ordinance, as amended, and Part B of this Policy. In addition to any property purchased using EDIP funds pursuant to paragraph 10 of this Part B, the Authority may also use EDIP funds for the following improvements to such property: (i) the installation of infrastructure; (ii) the demolition of existing structures; or(iii)the remediation or cleanup of adverse environmental conditions. The Authority may dispose of such property in accordance with state law and may subsequently sell such property to a private party for development or redevelopment. In the event of such sale, the Authority shall attach appropriate conditions to assure that the development or redevelopment is in conformity with and/or furthers the goals of the City's Comprehensive Plan, the City's Economic Development Strategy, the APZ-1 Ordinance, as amended, and is in furtherance of the objectives of Part B of this Policy. The proceeds of any property purchased by the Authority and sold pursuant to paragraph 10 of this Part B shall be returned to the EDIP fund account. PART C: POLICY AND PROCEDURE FOR THE PROVISION OF EDIP FUNDS TO QUALIFYING DEVELOPERS AND PROPERTY OWNERS FOR THE DEVELOPMENT OR REDEVELOPMENT OF PROPERTIES IN APZ-1 OR THE CLEAR ZONES. 1. PURPOSE AND INTENT. It is recognized that within the City there are areas that are not advancing the City's purpose of retaining NAS Oceana as a master jet base in Virginia Beach, but, if developed with conforming uses, should stimulate industry and economic development within the City. Moreover, such properties and areas, if developed or redeveloped, may reasonably be expected to (i) generate additional tax revenue as a result of Capital Investment; (ii) influence similar redevelopment and additional investment in nearby properties;(iii) further the goals of the Comprehensive Plan and be consistent with the City's Economic Development Strategy and good zoning principles; (iv) in the APZ-1 and Clear Zone areas, encourage the conversion of property that does not conform to the City's zoning amendments adopted in response to the BRAC Order on December 20, 2005 (the"APZ-1 Ordinance")to uses that do conform to the APZ- 1 Ordinance, including the relocation of nonconforming properties to areas of the City outside the APZ-1 and Clear Zones and the location of conforming properties within the APZ-1; and (v) lead to the establishment of safe and convenient neighborhoods and workplaces. Accordingly, it is the animating purpose of the Economic Development Investment Program under Part C of this Policy to enhance the ability of the Authority to 12 foster and stimulate economic development in the APZ-1 by providing incentives for the development or redevelopment of properties as described herein. 2. APZ-1 AND THE CLEAR ZONES. The term "APZ-1" means Accident Potential Zone 1 and the areas identified as APZ-1 on the 1999 "Air Installations Compatible Use Zones" ("AICUZ") pamphlet published by the U.S. Department of the Navy. The term "Clear Zones" are those areas designated as "Clear Zones" on the 1999 AICUZ pamphlet. 3. QUALIFYING LAND USES. EDIP funds under Part C of this Policy may be provided only for uses consistent with the APZ-1 Ordinance and any amendments thereto. 4. INVESTMENT CRITERIA. a. For Areas located in the APZ-1 or Clear Zones, EDIP funds may be awarded pursuant to Part C of this Policy in such instances where the Oceana Land Use Conformity Committee has determined, and has advised the Director, that the Project for which EDIP funds will be provided will have the effect of furthering the goals of the Oceana Land Use Conformity Program, including bringing new uses into APZ-1 areas that conform to the APZ-1 Ordinance, converting nonconforming uses to conforming uses, retaining conforming uses in APZ-1, and relocating nonconforming uses in APZ-1 and Clear Zones to other areas of the City where such uses would be consistent with the Comprehensive Plan and the City Zoning Ordinance. The Director shall advise the Authority of all determinations and recommendations made by the Oceana Land Use Conformity Committee ("OLUCC"). b. In determining the amount of the award recommended to OLUCC, the Director shall determine whether both the following criteria have been met: (i) The net amount of direct tax revenues returned to the City as a result of the Project for which the EDIP funds are provided will exceed the amount of the EDIP funds provided no later than 48 months following the payment of the EDIP award; or where flexibility for tax abatement has been granted by the City, the amount of direct tax revenues not abated as a result of the Project for which EDIP funds are provided will exceed the amount of the EDIP funds provided no later than 48 months following the payment of the EDIP award; and/or 13 (ii) For every one dollar ($1) in EDIP funds provided, the Applicant of the Project for which such funds are provided will spend ten and 50/100 dollars($10.50) or more in new Capital Investment, including buildings, furnishings, and/or equipment. The foregoing investment criteria and required return to the City shall be interpreted as being a threshold for consideration for the award of EDIP funds. No award of such EDIP funds may be made unless all other requirements of Part C of this Policy are satisfied and all findings stated in Part C of this Policy are made. The Authority shall have complete discretion as to the award of EDIP funds and the amount of EDIP funds awarded, as well as whether or not the criteria have been met. 5. ADDITIONAL USES OF FUNDS UNDER PART C. A qualifying owner of land located in APZ-1 or the Clear Zones who desires to (i) move a nonconforming use of that land out of APZ-1 or the Clear Zones and into another part of the City where the use is compatible and(ii) if owner retains ownership of the subject land, agrees to restrict the further use of that land to uses compatible with those allowed in the APZ-1 Ordinance, shall be entitled to apply for an award of up to $75,000 to offset actual moving expenses incurred in moving the said nonconforming use out of APZ-1 or the Clear Zones. 6. AVAILABILITY OF FUNDS. The City Council specifically appropriates funds for EDIP use in APZ-1 and Clear Zone areas, It is anticipated that such funds for EDIP use in APZ-1 and Clear Zone areas will be made available from CIP 9-037 (Oceana and Interfacility Traffic Area Conformity and Acquisition II). 7. APPLICATION FOR EDIP AWARD. An Applicant who desires EDIP funds for use in a Project located in APZ-1 or the Clear Zones may apply for that purpose through the Department. The form of the application is attached hereto as Exhibit A. the Applicant shall also complete the City of Virginia Beach Disclosure Statement Form, attached hereto as Exhibit B. The Applicant shall identify in writing any confidential or proprietary information contained in or provided with the application at the time of submission. The failure to mark such materials may result in the disclosure by the City or the Authority pursuant to applicable open records laws. If, on review by the City, it is determined that the designated information may not be kept confidential by the city, the document containing same will be redacted or returned to the party submitting it. The Applicant shall submit such additional information and documentation concerning its application as may be required by the Director. The Director shall review the application and information submitted and may, if the Director finds that the Project described in the application satisfies all requirements of this Part C, recommend to the Authority that it award EDIP funds for the Project. The Director's recommendation shall be in writing and shall include the proposed amount of the award and basis therefore under this Policy. This recommendation may take the form of the written presentation made to the Authority in a closed session. As set forth more fully in Section 4, an EDIP award must be approved by 14 a formal vote in an open session of the Authority. Once an award is approved, the recommendation of the Director and all non-confidential or proprietary portions of the application will become public records. In determining whether to recommend that EDIP funds be awarded to for the Project, the Director shall find as follows: a. Whether the provision of EDIP funds is necessary to stimulate the development or redevelopment of the property/area; and b. Whether the Project satisfies the investment criteria set forth in paragraph 4 of this Part C. c. Whether the Project is consistent with the APZ-1 Ordinance. Additionally, the Director may consider the following: d. The amount of EDIP funds remaining and available for use pursuant to this Policy for the fiscal year. e. The economic return to the City generated by the Project. f. The expertise and experience of the Applicant in redeveloping brownfields, greyfields, abandoned, blighted, under improved and underdeveloped properties. g. The degree to which the Project may influence compatible development or redevelopment within the APZ-1 and development of adjacent or nearby properties. h. The extent to which the Project may serve to implement a change in use which is consistent with and/or furthers the goals of the Comprehensive Plan, the City's Economic Development Strategy, and the APZ-1 Ordinance, as amended. i. The amount of the Applicant's Capital Investment in the Project. j. The value of moving a use of property that is inconsistent with the APZ- 1 Ordinance out of the APZ-1 or the Clear Zones. 8. COUNCIL APPROVAL OF CERTAIN EDIP AWARDS. If the Director, acting on behalf of the Authority, determines the need to provide EDIP funds for the Project, but the criteria set forth in paragraph 4 of this Part C have not been met, the Authority shall obtain specific approval from City Council prior to its approval of the provision of EDIP funds for such purpose 15 9. AUTHORITY FINDINGS AND ACTION. Upon consideration of the recommendation of the Director,the Authority may,by a recorded majority vote at a public meeting, approve the award of EDIP funds to for the Project. The Authority may attach conditions to the approval of the award of EDIP funds. The Authority shall not be required to approve the Director's recommendation, but shall exercise its legislative discretion in determining whether, and to what extent, the Applicant's proposed Project satisfies Part C of this Policy and the Authority's objective of fostering and stimulating the development of industry in the City, including the retention of NAS Oceana as a master jet base. Provided, however, that prior to approval of the award of EDIP funds for the Project, the Authority must make the following findings: a. That the animating purpose of the proposed provision of EDIP funds for the Project is to serve the public purpose of fostering and stimulating economic development in the City of Virginia Beach, including the retention of NAS Oceana as a master jet base; and b. That the expenditure of such EDIP funds will only incidentally enure to the benefit of private interests, if at all; c. That the proposed provision of EDIP funds for the Project is in furtherance of the purposes for which the Authority was created; d. That without the stimulus of the EDIP award, it is unlikely that the property would be developed or redeveloped to the extent proposed, or at the current time; e. That as of the date of application for the EDIP award, the Applicant had not yet commenced construction of the Project; f. That without the stimulus of the EDIP award, it is unlikely that the Applicant would locate, remain or expand in the City; g. That as of the date the Director presents his or her recommendation to the Authority in closed session, the Applicant had not yet commenced construction of the Project. Consideration in a closed session does not indicate approval and any investment or expenditure made by the Applicant is done at the sole risk of the Applicant. Further, if an award is not approved within seventy (70) days of the date of closed session, no investments made prior to seventy (70) days of the date of the approval of the award in open session will be considered for reimbursement under the award; 16 h. The Applicant for an award shall certify to the Authority that the findings in section (e), (1) and (g), above, are true and accurate at the time of the Authority's vote on an award; i. That the property is in APZ-1 or the Clear Zones; j. That the proposed Project is consistent with the City's Comprehensive Plan, the City's Economic Development Strategy and the APZ-1 Ordinance, as amended; k. That the scope and quality of the Project will serve to influence redevelopment and additional capital investment in adjacent or nearby properties or, in APZ-1 and Clear Zones, will foster the retention of NAS Oceana as a master jet base; and 1. The Oceana Land Use Conformity Committee has endorsed in writing the award of EDIP funds as proposed by the Authority 10. APPROVAL OF THE AWARD OF EDIP FUNDS. Approval by the Authority of the provision of EDIP funds pursuant to this Part C shall be in the form of a resolution which shall include the following information: a. The name of the Applicant, and the location and a brief description of the Project; b. The amount of EDIP funds that will be provided; c. The purpose or purposes for which the EDIP funds are to be provided; d. A statement that the criteria set forth in paragraph 4 of this Part C have been met; e. A statement that the findings set forth in paragraph 9 of this Part C have been made by the Authority; and f. Any conditions to the approval of the award of the EDIP funds by the Authority. 11. ALTERNATIVE USES OF PART C FUNDS BY THE AUTHORITY TO RETAIN A REAL ESTATE BROKER. The Authority may use EDIP funds to retain a licensed real estate broker to sell property located in APZ-1 or the Clear Zones and owned by the Authority or the City. The Authority is authorized to pay a commission to that broker in an amount not to exceed the following: 17 Sale Price Cumulative Commission Rate $ 0 - $500,000 5% $500,001 - $1,000,000 3% $1,000,001 and up 2% PART D: GENERAL PROVISIONS APPLICABLE TO PARTS A, B AND C. 1. SEPARATE ACCOUNT FOR EDIP FUNDS. EDIP funds shall be maintained by the Authority in a separate account and shall not be commingled with other Authority funds. 2. EDIP FUND EXPENDITURES. All expenditures of EDIP funds shall be in keeping with this Policy and may enure only incidentally to the benefit of private interests. In addition to the use of EDIP funds pursuant to Parts A, and B or C of this Policy, EDIP funds may also be utilized to conduct appraisals, financial and market studies, and architectural and engineering studies directly related to specific economic development initiatives and/or projects being conducted by the Authority on behalf of the City. 3. PAYMENT OF EDIP FUNDS. a. When EDIP funds are awarded pursuant to either Part A or Part B this Policy, they shall be paid to the Applicant at such time as the Director shall (i) obtain copies such records from the Applicant (including all contractors or subcontractors) necessary to document the actual costs incurred for the purpose or purposes for which the funds are to be provided; (ii) determine that the Project is in conformity with the plan of development presented to the Authority and with all conditions which may have been attached to the approval of the award of the EDIP funds by the Authority; and (iii) where required by the Authority(such as when a majority of the justification for an EDIP award is for the acquisition of personalty that could be removed from the City of Virginia Beach), the Applicant shall execute and deliver to the Authority an EDIP Recapture Agreement in a form acceptable to counsel for the Authority. b. Each resolution approving an EDIP award under this Policy shall contain a statement of the amount of Capital Investment to be made and/or New Jobs to be added as a basis for the award of EDIP funds approved. Notwithstanding anything to the contrary in this Policy, the resolution shall also direct that the full amount of the EDIP award approved shall not be paid unless at least eighty-five percent (85%) of the Capital Investment and/or New Jobs are actually made and/or added or retained. 18 c. If moveable equipment in the City of Virginia Beach at the time of an EDIP award is to be considered as a basis for the calculation of Capital Investment, the resolution shall contain a statement of the value of such movable equipment at the time of the EDIP award. d. The Director shall compile a written report for each EDIP award paid documenting the methodology employed, records reviewed and steps undertaken to ensure compliance with the terms of this Policy. The report shall include sufficient information to determine compliance with the Capital Investment and/or New Job requirement(s) of Section 3(b), above. This report shall be provided to the Commissioners at their monthly financial briefing. 4. SPECIFIC PURPOSES FOR THE USE OF EDIP FUNDS. When EDIP funds are awarded for a Project pursuant to this Policy, such funds shall be used only for the following purposes: a. Public and private utility extension or capacity development on and off site; b. Road, rail, or other transportation access costs beyond the funding capability of existing programs; c. Public and private installation, extension or capacity development of highspeed of broadband Internet access, whether on or off site; d. Site acquisition; e. Grading, drainage, paving, and any other activity required to prepare a site for construction; f. Construction or buildout of publicly or privately owned buildings; g. Training costs; h. Purchase and installation of tangible business property,located in the City of Virginia Beach, in the following categories: • Machinery and Tools; • Tangible personal property used for research and Development; 19 • Computer hardware used by businesses primarily engaged in providing data processing services to other nonrelated or affiliated businesses; • Programmable computer equipment and peripherals employed in a trade or business (not individual workstations); • Tangible personal property used in the provision of Internet services; • Equipment used primarily for research, development, production or provision of biotechnology for the purpose of providing products or processes for specific commercial or public purposes; • Tangible property designed and used primarily for the purpose of manufacturing a product from renewable energy. 5. REPORTING. The Authority shall provide City Council annual reports, outlining, in detail, the manner in which the EDIP funds were provided. Such reports shall include, at a minimum, the information required by subsections a, b, and c of paragraph 6 of Part A, subsections a, b, and c of paragraph 8 of Parts B and C, and information demonstrating compliance with the provisions of this Policy and Procedure. 6. AMENDMENTS TO POLICY. The provisions of this Policy shall not be amended without the prior consent and approval of the City Council and the Authority. 7. APPLICATION OF POLICY. This Policy is specifically applicable to the expenditure of EDIP funds. This Policy is not intended to be, nor shall it be deemed to be, applicable to the use of public funds from any source other than the EDIP. 8. EFFECTIVE DATE OF POLICY. This Policy shall become effective immediately upon its approval by the City of Virginia Beach and the City of Virginia Beach Development Authority, which approval shall be evidenced by signature of the Mayor of the City of Virginia Beach and the Chair of the City of Virginia Beach Development Authority acting by, and on behalf of, the City and the Authority, respectively. Mayor, City of Virginia Beach Chair, City of Virginia Beach Development Authority Approved as to Content: Approved as to Legal Sufficiency: Economic Development City Attorney 20 2019 Revision (1-15-19) ECONOMIC DEVELOPMENT INVESTMENT PROGRAM POLICY AND PROCEDURE WHEREAS, the City of Virginia Beach Development Authority (the "Authority") was created pursuant to Chapter 643 of the Acts of Assembly of 1964, as amended (the "Act"); WHEREAS, one of the primary purposes of the Act is to enable development authorities "to promote industry and develop trade by inducing manufacturing, industrial, governmental and commercial enterprises to locate in or remain in the Commonwealth...."; WHEREAS, pursuant to § 6 of the Act, the Authority has the power, inter alia, "to sell, exchange, donate and convey any or all of its facilities or other properties whether realty or personalty whenever the Authority shall find any such action to be in furtherance of the purposes for which the Authority was organized"; WHEREAS, pursuant to §7 of the Act, "the Authority may foster and stimulate the development of industry in the area within its jurisdiction... [and] may accept, and expend for the purposes stated above, money from any public or private source...."; WHEREAS, pursuant to § 10 of the Act, the City of Virginia Beach (the "City") "is authorized and empowered to make appropriations and to provide funds for the operation of the Authority and to further its purposes"; WHEREAS, the economic development goals and objectives of the City include achieving a higher ratio of nonresidential to residential real estate assessments, investing in land and infrastructure to benefit future economic growth, and maximizing the return of economic development efforts through the development and implementation of programs and strategies that facilitate new business investment and encourage retention and expansion activities thereby improving the overall quality of life in the City; WHEREAS, while the Authority and City desire to promote all sectors of growth, the Authority and the Department of Economic Development (the "Department") have identified certain industries to target for growth and expansion in the City (the "Key Industries "), and the Key Industries, which may be updated from time to time, are identified on the Department's website, www.yesvirginiabeach.com ; WHEREAS. other than JEB Little Creek Fort Story, NAS Oceana is the single largest employer in the City. and investments and economic development efforts 1 aimed at retaining NAS Oceana as a master jet base are critical to the City's economic "health"; WHEREAS,the City has established the Economic Development Investment Program ("EDIP") as part of its overall effort to enhance the City's ability to accomplish these goals and objectives; WHEREAS, pursuant to the authority and empowerment set forth in §10 of the Act, City Council has determined that it would be in the best interests of the City to provide EDIP appropriations to the Authority to enable the Authority to more effectively continue its efforts to foster and stimulate economic development by (i) inducing businesses to locate or remain in the City; and (ii) providing incentives to qualifying developers and property owners for the development or redevelopment of under improved or underdeveloped properties, or brownfields, grey fields, or abandoned or blighted properties in areas of the City which have been designated as "Strategic Growth Areas", "Special Economic Growth Areas", "Economic Redevelopment Areas" or "Opportunity Zones"(as defined in the Internal Revenue Code), including infill development within such areas. Collectively, Strategic Growth Areas, Special Economic Growth Areas, Economic Redevelopment Areas, and Opportunity Zones may be referred to herein as"Target Areas;" and WHEREAS, the City and the Authority have agreed that the provision of funds in the EDIP account to the Authority for economic development purposes, and the subsequent provision of such funds by the Authority to qualifying recipients, should be subject to policies and procedures which will ensure that the expenditure of such funds is in the public interest and is in furtherance of the purposes for which the EDIP was established; and WHEREAS, awards made under this Policy are at the sole legislative discretion of the Authority, and nothing herein should be deemed or interpreted as an entitlement to an award. NOW, THEREFORE, the City of Virginia Beach and the City of Virginia Beach Development Authority hereby adopt the following Economic Development Investment Program Policy and Procedures (the "Policy"): DEFINITIONS: Unless otherwise defined,the following terms shall have the following meanings in this Policy: a. "Capital Investment" means a capital expenditure in taxable real property, taxable tangible personal property, or both at the Project in the 2 City of Virginia Beach. The Authority may, in its discretion, determine that the value of machinery and equipment leased under an operating lease will qualify as a capital investment. The Authority may also, in its discretion, consider Capital Investments made by third parties at the Project for the overall benefit of the Project, and/or the value of moveable equipment retained by a business that was considering relocating outside of the City of Virginia Beach. b. "New Job" means a permanent full-time employment of an indefinite duration at the Project, for which the standard fringe benefits are provided by the company for the employee. Each new job must require a minimum of either(i)35 hours of an employee's time per week for the entire normal year of the company's operations, which "normal year" must include at least 48 weeks, or(ii) 1,680 hours per year. c. "Project" means the facility or facilities where a recipient of an award under this Policy has located from outside the City of Virginia Beach, or remained in the City of Virginia Beach or expanded its operations within the City of Virginia Beach and for which Capital Investment, New Jobs or direct tax revenues returned to the City are considered as a basis for an award under this Policy. d. "Applicant" means the business, owner, or developer that submits an application pursuant to this Policy. PART A: POLICY AND PROCEDURE FOR THE PROVISION OF EDIP FUNDS TO QUALIFYING BUSINESSES. 1. PURPOSE AND INTENT. The animating purpose of Part A of the EDIP shall be to enhance the ability of the Authority to implement the purposes set forth in the Act including, without limitation, to foster and stimulate economic development in the City by inducing new businesses to locate in the City, existing businesses to remain in the City, and existing businesses to expand their operations. 2. INVESTMENT CRITERIA. Except as otherwise provided in paragraph 4 of this Part A, EDIP funds may be awarded pursuant to Part A of this Policy where the Director of the Department(the"Director")has determined, and has advised the Authority that one or more of the following criteria have been met: a. The net amount of direct tax revenues returned to the City by a Project to which EDIP funds are provided will exceed the amount of EDIP funds so provided no later than thirty-six (36) months from the date on which the Project commences operations at a new or renovated facility; and/or 3 b. For every one dollar ($1) in EDIP funds provided, at least twenty-five dollars ($25) of Capital Investment will be made at the Project for which the award is granted; and/or c. Every one thousand dollars ($1,000) in EDIP funds provided will yield at least one (1) New Job in the Project to which such funds are provided. However, (i) up to two thousand dollars ($2,000) shall be available for a Project that creates New Jobs in the Project for which such funds are provided, where such employment opportunities pay an average of $35,001 to $50,000, excluding benefits, (ii) up to three thousand dollars ($3,000) shall be available for a Project that creates New Jobs in the Project for which such funds are provided, where such employment opportunities pay an average of$50,001 to $75,000, excluding benefits, and (iii) up to four thousand dollars ($4,000) shall be available for a Project that creates New Jobs in the Project for which such funds are provided, where such employment opportunities pay an average of over $75,001, excluding benefits. For New Jobs paying an average up to $35,000 the business must demonstrate associated workforce development training costs. For any job to qualify for an award, that position must be filled for at least one year. These criteria shall be reviewed by the Director and the Director of the Department of Department Management Services on a biennial basis. Specifically included in such review is the examination of whether the dollar thresholds in this Section 2 require adjustment to reflect changes in the CPI or cost of construction. The Director shall recommend any appropriate revisions to the City Council and the Authority for further consideration and action. In addition to the foregoing criteria, it is the goal of the Authority to approve EDIP awards to Projects that pay an average annual salary of$35,000 (excluding benefits). However, the Authority reserves the right to deviate from this goal in exceptional cases and for good cause shown. 3. QUALIFYING USES FOR PART A FUNDS. EDIP funds under Part A of this Policy may be used throughout the City of Virginia Beach for the following purposes: office, industrial, commercial and mixed-use development, or such other uses where the Director has demonstrated a need for the proposed use in that part of the City. In determining whether to award EDIP Funds for other uses, the Authority shall consider (i) whether the proposed use is consistent with the goals of the SGA or SEGA where the Project is located, and (ii) whether the Project meets the City of Virginia Beach's Investment Partnership Guidelines, and (iii) whether the Project will meet an underserved need in the City or further the growth of the Key Industries. 4 4. APPLICATION FOR EDIP AWARD. An Applicant who desires EDIP funds to a Project in the City of Virginia Beach may make application for that purpose through the Department. The form of the application is attached hereto as Exhibit B. The Applicant shall also complete the City of Virginia Beach Disclosure Form, also attached on Exhibit B. The Applicant shall mark any materials contained in such application as confidential or proprietary at the time of submission. The failure to mark such materials may result in the disclosure by the City or the Authority pursuant to applicable open records laws. The Applicant shall submit such additional information and documentation concerning its application as may be required by the Director. The Director shall review the application and information submitted and may, if the Director finds that the application meets the requirement of this Part A, recommend to the Authority that it award EDIP funds to the Project. The Director's recommendation shall be in writing and shall include the proposed amount of the award and basis therefore under this Policy. This recommendation may take the form of the written presentation made to the Authority in a closed session. 5. COUNCIL APPROVAL OF CERTAIN EDIP AWARDS. If the Director, acting on behalf of the Authority, determines the need to provide EDIP funds to a Project, but the criteria set forth in paragraph 2 of this Part A have not been met, the Authority shall obtain specific approval from City Council prior to its approval of the provision of EDIP funds for such purpose. 6. AUTHORITY FINDINGS AND ACTION. Based upon the recommendation of the Director, the Authority shall either approve or disapprove the proposed provision of EDIP funds to the Project. The Authority shall not be required to approve the Director's recommendation, but shall exercise its legislative discretion in determining whether, and to what extent, the application satisfies Part A of this Policy and the Authority's objective of fostering and stimulating the development of industry in the City. Provided, however, that prior to approval, the Authority must make all the following findings: a. That the animating purpose of the proposed provision of EDIP funds to the Project is to serve the public purpose of fostering and stimulating economic development in the City of Virginia Beach; b. that the expenditure of such funds will only incidentally enure to the benefit of private interests, if at all; c. That the proposed provision of EDIP funds to the Project is in furtherance of the purposes for which the Authority was created; d. That without the stimulus of the EDIP award, it is unlikely that the Applicant would locate, remain or expand in the City; and 5 e. That as of the date the Director presents his or her recommendation to the Authority in closed session, the Project has not yet commenced construction of its proposed improvements. Consideration in a closed session does not indicate approval and any investment or expenditure made by the Applicant is done at the sole risk of the Applicant. Further, if an award is not approved within seventy(70) days of the date of closed session, only investments made within seventy days of the date of the approval of the award in open session will be considered for reimbursement under the award. f. The Applicant for an award shall certify to the Authority that the findings in section (d) and (e), above, are true and accurate at the time of the Authority's vote on an award. 7. APPROVAL OF AWARD OF EDIP FUNDS. Approval by the Authority of the provision of EDIP funds to a specific business pursuant to this Part A shall be in the form of a resolution which shall include the following information: a. The name, location, and nature of the Project to which the funds will be provided; b. The amount of funds that will be provided; c. The purpose or purposes for which the funds will be provided; d. A statement that the criteria set forth in paragraph 2 of this Part A have been met; or, in the alternative, that City Council has specifically approved provision of EDIP funds for such purpose pursuant to paragraph 5 of this Part A; and e. A statement that the findings set forth in paragraph 6 of this Part A have been made by the Authority. PART B: POLICY AND PROCEDURE FOR THE PROVISION OF EDIP FUNDS TO QUALIFYING DEVELOPERS AND PROPERTY OWNERS FOR THE DEVELOPMENT OR REDEVELOPMENT OF PROPERTIES IN STRATEGIC GROWTH AREAS, SPECIAL ECONOMIC GROWTH AREAS, ECONOMIC REDEVELOPMENT AREAS, OR OPPORTUNITY ZONES. 1. PURPOSE AND INTENT. It is recognized that within the City there are areas that are currently brownfields, greyfields or vacant, abandoned, under improved or underdeveloped with improvements or land uses which are not economically viable,but, if developed, should stimulate industry and economic development within the City. 6 Moreover, such properties and areas, if developed or redeveloped, may reasonably be expected to(i) generate additional tax revenue as a result of Capital Investment; (ii) create additional job opportunities; (iii) influence similar redevelopment and additional investment in nearby properties;(iv) further the goals of the Comprehensive Plan and be consistent with the City's Economic Development Strategy and good zoning principles; and (v) lead to the establishment of safe and convenient neighborhoods and workplaces. Accordingly, it is the animating purpose of the Economic Development Investment Program under Part B of this Policy to enhance the ability of the City of Virginia Beach Development Authority to foster and stimulate economic development in the City by providing incentives for the development or redevelopment of properties described herein. 2. ECONOMIC REDEVELOPMENT AREAS, SPECIAL ECONOMIC GROWTH AREAS, STRATEGIC GROWTH AREAS AND OPPORTUNITY ZONES. The Directors of the Department and Planning shall identify areas of the City (i)that are currently brownfields, greyfields, or vacant, abandoned, under improved or underdeveloped, and (ii) which should be considered for redevelopment or special development opportunities, but may lie outside of the Strategic Growth Areas as set forth in the City's Comprehensive Plan. Such areas shall be known as "Economic Redevelopment Areas". Once identified, an Economic Redevelopment Area must be submitted to the City Council for designation as such by ordinance. To qualify for EDIP funds under Part B of this Policy, a developer or owner of property must demonstrate that the subject property is located within a Target Area. For purposes of this Policy, the term "brownfields" means vacant, abandoned or under improved real property large enough to support significant expansion, redevelopment or reuse, but for which such expansion, redevelopment or reuse is complicated by the presence of a substantial amount of hazardous substances, pollutants, or contamination. The term "greyfields" means underperforming, declining or vacant real estate. 3. QUALIFYING LAND USES. EDIP funds under Part B of this Policy may be provided for office, industrial, retail, hotel and mixed use development (including high density and multi-family residential uses). 4. INVESTMENT CRITERIA. EDIP funds may be awarded pursuant to Part B of this Policy in such instances where the Director has determined, and has advised the Authority, that both of the following criteria have been met: a. The net amount of direct tax revenues returned to the City as a result of the Project for which the EDIP funds are provided will exceed the amount of the EDIP funds provided no later than 48 months following the payment of the EDIP award; or where flexibility for tax abatement has been granted by the City, the amount of direct tax revenues not abated as a result of the Project for which EDIP funds are provided will exceed the 7 amount of the EDIP funds provided no later than 48 months following the payment of the EDIP award; and b. For every one dollar ($1) in EDIP funds provided, twelve and 50/100 dollars ($12.50) or more in new Capital Investment will be made at the Project. The foregoing investment criteria and required return to the City shall be interpreted as being a threshold for consideration for the award of EDIP funds. No award of such funds may be made unless all other requirements of Part B of this Policy are satisfied and all findings stated in Part B of this Policy are made. The Authority shall have complete discretion as to the award of funds and the amount of funds awarded, as well as whether or not the criteria have been met. 5. AVAILABILITY OF FUNDS. EDIP funds may be authorized for use pursuant to Part B of this Policy only to the extent that they have been appropriated by the City Council. Further, provided that in any given fiscal year, the Authority shall not award more than fifty percent (50%) of its annual appropriation for EDIP use pursuant to Part B of this Policy without authorization of the City Council. 6. APPLICATION FOR EDIP AWARD.An Applicant who desires EDIP funds for use in a Project located in a Target Area may make application for that purpose through the Department. The form of the application is attached hereto as Exhibit B. The applicant shall also complete the City of Virginia Beach Disclosure Form, also attached on Exhibit B. The Applicant shall mark any materials contained in such application as confidential or proprietary at the time of submission. The failure to mark such materials may result in the disclosure by the City or the Authority pursuant to applicable open records laws. The Applicant shall submit such additional information and documentation concerning its application as may be required by the Director, including any certifications as required by this Policy. The Director shall review the application and information submitted and may, if the Director finds that the Project described in the application satisfies all requirements of this Part B, recommend to the Authority that it award EDIP funds to the Project. In determining whether to recommend that EDIP funds be awarded to a Project, the Director shall find as follows: a. Whether the provision of EDIP funds is necessary to stimulate the development or redevelopment of the Project area; and b. Whether the Project satisfies the investment criteria set forth in paragraph 4 of this Part B. Additionally, the Director may consider the following: 8 c. The amount of EDIP funds remaining and available for use pursuant to this Part B of the Policy for the fiscal year. d. The economic return to the City generated by the Project in addition to the criteria set forth in paragraph 4 of this Part B . e. The expertise and experience of the Applicant in redeveloping brownfields, greyfields, abandoned, blighted, under improved and underdeveloped properties. f. The degree to which the Project may influence development or redevelopment within the applicable Target Area and adjacent or nearby properties. g. The extent to which the Project may serve to implement a change in use which is consistent with and/or furthers the goals of the Comprehensive Plan, the City's Economic Development Strategy. h. The number and types of jobs which the development or redevelopment may expect to generate. i. The amount of the applicant's Capital Investment in the Project. j. The extent to which the Project incorporates mixed uses, provides open space and focuses on transportation and transit accessibility. 7. AUTHORITY FINDINGS AND ACTION. Based upon the recommendation of the Director,the Authority shall either approve or disapprove the award of EDIP funds to the Applicant. The Authority may attach conditions to the approval of the award of EDIP funds. In the case of a brownfield property, the Authority shall attach the condition that prior to receiving EDIP funds, the recipient of EDIP funds shall provide to the Authority evidence of all permits or approvals as required by state, federal and local regulatory agencies and compliance therewith. The Authority shall not be required to approve the Director's recommendation, but shall exercise its legislative discretion in determining whether, and to what extent, the Applicant's proposed Project satisfies Part B of this Policy and the Authority's objective of fostering and stimulating the development of industry in the City. Provided, however, that prior to approval of the award of EDIP funds to an Applicant, the Authority must make the following findings: a. That the animating purpose of the proposed provision of EDIP funds to the Project is to serve the public purpose of fostering and stimulating economic development in the City of Virginia Beach; and 9 b. That the expenditure of such funds will only incidentally enure to the benefit of private interests, if at all; c. That the proposed provision of EDIP funds to the Project is in furtherance of the purposes for which the Authority was created; d. That without the stimulus of the EDIP award, it is unlikely that the Applicant would locate, remain or expand in the City; e. That as of the date the Director presents his or her recommendation to the Authority in closed session, the Project has not yet commenced construction of the proposed improvements. Consideration in a closed session does not indicate approval and any investment or expenditure made by the Applicant is done at the sole risk of the Applicant. Further, if an award is not approved within seventy(70) days of the date of closed session, only investments made within seventy days of the date of the approval of the award in open session will be considered for reimbursement under the award; f. The Applicant for an award shall certify to the Authority that the findings in section (d) and (e), above, are true and accurate at the time of the Authority's vote on an award; g. That the property has been designated (or is in an area which has been designated) as a Target Area; h. That the Project is consistent with the City's Comprehensive Plan, and the City's Economic Development Strategy, as amended; and i. That the Project as proposed, will serve to influence redevelopment and additional capital investment in adjacent or nearby properties. 8. APPROVAL OF THE AWARD OF EDIP FUNDS. Approval by the Authority of the provision of EDIP funds pursuant to this Part B shall be in the form of a resolution which shall include the following information: a. The name of the Applicant , and the location and a brief description of the Project; b. The amount of EDIP funds that will be provided; c. The purpose or purposes for which the EDIP funds are to be provided; 10 d. A statement that the criteria set forth in paragraph 4 of this Part B have been met; e. A statement that the findings set forth in paragraph 7 of this Part B have been made by the Authority; and f. Any conditions to the approval of the award of the EDIP funds by the Authority. 9. ALTERNATIVE USES OF PART B FUNDS BY THE AUTHORITY TO PURCHASE AND IMPROVE PROPERTY IN A STRATEGIC GROWTH AREA, SPECIAL ECONOMIC GROWTH AREA ECONOMIC REDEVELOPMENT AREA OR AN OPPORTUNITY ZONE. The Authority may use EDIP Funds to purchase and improve property within a Target Area. Prior to the approval of the use of EDIP funds for such acquisition, the Authority must find that: a. The property is located within a Target Area; and b. The acquisition and/or improvement of the property by the Authority and its subsequent development or redevelopment will be in conformity with and/or furthers the goals of the City's Comprehensive Plan, the City's Economic Development Strategy,the APZ-1 Ordinance, as amended, and Part B of this Policy. In addition to any property purchased using EDIP funds pursuant to paragraph 9 of this Part B, the Authority may also use EDIP funds for the following improvements to such property: (i) the installation of infrastructure; (ii) the demolition of existing structures; or(iii)the remediation or cleanup of adverse environmental conditions. The Authority may dispose of such property in accordance with state law and may subsequently sell such property to a private party for development or redevelopment. In the event of such sale, the Authority shall attach appropriate conditions to assure that the development or redevelopment is in conformity with and/or furthers the goals of the City's Comprehensive Plan, the City's Economic Development Strategy, the APZ-1 Ordinance, as amended, and is in furtherance of the objectives of Part B of this Policy. The proceeds of any property purchased by the Authority and sold pursuant to paragraph 9 of this Part B shall be returned to the EDIP fund account. PART C: POLICY AND PROCEDURE FOR THE PROVISION OF EDIP FUNDS TO QUALIFYING DEVELOPERS AND PROPERTY OWNERS FOR THE DEVELOPMENT OR REDEVELOPMENT OF PROPERTIES IN APZ-1 OR THE CLEAR ZONES. 11 1. PURPOSE AND INTENT. It is recognized that within the City there are areas that are not advancing the City's purpose of retaining NAS Oceana as a master jet base in Virginia Beach, but, if developed with conforming uses, should stimulate industry and economic development within the City. Moreover, such properties and areas, if developed or redeveloped, may reasonably be expected to (i) generate additional tax revenue as a result of Capital Investment; (ii) influence similar redevelopment and additional investment in nearby properties;(iii)further the goals of the Comprehensive Plan and be consistent with the City's Economic Development Strategy and good zoning principles; (iv) in the APZ-1 and Clear Zone areas, encourage the conversion of property that does not conform to the City's zoning amendments adopted in response to the BRAC Order on December 20, 2005 (the"APZ-1 Ordinance")to uses that do conform to the APZ- 1 Ordinance, including the relocation of nonconforming properties to areas of the City outside the APZ-1 and Clear Zones and the location of conforming properties within the APZ-1; and (v) lead to the establishment of safe and convenient neighborhoods and workplaces. Accordingly, it is the animating purpose of the Economic Development Investment Program under Part C of this Policy to enhance the ability of the Authority to foster and stimulate economic development in the APZ-1 by providing incentives for the development or redevelopment of properties as described herein. 2. APZ-1 AND THE CLEAR ZONES. The term "APZ-1" means Accident Potential Zone 1 and the areas identified as APZ-1 on the 1999 "Air Installations Compatible Use Zones" ("AICUZ") pamphlet published by the U.S. Department of the Navy. The term "Clear Zones" are those areas designated as "Clear Zones" on the 1999 AICUZ pamphlet. 3. QUALIFYING LAND USES. EDIP funds under Part C of this Policy may be provided only for uses consistent with the APZ-1 Ordinance and any amendments thereto. 4. INVESTMENT CRITERIA. a. For Areas located in the APZ-1 or Clear Zones, EDIP funds may be awarded pursuant to Part C of this Policy in such instances where the Oceana Land Use Conformity Committee has determined, and has advised the Director, that the Project for which EDIP funds will be provided will have the effect of furthering the goals of the Oceana Land Use Conformity Program, including bringing new uses into APZ-1 areas that conform to the APZ-1 Ordinance, converting nonconforming uses to conforming uses, retaining conforming uses in APZ-1, and relocating nonconforming uses in APZ-1 and Clear Zones to other areas of the City where such uses would be consistent with the Comprehensive Plan and the City Zoning Ordinance. The Director shall advise the Authority of 12 all determinations and recommendations made by the Oceana Land Use Conformity Committee ("OLUCC"). b. In determining the amount of the award recommended to OLUCC, the Director shall determine whether both the following criteria have been met: (i) The net amount of direct tax revenues returned to the City as a result of the Project for which the EDIP funds are provided will exceed the amount of the EDIP funds provided no later than 48 months following the payment of the EDIP award; or where flexibility for tax abatement has been granted by the City, the amount of direct tax revenues not abated as a result of the Project for which EDIP funds are provided will exceed the amount of the EDIP funds provided no later than 48 months following the payment of the EDIP award; and/or (ii) For every one dollar ($1) in EDIP funds provided, the Applicant of the Project for which such funds are provided will spend ten and 50/100 dollars($10.50) or more in new Capital Investment, including buildings, furnishings, and/or equipment. The foregoing investment criteria and required return to the City shall be interpreted as being a threshold for consideration for the award of EDIP funds. No award of such funds may be made unless all other requirements of Part C of this Policy are satisfied and all findings stated in Part C of this Policy are made. The Authority shall have complete discretion as to the award of funds and the amount of funds awarded, as well as whether or not the criteria have been met. 5. ADDITIONAL USES OF FUNDS UNDER PART C. A qualifying owner of land located in APZ-1 or the Clear Zones who desires to (i) move a nonconforming use of that land out of APZ-1 or the Clear Zones and into another part of the City where the use is compatible and(ii) if owner retains ownership of the subject land, agrees to restrict the further use of that land to uses compatible with those allowed in the APZ-1 Ordinance, shall be entitled to apply for an award of up to $75,000 to offset actual moving expenses incurred in moving the said nonconforming use out of APZ-1 or the Clear Zones. 6. AVAILABILITY OF FUNDS. The City Council specifically appropriates funds for EDIP use in APZ-1 and Clear Zone areas, It is anticipated that such funds for EDIP use in APZ-1 and Clear Zone areas will be made available from CIP 9-037 (Oceana and Interfacility Traffic Area Conformity and Acquisition II). 7. APPLICATION FOR EDIP AWARD.An Applicant who desires EDIP funds for use in a Project located in APZ-1 or the Clear Zones may make application for that purpose through the Department. The Applicant shall submit such information and 13 documentation concerning its application as may be required by the Director. The applicant shall also complete the City of Virginia Beach Disclosure Form, also attached on Exhibit B. The Applicant shall mark any materials contained in such application as confidential or proprietary at the time of submission. The failure to mark such materials may result in the disclosure by the City or the Authority pursuant to applicable open records laws. The Director shall review the application and information submitted and may, if the Director finds that the Project described in the application satisfies all requirements of this Part C, recommend to the Authority that it award EDIP funds to the Applicant. In determining whether to recommend that EDIP funds be awarded to an Applicant, the Director shall find as follows: a. Whether the provision of EDIP funds is necessary to stimulate the development or redevelopment of the property/area; and b. Whether the Project satisfies the investment criteria set forth in paragraph 4 of this Part C. c. Whether the Project is consistent with the APZ-1 Ordinance. Additionally, the Director may consider the following: d. The amount of EDIP funds remaining and available for use pursuant to this Policy for the fiscal year. e. The economic return to the City generated by the Project. f. The expertise and experience of the Applicant in redeveloping brownfields, greyfields, abandoned, blighted, under improved and underdeveloped properties. g. The degree to which the Project may influence compatible development or redevelopment within the APZ-1 and development of adjacent or nearby properties. h. The extent to which the Project may serve to implement a change in use which is consistent with and/or furthers the goals of the Comprehensive Plan, the City's Economic Development Strategy, and the APZ-1 Ordinance, as amended. i. The amount of the Applicant's Capital Investment in the Project. j. The value of moving a use of property that is inconsistent with the APZ- 1 Ordinance out of the APZ-1 or the Clear Zones. 14 8. AUTHORITY FINDINGS AND ACTION. Based upon the recommendation of the Director,the Authority shall either approve or disapprove the award of EDIP funds to the Applicant. The Authority may attach conditions to the approval of the award of EDIP funds. The Authority shall not be required to approve the Director's recommendation, but shall exercise its legislative discretion in determining whether, and to what extent, the Applicant's proposed Project satisfies Part C of this Policy and the Authority's objective of fostering and stimulating the development of industry in the City, including the retention of NAS Oceana as a master jet base. Provided, however, that prior to approval of the award of EDIP funds to an Applicant, the Authority must make the following findings: a. That the animating purpose of the proposed provision of EDIP funds to the Project is to serve the public purpose of fostering and stimulating economic development in the City of Virginia Beach, including the retention of NAS Oceana as a master jet base; and b. That the expenditure of such funds will only incidentally enure to the benefit of private interests, if at all; c. That the proposed provision of EDIP funds to the Project is in furtherance of the purposes for which the Authority was created; d. That without the stimulus of the EDIP award, it is unlikely that the property would be developed or redeveloped to the extent proposed, or at the current time; e. That as of the date of application for the EDIP award, the Applicant had not yet commenced construction of the Project; f. That without the stimulus of the EDIP award, it is unlikely that the Applicant would locate, remain or expand in the City; g. That as of the date the Director presents his or her recommendation to the Authority in closed session, the Applicant had not yet commenced construction of the Project. Consideration in a closed session does not indicate approval and any investment or expenditure made by the Applicant is done at the sole risk of the Applicant. Further, if an award is not approved within seventy (70) days of the date of closed session, only investments made within seventy days of the date of the approval of the award in open session will be considered for reimbursement under the award; 15 h. The Applicant for an award shall certify to the Authority that the findings in section (e) and (f), above, are true and accurate at the time of the Authority's vote on an award; i. That the property is in APZ-1 or the Clear Zones; j. That the proposed Project is consistent with the City's Comprehensive Plan, the City's Economic Development Strategy and the APZ-1 Ordinance, as amended; k. That the scope and quality of the Project will serve to influence redevelopment and additional capital investment in adjacent or nearby properties or, in APZ-1 and Clear Zones, will foster the retention of NAS Oceana as a master jet base; and 1. The Oceana Land Use Conformity Committee has endorsed in writing the award of EDIP funds as proposed by the Authority 9. APPROVAL OF THE AWARD OF EDIP FUNDS. Approval by the Authority of the provision of EDIP funds pursuant to this Part C shall be in the form of a resolution which shall include the following information: a. The name of the Applicant, and the location and a brief description of the Project; b. The amount of funds that will be provided; c. The purpose or purposes for which the funds are to be provided; d. A statement that the criteria set forth in paragraph 4 of this Part C have been met; e. A statement that the findings set forth in paragraph 8 of this Part C have been made by the Authority; and f. Any conditions to the approval of the award of the EDIP funds by the Authority. 10. ALTERNATIVE USES OF PART C FUNDS BY THE AUTHORITY TO RETAIN A REAL ESTATE BROKER. The Authority may use EDIP funds to retain a licensed real estate broker to sell property located in APZ-1 or the Clear Zones and owned by the Authority or the City. The Authority is authorized to pay a commission to that broker in an amount not to exceed the following: 16 Sale Price Cumulative Commission Rate $ 0 - $500,000 5% $500,001 - $1,000,000 3% $1,000,001 and up 2% PART D: GENERAL PROVISIONS APPLICABLE TO PARTS A, B AND C. 1. SEPARATE ACCOUNT FOR EDIP FUNDS. EDIP funds shall be maintained by the Authority in a separate account and shall not be commingled with other Authority funds. 2. EDIP FUND EXPENDITURES. All expenditures of EDIP funds shall be in keeping with this Policy and may enure only incidentally to the benefit of private interests. In addition to the use of EDIP funds pursuant to Parts A, and B or C of this Policy, EDIP funds may also be utilized to conduct appraisals, financial and market studies, and architectural and engineering studies directly related to specific economic development initiatives and/or projects being conducted by the Authority on behalf of the City. 3. PAYMENT OF EDIP FUNDS. a. When EDIP funds are awarded pursuant to either Part A or Part B this Policy, they shall be paid to the Applicant at such time as the Director shall (i) obtain copies such records from the Applicant (including all contractors or subcontractors) necessary to document the actual costs incurred for the purpose or purposes for which the funds are to be provided; (ii) determine that the Project is in conformity with the plan of development presented to the Authority and with all conditions which may have been attached to the approval of the award of the funds by the Authority; and (iii) where required by the Authority (such as when a majority of the justification for an award is for the acquisition of personalty that could be removed from the City of Virginia Beach), the Applicant shall execute and deliver to the Authority an EDIP Recapture Agreement in a form acceptable to counsel for the Authority. b. Each resolution approving an award under this Policy shall contain a statement of the amount of Capital Investment to be made and/or New Jobs to be added as a basis for the award of funds approved. Notwithstanding anything to the contrary in this Policy. the resolution shall also direct that the full amount of the award approved shall not be paid unless at least eighty-five percent (85%) of the Capital Investment and/or New Jobs are actually made and/or added or retained. 17 c. If moveable equipment in the City of Virginia Beach at the time of an award is to be considered as a basis for the calculation of Capital Investment, the resolution shall contain a statement of the value of such movable equipment at the time of the award. d. The Director shall compile a written report for each award paid documenting the methodology employed, records reviewed and steps undertaken to ensure compliance with the terms of this Policy. The report shall include sufficient information to determine compliance with the Capital Investment and/or New Job requirement(s) of Section 3(b), above. This report shall be provided to the Commissioners at their monthly financial briefing. 4. SPECIFIC PURPOSES FOR THE USE OF EDIP FUNDS. When EDIP funds are awarded to an Applicant pursuant to this Policy, such funds shall be used only for the following purposes: a. Public and private utility extension or capacity development on and off site; b. Road, rail, or other transportation access costs beyond the funding capability of existing programs; c. Public and private installation, extension or capacity development of high-speed of broadband Internet access, whether on or off site; d. Site acquisition; e. Grading, drainage, paving, and any other activity required to prepare a site for construction; f. Construction or build-out of publicly or privately owned buildings; g. Training costs; h. Purchase and installation of tangible business property, located in the City of Virginia Beach, in the following categories: • Machinery and Tools; • Tangible personal property used for research and Development; 18 • Computer hardware used by businesses primarily engaged in providing data processing services to other nonrelated or affiliated businesses: • Programmable computer equipment and peripherals employed in a trade or business (not individual workstations); • Tangible personal property used in the provision of Internet services; • Equipment used primarily for research, development, production or provision of biotechnology for the purpose of providing products or processes for specific commercial or public purposes; • Tangible property designed and used primarily for the purpose of manufacturing a product from renewable energy. 5. REPORTING. The Authority shall provide City Council annual reports, outlining, in detail, the manner in which the funds were provided. Such reports shall include, at a minimum, the information required by subsections a, b, and c of paragraph 6 of Part A, subsections a, b, and c of paragraph 8 of Parts B and C, and information demonstrating compliance with the provisions of this Policy and Procedure. 6. AMENDMENTS TO POLICY. The provisions of this Policy shall not be amended without the prior consent and approval of the City Council and the Authority. 7. APPLICATION OF POLICY. This Policy is specifically applicable to the expenditure of EDIP funds. This Policy is not intended to be, nor shall it be deemed to be, applicable to the use of public funds from any source other than the EDIP. 8. EFFECTIVE DATE OF POLICY. This Policy shall become effective immediately upon its approval by the City of Virginia Beach and the City of Virginia Beach Development Authority, which approval shall be evidenced by signature of the Mayor of the City of Virginia Beach and the Chair of the City of Virginia Beach Development Authority acting by, and on behalf of, the City and the Authority, respectively. Mayor, City of Virginia Beach Chair, City of Virginia Beach Development Authority Approved as to Content: Approved as to Legal Sufficiency: Economic Development City Attorney 19 2019 Revision(1-15-19) ECONOMIC DEVELOPMENT INVESTMENT PROGRAM POLICY AND PROCEDURE WHEREAS, the City of Virginia Beach Development Authority (the "Authority") was created pursuant to Chapter 643 of the Acts of Assembly of 1964, as amended (the "Act"); WHEREAS, one of the primary purposes of the Act is to enable development authorities "to promote industry and develop trade by inducing manufacturing, industrial, governmental and commercial enterprises to locate in or remain in the Commonwealth...."; WHEREAS, pursuant to § 6 of the Act, the Authority has the power, inter alia, "to sell, exchange, donate and convey any or all of its facilities or other properties whether realty or personally whenever the Authority shall find any such action to be in furtherance of the purposes for which the Authority was organized"; WHEREAS, pursuant to §7 of the Act, "the Authority may foster and stimulate the development of industry in the area within its jurisdiction... [and]may accept, and expend for the purposes stated above, money from any public or private source...."; WHEREAS, pursuant to- § 10 of the Act, the City of Virginia Beach (the "City") "is authorized and empowered to make appropriations and to provide funds for the operation of the Authority and to further its purposes"; WHEREAS, the economic development goals and objectives of the City include achieving a higher ratio of nonresidential to residential real estate assessments, investing in land and infrastructure to benefit future economic growth, and maximizing the return of economic development efforts through the development and implementation of programs and strategies that facilitate new business investment and encourage retention and expansion activities thereby improving the overall quality of life in the City; WHEREAS, while the Authority and City desire to promote all sectors of growth, the Authority and the Department of Economic Development (the "Department") have identified certain industries to target for growth and expansion in the City (the "Key Industries "), and the Key Industries, which may be updated from time to time, are identified on the Department's website, www.yesvirginiabeach.com ; 1 WHEREAS, other than JEB Little Creek Fort Story, NAS Oceana is the single largest employer in the City, and investments and economic development efforts aimed at retaining NAS Oceana as a master jet base are critical to the City's economic "health"; WHEREAS,the City has established the Economic Development Investment Program ("EDIP") as part of its overall effort to enhance the City's ability to accomplish these goals and objectives; WHEREAS, pursuant to the authority and empowerment set forth in--§10 of the Act, City Council has determined that it would be in the best interests of the City to provide EDIP appropriations to the Authority to enable the Authority to more effectively continue its efforts to foster and stimulate economic development by (i) inducing businesses to locate or remain in the City; and (ii) providing incentives to qualifying developers and property owners for the development or redevelopment of under improved or underdeveloped properties, or brownfields, grey fields, or abandoned or blighted properties in areas of the City which have been designated as "Strategic Growth Areas", "Special Economic Growth Areas" or "Economic Redevelopment Areas'' or "Opportunity Zones" (as defined in the Internal Revenue Code), including infill development within such areas;. Collectively, Strategic Growth Areas, Special Economic Growth Areas, Economic Redevelopment Areas, and Opportunity Zones may be referred to herein as "Target Areas:" and WHEREAS, the City and the Authority have agreed that the provision of funds in the EDIP account to the Authority for economic development purposes, and the subsequent provision of such funds by the Authority to qualifying recipients, should be subject to policies and procedures which will ensure that the expenditure of such funds is in the public interest and is in furtherance of the purposes for which the EDIP was established; and WHEREAS, awards made under this Policy are at the sole legislative discretion of the Authority, and nothing herein should be deemed or interpreted as an entitlement to an award. NOW, THEREFORE, the City of Virginia Beach and the City of Virginia Beach Development Authority hereby adopt the following Economic Development Investment Program Policy and Procedures (the "Policy"): DEFINITIONS: Unless otherwise defined, the following terms shall have the following meanings in this Policy: 2 a. "Capital Investment" means a capital expenditure in taxable real property, taxable tangible personal property, or both at the Project in the City of Virginia Beach. The Authority may, in its discretion, determine that the value of machinery and equipment leased under an operating lease will qualify as a capital investment. The Authority may also, in its discretion, consider Capital Investments made by third parties at the Project for the overall benefit of the Project, and/or the value of moveable equipment retained by a business that was considering relocating outside of the City of Virginia Beach. b. "New Job" means a permanent full-time employment of an indefinite duration at the Project, for which the standard fringe benefits are provided by the company for the employee. Each new job must require a minimum of either(i)35 hours of an employee's time per week for the entire normal year of the company's operations, which "normal year" must include at least 48 weeks, or(ii) 1,680 hours per year. c. "Project" means the facility or facilities where a recipient of an award under this Policy has located from outside the City of Virginia Beach, or remained in the City of Virginia Beach or expanded its operations within the City of Virginia Beach and for which Capital Investment, New Jobs or direct tax revenues returned to the City are considered as a basis for an award under this Policy. d. "Applicant" means the business, owner, or developer that submits an application pursuant to this Policy. PART A: POLICY AND PROCEDURE FOR THE PROVISION OF EDIP FUNDS TO QUALIFYING BUSINESSES. 1. PURPOSE AND INTENT. The animating purpose of Part A of the - -• ` - . . - - - - -- - - ' . . - DIP shall be to enhance the ability of the City of Virginia Beach Development Authority to implement the purposes set forth in the Act including,without limitation,to foster and stimulate economic development in the City by inducing new businesses to locate in the City, existing businesses to remain in the City, and existing businesses to remain in the City or to expand their operations. 2. INVESTMENT CRITERIA. Except as otherwise provided in paragraph 4 of this Part A, EDIP funds may be awarded pursuant to Part A of this Policy where the Director of he Department (the "Director") has 3 determined, and has advised the Authority that one or more of the following criteria have been met: a. The net amount of direct tax revenues returned to the City by a businessProject to which EDIP funds are provided will exceed the amount of EDLP funds so provided no later than thirty-six (36) months from the date on which the busessProject commences operations at a new or renovated facility; and/or b. For every one dollar ($1) in EDIP funds provided, the business to which • - - : . - . •_ _ ' :at least twenty-five dollars ($25) of Capital Investment will be made at the Project for which the award is granted; and/or-equipinentandzer ; c. Every one thousand dollars($1,000) in EDIP funds provided will yield at least one (1) new "full time equivalent" employment opportunity in the businessNew Job in the Project to which such funds are provided. However, (i) up to two thousand dollars ($2,000) shall be available for businesses who create new "full time equivalent" employment opportunities in the businesafor a Project that creates New Jobs in the Project for which such funds are provided, where such employment opportunities pay an average of$35,001 to $50,000, excluding benefits, (ii)up to three thousand dollars ($3,000) shall be available for businesses businessesa Project that creates New Jobs in the Project for which such funds are provided,where such employment opportunities pay an average of$50,001 to $75,000, excluding benefits, and (iii) up to four thousand dollars ($4,000) shall be available for businesses who create "full time equivalent" employment opportunities in the businessesa Project that creates New Jobs in the Project for which such funds are provided,where such employment opportunities pay an average of over $75,001, excluding benefits. For new FTE employment opportunitiesFor New Jobs paying an average up to $35,000 the business must demonstrate associated workforce development training costs. For any job to qualify for an award, that position must be filled for at least one year. These criteria shall be reviewed by the Director and the Director of the Department of Management Services on a bi annual basis.Department Management Services on a biennial basis. Specifically included in such review is the examination of whether the dollar thresholds in this Section 2 require adjustment to reflect changes in the 4 4 CPI or cost of construction. The Director shall recommend any appropriate revisions to the City Council and the Authority for further consideration and action. In addition to the foregoing criteria, it is the goal of the Authority to approve EDIP funflsawards to bwitiessesProjects that pay an average annual salary of $35,000 (excluding benefits). However, the Authority reserves the right to deviate from this goal in exceptional cases and for good cause shown. 33.QUALIFYING USES FOR PART A FUNDS. EDIP funds under Part A of this Policy may be used throughout the City of Virginia Beach for the following purposes: office, industrial, commercial and mixed-use development, or such other uses where the Director has demonstrated a need for the proposed use in that part of the City. In determining whether to award EDIP Funds for other uses, the Authority shall consider (i) whether the proposed use is consistent with the goals of the SGA or SEGA where the Project is located, and (ii) whether the Project meets the City of Virginia Beach's Investment Partnership Guidelines, and (iii) whether the Project will meet an underserved need in the City or further the growth of the Key Industries. 4. APPLICATION FOR EDIP AWARD. " An Applicant who desires EDIP funds to . . -, - .-. - . - .•. • ' . . -- a Project in the City of Virginia Beach may make application for that purpose through the Department of Economic Develepment,, The appliedform of the application is attached hereto as Exhibit B. The Applicant shall also complete the City of Virginia Beach Disclosure Form, also attached on Exhibit B. The Applicant shall mark any materials contained in such application as confidential or proprietary at the time of submission. The failure to mark such materials may result in the disclosure by the City or the Authoritypursuant to applicable open records laws. The Applicant shall submit such additional information and documentation concerning its application as may be required by the Director. The Director shall review the application and information submitted and may,if the Director finds that the application meets the requirement of this Part A,recommend to the Authority that it award EDIP funds to the b; Project. The Director's recommendation shall be in writing and shall include the proposed amount of the award and basis therefore under this Policy. This recommendation may take the form of the written presentation made to the Authority in a closed session. 4-5. COUNCIL APPROVAL OF CERTAIN EDIP AWARDS. If the Director, acting on behalf of the Authority, determines the need to provide EDIP funds to a specific businessProject, but the criteria set forth in paragraph 2 of this Part A have not been met, the Authority shall obtain specific approval from City Council prior to its approval of the provision of EDIP funds for such purpose. 5 �6.AUTHORITY FINDINGS AND ACTION.— Based upon the recommendation of the Director, the Authority shall either approve or disapprove the proposed provision of EDLP funds to the busessProject. The Authority shall not be required to approve the Director's recommendation, but shall exercise its legislative discretion in determining whether, and to what extent, the application satisfies Part A of this Policy and the Authority's objective of fostering and stimulating the development of industry in the City. Provided, however, that prior to approval, the Authority must make all the following findings: a_a—That the animating purpose of the proposed provision of EDIP funds to the bus nessProject is to serve the public purpose of fostering and stimulating economic development in the City of Virginia Beach, and b. that the expenditure of such funds will only incidentally enure to the benefit of private interests, if at all; bc. That the proposed provision of EDIP funds to the businessProject is in furtherance of the purposes for which the Authority was created; That without the stimulus of the EDIP award, it is unlikely that —the businessApplicant would locate,remain or expand in the City; and d. That as of the date of approval of the EDIP award, the business had not yet commenced construction of the proposed improvements. e_6That as of the date the Director presents his or her recommendation to the Authority in closed session, the Project has not yet commenced construction of its proposed improvements. Consideration in a closed session does not indicate approval and any investment or expenditure made by the Applicant is done at the sole risk of the Applicant. Further, if an award is not approved within seventy(70) days of the date of closed session, only investments made within seventy days of the date of the approval of the award in open session will be considered for reimbursement under the award. f. The Applicant for an award shall certify to the Authority that the findings in section (d) and (e), above, are true and accurate at the time of the Authority's vote on an award. g 6 7. APPROVAL OF AWARD OF EDIP FUNDS. Approval by the Authority of the provision of EDIP funds to a specific business pursuant to this Part A shall be in the form of a resolution which shall include the following information: a. _The name, location, and nature of the bessProject to which the funds will be provided; b. The amount of funds that will be provided; c. The purpose or purposes for which the funds will be provided; d. A statement that the criteria set forth in paragraph 2 of this Part A have been met; or, in the alternative, that City Council has specifically approved provision of EDLP funds for such purpose pursuant to paragraph 45 of this Part A; and e. -A statement that the findings set forth in paragraph 5-6 of this Part A have been made by the Authority. PART B: POLICY AND PROCEDURE FOR THE PROVISION OF EDIP FUNDS TO QUALIFYING DEVELOPERS AND PROPERTY OWNERS FOR THE DEVELOPMENT OR REDEVELOPMENT OF PROPERTIES IN STRATEGIC GROWTH AREAS, SPECIAL ECONOMIC GROWTH AREAS-ORz ECONOMIC REDEVELOPMENT AREAS, OR OPPORTUNITY ZONES. 1. — PURPOSE AND INTENT. It is recognized that within the City there are areas that are currently brownfields, greyfields or vacant, abandoned, under improved or underdeveloped with improvements or land uses which are not economically viable,but, if developed, should stimulate industry and economic development within the City. Moreover, such properties and areas, if developed or redeveloped, may reasonably be expected to (i) generate additional tax revenue as a result of capital investmentCapital Investment; (ii) create additional job opportunities; (iii) influence similar redevelopment and additional investment in nearby properties;(iv) further the goals of the Comprehensive Plan and be consistent with the City's Economic Development Strategy and good zoning principles; and (v) lead to the establishment of safe and convenient neighborhoods and workplaces. Accordingly, it is the animating purpose of the Economic Development Investment Program under -Part B of this Policy- to enhance the ability of the City of Virginia Beach Development Authority to foster and stimulate economic development in 7 the City by providing incentives for the development or redevelopment of properties described herein. 2. - ECONOMIC REDEVELOPMENT AREAS, SPECIAL ECONOMIC GROWTH AREAS—AND, STRATEGIC GROWTH AREAS; AND OPPORTUNITY ZONES. The Directors of the Departments of Economic DevelopmentDepartment and Planning shall identify areas of the City(i)that are currently brownfields, greyfields, or vacant, abandoned, under improved or underdeveloped, and(ii) which should be considered for redevelopment or special development opportunities, but may lie outside of the Strategic Growth Areas as set forth in the City's Comprehensive Plan. Such areas shall be known-as "Economic Redevelopment Areas". Once identified, an Economic Redevelopment Area must be submitted to the City Council for designation as such by ordinance. To qualify for EDIP funds under Part B of this Policy, a developer or owner of property must demonstrate that the subject property is located within a the Comprehensive Plan or has been designated an Economic Redevelopment Area as defined herein by ordinance of the City Council. Target Area. For purposes of this Policy, the term "brownfields" means vacant, abandoned or under improved real property large enough to support significant expansion, redevelopment or reuse, but for which such expansion, redevelopment or reuse is complicated by the presence of a substantial amount of hazardous substances, pollutants, or contamination. The term "greyfields" means underperforming, declining or vacant real estate. 3. —QUALIFYING LAND USES. EDIP funds under Part B of this Policy may be provided for office, industrial, retail, hotel and mixed use development (including high density and multi-family residential uses). 4.— INVESTMENT CRITERIA. EDIP funds may be awarded pursuant to Part B of this Policy in such instances where the Director has determined, and has advised the Authority, that both of the following criteria have been met: The net amount of direct tax revenues returned to the City as a result of the development or redevelopmentProject for which the EDIP funds are provided will exceed the amount of the EDIP funds provided no later than 48 months following the payment of the EDIP award; or where flexibility for tax abatement has been granted by the City, the amount of direct tax revenues not abated as a result of the development or redeve4eprxentProject for which EDIP funds are provided will exceed the amount of the EDIP funds provided no later than 48 months following the payment of the EDIP award; and 8 For every one dollar ($1) in EDIP funds provided, the owner or providedtwelve and 50/100 dollars ($12.50) or more in new capital investment, including buildings, furnishings, and/or capital Investment will be made at the Project. The foregoing investment criteria and required return to the City shall be interpreted as being a threshold for consideration for the award of EDIP funds. No award of such funds may be made unless all other requirements of Part B of this Policy are satisfied and all findings stated in Part B of this Policy are made. The Authority shall have complete discretion as to the award of funds and the amount of funds awarded, as well as whether or not the criteria have been met. 5. AVAILABILITY OF FUNDS. EDIP funds may be authorized for use pursuant to Part B of this Policy only to the extent that they have been appropriated by the City Council. Further,provided that in any given fiscal year,the Authority shall not award more than fifty percent (50%) of its annual appropriation for EDIP use for that year for development or redevelopment purposes pursuant to Part B of this Policy without authorization of the City Council. 6. — APPLICATION FOR EDIP AWARD. Applicant who desires EDIP funds for use in the—development—or a Project located in a Target Area, Special . - _ . • - •. . . - - ' . . -- - _may make application for that purpose through the Department of Economic Development._ The form of the application is attached hereto as Exhibit B. The applicant shall also complete the City of Virginia Beach Disclosure Form, also attached on Exhibit B. The Applicant shall mark any materials contained in such application as confidential or proprietary at the time of submission. The failure to mark such materials may result in the disclosure by the City or the Authority pursuant to applicable open records laws. The Applicant shall submit such additional information and documentation concerning its application as may be required by the Director, including any certifications as required by this Policy. The Director shall review the application and information submitted and may, if the Director finds that the . . . • - - .. - - - • . -- : . : -- Project described in the application satisfies all requirements of this Part B, recommend to the Authority that it award EDIP funds to the applic-anProject. In determining whether to recommend that EDIP funds be awarded to Project, the Director shall find as follows: a. _Whether the provision of EDIP funds is necessary to stimulate the development or redevelopment of the pier• Project area; and -9- 9 b. Whether the development or redevelopmentProject satisfies the investment criteria set forth in paragraph 4 of this Part B. Additionally, the Director may consider the following: c. _The amount of EDIP funds remaining and available for use pursuant to this Part B of the Policy for the fiscal year. pursuant to this Policy for the fiscal year. d. _The economic return to the City generated by the development or redevelopmentProject in addition to the criteria set forth in paragraph 4 of this Part B . e. The expertise and experience of the developer or property owner Applicant in —redeveloping —brownfields, greyfields, abandoned, blighted, under improved and underdeveloped properties. f. _The degree to which the Project may influence —development or redevelopment within the Special Economic Growth Area, Strategic Growth Area or the Economic Redevelopmentapplicable Target Area and adjacent or nearby properties. g. The extent to which the . - . . - - . . . . - - - Project may —serve to implement a change in use which is consistent with --and/or furthers the goals of the Comprehensive Plan, the City's —Economic Development Strategy. h. _The number and types of jobs which the development or redevelopment may expect to generate. i--The amount of the applicant's Capital Investment in the i_ development or redevelopment of the property.Project. j. _The extent to which the plan of development or redevelopment Project incorporates mixed uses, provides open space and focuses on transportation and transit accessibility. 10 10 7.— AUTHORITY FINDINGS AND ACTION. Based upon the recommendation of the Director,the Authority shall either approve or disapprove the award of EDIP funds to the applicantApplicant. The Authority may attach conditions to the approval of the award of EDIP funds. In the case of a brownfield property, the Authority shall attach the condition that prior to receiving EDIP funds, the recipient of EDIP funds shall provide to the Authority evidence of all permits or approvals as required by state, federal and local regulatory agencies and compliance therewith. The Authority shall not be required to approve the Director's recommendation, but shall exercise its legislative discretion in determining whether, and to what extent,the Applicant's proposed . . - .. • - . Project satisfies Part B of this Policy and the Authority's objective of fostering and stimulating the development of industry in the City. Provided, however, that prior to approval of the award of EDIP funds to an ai3plisantApplicant, the Authority must make the following findings: a_a—That the animating purpose of the proposed provision of EDIP funds to the applieentProject is to serve the public purpose of fostering and stimulating economic development in the City of Virginia Beach,a— of private interests, if at all;; and b. 13,-That the expenditure of such funds will only incidentally enure to the benefit of private interests, if at all; c. That the proposed provision of EDIP funds to the Project is in furtherance of the purposes for which the Authority was created; thOmetiffent=444443f redeveloPmenti d_e—That without the stimulus of the EDIP award, it is unlikely that the Applicant would locate, remain or expand in the City, e. That as of the date the Director presents his or her recommendation to the Authority in closed session, the Project has not yet commenced construction of the proposed improvements. Consideration in a closed 34 11 session does not indicate approval and any investment or expenditure made by the Applicant is done at the sole risk of the Applicant. Further, if an award is not approved within seventy(70)days of the date of closed session, only investments made within seventy days of the date of the approval of the award in open session will be considered for reimbursement under the award; f. The Applicant for an award shall certify to the Authority that the findings in section (d) and (e), above, are true and accurate at the time of the Authority's vote on an award: g. That the property has been designated (or is in an area which has been designated) as a . . _'. _ _ . • -Target Area or Strategic h_f-That the Project is consistent with the City's Comprehensive Plan, and the City's Economic Development Strategy, as amended; and i• That the scope and quality of the plan of development or feclevelopmentThat the Project as proposed, will serve to influence redevelopment and additional capital investment in adjacent or nearby properties. 8. -APPROVAL OF THE AWARD OF EDIP FUNDS.Approval by the Authority of the provision of EDIP funds pursuant to this Part B -shall be in the form of a resolution which shall include the following information: a_a:The name of the . - .. . - - . .. -- Applicant, and the location and a brief description of the development or feklevelopmentProject; b. I3,-The amount of EDIP funds that will be provided; c. e,--The purpose or purposes for which the EDIP funds are to be provided; d. d-A statement that the criteria set forth in paragraph 4 of this Part B have been met; 12 e_e,A statement that the findings set forth in paragraph 7 of this Part B have been made by the Authority; and f f-Any conditions to the approval of the award of the EDIP funds by the Authority. -9. ALTERNATIVE USES OF PART B FUNDS BY THE AUTHORITY TO PURCHASE AND IMPROVE PROPERTY IN A STRATEGIC GROWTH AREA, SPECIAL ECONOMIC GROWTH AREA OR AN-ECONOMIC REDEVELOPMENT AREA: OR AN OPPORTUNITY ZONE. The Authority may use EDIP Funds to purchase and improve property within a Sp Gr-owtliTarget Area, . . . - . -• - • . - . _ . - . • Prior to the approval of the use of EDIP funds for such acquisition, the Authority must find that: a_a—The property is located within a _'. - :. . -•_ • - •. . . - ' Target Area; and b_b-The acquisition and/or improvement of the property by the Authority and its subsequent development or redevelopment will be in conformity with and/or furthers the goals of the City's Comprehensive Plan, the City's Economic Development Strategy, the APZ-1 Ordinance, as amended, and Part B of this Policy. In addition to any property purchased using EDIP funds pursuant to paragraph 9 of this Part B, the Authority may also use EDIP funds for the following improvements to such property: (i) the installation of infrastructure; (ii) the demolition of existing structures; or(iii)the remediation or cleanup of adverse environmental conditions. The Authority may dispose of such property in accordance with state law and may subsequently sell such property to a private party for development or redevelopment. In the event of such sale, the Authority shall attach appropriate conditions to assure that the development or redevelopment is in conformity with and/or furthers the goals of the City's Comprehensive Plan, the City's Economic Development Strategy, the APZ-1 Ordinance, as amended, and is in furtherance of the objectives of Part B of this Policy. The proceeds of any property purchased by the Authority and sold pursuant to paragraph 9 of this Part B shall be returned to the EDIP fund account. PART C: POLICY AND PROCEDURE FOR THE PROVISION OF EDIP FUNDS TO QUALIFYING DEVELOPERS AND PROPERTY OWNERS FOR THE DEVELOPMENT OR REDEVELOPMENT OF PROPERTIES IN APZ-1 OR THE CLEAR ZONES. 4-4 13 1. --PURPOSE AND INTENT. It is recognized that within the City there are areas that are not advancing the City's purpose of retaining NAS Oceana as a master jet base in Virginia Beach, but, if developed with conforming uses, should stimulate industry and economic development within the City. Moreover, such properties and areas, if developed or redeveloped, may reasonably be expected to (i) generate additional tax revenue as a result of capital investmentCapital Investment; (ii) influence similar redevelopment and additional investment in nearby properties;(iii) further the goals of the Comprehensive Plan and be consistent with the City's Economic Development Strategy and good zoning principles; (iv) in the APZ-1 and Clear Zone areas, encourage the conversion of property that does not conform to the City's zoning amendments adopted in response to the BRAC Order on December 20, 2005 (the "APZ-1 Ordinance")to uses that do conform to the APZ-1 Ordinance, including the relocation of nonconforming properties to areas of the City outside the APZ-1 and Clear Zones and the location of conforming properties within the APZ-1; and (v) lead to the establishment of safe and convenient neighborhoods and workplaces. Accordingly, it is the animating purpose of the Economic Development Investment Program under Part C of this Policy to enhance the ability of the City of Virginia Beach Development Authority to foster and stimulate economic development in the APZ-1 by providing incentives for the development or redevelopment of properties as described herein. 2. - APZ-1 AND THE CLEAR ZONES. The term "APZ-1" means Accident Potential Zone 1 and the areas identified as APZ-1 on the 1999 "Air Installations Compatible Use Zones" ("AICUZ") pamphlet published by the U.S. Department of the Navy. The term "Clear Zones" are those areas designated as "Clear Zones" on the 1999 AICUZ pamphlet. 3. — QUALIFYING LAND USES. EDIP funds under Part C of this Policy may be provided only for uses consistent with the APZ-1 Ordinance and any amendments thereto. 4. —INVESTMENT CRITERIA. a. (a) -For Areas located in the APZ-1 or Clear Zones, EDIP funds may be awarded pursuant to Part C of this Policy in such instances where the Oceana Land Use Conformity Committee has determined, and has advised the Director, that the :- - . . - . . . . . - - Project for which EDIP funds will be provided will have the effect of furthering the goals of the Oceana Land Use Conformity Program, including bringing new uses into APZ-1 areas that conform to the APZ-1 Ordinance, converting nonconforming uses to conforming uses, retaining 14 conforming uses in APZ-1, and relocating nonconforming uses in APZ-1 and Clear Zones to other areas of the City where such uses would be consistent with the Comprehensive Plan and the City Zoning Ordinance. The Director shall advise the Authority of all determinations and recommendations made by the Oceana Land Use Conformity Committee ("OLUCC"). b_ (b) In determining the amount of the award recommended to OLUCC, the Director shall determine whether both the following criteria have been met: (i) The net amount of direct tax revenues returned to the City as a result of the : . . . - • - . . • - - Project for which the EDIP funds are provided will exceed the amount of the EDIP funds provided no later than 48 months following the payment of the EDIP award; or where flexibility for tax abatement has been granted by the City, the amount of direct tax revenues not abated as a result of the development reElevelepnielitProject for which EDIP funds are provided will exceed the amount of the EDIP funds provided no later than 48 months following the payment of the EDIP award; and/or (ii) For every one dollar ($1) in EDIP funds provided, the owner or develeperApplicant of the : . . - - . . • Project for which such funds are provided will spend ten and 50/100 dollars ($10.50) or more in new capital iiwestiliefitCapital Investment, including buildings, furnishings, and/or equipment. The foregoing investment criteria and required return to the City shall be interpreted as being a threshold for consideration for the award of EDIP funds. No award of such funds may be made unless all other requirements of Part C of this Policy are satisfied and all findings stated in Part C of this Policy are made. The Authority shall have complete discretion as to the award of funds and the amount of funds awarded, as well as whether or not the criteria have been met. 5. ADDITIONAL USES OF FUNDS UNDER PART C. A qualifying owner of land located in APZ-1 or the Clear Zones who desires to (i) move a nonconforming use of that land out of APZ-1 or the Clear Zones and into another part of the City where the use is compatible and(ii)if owner retains ownership of the subject land, agrees to restrict the further use of that land to uses compatible with those allowed in the APZ-1 Ordinance, shall be entitled to apply for an award of up to $75,000 to offset actual 15 15 moving expenses incurred in moving the said nonconforming use out of APZ-1 or the Clear Zones. 6. AVAILABILITY OF FUNDS. The City Council specifically appropriates funds for EDIP use in APZ-1 and Clear Zone areas, It is anticipated that such funds for EDIP use in APZ-1 and Clear Zone areas will be made available from CIP-9: - 037 (Oceana and Interfacility Traffic Area Conformity and Acquisition II). 7. —APPLICATION FOR EDIP AWARD. owner--ef-4enclAn Applicant who desires EDIP funds for use in redevelopment of propertya Project located in APZ-1 or the Clear Zones may make application for that purpose through the Department of Econo is Development., The applApplicant shall submit such information and documentation concerning its application as may be required by the Director. The applicant shall also complete the City of Virginia Beach Disclosure Form, also attached on Exhibit B. ThelApplicant shall mark any materials contained in such application as confidential or proprietary at the time of submission. The failure to mark such materials may result in the disclosure by the City or the Authority pursuant to applicable open records laws. The Director shall review the application and information submitted and may, if the Director finds that the deNielepmelit or redevelopment of the propertyProject described in the application satisfies all requirements of this Part C, recommend to the Authority that it award EDIP funds to the applic-antApplicant. In determining whether to recommend that EDIP funds be awarded to an applieantApplicant, the Director shall find as follows: a_a—Whether the provision of EDIP funds is necessary to stimulate the development or redevelopment of the property/area; and b-Whether the . . . - - - . - .. - . Project satisfies the b_—investment criteria set forth in paragraph 4 of this Part C. c_e.—Whether the . . . . • - - . . - . - Project is consistent with the —APZ-1 Ordinance. Additionally, the Director may consider the following: d. The amount of EDIP funds remaining and available for use d. pursuant to this Policy for the fiscal year. 4-6 16 e_e.—The economic return to the City generated by the development efProiect. this Part C. The expertise and experience of the f. Applicant in-redeveloping brownfields, greyfields, abandoned,blighted, under improved and underdeveloped properties. g-.-The degree to which the ntProject may influence —compatible development or redevelopment within the APZ-1 and g_—development of adjacent or nearby properties. h. The extent to which the . .. - - - . . - - - 'roject may —serve to implement a change in use which is consistent with —and/or furthers the goals of the Comprehensive Plan, the City's —Economic Development Strategy, and the APZ-1 Ordinance, as h. —amended. i_i—The amount of the . . . ' ' . .• . •- -- - - Applicant's Capital Investment in the Project. j. The value of moving a use of property that is inconsistent with the APZ-1 Ordinance out of the APZ-1 or the Clear Zones. 8.— AUTHORITY FINDINGS AND ACTION. Based upon the recommendation of the Director,the Authority shall either approve or disapprove the award of EDIP funds to the applic-antApplicant. The Authority may attach conditions to the approval of the award of EDIP funds. The Authority shall not be required to approve the Director's recommendation, but shall exercise its legislative discretion in determining whether, and to what extent, the applicant'sApplicant's proposed fedevelepmentProject satisfies Part C of this Policy and the Authority's objective of fostering and stimulating the development of industry in the City, including the retention of NAS Oceana as a master jet base. Provided,however,that prior to approval of the award of EDIP funds to an applioantApplicant, the Authority must make the following findings: 17 a. a--That the animating purpose of the proposed provision of EDIP funds to the applicantProject is to serve the public purpose of fostering and stimulating economic development in the City of Virginia Beach, including the retention of NAS Oceana as a master jet base, and that the tc interest if„t all.. „ and b. 13,-That the expenditure of such funds will only incidentally enure to the benefit of private interests, if at all; c. That the proposed provision of EDIP funds to the appl tProject is in furtherance of the purposes for which the Authority was created; d. That without the stimulus of the EDIP award, it is unlikely that the property would be developed or redeveloped to the extent proposed,or at the current time; . IN- . . . . - - - - - _` I . . :, . . - property would be developed or redeveloped to the extent e. d,--That as of the date of application for the EDIP award, the applic-aotApplicant had not yet commenced construction of the proposed de.�e'opmen*Project; f. That without the stimulus of the EDIP award. it is unlikely that the Applicant would locate, remain or redevelopment;expand in the City; g. That as of the date the Director presents his or her recommendation to the Authority in closed session, the Applicant had not yet commenced construction of the Project. Consideration in a closed session does not indicate approval and any investment or expenditure made by the Applicant is done at the sole risk of the Applicant. Further, if an award is not approved within seventy (70) days of the date of closed session, only investments made within seventy days of the date of the approval of the award in open session will be considered for reimbursement under the award; 18 h. The Applicant for an award shall certify to the Authority that the findings in section (e—) and (f), above, are true and accurate at the time of the Authority's vote on an award; i. That the property is in APZ-1 or the Clear Zones; j_f-That the proposed deNAeleffientProject is consistent with the City's Comprehensive Plan,the City's Economic Development Strategy and the APZ-1 Ordinance, as amended; k. That the scope and quality of the . . . . - . . . - as-prepesed,Project will serve to influence redevelopment and additional capital investment in adjacent or nearby properties or,in APZ-1 and Clear Zones, will foster the retention of NAS Oceana as a master jet base; and I_li--The Oceana Land Use Conformity Committee has endorsed in writing the award of EDIP funds as proposed by the Authority 9. — APPROVAL OF THE AWARD OF EDIP FUNDS. Approval by the Authority of the provision of EDIP funds pursuant to this Part C shall be in the form of a resolution which shall include the following information: a. s_—The name of the . - . . • : . - - . . • -- Applicant, and the location and a brief description of the development or redevelepmentiProj ect; b. I37-The amount of funds that will be provided; c. E-The purpose or purposes for which the funds are to be provided; d. €1,A statement that the criteria set forth in paragraph 4 of this Part C have been met; e_e—A statement that the findings set forth in paragraph 8 of this Part C have been made by the Authority; and f. f:-Any conditions to the approval of the award of the EDIP funds by the Authority. 19 40.— ALTERNATIVE USES OF PART C FUNDS BY THE AUTHORITY TO RETAIN A REAL ESTATE BROKER. The Authority may use EDIP funds to retain a licensed real estate broker to sell property located in APZ-1 or the Clear Zones and owned by the Authority or the City. The Authority is authorized to pay a commission to that broker in an amount not to exceed the following: Sale Price Cumulative Commission Rate $ 0 - $500,000 5% $500,001 - $1,000,000 3% $1,000,001 and up 2% PART D: GENERAL PROVISIONS APPLICABLE TO PARTS A,B AND C. 1. SEPARATE ACCOUNT FOR EDIP FUNDS. EDIP funds shall be maintained by the Authority in a separate account and shall not be commingled with other Authority funds. 2. EDIP FUND EXPENDITURES. All expenditures of EDIP funds shall be in keeping with this Policy and may enure only incidentally to the benefit of private interests. In addition to the use of EDIP funds pursuant to Parts A, and B or C of this Policy, EDIP funds may also be utilized to conduct appraisals, financial and market studies, and architectural and engineering studies directly related to specific economic development initiatives and/or projects being conducted by the Authority on behalf of the City. 3. PAYMENT OF EDIP FUNDS. a. When EDIP funds are awarded pursuant to either Part A or Part B this Policy, they shall be paid to the authorized business or the owner or dcveloperApplicant at such time as the Director shall(i)obtain copies of invoieesifeeeiptssuch records from the . . •- • , . . . . .• showingApplicant(including all contractors or subcontractors)necessary to document the actual costs incurred for the purpose or purposes for which the funds are to be provided; (ii) determine that the development or redevelopmentProject is in conformity with the plan of development presented to the Authority and with all conditions which may have been attached to the approval of the award of the funds by the Authority; and (iii)where required by the Authority, - • .. - - , : - - . . (such as when a majority of the justification for an award is for the 20 20 acquisition of personalty that could be removed from the City of Virginia Beach), the Applicant shall execute and deliver to the Authority an EDIP Recapture Agreement in a form acceptable to counsel for the Authority. b. Each resolution approving an award under this Policy shall contain a statement of the amount of Capital Investment to be made and/or New Jobs to be added as a basis for the award of funds approved. Notwithstanding anything to the contrary in this Policy, the resolution shall also direct that the full amount of the award approved shall not be paid unless at least eighty-five percent (85%) of the Capital Investment and/or New Jobs are actually made and/or added or retained. c. If moveable equipment in the City of Virginia Beach at the time of an award is to be considered as a basis for the calculation of Capital Investment, the resolution shall contain a statement of the value of such movable equipment at the time of the award. d. The Director shall compile a written report for each award paid documenting the methodology employed, records reviewed and steps undertaken to ensure compliance with the terms of this Policy. The report shall include sufficient information to determine compliance with the Capital Investment and/or New Job requirement(s) of Section 3(b)., above. This report shall be provided to the Commissioners at their monthly financial briefing. 4. —SPECIFIC PURPOSES FOR THE USE OF EDIP FUNDS. When EDIP funds are awarded to an applic-antApplicant pursuant to this Policy, such funds shall be used only for the following purposes: a. Public and private utility extension or capacity development on and off b. Road, rail, or other transportation access costs beyond the funding capability of existing programs-; c. Public and private installation, extension or capacity development of high-speed of broadband Internet access, whether on or off site,i 21 d. Site acquisition,.-: e. Grading, drainage, paving, and any other activity required to prepare a site for construction,: f. Construction or build-out of publicly or privately owned buildings..-LL g. Training costs: h. Purchase and installation of tangible business property,located in the City of Virginia Beach, in the following categories: • Machinery and Tools; •----Tangible personal property used for research and • developmcntDevelopment: 4---Computer hardware used by businesses primarily engaged in providing data processing services to other • --- nonrelated or affiliated businesses: 4—Programmable computer equipment and peripherals • employed in a trade or business (not individual workstations) •---Tangible personal property used in the provision of • --Internet services. +-Equipment used primarily for research, development, — • production or provision of biotechnology for the purpose of providing products or processes for specific commercial or public purposes: •--Tangible property designed and used primarily for the — • purpose of manufacturing a product from renewable energy, 5. REPORTING. The Authority shall provide City Council annual reports, outlining, in detail, the manner in which the funds were provided. Such reports shall include, at a minimum, the information required by subsections a, b, and c of paragraph 6 of Part A, subsections a, b, and c of paragraph 8 of Parts B and C, and information demonstrating compliance with the provisions of this Policy and Procedure. 22 22 6. AMENDMENTS TO POLICY. The provisions of this Policy shall not be amended without the prior consent and approval of the City Council and the Authority. 7. APPLICATION OF POLICY. This Policy is specifically applicable to the expenditure of EDIP funds. This Policy is not intended to be, nor shall it be deemed to be, applicable to the use of public funds from any source other than the EDIP. 8. EFFECTIVE DATE OF POLICY. This Policy shall become effective immediately upon its approval by the City of Virginia Beach and the City of Virginia Beach Development Authority, which approval shall be evidenced by signature of the Mayor of the City of Virginia Beach and the Chair of the City of Virginia Beach Development Authority acting by, and on behalf of, the City and the Authority, respectively. Mayor, City of Virginia Beach Chair, City of Virginia Beach Development Authority Approved as to Content: Approved as to Legal Sufficiency: Economic Development City Attorney 23 23 80 ITEM-VI-J.6 ORDINANCES/RESOLUTIONS ITEM#69044 The following registered to speak: Virginia Wasserberg, 4412 Sanibel Circle#101, Phone: 963-8679, spoke in SUPPORT Upon motion by Council Member Henley, seconded by Vice Mayor Wood, City Council ADOPTED, Resolution to SUPPORT the City's application for the 2019 Virginia Dam Safety Flood Prevention and Protection Assistance Fund Grant from the Virginia Department of Conservation and Recreation Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 1 A RESOLUTION TO SUPPORT THE CITY'S APPLICATION 2 FOR THE 2019 VIRGINIA DAM SAFETY FLOOD 3 PREVENTION AND PROTECTION ASSISTANCE FUND 4 GRANT FROM THE VIRGINIA DEPARTMENT OF 5 CONSERVATION AND RECREATION 6 7 WHEREAS, the City of Virginia Beach is eligible to submit an application for up to 8 a fifty percent match of a flood prevention or protection project through the Virginia 9 Department of Conservation's 2019 Virginia Dam Safety, Flood Prevention and 10 Protection Assistance Fund; and 11 12 WHEREAS, the Capital Improvement Project that meets the eligibility for funding 13 is part of CIP # 7-027, "Storm Water Management Planning, Analysis, and Inventory." 14 15 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 16 VIRGINIA BEACH, VIRGINIA: 17 18 1. That the City Council hereby expresses support for an application through 19 the Virginia Department Conservation to request $157,500 for the development of 20 various models of the Elizabeth River Watershed in order to update the City's 21 Comprehensive Stormwater Master Plan; and 22 23 2. That the Council supports the use of local funding within the existing 24 Capital Improvement Program to provide the required matching funds if the City is 25 awarded a grant from the Virginia Department of Conservation's 2019 Virginia Dam 26 Safety, Flood Prevention and Protection Assistance Fund. Adopted by the Council of the City of Virginia Beach, Virginia on the 19th day of March , 2019. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Ill ��r�,1 "' Budget and Management Services G11y Aftomey s Office CA14710 R-1 March 7, 2019 81 ITEM-VI-J.7 ORDINANCES/RESOLUTIONS ITEM#69045 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council ADOPTED, BY CONSENT, Ordinance to APPROPRIATE $650,000 in local vehicle license revenue to Department of Finance FY2018-19 Operating Budget re collection costs of local vehicle registration fees Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 1 AN ORDINANCE TO APPROPRIATE LOCAL VEHICLE 2 LICENSE REVENUE TO THE FY 2018-19 OPERATING 3 BUDGET OF THE DEPARTMENT OF FINANCE FOR THE 4 COSTS OF THE COLLECTION OF LOCAL VEHICLE 5 REGISTRATION FEES 6 7 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 8 VIRGINIA, THAT: 9 10 $650,000 is hereby appropriated, with revenue from local vehicle license increased 11 accordingly, to the FY 2018-19 Operating Budget of the Department of Finance for the 12 costs of the collection by the Virginia Department of Motor Vehicles. Requires an affirmative vote by a majority of all of the members of City Council. Adopted by the Council of the City of Virginia Beach, Virginia on the 19th day of March 2019. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Budget and Management Services City AttorneysOffice CA14709 R-1 March 7, 2019 82 ITEM-VI-J.8a ORDINANCES/RESOLUTIONS ITEM#69046 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council ADOPTED,BY CONSENT, Ordinance to ACCEPT and APPROPRIATE: a. $1,494,816 from the Virginia Department of Transportation (VDOT) re traffic signal rehabilitation and maintenance of roadways Voting: 10-0 Council Members Voting Aye: Jessica P.Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 1 AN ORDINANCE TO ACCEPT AND APPROPRIATE 2 STATE FUNDING FROM THE VIRGINIA 3 DEPARTMENT OF TRANSPORTATION 4 5 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, 6 VIRGINIA, THAT: 7 8 1. That $526,250 in estimated state revenue from the Virginia Department of 9 Transportation is hereby accepted and appropriated, with state revenue 10 increased accordingly, to CIP 2-410 Traffic Signal Rehabilitation II for the 11 purpose of Traffic Signal Controller Replacements and ITS Fiber Network 12 Expansion; and 13 14 2. That $968,566 in estimated state revenue from the Virginia Department of 15 Transportation is hereby accepted and appropriated, with state revenue 16 increased accordingly, to the FY2018-2019 Operating Budget of the 17 Department of Public Works for the maintenance of roadways. Adopted by the Council of the City of Virginia Beach, Virginia on the 19th day of March , 2019. Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Budget and Management Services , City Attor-rfey s Office CA14704 R-1 March 5, 2019 83 ITEM-VI-J.86 ORDINANCES/RESOLUTIONS ITEM#69047 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council ADOPTED, BY CONSENT, Ordinance to ACCEPT and APPROPRIATE: b. $3,000 from GEICO to Police Department FY2018-19 Operating Budget re Every 15 Minutes Program Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 1 AN ORDINANCE TO ACCEPT AND APPROPRIATE FUNDS 2 FROM GEICO FOR THE EVERY 15 MINUES PROGRAM 3 4 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 5 VIRGINIA: 6 7 That $3,000 is hereby accepted from GEICO and appropriated, with revenue 8 increased accordingly, to the Police Department's FY 2018-19 Operating Budget for 9 expenses necessary to support the Every 15 Minutes Program, which seeks to provide a 10 realistic look at the consequences of drinking and driving. Adopted by the Council of the City of Virginia Beach, Virginia on the 19th day of March , 2019. Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: i Budget and Management Services City Att'rney's/6ffice CA14706 R-1 March 7, 2019 84 ITEM-VI-18c ORDINANCES/RESOLUTIONS ITEM#69048 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council ADOPTED, BY CONSENT, Ordinance to ACCEPT and APPROPRIATE: c. $183,569 from Federal Emergency Management Agency(FEMA) to Fire Department FY2018-19 Operating Budget re purchase and maintenance of communications equipment for Virginia Task Force 2 Urban Search and Rescue Team Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 1 AN ORDINANCE TO ACCEPT AND APPROPRIATE 2 GRANT FUNDS FROM THE FEDERAL EMERGENCY 3 MANAGEMENT AGENCY FOR THE VIRGINIA TASK 4 FORCE 2 URBAN SEARCH AND RESCUE TEAM FOR 5 THE PURCHASE AND MAINTENANCE OF 6 COMMUNICATION EQUIPMENT 7 8 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 9 VIRGINIA: 10 11 That $183,569 is hereby accepted from the Federal Emergency Management 12 Agency and appropriated, with federal revenues increase accordingly, to the FY 2018-19 13 Fire Department Operating Budget for the purchase and maintenance of communications 14 equipment for Virginia Task Force 2 Urban Search and Rescue Team. Adopted by the Council of the City of Virginia Beach, Virginia on the 19th day of March , 2019. Requires an affirmative vote by a majority of all members of the City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Budget and Management Services City AttoYrfey's Office CA14707 R-1 March 7, 2019 85 ITEM-VI-J.8d ORDINANCES/RESOLUTIONS ITEM#69049 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council ADOPTED, BY CONSENT, Ordinance to ACCEPT and APPROPRIATE: d. $98,620 from Virginia Department of Behavioral Health and Developmental Services (DBHDS) to Human Services FY2018-19 Operating Budget re creation of two (2) new positions to provide enhanced Behavioral Health Services Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 1 AN ORDINANCE TO ACCEPT AND APPROPRIATE STATE 2 FUNDS AND TO ESTABLISH TWO NEW POSITIONS TO 3 PROVIDE ENHANCED SERVICES FOR INDIVIDUALS 4 RECEIVING BEHAVIORAL HEALTH SERVICES 5 6 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 7 VIRGINIA THAT: 8 9 1) $98,620 is hereby accepted from the Virginia Department of Behavioral Health and 10 Developmental Services and appropriated, with estimated state revenue increased 11 accordingly, to the Department of Human Services FY 2018-19 Operating Budget 12 to provide primary care screenings of certain individuals receiving behavioral 13 health services from the Department of Human Services; and 14 15 2) One full-time position (1.0 FTE) and one part-time position (0.75 FTE) are hereby 16 established within the FY 2018-19 Operating Budget of the Department of Human 17 Services to meet the service delivery requirements for the above-referenced grant 18 funds. Adopted by the Council of the City of Virginia Beach, Virginia on the 19th day of March , 2019. Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: I U1 'J ) Budget & Management Services money's Office CA14708 R-1 March 7, 2019 86 ITEM-VI-J.9 (ADD ON) ORDINANCES/RESOLUTIONS ITEM#69050 Upon motion by Vice Mayor Wood, seconded by Council Member Moss, City Council ADOPTED Resolution to DIRECT the City Attorney to file a petition for Writ of Special Election re Beach District vacancy Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 1 A RESOLUTION TO DIRECT THE CITY ATTORNEY TO 2 FILE A PETITION FOR A WRIT OF SPECIAL ELECTION 3 4 WHEREAS, by court order, the seat for the Beach District is vacant; 5 6 WHEREAS, the current term of office for the Beach District seat runs until 7 December 31, 2022; 8 9 WHEREAS, Code of Virginia § 24.2-226 requires a local elected body to petition 10 its circuit court for a Writ of Special Election to fill the remaining portion of the term of 11 office for a member of the elected body when that member's term of office ends in a 12 year other than the year for which a general election to fill the vacancy occurs; and 13 14 WHEREAS, the next general election available to fill the Office of 15 Councilmember for the Beach District is November 5, 2019. 16 17 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 18 VIRGINIA BEACH, VIRGINIA: 19 20 That the City Council directs the City Attorney to file a Petition for a Writ of 21 Special Election in the Circuit Court for the purpose of filling the vacancy in the Office of 22 Councilmember, Beach District for a term ending December 31, 2022, and requests 23 such special election to be held November 5, 2019. Adopted by the City Council of the City of Virginia Beach, Virginia, this 19th day of March , 2019. APPROVED AS TO LEGAL SUFFICIENCY: G its/ Atforn y's Office CA14711 R-1 March 11, 2019 87 ITEM—VI-K 1 PLANNING ITEM#69051 The following registered to speak: Eddie Bourdon,Attorney for Applicant, spoke in SUPPORT Curt Clarke, 1000 Carissa Court, Phone: 910-546-0182, spoke in OPPOSITION Andrew Jackson, 153 Upperville Road, Phone: 490-9190, spoke in OPPOSITION Upon motion by Council Member Wilson, seconded by Council Member Moss, City Council, DEFERRED TO APRIL 2, 2019, Application of CLEAR CREEK HOLDINGS, LLC for a Conditional Change of Zoning from R-10 Residential&I-1 Light Industrial to Conditional I-1 Light Industrial at a vacant parcel off of South Birdneck Road, approximately 680 feet from Carissa Court re construct three(3) buildings for industrial office/warehouse units DISTRICT 6—BEACH(Deferred from February 5, 2019 and February 19, 2019) Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 88 ITEM—VI-K.2 PLANNING ITEM#69052 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council, APPROVED,AS CONDITIONED, BY CONSENT, Application of JANET T. RESPASS & TERESA TATEM for a Variance to Section 4.4(b) of the Subdivision Regulations re lot width at 1965 Gum Bridge Road and an adjacent vacant parcel DISTRICT 7 PRINCESS ANNE BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA JANET T. RESPASS & TERESA TATEM for a Variance to Section 4.4(b) of the Subdivision Regulations re lot width at 1965 Gum Bridge Road and an adjacent vacant parcel (GPINs 2411153657, 2411163397) DISTRICT 7—PRINCESS ANNE The following conditions shall be required: 1. When subdivided, the property shall be developed as shown on the submitted subdivision exhibit entitled "SUBDIVISION EXHIBIT OF LOTS 6, 7&C as shown on PARTITION OF PROPERTY OF J.T. TATEM ESTATE, ET AL (MB. 85, P. 23), " dated November 29, 2018, and prepared by Fox Land Surveying, a copy of which has been exhibited to the Virginia Beach City Council and is on file with the Virginia Beach Department of Planning and Community Development. 2. When Lot 6-A is developed, the residential dwellings constructed shall have architectural features and appearance of like quality and character of the home depicted on page seven (7) of this report entitled "Proposed Elevation, " which has been exhibited to the Virginia Beach City Council and is on file with the Virginia Beach Department of Planning and Community Development. 3. The residential dwelling constructed on Lot 6-A shall have its lowest finished floor at an elevation at least three(3)feet above the Base Flood Elevation or three(3)feet above adjacent grade, whichever is more. 4. Prior to obtaining a building permit, Lots 6-A shall obtain This Ordinance shall be effective in accordance with Section 107(1) of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the 19t1i day of March, Two Thousand Nineteen. Voting: 9-0 Council Members Voting Aye: Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Abstaining: Jessica P. Abbott Council Members Absent: None March 19, 2019 � A BE�`‘ r-. "Acy1 4 => tz> City of Vir iriia Beach t`�i i 1,a) F OpUA�\Q -\......„,,,,,,, ..4,-,,,,,,:,(4 - March 19, 2019 . CELL PHONE. (757)577-2068 JESSICA PABBOTT 757)744-3407 COUNCIL LADY-DISTRICT 2-KEMPSVILLE OFFICE PHONE: VBGOV JABBOTT�VB .COM In Reply Refer to 0064882 Mrs. Amanda Barnes City Clerk Municipal Center Virginia Beach, Virginia 23456 Re: Abstention Pursuant to Conflict of Interests Act § 2.2-3115 (F) Dear Mrs. Barnes: Pursuant to the State and Local Government Conflict of Interests Act, I make the following declaration: 1. I am executing this written disclosure regarding City Council's discussion and vote on the application of Janet T. Respass and Teresa Tatem for a variance for 1965 Gum Bridge Road and an adjacent vacant parcel to the east. 2. The applicants disclosed that they are using the services of Fox Land Surveying for this application. Fox Land Surveying is a client of Matt Abbott Insurance. I have a personal interest in Matt Abbott Insurance, which is located at 4646 Princess Anne Road, Suite 103, Virginia Beach, VA 23462. 3. I wish to disclose this interest and abstain from voting on this matter. Accordingly, I respectfully request that you record this declaration in the official records of City Council. Thank you for your assistance and cooperation in this matter. Sincerely, _LA op Jessic. '. Abbott Councilmember JPA/RRI 4646 PRINCESS ANNE ROAD.SUITE 6103.VIRGINIA BEACH.VIRGINIA 23464 7/ CN 1 /1 f1; rj it l,� �; ,9 iifg4.7,- e F e.::!7 4:2 Nip 4 o&(.1 i 0 NAIIIIIINC:m...-'14:127 1 ,V4 ..(,,,_,,,,, it -„, , - 'IlliV 411111111111111111, 1 ;1 89 ITEM—VI-K3 PLANNING ITEM#69053 The following registered to speak: Eddie Bourdon,Attorney for Applicant, spoke in SUPPORT Upon motion by Council Member Rouse, seconded by Council Member Jones, City Council,APPROVED, AS CONDITIONED,Application of CAND C DEVELOPMENT CO,INC./ETCPAC,LLC for a Special Exception for Alternative Compliance to the Oceanfront Resort District Form-Based Code re lot width,lot area,and parking setbacks at 2508 Pacific Avenue&302 26th Street DISTRICT 6—BEACH BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA C AND C DEVELOPMENT CO, INC.!ETCPAC, LLC for a Special Exception for Alternative Compliance to the Oceanfront Resort District Form-Based Code re lot width, lot area, and parking setbacks at 2508 Pacific Avenue & 302 26th Street (GPINs 2428007201, 2428007310) DISTRICT 6—BEACH The following conditions shall be required: 1. Site layout, improvements, easements, and plantings shall be substantially as shown on the conceptual site plan package titled, "DEVELOPMENT EXHIBIT LOTS 2, 4, &6&NORTHERN 90' OF LOT 2 for VB HOMES"dated January 18, 2019, as prepared by WPL. Said drawing has been exhibited to the City Council and is on file in the Department of Planning. 2. The architectural design, colors, and materials for the row house and rear detached house buildings shall be substantially as shown on the exhibits titled "Elevation Concept for 2508 Pacific Avenue- Design for VB Homes," dated January 24, 2019, by RBA (Retnauer Baynes Associates). Said drawings have been exhibited to the City Council and are on file in the Department of Planning. 3. The applicant shall make all right-of-way dedications and improvements substantially as shown on the site plan package referenced in Condition One(1)for Pacific Avenue, 26th Street, and the 25-1/2 Street alley, except the 26th Street improvements shall be extended beyond the subject site to accommodate a total of three on-street parking spaces on the north and/or south sides as required by Public Works Traffic Engineering. Additional adjustments and requirements may be applied as part of development site plan review. 4. All landscaping must be maintained in good health. Any landscaping that fails to grow or is determined to be in poor health shall be replaced with a type and quantity of plantings that is similar to and meets the same intent as the plants shown in the Planting Layout referenced in Condition One (1).Any replacement plantings shall be approved by the Development Services Center. 5. All mechanical equipment shall be screened year-round either architecturally or by landscaping or fencing such that it is not visible from the public right-of-way. 6. Temporary chain-link fencing shall be installed on the property lines shared with the adjacent property owner to the west for tree protection and containment of construction activity. March 19, 2019 90 ITEM—VI-K.3 PLANNING ITEM#69053 (Continued) 7. Per Sec. 6.2.5 (A) of the Oceanfront Form-Based Code regarding Reduced Parking, owners, residents, guests, or employees associated with this property are not eligible to participate in the Residential Parking Permit Program (RPPP). The developer shall record a deed restriction disclosing this information prior to receiving a Certificate of Occupancy. This Ordinance shall be effective in accordance with Section 107(1) of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the 19''day of March, Two Thousand Nineteen. Voting: 5-4 Council Members Voting Aye: Mayor Robert M Dyer, Louis R.Jones, Aaron R. Rouse, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Voting Nay: Jessica P.Abbott, Barbara M. Henley,John D. Moss and Rosemary Wilson Council Members Absent: Shannon DS Kane March 19, 2019 7 • 't ., \II 1 I I, I\\ 1 \I ll\i I \ I\ \ I, c • . , \ \ 1 lit \ ,,,, 4151 '1 } _--- ..,,N / p • iC 15'1 ! — , _ter 1—�= IA 1 \., S 5`` III W \ rt= ---1\\ , 'll 5 I ' • � •' I � t I � �� ' N, Iii fr;... 1 ,�I„ 0 W I ) �I� 5 S I,,�. 7`55l I .... taioillk 1, �. 10 , ____-? r.----- \ =r^J 0 ti • \so, ''' j \\ NI , may i \ \ Q II '---------\----------_________ r,�= r tit 011\ <---------\ V i.%. 4 '�I it _____-7.--7-' =r' 1 �_ '�I �, P s 91 ITEM—VI-K.4 PLANNING ITEM#69054 The following registered to speak: Randy Royal, Kimley-Horn Associates, representing the Applicant, spoke in SUPPORT Diana Ton-es, 1913 Ashmore Drive, Phone: 635-0778, spoke in OPPOSITION Upon motion by Council Member Moss, seconded by Council Member Rouse, City Council,APPROVED, AS PROFERRED, Application of VIRGINIA BEACH DEVELOPMENT AUTHORITY(VBDA)for a Conditional Change of Zoning from Conditional B-2 Community Business to Conditional I-1 Light Industrial, and Conditional I-1 Light Industrial to Conditional B-2 Community Business at the corner of Corporate Landing Parkway and General Booth Boulevard DISTRICT 7—PRINCESS ANNE BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA VIRGINIA BEACH DEVELOPMENT AUTHORITY (VBDA) for a Conditional Change ofZoningfrom Conditional B-2 Community Business to Conditional I-1 Light Industrial, and Conditional I-1 Light Industrial to Conditional B-2 Community Business at the corner of Corporate Landing Parkway and General Booth Boulevard (GPIN 2415123535) DISTRICT 7—PRINCESS ANNE The following conditions shall be required: An Agreement encompassing Proffers shall be recorded with the Clerk of Circuit Court. This Ordinance shall be effective in accordance with Section 1070 of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the 19`"day of March, Two Thousand Nineteen. Voting: 9-0 Council Members Voting Aye: Jessica P.Abbott, Mayor Robert M Dyer, Barbara M Henley, Louis R. Jones, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: Shannon DS Kane March 19, 2019 --‘ r ke �+ 4 :ái van lrlif i. • ii% „if Lia ~�.�; r--t T ,a i ".:'-'<i E ix ea if _... ..- .- t Fes +;ti Cat VA. ... , , __ • 1 ley .;oil . . ' Q j C3a L7 -1 r tilridi* it. /4 � d v tr '0,m� �Q ��c-uEt * 1 +oeok .-,L id p-41 . el 0%, X .1 =_"•it co 4 ✓j :#'0� ilioz�' ±'4!:y' 4 014,, 1 ` voti. s.' :it — �~`:�:, � #1 +it. A` .fix(;{ 4, .;. 1,-,414,.., t {i $ 4 t ;fi r 1 Niro! ig. ■ `tel ,r ; nAt, , 1 c 414 �' trtr F� 410. o .-_ �' ,�, ' i .�+ • 4, or # r.ii,. liter 8%-..t$61211101',0400”� 14'010:] ,�3 r . �j m•Tar; 1 � La rim. r OM1' f *2 ``� 1 Aite../1144 ea: t /f{,. ,. • IP.."` t . +11Q1',....- 1:i2 /f \ /fit N,a x 4 9 .,- 'a*i 0 . /TI. = V"' I ..;,,-<-'74 \\NIli 4f, CD . , \ -4:0440.,..-P- .1 4 i .' s . . ,.. \‘, \ A " tato: -_,,o)f-,. °A 1 \\,, -..*4' i ( :,-74'4,42,1''f., '\ % / CO * , � ".:\* . % a "F" I\CCI . • co 2 .Ns - .\' ' ...„. .,:'cw ,, __;- \oma -'V ., :- iett.#4, ,,,s i.i 44,,, ..4,* 0-,,, ' fie ; � w, liak aN\.\ .' i% . „0".pi.....,. 115,11144 J r4.`., "� 4 r1.\t tr. `ce. S .10.4t, ict ,_.. . , 4017%.IP.- titli.` ' gel a El j.. j ., „v- ' • 1 r:tol 8 PlHfitti V. 74 l Ikr, '+ , 0 * : i, ' 4- • 1 ' . --., • ., -•w- ciiri 410,., . 40 • '(.,9 N` o ~ a {� cD /! @ & rYj V, , ff+ 9 o bd 1 fii 144.--. 6`-'', AD i I e /it-, '''--,!--...._ { Uf N $ b 1 1Q }I /J 4G1l�•BE,gc .,.'A. y a CITY OF VIRGINIA BEACH * ; INTER-OFFICE CORRESPONDENCE ,>•,. OF OURT;;;:o"S In Reply Refer To Our File No. DF-10161 DATE: March 8, 2019 TO: Mark D. Stiles DEPT: City Attorney FROM: B. Kay Wilson - \ DEPT: City Attorney RE: Conditional Zoning Application; Virginia Beach Development Authority The above-referenced conditional zoning application is scheduled to be heard by the City Council on March 19, 2019. I have reviewed the subject proffer agreement, dated January 23, 2019 and have determined it to be legally sufficient and in proper legal form. A copy of the agreement is attached. Please feel free to call me if you have any questions or wish to discuss this matter further. BKW/ka Enclosure cc: Nancy Bloom Prepared by: Office of the City Attorney GPIN: 24151235350000 CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY To (PROFFERED COVENANTS, RESTRICTIONS AND CONDITIONS) CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia THIS AGREEMENT, made this a3 day of January 2019, by and between CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, Grantor; and THE CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia, party of the second part, Grantee. WITNESSETH: WHEREAS, the party of the first part is the owner of one (1) parcel of property located in the Beach District of the City of Virginia Beach, containing a total of approximately 144.2944 acres with an approximately 26.53 acre portion of that property designated as AREA 1 and AREA 4 on the exhibit which is entitled "EXHIBIT 1, Corporate Landing Business Park, General Booth Boulevard and Corporate Landing Parkway, Virginia Beach, Virginia" dated December 3, 2018, prepared by Kimley-Horn and Associates and attached hereto and incorporated herein by this reference is hereinafter referred to as the "Property"; and WHEREAS, the party of the first part, as owner of the Property, has initiated a conditional amendment to the Zoning Map of the City of Virginia Beach, Virginia, by petition addressed to the Grantee, so as to change the Zoning Classifications of the Property being AREA 1 from Conditional B2 Commercial District to Conditional 11 Light Industrial District and AREA 4 from Conditional 11 Light Industrial District to Conditional B2 Commercial District; and WHEREAS, the Grantee's policy is to provide only for the orderly development of land for various purposes through zoning and other land development legislation; and WHEREAS, the Grantor acknowledges that the competing and sometimes incompatible uses conflict and that in order to permit differing uses on and in the area of the Property and at the same time to recognize the effects of change, and the need for various types of uses, certain reasonable conditions governing the use of the Property for the protection of the community that are not generally applicable to land similarly zoned are needed to cope with the situation to which the Grantor's rezoning application gives rise; and 1 WHEREAS, the Grantor has voluntarily proffered, in writing, in advance of and prior to the public hearing before the Grantee, as a part of the proposed amendment to the Zoning Map, in addition to the regulations provided for in the 11 Light Industrial District and B2 Commercial District by the existing overall Zoning Ordinance, the following reasonable conditions related to the physical development, operation, and use of the Property to be adopted as a part of said amendment to the Zoning Map relative and applicable to the Property, which have a reasonable relation to the rezoning and the need for which is generated by the rezoning. NOW, THEREFORE, the Grantors, for themselves, their successors, representatives, assigns, grantees, and other successors in title or interest, voluntarily and without any requirement by or exaction from the Grantee or its governing body and without any element of compulsion or quid pro quo for zoning, rezoning, site plan, building permit, or subdivision approval, hereby makes the following declaration of conditions and restrictions which shall restrict and govern the physical development, operation, and use of the Property and hereby covenants and agrees that this declaration shall constitute covenants running with the Property, which shall be binding upon the Property and upon all parties and persons claiming under or through the Grantors, their successors and assigns, grantees, and other successors in interest or title: 1. The land to be rezoned shall be as shown as the 26.4 acres designated as AREA 1 on the exhibit entitled "EXHIBIT 1, Corporate Landing Business Park, General Booth Boulevard and Corporate Landing Parkway, Virginia Beach, Virginia"dated December 3, 2018 and prepared by Kimley-Horn and Associates shall be rezoned from Conditional B-2 to Conditional I-1. Development of the parcel shall be in accordance with the proffers as recorded in Deed Book 3633, Page 0774 dated January 16, 1996. 2. The land to be rezoned shall be as shown as the 0.13 acres designated as AREA 4 on the exhibit entitled "EXHIBIT 1, Corporate Landing Business Park, General Booth Boulevard and Corporate Landing Parkway, Virginia Beach, Virginia"dated December 3, 2018 and prepared by Kimley-Horn and Associates shall be rezoned from Conditional I-1 to Conditional B-2. Development of the parcel shall be in accordance with the proffers as recorded in Deed Book 3633, Page 0774 dated January 16, 1996. 3. Further conditions may be required by the Grantee during detailed Site Plan review and administration of applicable City Codes by all cognizant City agencies and departments to meet all applicable City Code requirements. 2 All references hereinabove to the 62 and 11 Districts and to the requirements and regulations applicable thereto refer to the Comprehensive Zoning Ordinance and Subdivision Ordinance of the City of Virginia Beach, Virginia, in force as of the date of approval of this Agreement by City Council, which are by this reference incorporated herein. The above conditions, having been proffered by the Grantors and allowed and accepted by the Grantee as part of the amendment to the Zoning Ordinance, shall continue in full force and effect until a subsequent amendment changes the zoning of the Property and specifically repeals such conditions. Such conditions shall continue despite a subsequent amendment to the Zoning Ordinance even if the subsequent amendment is part of a comprehensive implementation of a new or substantially revised Zoning Ordinance until specifically repealed. The conditions, however, may be repealed, amended, or varied by written instrument recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, and executed by the record owner of the Property at the time of recordation of such instrument, provided that said instrument is consented to by the Grantee in writing as evidenced by a certified copy of an ordinance or a resolution adopted by the governing body of the Grantee, after a public hearing before the Grantee which was advertised pursuant to the provisions of Section 15.2-2204 of the Code of Virginia, 1950, as amended. Said ordinance or resolution shall be recorded along with said instrument as conclusive evidence of such consent, and if not so recorded, said instrument shall be void. The Grantors covenant and agree that: (1) The Zoning Administrator of the City of Virginia Beach, Virginia, shall be vested with all necessary authority, on behalf of the governing body of the City of Virginia Beach, Virginia, to administer and enforce the foregoing conditions and restrictions, including the authority (a) to order, in writing, that any noncompliance with such conditions be remedied, and (b)to bring legal action or suit to insure compliance with such conditions, including mandatory or prohibitory injunction, abatement, damages, or other appropriate action, suit, or proceeding; (2) The failure to meet all conditions and restrictions shall constitute cause to deny the issuance of any of the required building or occupancy permits as may be appropriate; (3) If aggrieved by any decision of the Zoning Administrator, made pursuant to these provisions, the Grantors shall petition the governing body for the review thereof prior to instituting proceedings in court; and (4) The Zoning Map may show by an appropriate symbol on the map the existence of conditions attaching to the zoning of the Property, and the ordinances and the conditions may be made readily available and accessible for public inspection in the office of the Zoning Administrator and in the Planning Department, and they shall be recorded in the Clerk's Office of 3 the Circuit Court of the City of Virginia Beach, Virginia, and indexed in the names of the Grantors and the Grantee. WITNESS the following signature and seal: Grantor: Cit .f Virginia Beach Development Authority �� .� (SEAL) go•rothy Woo 6 I ' Chair Commonwealth of Virginia City of Virginia Beach, to-wit: The foregoing instrument was acknowledged before me this .?. day of 3;kal3qiLq 2019, by Dorothy Wood, Chair of City of Virginia Beach Development Authority, Grantor. 0 AO" A __ / Notary Pu.P / W STF4/".-,, My Commission Expires: I I t30 I ZOZC� `��,• ¢•;�... r..frim Notary Registration Number: 7(p?1-13‘„7L.:1:7::.......(!07 ;'= MY �c:C. ::: -n : COMMISSIONNUMBER �1•. 7674367 '. '••......•'.\'S so.�FALTN OF ,I APPROVED AS ii il LEGAL SU� t1. 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NV iii.- -__ ______ I r P �k I t 0 ` ` ;g tl it, 1 S ;R \ _� 3 bj pc I \ ® : pp rF k Ff ti t d �� C W \,11 E N Q irgggil D W R- .,j 1-14111411111111: rTs 111%( \ 3WLLld AAVM)dOVId 31 i . ,:., \_b 3WRl3d Cy _ \ *I1 ' I 1 ii ,< z , j \\__ , 0 ___,.. -L 1 1-1.Ijr\- 1111—T--- —r, —�—wc i 0 •* n \ I . -\ . , ,--' c_F° g --\-- iterin r _ .m,_ - so II'. 1 — \ 0 p MO'` � o Mil I-\ I ` ---\. �_-O1 1--I---/_1 9Y pt<„ E+ffa«, V c.2fig 92 ITEM—VI-K 5 PLANNING ITEM#69055 Upon motion by Vice Mayor Wood, seconded by Council Member Wilson, City Council, APPROVED,AS PROFERRED/MODIFIED, BY CONSENT, Application of TRADITIONAL CONCEPTS, LLC & VICTORY BAPTIST CHURCH OF VIRGINIA BEACH,INC.for a Conditional Change ofZoningfrom R-15 Residential to Conditional R-10 Residential re 13 single-family dwellings and a Modification of Conditions re religious use at 4125 Indian River Road DISTRICT 7—PRINCESS ANNEBE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA TRADITIONAL CONCEPTS, LLC& VICTORY BAPTIST CHURCH OF VIRGINIA BEACH, INC.for a Conditional Change of Zoning from R-15 Residential to Conditional R-10 Residential re 13 single-family dwellings and a Modification of Conditions re religious use at 4125 Indian River Road (GPIN 1474534410) COUNCIL DISTRICT 7 - PRINCESS ANNE The following conditions shall be required: An Agreement encompassing Proffers shall be recorded with the Clerk of Circuit Court. The following conditions shall be required: 1. All conditions of the 1998 Conditional Use Permit as well as the conditions of the 2008 Modification are null and void. 2. Development of the church site shall be substantially as shown on the Preliminary Subdivision Plan entitled "PRELIMINARY SUBDIVISION PLAN ENCLAVE AT VICTORY", sheet Cl, dated December 10, 2018,prepared by Pinnacle Group Engineering, Inc. Said plan has been exhibited to the Virginia Beach City Council and is on file with the Virginia Beach Department of Planning(the "Preliminary Subdivision Plan'). 3. Any trash dumpster on the site shall be enclosed by a solid brick wall(brick substantially matching the existing brick on the building) or a vinyl fence of six(6)feet in height. No dumpster shall be located within forty feet(40) of Lot Thirteen (13) on the plan identified in Condition Two (2). 4. Light fixtures may remain on at any time,provided that the source of the light is shielded to not be visible from the property lines of adjacent properties and that the light be contained on the subject. This Ordinance shall be effective in accordance with Section 107f of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia,on the 19`"day ofMarch, Two Thousand Nineteen. March 19, 2019 93 ITEM—VI-K5 PLANNING ITEM#69055 (Continued) Voting: 10-0 Council Members Voting Aye: Jessica P.Abbott, Mayor Robert M Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, John D. Moss,Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: None March 19, 2019 /,10 , ti 4 .1\) \—) '''%> ../. ,.%\.. .-0 - • 011”,,te,A** - , i 4 +r,..,,,r'f 6 140 ,,i-e4.._ '''';- . . 0. co, ve- .i.-.,0,..; ik...--- ,...--s ..., �; fj� 4y ce „-,..,-- rt.' ‹..,.„4,.. s.---\„ /,-, * ' 0 4 . fit,„4 c-.4146,k / ,,,,,,0\_....., .,,. .„,)v..5. .. , 4itel - -- li' * : 0.? C's.,_ 7> at4 . \fi 9 rj.\NI J --1.-.'1 4r v� `�� , t r hf�`� +.,4 j"->\...7./. L 0 . . 1 ...„ ,-\,...2,,,.. _ _ $ t, 4 _ *LI- od Alt;,:,.. L---, Ali ° elli# A .47111°./ > ‘411 0\to air :" 1 4.. r k ,,, ,\\>•4-,it. 0 -,,,, .,,,...,... 0 ,. , .: -4A-ii,t / � <N"--,,6 � 4t - i 1p\ Nlikt ., 6 \ r CJS _..... ..;„ .\> / 111* P.. "s!‘ . re \ /' A 'C3 'A‘ /i ' 7 V \eV Z:lj, 4U' -*10101 \ r ' h I • • f 5 7 � .: ": r • i. _ ee • 0 . n 0141A'14c CITY OF VIRGINIA BEACH INTER-OFFICE CORRESPONDENCE Z 9V ��ppp� � g4"s -= ,e�(i OF _OUR ho‘o In Reply Refer To Our File No. DF- 9342 DATE: March 8, 2019 TO: Mark D. Stiles DEPT: City Attorney FROM: B. Kay Wi s•�3) DEPT: City Attorney RE: Conditional Zoning Application; Traditional Concepts, LLC The above-referenced conditional zoning application is scheduled to be heard by the City Council on December 10, 2018. I have reviewed the subject proffer agreement, dated January 25, 2016 and have determined it to be legally sufficient and in proper legal form. A copy of the agreement is attached. Please feel free to call me if you have any questions or wish to discuss this matter further. BKW/ka Enclosure cc: Nancy Bloom VICTORY BAPTIST CHURCH OF VIRGINIA BEACH, INC., a Virginia non-stock corporation; TRADITIONAL CONCEPTS LLC, a Virginia limited liability company TO (PROFFERED COVENANTS, RESTRICTIONS AND CONDITIONS) CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia THIS AGREEMENT, made this 10th day of December 2018, by and between VICTORY BAPTIST CHURCH OF VIRGINIA BEACH, INC., a Virginia non-stock corporation, party of the first part, Grantor; TRADITIONAL CONCEPTS, LLC., a Virginia Limited Liability Corporation, party of the second part, Grantor; and THE CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia,party of the third part, Grantee. WITNESSETH: WHEREAS, the party of the first part is the owner of that parcel of property located in the Princess Anne District of the City of Virginia Beach, containing approximately 10.003 acres which is more particularly described in Exhibit "A" attached hereto and incorporated herein by this reference. Said parcel is hereinafter referred to collectively as the "Property"; and WHEREAS, the party of the second part as the contract purchaser of the Property has initiated a conditional amendment to the Zoning Map of the City of Virginia Beach, Virginia, by petition addressed to the Grantee so as to change the Zoning Classifications of the Property from R-15 Residential District to R-10 Residential District; and WHEREAS, the Grantee's policy is to provide only for the orderly development of land for various purposes through zoning and other land development legislation; and GPIN: 14745344100000 Prepared by:John M.Napier,VSB#82973,Hanger Law;618 Village Dr., Ste.J,Virginia Beach,VA 23454 1 WHEREAS, the Grantor acknowledges that the competing and sometimes incompatible uses conflict and that in order to permit differing uses on and in the area of the Property and at the same time to recognize the effects of change, and the need for various types of uses, certain reasonable conditions governing the use of the Property for the protection of the community that are not generally applicable to land similarly zoned are needed to cope with the situation to which the Grantor's rezoning application gives rise; and WHEREAS, the Grantor has voluntarily proffered, in writing, in advance of and prior to the public hearing before the Grantee, as a part of the proposed amendment to the Zoning Map, in addition to the regulations provided for the R-10 Zoning District by the existing overall Zoning Ordinance, the following reasonable conditions related to the physical development, operation, and use of the Property to be adopted as a part of said amendment to the Zoning Map relative and applicable to the Property, which as a reasonable relation to the rezoning and the need for which is generated by the rezoning. NOW, THEREFORE, the Grantor, for itself, its successors, personal representatives, assigns, grantee, and other successors in title or interest, voluntarily and without any requirement by or exaction from the Grantee or its governing body and without any element of compulsion or quid pro quo for zoning, rezoning, site plan, building permit, or subdivision approval, hereby make the following declaration of conditions and restrictions which shall restrict and govern the physical development, operation, and use of the Property and hereby covenant and agree that this declaration shall constitute covenants running with the Property, which shall be binding upon the Property and upon all parties and persons claiming under or through the Grantor, its successors, personal representatives, assigns, grantee, and other successors in interest of title: 1. When the property is developed, it shall be as a single family subdivision with no more than thirteen (13) single family residential lots, with one lot containing an existing home, designated as Lot 12, and one additional lot to remain as a church use, designated as Lot A, substantially in accordance with the Preliminary Subdivision Plan designated "PRELIMINARY SUBDIVISION PLAN ENCLAVE AT VICTORY'', sheet Cl, dated 12/10/18, prepared by Pinnacle Group Engineering, Inc., which has been exhibited to the Virginia Beach City Council and is on file with the Virginia Beach Department of Planning (the "Preliminary Subdivision Plan"). 2 2. The Total number of residential lots permitted on the Property shall not exceed thirteen (13) (including Lot 12). Each new home shall contain a minimum of 2400 square feet of living area and at least a one(1)car garage. 3. Lot A with the existing church shall continue in its current use as allowed under the Conditional Use Permit granted to Victory Baptist Church of Virginia Beach, Inc., by Grantee. 4. The architectural design of the residential dwellings and any detached garages will be substantially as depicted on elevations exhibited on the designated "PRELIMINARY SUBDIVISION PLAN ENCLAVE AT VICTORY", sheet Cl, dated 12/10/18, which have been exhibited to the Virginia Beach City Council and are on file with the Virginia Beach Department of Planning. The exterior building elevations shall be limited to the following materials, and each elevation shall include some combination of: architectural shingles, hardiplank, stone, brick, premium vinyl siding, fiber cement siding, and/or wood. 5. When the Property is developed, the Grantor shall record a Declaration submitting the Property to a mandatory membership Homeowner's Association, which shall be conveyed title to any Open Space and/or BMP Lot, and shall be responsible for maintaining all open spaces, landscaping and other improvements in the BMP Lot(s) on the Property as depicted on the Concept Plan. 6. When the Property is developed, the ground elevation surrounding and immediately adjacent to any structure shall exceed 8.30 feet as referenced by the North American Vertical Datum of 1988 (NAVD 88) and the right-of-way and sidewalk elevations on the Property as depicted on the Concept Plan shall meet or exceed an elevation of 8.30 feet NAVD 88. 7. Further conditions may be required by the Grantee during detailed site plan review and administration of applicable City Codes by all cognizant City agencies and departments to meet all applicable City Code requirements. The above conditions, having been proffered by the Grantor and allowed and accepted by the Grantee as part of the amendment to the Zoning Ordinance, shall continue in full force and effect until a subsequent amendment changes the zoning of the Property and specifically repeals such conditions. Such conditions shall continue despite a subsequent amendment to the Zoning Ordinance even if the subsequent amendment is part of a comprehensive implementation of a new or substantially revised Zoning Ordinance until specifically repealed. The conditions. however. may be repealed, amended, or varied by written instrument recorded in the Clerk's 3 Office of the Circuit Court of the City of Virginia Beach, Virginia, and executed by the record owner of the Property at the time of recordation of such instrument, provided that said instrument is consented to by the Grantee in writing as evidenced by a certified copy of an ordinance or a resolution adopted by the governing body of the Grantee, after a public hearing before the Grantee which was advertised pursuant to the provisions of Section 15.2-2204 of the Code of Virginia, 1950, as amended. Said ordinance or resolution shall be recorded along with said instrument as conclusive evidence of such consent, and if not so recorded, said instrument shall be void. The Grantor covenants and agrees that: (1) The Zoning Administrator of the City of Virginia Beach, Virginia, shall be vested with all necessary authority, on behalf of the governing body of the City of Virginia Beach, Virginia, to administer and enforce the foregoing conditions and restrictions, including the authority (a) to order, in writing, that any noncompliance with such conditions be remedied; and (b) to bring legal action or suit to insure compliance with such conditions, including mandatory or prohibitory injunction, abatement, damages, or other appropriate action, suite, or proceeding; (2) The failure to meet all conditions and restrictions shall constitutes cause to deny the issuance of any of the required building or occupancy permits as may be appropriate; (3) If aggrieved by any decision of the Zoning Administrator, made pursuant to these provisions, the Grantor shall petition the governing body for the review thereof prior to instituting proceedings in court; and (4) The Zoning Map may show by an appropriate symbol on the map the existence of conditions attaching to the zoning of the Property, and the ordinances and the conditions may be made readily available and accessible for public inspection in the office of the Zoning Administrator and in the Planning Department, and they shall be recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, and indexed in the name of the Grantor and the Grantee. 4 WITNESS the following signature and seal: GRANTOR: TRADITIONAL CONCEPTS, LLC, a Virginia i 't;d li. y By: ' (SEAL) Title: Wa -'rosby, Managi • Member STATE OF V 'GINIA �/J,�/ CITY OF =- - ' 1''� .0X , to-wit: The forgoing instrument was ac . •wle-aged before me this 11 day of .�/Y�/}� Cin,,ZOt- 2018, by Wayne Crosby, Managing M'mber of Traditional Concepts, LLC, a Virginia limited liability company, Grantor. Notary fir My Commission Expires: 03lETIlIlI JOHN MEADE NAPIER Notary Public Commonwealth of Virginia ----I My Commission Expires Oct. 31, 2019 Registration#324593 5 WITNESS the following signature and seal: GRANTOR: VICTORY BAPTIST CHURCH OF VIRGINIA BEACH, INC., a Virginia non-stock corporation /F ,� - BY: (SEAL) TITLE: i 2-,.-7,/,.....--, ./2-t,t....:(..e.„-------- //Z.- STATE OF RGINIA CITY OF 51f,,, Lp ,to-wit: n�� The forgoing instrument was acknowledged before me this this �.J day of 7)zeoribibt, 2018, by Leslie W. Smith, President of Victory Baptist Church of Virginia Beach, Inc., a Virginia non-stock corporation),G antor. d i Lit Ci :,t }otary Public My Commission Expires: ;J'° `. 21 t ci GsA A. Notary Registration No: t'q 3 7 4Q0"0,,ONiy ,Hr, S. $ 193467 CD ‘1411Frif,P‘,. 6 EXHIBIT "A" LEGAL DESCRIPTION ALL THAT certain lot, piece and parcel of land with the buildings and improvements thereon and the appurtenances thereunto appertaining, situate and lying, and being in the City of Virginia Beach, Virginia and being more particularly designated as "10.003 ACRES", on that certain plat entitled "SURVEY OF PROPERTY OF MARGARET L. STONE. (D.B. 495, P. 291), FOR REVEREND LESLIE W. SMITH, VIRGINIA BEACH, VIRGINIA, SCALE 1" = 60', DATED OCTOBER 9, 1998, JOHN E. SIRINE AND ASSOCIATES, LTD., SURVEYORS, ENGINEERS AND PLANNERS", which said plat is duly recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia in Map Book 275, at Page 18, reference to said plat being made for a more particular description of the aforementioned property. GPIN: 1474-53-4410-0000 7 94 ITEM VI-L. APPOINTMENTS ITEM#69056 BY CONSENSUS, City Council RESCHEDULED the following APPOINTMENTS. 2040 VISION TO ACTION COMMUNITY COALITION BIKEWAYS AND TRAILS COMMITTEE BOARD OF BUILDING CODE APPEALS —ELECTRICAL DIVISION —NEW CONSTRUCTION DIVISION —PLUMBING AND MECHANICAL DIVISION CLEAN COMMUNITY COMMISSION COMM UNITY POLICYAND MANAGEMENT TEAM COMMUNITY SERVICES BOARD DEFERRED COMPENSATION BOARD GREEN RIBBON COMMITTEE HISTORIC PRESERVATION COMMISSION HUMAN RIGHTS COMMISSION INVESTIGATION REVIEW PANEL OPEN SPACE ADVISORY COMMITTEE PUBLIC LIBRARY BOARD STORMWATER APPEALS BOARD VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION March 19, 2019 95 ITEM VI-L. APPOINTMENTS ITEM#69057 Upon NOMINATION by Vice Mayor Wood, City Council APPOINTED: DEE OLIVER (Represents Planning Commission) 3/19/19— 12/31/21 BIKEWAYS AND TRAILS COMMITTEE Voting: 9-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: Shannon DS Kane March 19, 2019 96 ITEM VI-L. APPOINTMENTS ITEM#69058 Upon NOMINATION by Vice Mayor Wood, City Council APPOINTED: JUSTIN BURNS WALTER CAMP KAREN SHORT Three year term 4/1/19—3/31/22 And REAPPOINTED: SCOTT KELLAM Three year term 4/1/19—3/31/22 CLEAN COMMUNITY COMMISSION Voting: 9-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: Shannon DS Kane March 19, 2019 97 ITEM VI-L. APPOINTMENTS ITEM#69059 Upon NOMINATION by Vice Mayor Wood, City Council APPOINTED: DAVID WEINER (Represents Planning Commission) 3/19/19—12/31/21 GREEN RIBBON COMMITTEE Voting: 9-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: Shannon DS Kane March 19, 2019 98 ITEM VI-L APPOINTMENTS ITEM#69060 Upon NOMINATION by Vice Mayor Wood, City Council APPOINTED: BOBBY TAJAN (Planning Department Representative) Five year term 3/19/19—3/31/24 STORMWATER APPEALS BOARD Voting: 9-0 Council Members Voting Aye: Jessica P.Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, John D. Moss, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: Shannon DS Kane March 19, 2019 99 ADJOURNMENT ITEM#69061 Mayor Robert M. Dyer DECLARED the City Council Meeting ADJOURNED at 7:24 P.M. Terri aus Chief Deputy City Clerk I i 3177 • anda Barnes, MMC Robert M. Dyer City Clerk Mayor City of Virginia Beach Virginia March 19, 2019