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HomeMy WebLinkAboutJANUARY 23, 2024 SPECIAL FORMAL SESSION MINUTES a� G�u o O, OUN M^SOM`' VIRGINL4 BEACH CITY COUNCIL Virginia Beach, Virginia January 23, 2024 Mayor Robert M. Dyer called to order the CITY COUNCIL SPECIAL FORMAL SESSION in the City Council Conference Room, City Hall, on Tuesday,January 23, 2024, at 1:30 P.M. Council Members Present: Michael F. Berlucchi, Mayor Robert M. Dyer, Barbara M. Henley,David Hutcheson, Robert W. "Worth" Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse,Joashua F. "Joash"Schulman, Chris Taylor and Sabrina D. Wooten Council Members Absent: Vice Mayor Rosemary Wilson—Out of Town 2 MAYOR'S CALL FOR SPECIAL FORMAL SESSION ITEM#75207 "HONORABLE MEMBERS OF CITY COUNCIL In accordance with the Virginia Beach City Code Section 2-21, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call for a SPECIAL FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL Tuesday,January 23,2024 1:30 P.M. City Council Conference Room 2034 Building 1, City Hall,2"d Floor 2401 Courthouse Drive The purpose of this SPECIAL FORMAL SESSION is to allow the City Council to convene into a Closed Session at the conclusion of the regularly scheduled Formal Session where the following matters will be considered: • Leral Matters—Atlantic Park Project • Personnel Matters - Council Appointments: Council, Boards, Commissions, Committees,Authorities,Agencies, Task Forces and Appointees At the conclusion of the Closed Session, the City Council will reconvene into Open Session for the purpose of certifying the Closed Session. Sincerely, Robert M. Dyer Mayor" cc: City Manager City Attorney City Clerk Deputy City Managers FOIA Officer Communications Office January 23, 2024 Nu',B�c Ok City of Vi rgi ni a B each U r-...� 2 �tl r op aUR NA'"'3 VBWvA"n ROSEMARY WILSON PHONE:(757)422-0733 VICE MAYOR RCWilson(a)vbaov.com COUNCIL MEMBER-DISTRICT 5 January 18, 2024 HONORABLE MAYOR MEMBERS OF CITY COUNCIL Dear Colleagues, I will be unable to attend the City Council meeting on January 23, 2024. Sincerely, Rosemary Wilson Vice Mayor Cc: City Clerk City Attorney City Manager FOIA Officer 921 ATLANTIC AVENUE,UNIT 502,VIRGINIA BEACH,VIRGINIA 23451 CITY / BRIEFING GENERAL ASSEMBL Y UPDA ITEM 0i Mayor Dyer welcomed Brent McKenzie, Legislative 'I I I expressed his appreciation tI City CouncilforI 'I support General Assembly Legislative Update Brent McKenzie,Legislative Affairs Liaison January 23,2024 VIRGINIA _�� BEACH 2024 General Assembly Update Today's update: • Reminder:Registration for Local Government Day closes on January 25 • Budget Update • Status of Legislative Agenda items • Legislation of interest • Legislation from the Virginia Beach Delegation • Bill position requests Goal of today's presentation is to provide an update on the General Assembly session and to ascertain the Council's position on key bills coming up for a vote. � v January 2024 4 CITY COUNCIL'S BRIEFING GENERAL ASSEMBLY UPDATE ITEM#75208 (Continued) The next two (2)slides provide an update on Budget items: Status of Agenda items Budget requests Patron 1-18 1 SB 30 5/31 Memorial Senator Rouse $2.0 million GF the first year to $2.0 million GF each year to support Delegate Convirs-Fowler support construction of the 5/31 [he huilding of the 5/31 Memorial Memorial Stormwater Delegate Feggans& $15.0 million GF the first year to build n/a Operations Center Delegate Convirs-Fowler a Flood Protection Control Center Virginia Aquarium& Senator DeSteph; n/a $20 million($10.0 million each year( Governor's introduced budget Marine Science Center co-patrons Craig,Jordan, GF to support[he Aquarium Renovation/Expansion Rouse renovation and expansion $177,073,004,088 Amendments to HO 1 $27,185,001,037 increase Amendments to SB I :I ,177 increase 1 1 (Dept of Health) Rouse $350,D00 GF each year to the City of Annual cancer screenings for Virginia Beach to provide an annual public employee responders to cancer screening for public employees the 2012 Virginia Beach Navy Jet who responded to the 2012 Navy Jet Crash Crash who may have been exposed to toxic materials (Va Tourism Authority) Askew $100,000 GF the first year for the city Development of a Hampton of Virginia Beach to develop a Roads African American Heritage Hampton Roads African American travel guide Heritage travel guide (Dept of Transportation) Barren $20 million GF the first year to Birthplace of America Trail support the completion of the South Hampton Roads Trail and the Birthplace of America Trail both of which are in Hampton Roads Virginia Military Community Tata $7.5 million in each year to fund Infrastructure Grant Program the Virginia Military Community Infrastructure Grant Program January 23, 2024 5 CITY COUNCILS BRIEFING GENERAL ASSEMBLY UPDATE ITEM#75208 (Continued) The next two(2)slides provide an update on Legislative Agenda items: awn Status of Agenda items charter Amendments Nil&Patron Adapt the ten single member district system used in the 2022 MB 416 Convirs-fowler HB 416 passed Counties Cities&Towns 12-9 elections and adopted by the City Council in its decennial SB 189 Dossed the Senate unanimously redistricting ordinance SB 189 Rouse Increase the membership of the City of Virginia Beach Board of HB 415 Convirs-Fowler HB 416 passed Counties Cities&Towns Equalization from four members to five members and add an unanimousy alternate SB 262 Craig SB 262 passed the Senate unanimously Refled Election System Adopted by Council 1-184U9 Askew HB 409feferred to P&E Commmee lmeets FrWay mornings) SO In Rouse SO 188 passed Senate-ant—ly Emergency Response TP-Exposure Grant Fund and Program; H8133 Conylfs V.I., HB 133 reported out of the General laws Subcommbtee p1 g-0 (Formerly known as the"Good Friday"First Responders Fund) arMwas refeferredto the Comm4tee on App pril— SB 650 Rouse SO 6%referred to Rulas Commmee Photo Speed Monnoring0-1—on Local Highways 3versbm oithis le&WIPn have been lmfoduced by Referred to CommRtee on Tramisonatlon members In other pans of the Commonweahh Ph—Speed Monitoring and f allure of Recipient to Respond H8103381— Referred to Commlflee on Tran:p-.I- Opiold and Femanyl Awareness Ed—no. Hit 134 Convirs-Fowler • Reported out of the HIM,Education K-12Sun—Ith- unammo ty and refeferred to the Rules Commmee Lof,l TasingAuthorny for Vaping andF Cigarette products HB 1036 B1o.om Referred to Commmee-Hnence Establish the Vifginia Crenive Economy Grant Fund and Program Hit 642 Glass Refened to Commmee on Labor and Commerce Obstruction of Right-of-Way Violations Hit 215 Tat, Referred la Commmee on Coumles,Man and Towns Re-Establish the Virginia MI—ft,Business Commhsbn HB 374 Feggans Refenad to Commmee on Ruins Violation of a Short Term Rental Ordinance HB 1034111— Referred to CI..Rtee on General Laws January 23, 2024 6 CITY COUNCILS BRIEFING GENERAL ASSEMBLY UPDATE ITEM#75208 (Continued) The next two (2)slides provide an update on the City's Delegation Legislative items: Delegate Tanta HS 301/SB 180 Allows Virginia ABC to issue annual mixed beverage performing arts facility licenses Senator DeSteph Alcoholic beverage control;annual to persons operating food concessions at any performing arts amphitheater,arena,w In beverage performing arts facility similar facility that has a total capacity in excess of 3,000 patrons and is located In the licenses. Clry of Virginia Beach. Delegate Knight HB 1054 Provides that a locality may require the owner of property that(1)was formerly used Vegetative growth on certain property; as a golf course and(I)abuts an area zoned for residential purposes to maintain the maintenance. vegetative growth on the former golf course property in a manner that(a)prevents such property from becoming a detriment to the health,safety,or welfare(b)does not change the character of the former golf course property so as to be Incompatible with the surrounding residential area. • The bill further provides that whenever the locality deems it necessary,after reasonable notice as determined by the locality,the locality may have its agents or employees cut or maintain the vegetative growth,in which event the cost and expenses thereof shall be chargeable to and paid by the owner of such property and may be collected by the locality as taxes are collected. Delegate Knight HB 1053 Allows localities and state agencies to apply,under certain conditions,to the Abandoned watercraft;destruction and Department of Wildlife Resources for an authorization to destroy and dispose of an disposal by localities and state agencies. abandoned watercraft. Senator Craig 58171 Allows enhanced civil penalties for zoning violations involving Zoning;enhanced civil penalties for nonpermitted commercial uses. violations involving nonpermitted The bill also requires that for any violation involving nonpermitted commercial uses. commercial uses,a person who admits liability shall be required to abate or remedy the nonpermitted commercial use violation within a period of time specified by the locality that is no less than 30 days but no more than 24 months from the date of admission of liability. Delegate Convirs-Fowler HB 1386 Requires that any workplace rules of a locality relating to the control of Firearms;workplace rules of localities. firearms be consistent with related local ordinances and other rules that apply to members of the general public. Senator DeSteph 58 268 Requires the Commissioner of Marine Resources to ensure that for any Marine Resources Commission; project under consideration for a Commission issued permit the permits,public notice. Commission sends public notice electronically to any business,residence, or civic organization that has requested to be added to the Commission's public notice email list. Senator DeSteph SB 275 Prohibits the Marine Resources Commission from issuing any permit for Marine Resources Commission;certain any floating oyster cage in a water column,rack-and-bag,or other similar permits in the Lynnhaven River and its apparatus for oyster aquaculture in the Lynnhaven River or its tributaries. tributaries prohibited. January 23, 2024 7 CITY COUNCILS BRIEFING GENERAL ASSEMBLY UPDATE ITEM#75208 (Continued) The next two (2)slides are Legislative items recommended for support: SB 135 Reduces from 100 acres to 50 acres the minimum number of contiguous acres required for a site that is not Virginia Economic Development Partnership a brownfield to satisfy the acreage requirement to be considered eligible to receive a site development grant Authority;eligible site for site development from the Virginia Business Ready Sites Program fund by the Virginia Economic Development Partnership grant. Authority. • The bill also exempts from the minimum acreage requirement any site that exists in a locality that has three or fewer eligible sites that are at least 100 acres. SB 343—Senator Rouse Allows localities to establish,by ordinance,one or more military centered community zones,defined in the Military centered community zones;local bill as a community that has a significant presence of military personnel living or working In the designated designation area and where such presence drives,or has the potential to drive,significant economic activity.The bill provides that a locality,or another political subdivision acting on behalf of the locality,may offer unique benefits to businesses looking to locate within a zone for the purpose of serving the needs of the military personnel,including reduction of certain fees and taxes. • In addition,the bill provides that local governing bodies are authorized to enter Into agreements for the payment of economic development Incentive grants to such businesses.The bill also allows a governing body to provide for certain regulatory flexibility and Incentives and provides that the establishment of a military centered community zone shall not preclude the area from also being designated as an enterprise zone or from receiving support under the Virginia Military Community Infrastructure Grant Program. 584% Reduces the local funding match requirement for GO Virginia grams from being equal to the grant amount to Virginia Growth and Opportunity Am; being at least equal to half of the grant amount.The bill also allows payouts for the Virginia Investment Virginia Investment Performance grants. perform ce grant and the Virginia economic development incentive grant programs to begin In the first year after reaching performance targets. Under current law,payouts for such grant programs generally cannot begin until the third year after projects achieve their performance targets.The bill also requires projects seeking grams from ,Virginia investment perform ce grant program to pay at least the prevailing average wage ifjob creation Is Included In a grant ward determination. Delegate Tata HE 301/SB 180 Allows Virginia ABC to issue annual mixed beverage performing arts/acility Senator DeSteph Alcoholic beverage control;annual licenses to persons operating food concessions at any performing arts mixed beverage performing arts facility amphitheater,arena,or similar facility that has a total capacity in excess of 3,000 licenses. patrons and is located in the City of Virginia Beach. Delegate Knight HE 1053 Allows localities and state agencies to apply,under certain conditions,to the Abandoned watercraft;destruction and Department of Wildlife Resources for an authorization to destroy and dispose of disposal by localities and state agencies. an abandoned watercraft. Delegate Knight HB 1054 Provides that a locality may require the owner of property that(i)was formerly Vegetative growth on certain property; used as a golf co and(ii)abuts an area zoned for residential purposes to maintenance. maintain the vegetative growth on the former golf course property in a manner that(a)prevents such property from becoming a detriment to the health,safety, or welfare(b)does not change the character of the former golf course property so as to be incompatible with the surrounding residential area. • The bill further provides that whenever the locality deems it necessary, after re onable notice as determined by the locality,the locality may have its agents or employees cut or maintain the vegetative growth,in which event the cost and expenses thereof shall be chargeable to and paid by the owner of such property and may be collected by the locality as taxes are collected. January 23, 2024 8 CITY COUNCILS BRIEFING GENERAL ASSEMBLY UPDATE ITEM#75208 (Continued) Senate Bill 304 is recommended for opposition: Legislation recommended for opposition Land Use Summary SB 304 Requires a lo<aliry to include in its zoning ordinances for residential zoning districts accessory dwelling Zoning;development and use of units,or ADUs,as defined in the bill,as a permitted accessory use.The bill requires a person to seek a accessory dwelling units permit for an ADU from the locality,requires the locality to issue such permkd the person meets certain requirements enumerated in the bill,and restricts the fee for such permit to$SOD or less.The bill prohibits the locality from requiring(i(dedicated parking for the ADU;(ii)lot sizes or setbacks for the ADU greater than that of the primary dwelling;(iii(consanguinity or affinity between the occupants of the ADU and the primary dwelling;(iv)owner occupancy of the ADU or the primary dwelling;and(v) redundant water,sewer,or septic capacity for the ADU.The bill has a delayed effective date of January 1,2025. Discussion Mayor Dyer advised, with consensus from the Body, to support the Legislation recommendations as presented and expressed his appreciation to Mr.McKenzie for the presentation. January 23, 2024 9 CITY COUNCILS BRIEFINGS VAN GOGH RECAP& OVERVIEW OF THE VIRGINIA ARTS FESTIVAL ITEM#75209 1:51 P.M. Mayor Dyer welcomed Robert Cross, Executive Director— Virginia Arts Festival. Mr. Cross expressed his appreciation to City Council for their continued support: 4 VIRGINIA ARTS FESTIVAL Virginia Beach City Council January 23, 2024 Robert W. Cross, Executive Director The next three (3)slides provide the pillars of the Virginia Arts Festival: VIRGINIA Artistic Excellence ARTS Wynton Marsalis performs at Sandler Cente4 FESTIVAL. January 23, 2024 10 CITY COUNCILS BRIEFINGS VAN GOGH RECAP& OVERVIEW OF THE VIRGINIA ARTS FESTIVAL ITEM#75209 (Continued) ' Education VIRGINIA .. ARTS FESTIVAL w VIRGINIA Tourism / Economic Development ARTS FESTIVAL virginia beach ; L' 1E THE LIFE Midwest Band Clinic in Chicago American Bus Association Marketplace January 23, 2024 11 CITY COUNCILS BRIEFINGS VAN GOGH RECAP& OVERVIEW OF THE VIRGINIA ARTS FESTIVAL ITEM#75209 (Continued) VIRGINIA VAF Bells at Sandler Center ARTS FESTIVAL li VIRGINIA ARTS FESTIVAL ■or.. VIRGINIA ARTS FES T I`AL The next several slides highlight the 2023 Artists: VIRGINIA ARTS FESTIVAL_ 2023 Artists January 23, 2024 12 CITY COUNCILS BRIEFINGS VAN GOGH RECAP& OVERVIEW OF THE VIRGINIA ARTS FESTIVAL / r INIAARTSfES IEEUSIC� NIST ' S TABLE MAY 2-1 • Marnolt Resod Virgm�a Beadr Oceanfront Hotel pad of the Cavalier Resort,Virginia Beach �> .,., MAY 9-14 Hilton.The Main,Norfolk INIAARTSF ___ N Ballet �% Hispanico d January 23, SANDLER(ENTER FOR THE PERFORMING ARTS,VIRGINIA BEACH VAFEST.O 2024 J ' �RGIN[AARTSFESTI ,tr piano MAY 1 l SANDLER(ENTER FORTH[PERFORMING , e b11 VIRGINIA BEACH Jr( IRGIN[AART .. MARK MORRIS DANCE GROUP THE LOOK OF LO`'E An Eveningof0ancetotheMOcot BURT BACHARACH MAY 13 SANDLER(ENTER FOR THE TERFORFRNG ARTS TEST. 14 CITY COUNCILS BRIEFINGS VAN GOGH RECAP& OVERVIEW OF THE VIRGINIA ARTS FESTIVAL ITEM#75209 (Continued) VIRGINIA Education Outreach ARTS Charlotte Blake Alston, Storyteller 4FESTIVAL ink { VIRGINIA Education Outreach 4 ARTS The Concert Truck FESTIVAL r Ai January 23, 2024 15 CITY COUNCILS BRIEFINGS VAN GOGH RECAP& OVERVIEW OF THE VIRGINIA ARTS FESTIVAL ITEM#75209 (Continued) VIRGINIA Education Outreach 4 ARTS Mark Morris Dance Group FESTIVAL i ,• VIRGINIA Education Outreach ARTS Quinteto Latino 4 FESTIVAL s, c I January 23, 2024 16 CITY COUNCILS BRIEFINGS VAN GOGH RECAP& OVERVIEW OF THE VIRGINIA ARTS FESTIVAL ITEM#75209 (Continued) VIRGINIA Education Outreach ARTS Latvian Central Band 4FESTIVAL VIRGINIA Rhythm Project 4 ARTS FESTIVAL w January 23, 2024 17 CITY COUNCILS BRIEFINGS VAN GOGH RECAP& OVERVIEW OF THE VIRGINIA ARTS FESTIVAL ITEM#75209 (Continued) VIRGINIA Rhythm Project ARTS Participating Virginia Beach Schools FESTIVAL ■ Kempsville Middle School ■ Old Donation School ■ Salem High School hL VIRGINIA Rhythm Project All-Stars ARTS Travel to Trinidad FESTIVAL • February 2-13, 2024 �1rrrr"nvr.D 9nSfyA+c D ■ 9 students from Virginia Beach High Schools y • Cape Henry • First Colonial ' • Landstown V; • Ocean Lakes B:e:y:.eee_�s>ereereeee?^.ee:drie•C.y:::.i:e.C,y;y,.;::c:, • Salem ■ Tallwood January 23, 2024 18 CITY COUNCILS BRIEFINGS VAN GOGH RECAP& OVERVIEW OF THE VIRGINIA ARTS FESTIVAL ITEM#75209 (Continued) ARTS Y. R60nd a Gogh: i�,7 wh e CTF--' -f� ftipe , July 6-September 10, 2023 VIRGINIA Beyond Van Gogh by the Number 4 ARTS FESTIVAL • Total attendance: 57,969 ■ Ticket buyers from all 50 states, plus D.C. and Canada r January 23, 2024 19 CITY COUNCILS BRIEFINGS VAN GOGH RECAP& OVERVIEW OF THE VIRGINIA ARTS FESTIVAL ITEM#75209 (Continued) The next several slides highlight the Artists scheduled for 2024: 4' VIRGINIA ARTS FESTIVAL 2024 Artists �. I I 1• 1' January 23, 2024 20 CITY COUNCILS BRIEFINGS VAN GOGH RECAP& OVERVIEW OF THE VIRGINIA ARTS FESTIVAL ITEM#75209 (Continued) _ ERNATIONA � ��►� � � � �' as-kF�� —_ �R 1 i >•f +�t�wearrwr�'• atvsan to*;�`: J 1 PANFest 2024 VIRGINIA 4 ARTS 2-Day Festival; May 10-11, 2024 FESTIVAL • VBCPS • VB Rising-Stars(Kempsville Middle School) • Old Donation School ', t • Salem High School - ■Workshop at VB Convention Center ■ Competition/adjudication at 241th Street Park 2023:! I ■ In 2023,18 steelbands from 9 states RHY "jLR0_JFU L WL Ir► January 23, 2024 21 CITY CODNCIL'S BRIEFINGS VAN GOGH RECAP& OVERVIEW OF THE VIRGINIA ARTS FESTIVAL ITEM#75209 (Continued) k. GRAHAM100 ANNNERSARV OF THE MARTHA GRAHAM DANCE COMPAN, with Virginia Symphony Orchestra SATURDAY,MAY 11,]30 PM Sander Center for the PerlalrMllg kts<YEginu Beach �j l / VIRGINIA ARTS FESTIVAL YAFEST.OR6 _, FINCKEL, CELLO • OL�A KERN, PIANO d r I ( I AM Miler Studio Theate,Sandler(enter for the Performing Ads,Virginia Beach ri y) VIRGINIA ARTS FESTIVAL r� January 23, 2024 22 CITY COUNCILS BRIEFINGS VAN GOGH RECAP& OVERVIEW OF THE VIRGINIA ARTS FESTIVAL ITEM /9 z�. m:- r: Ben Folds FRIDAY,DUNE 1,]30 PM Saldla Ceder for the Perfaming ARs,Yrcrania Beads �'IRGINIA January 23, ARTS FESTIVAL 27 VAFEST.ORG SAMA SATURDAY,DUNE 8,7• Sandia(enter fa the fkrfonnirg "ViRS Iti1a r� RTS Fsnvnl ES'puc 1* 2024 23 CITY CO UNCIL'S BRIEFINGS VAN GOGHRECAP& OVERVIEW OF THE VIRGINL4 ARTS FESTIVAL ITEM#75209 (Continued) VIRGINIA SVIMPHOW Inse CHRI THIL SymphonyEric Jacobsen,conductor Virginia • SATURDAY, , . Sandlerr VIRGINIA ARTS FESTIVAL 29 Mayor Dyer expressed his appreciation to Mr. Cross for the presentation. January 23, 2024 24 CITY COUNCILS BRIEFINGS TOWN CENTER TIF BACKGROUND AND STATUS ITEM#75210 2:13 P.M. Mayor Dyer welcomed Kevin Chatellier, Director — Budget & Management Services. Mr. Chatellier expressed his appreciation to City Council for their continued support: TOWN CENTER TIF • SSD SpecialTown Center Central Business District— South Tax Increment Financing (TIF) Fund Town Center District(SSD) January 23, 2024 25 CITY COUNCILS BRIEFINGS TOWN I TIF BACKGROUND ITEM#75210 The Iur(4)slides provide an overview I TownI iusiness District—South Tax Increment Financing Fund: Central Business District-South Tax Increment LA Financing (TIF) Fund • Created by Council on November 23,1999,pursuant to power established by the General Assembly through Section 58.1-3245.Z of the Code of Virginia. • The primary purpose is to pay for the debt service for parking facilities to support the development of high-rise offices,hotels,and retail in Town Center core. • Funded through real estate taxes generated from assessed values that are in excess of base real estate values on properties within the district as established in 1999. • Base year assessments=$151.9M • FY 24 assessments=$1.188 3 TIF Boundaries CITY COUNCILS 26 IEFINGS TOWN CENTER TIF / , , , I ITEM#75210 Town Center TIF Calculation • FY 24 assessments = $1,177,822,000 • Base Year assessment = $ 151,894,230 • Difference/Increment = $1,025,927,770 • Tax 99C per$100 assessed = $ 10,156,684* 'Historical collection rote on Real Estate is 98.5%citywide and is used when estimating revenue for budget resulting in slightly lower estimate when compared to straight-line calculation. t TIF Forecast ACFR reflacla davalopmem agreement payment as a net against Gie revenue.For the purposes of this prgecGon,the amounts era grossed up to reflect the eatimatad annual obligation. January 2024 27 CITY COUNCILS BRIEFINGS TO WN CENTER TIF BA CKGROUND AND Here is informationfor City Council'sconsideration: Information for Discussion The next several slides • Capacity,above existing obligations,is projected within the Town Center TIF to explore. • Projected capacity fluctuates annually ranging between$4 million and$10 million through FY 30 • That capacity provides City Council with an opportunity to: • Make additional investments in public infrastructure within the boundary • If desire to utilize outside of boundary,past precedent has been to declare annual surplus as a part of the annual Capital Improvement Program(CIP)budget process. {Example,Sandbridge TIF) provide an overview Town Center SSD January 23, • The Town Center SSD was treated by Council action on """ May 14,2002 to fund operating expenditures related to �"` _ Town Center maintenance and operations. �'"`'�� • Funded through a real estate surcharge tax rate: . • FY 2002-03 of 57C ,�, • FY 2007-08 of 50C _ �'. • FY 2008-09 of 45C -�"`'� �.- • Base year assessments=$18.5M • FY 24 assessments=$535.9M • $87.9M(Residential) - • $448M(Commercial) • '"` 2024 SSD Map 31 acres • 11 blocks 5 Parking Garages • SSD ; boundaries were last modified in 2019 Town Center SSD Fund Utilization Five Garages(4,381 spaces) Parking Enforcement • Salaries for personnel who perform daily • Salaries for parking enforcement on-street&garages housekeeping,cleaning,trash removal,painting, • Various supplies,uniforms,and equipment minor repairs,etc. r vehicles foo • Supplies for cleaning,light bulbs,tools,shop •. Gas GasBooting equipment and release service supplies,uniforms,trash bags,mops,brooms,etc. • Third party vendor service for elevators,HVAC,fire • Contract management fees systems,generators,security cameras,electrical repairs,lighting fixture,plumbing and drain Grounds maintenance • Sweeper machine,fuel,and maintenance • Salaries for block by block ambassadors to clean up trash, • Contract management fees debris,waste removal from sidewalks and tree pits • Pay-go funding for capital repairs for crack's spalls, • Replace pavers and sidewalk maintenance weather proofing,seals,traffic barriers,etc. • Relace trash cans,benches,street fixtures • Expenses related to common areas that are co- • Purchase and install banners owned with private sector • Contract management fees • General liability insurance • Landscape services for flower beds,tree trimming, • Utilities for electric,water and sewer, communication services for office and elevator weeding,mowing,irrigation,agronomic supplies phones 29 CITY COUNCILS BRIEFINGS TOWN CENTER TIF BACKGROUND AND STATUS ITEM#75210 (Continued) Town Center SSD Fund Utilization Utilities for water and electrical Maintain and repair ped pole lighting Plaza furniture On-going fountain maintenance on pumps,filters,jets Water treatment chemicals Cleaning and removing debris from fountain basin Winterizing and de-winterizingA4, Entertainmentr.•,> Weekly events Special events Holiday fixtures&events Storage and rentals Town Center Wi-Fi 1 Forecast Revenue FY23 Actual FY24 FY25 FY26 FY27 FY28 FY29 Real Estate S 2.337,343 $2,370,626 $2,415,668 $2,461,566 $2,508,335 $2,555.994 S 2,604,558 Charges for Service $ 179,102 $ 194,300 $ 194,300 $ 194,300 $ 194,300 $ 194,300 $ 194,300 From the Use of Money and Property $ 351,674 $ 365,500 $ 365,500 $ 365,500 $ 365,500 $ 365,500 $ 365,500 Transfer In $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 TOTAL $ 3,018,119 $3,080,426 $3,125,468 $3,171,366 $3,218,135 $ 3,265,794 $ 3,314,358 Expenditure FY23 Actual FY24 FY25 FY26 FY27 FY28 FY29 Operating S 2,620.187 $3,215.720 $3,312,192 $3,411,557 S 3,513,904 $3,619.321 S 3,727,901 Transfers S 1,634,226 $ 645,976 S 645,976 $ 645,976 $ 645.976 $ 645.976 $ 645,976 TOTAL $ 4,254,413 $3,861,696 $3,958,168 $4,057,633 $4,159,880 $4,265,297 $4,373,877 Difference $ (1,236,294) $(781,270) S(832,700) $ (886,168) $ (941,745) $ (999,503) $(1,059,519) Fund Balance-Cumulative S 1,962,852 $1,181,582 $ 348,882 $ 537,285 $1,479,030 $2,478,63 $3,538,053) January 23, 2024 30 CITY COUNCILS BRIEFINGS TOWN CENTER TIF BACKGROUND AND STATUS ITEM#75210 (Continued) Questions and Discussion Mayor Dyer expressed his appreciation to Mr. Chatellier for the presentation. January 23, 2024 31 CITY MANA I BRIEFINGS TOWN CENTER INFRASTRUCTURE UPDATE Mayor Dyer welcomed Charles Rigney, Interim Director—Economic Development. Mr. Rigney expressed his appreciation to City Councilfor their continued support: j Armada Hoffler Town Center Infrastructure Update Charles Rigney,Interim Director �January 23,2024 VIRGINIA �. BEACH DISCLOSURES • Applicant:Town Center Associates,L.L.C.(Armada Hoffler) • Divaris Real Estate Inc.is the leasing and managing agent for A/H and other Town Center properties 32 CITY MANAGER'S BRIEFINGS TOWN CENTER INFRASTRUCTURE UPDATE ITEM#75211 (Continued) Here is a summary of the Issue: ISSUE Town Center at 20 years showing areas requiring re- Armada . Lmet with staff . discussprioritized needinglist of items or possible k/H looking for City financial assistance to helpdefray these expenses. Here are the Town Center Maintenance Projects: TCVB Project List 8/9/2o23PDO c. eiet Nem U cos r•.lerh„ pateb Om Biak 8 Exalabr with Enclosure 1,000,000.00 High 7/I/2024 1.000.000,00 tyAHry over Main s!. 150,000.00 Medium 11/1/— Convert FounUin Plaza hartlacapes to Softer/Vg•rmer color-replace w swt 650,000.1)D M•d— S/1/2025 Convert Fo.rmaM Plaza IKhtMg m LED L4hts 50,000.00 Medium 6/1/2024 Add 10 EiectrH.Chargers to aN Garyes 300.000.00 Medium 30/3/1014 DI{hN Direttpl•s/Kiosks-1nNrbr and Eet•rbr 400,OOe.00 Medium Ll/2025 Mural on Bock•Garage I30 Stories) 300.000.00 Metlium 10/1/2024 Med - Entry 51{ns to Town Cents.• 300,000.00 Medium 1/1)2025 2,1sgOWw Future PpenUei LIgNHy over other streets M TCVB I,]IM.OtKi.t%i 10/1/2016 speakers Mreughph TCVB for Music 30.000.00 O/3/1034 sc.••n Ei«e.icei Bo,,.a.ne NelWown Deora :o,000.tn tow {n/sole UpNght"Tees Pin in P4.z• 140.000.00 low 4/1/1025 Enhance Pede.—CrersMfs fO0,000.00 Lew 10/1/2025 Create Fountain Plaza stye for EnNrtainm•nt I50.000.00 tow 30/1/2016 Iron Tree►h Ceve.a 145.000.00 Lew 1/1/1026 New Cbck on owner of Main and Central Park 15.1>tb.00 low s/2/2011 Holiday 04cer wnWe of Fountain P4sa Sit.000.00 tow iD/1/202s New Park Benches ar Fountain Plaza—e a 100,000AO Low 3/3/2026 tow 1e a/w Green Space-Block 9 second floor >5,000.00 tow 1/1/ID26 Bq{{.000.00 Tstal {,i{{,O0p.00 January 23, 2024 UPDATE33 CITY MANA GER'S BRIEFINGS TOWN CENTER INFRASTRUCTURE Here is background information on the escalator at Fountain Plaza: High Priority: Here is the Town Center Block 8 — Fountain Plaza '"""""�- � • Twenty-year-old Escalator currently provides access to Ruth's Chris Steak House and Funny �I'��� �., Bone Comedy Club. ;\``� I City provided$2M toward initial escalator purchase and installation(2004). __ "'"":.:_r�`° A/H has maintained escalator once installation completed. • Consistently out of order due to age. Request: REQUEST • Conduct a review and study of maintenance and upgrades and report back to Council on possible City and Armada Hofflercnst-sharing arrangement addressing each. UPDATE34 CITY MANA GER'S BRIEFINGS TOWN CENTER INFRASTRUCTURE . _ ELEVATOR 13 �=��� *Currently,two models to address issue PROPOSED ESCELATOR AND ENCLOSURE Ground •• .e 35 BRIEFINGS TOWN CENTER INFRASTRUCTURE I UPDATE Possible Mechanism to Fund Mayor Dyer expressed his appreciation to Mr. Rigneyfor the presentation. • If desire of City Council is to participate, the likely source for this is the Town Center TIF. • City Council would have to approve an ordinance • Direct payment to the Virginia Beach Development Authority (VBDA) to enter into cost share agreement. Questions? January2024 / BRIEFINGS HOUSING STUDY RECOMMENDATIONS ITEM#75212 Mayor Dyer welcomed Ruth Hill, Director—Housing& Neighborhood Preservation. Ms. Hill expressed her appreciation to City Councilfor their continued support: Virginia Beach Housing Study Here Final Report — Highlights & Insights City Council-tan.23,2024 VBHousing& Neighborhood -- Preservation are Today'sGoals: Today's Goals Review: Consultants: • Housing study process Virginia Center for Housing and timeline Research (VCHR) • Highlights and insights Mellones, Research Scientist presented in consumer report prepared by HousingForward Virginia Consultants Jonathan Knopf, Executive Director for Programs 37 CITY MANAGER'S BRIEFINGS HOUSING STUDYRECOMMENDATIONS ITEM#75212 (Continued) The next few slides provide the background for the Housing Study: Why This Housing Study • • . Needed • Post-recession vs. post-pandemic markets • • of COVID-19 assistance • Stronger local housing policy knowledge How Did NOV.2022:Council approves ordinance to fund updated study We Get • JAN.—FEB.2023:VCHR data analysis&public meetings • MARCH—APRIL 2023:Online survey&expert focus groups • JUNE 2023:City Council interviews with consultant • AUG.8,2023:Briefing on key findings and potential goals for solution options • SEPT.26,2023:Briefing on affordable housing policy and program recommendations • OCT.2023—JAN.2024:Consultant completes and submits housing study report to staff. a January 23, 2024 I I I I Changing Demographics •The average household is getting smaller. • Many seniors live on their own. •Younger generations are less able to form households and buy homes. Tightening Market Homeownership Market Rental Market • Prices grow with strong • Rent growth challenges demand. lower-wage workers. • Market stabilizes but • Lack of options leads to tightens. housing instability. 39 CITY MANAGER'S BRIEFINGS HOUSING STUDYRECOMMENDATIONS ITEM#75212 (Continued) Housing • • . • Housing affordability for the top t0 most common occupations in the region households in VB arSingle earner ar median wage housing • • • ' '•* Older residents need support ,12 beach General and operational managers to reduce their housing Registered nurses costs. Cannot afford lower quartile rent In Virginia Beach * Average wages for • Fast food and Customer service counter workers representallves common jobs still • Retail salespersons Office clerks(general) affordable • • out • Cashiers Home health and Wafters and waitresses Personalcare aids Stockers and order filers The next several slides provide a summary of each of the 8 Proposed Program&Policy Solutions: Background Work Develop a City-managed Create a Housing Assistance Pursue self-sustaining mixed- Housing Trust Fund(HTF) Fund for workers income,mixed-use rental development Use VB Development Leverage Virginia Statewide Research opportunities to Authority(VBDA)to fund Community Land Trust(VSCLT) simplify and streamline the new large-scale,mixed- to create permanent affordable permitting and review use development projects homeownership opportunities processes Design housing education Consider advisory board to campaign to incorporate guide new zoning changes and into successful community redesign Workforce Housing engagement Program s January 23, 2024 40 CITY MANAGER'S BRIEFINGS HOUSING STUDYRECOMMENDATIONS ITEM#75212 (Continued) Strategic Priority 1 Develop aCity-managed Housing Trust Fund (HTF) • Housing Trust Funds (HTF) are used throughout Virginia and other states • Provides capital to address diverse housing needs • Supplements limited federal and state resources Strategic Priority 2 • Legal structures and governance models are available 9 Use VBDA to fund new large-scale, mixed-use development projects • Leverage VBDA powers to support affordable housing and complement efforts to boost business diversity and tourism • Expansion into housing aligns with growing state support and recognition of its role in economic vitality January 23, 2024 41 CITY MANAGER'S BRIEFINGS HOUSING STUDYRECOMMENDATIONS ITEM#75212 (Continued) Strategic Priority 3 Design housing education campaign to incorporate Easy Win 1 into successful community engagement • Overcome stigma around increased housing density and affordability • Bridge stronger connections between housing and other sectors • Dispel misconceptions and foster broad community support Create a Housing Assistance Fund for workers • Mitigate challenges arising from essential workers living outside VB due to housing costs • Financial assistance could include down payment assistance, temporary rental assistance and/or relocation assistance • Enhance community integration and quality of life for critical members of economy 12 January 23, 2024 42 CITY MANAGER'S BRIEFINGS HOUSING STUDY RECOMMENDATIONS ITEM#75212 (Continued) Easy Win 2 C ni y an_ ru (VSCLT) to create permanent affordable homeownership opportunities • CLTs maintain long-term housing affordability and community stability • Beneficialiiiiiiiiir low-and moderate income residents • Working with VSCLT eliminates need for a new organization 13 Pursue self-sustaining mixed-income, mixed-use rental development • Utilize public financing to support development by the private sector • Provide short-term financing at below-market interest rates to reduce construction costs and equity investments to reduce long- term borrowing costs • Potentially eliminates the need to use federal and state subsidies to create affordable housing units 14 January 23, 2024 43 CITY MANA GER'S BRIEFINGS HOUSING STUDY RECOMMENDATIONS ITEM#75212 (Continued) Background Work Research opportunities to simplify and streamline the permitting and review processes • Focus group attendees/stakeholders:Administrative challenges slow down and add costs to residential development • Explore comprehensive assessment of development procedures • Implement"fast track"and "green tape" best practices 16 Consider advisory board to guide new zoning changes and redesign Workforce Housing Program • Establish zoning advisory board to facilitate revisions to zoning ordinance • Focus on residential and mixed-use zone, and improve effectiveness of current Workforce Housing Program • Involve diverse community voices in shaping policies 16 January 23, 2024 44 HOUSING STUDY RECOMMENDATIONS Next Steps For More Info • Opportunity for Council Report will be available online: to review full report VirginiaBeach.gov/HousingStudy • Staff will return at a later date for Council Ruth Hill, Director feedback and direction (757) 385-5752 � rdhill@vbgov.com on proposed solutions Karen Prochilo, Housing Development Administrator (757) 385-5803 kpMill@vbgov.com 17 Thank You Questions and Comments u6Housing& Neighborhood Preservation Mayor Dyer expressed his appreciation ti Ms. Hillforpresentation. January 23, 2024 45 CITY COUNCIL DISCUSSIONANITL4TIVES/COMMENTS ITEM#75213 2:32 P.M. Council Member Berlucchi advised he went to the General Assembly with members of the National Alliance on Mental Illness(NAMI)Coastal Virginia and shared the Governor's budget includes millions in funding for expanded and improved mental health services. Council Member Berlucchi expressed his appreciation to the advocacy team from NAMI Coastal Virginia for the incredible work they have done. January 23, 2024 46 CITY COUNCIL DISCUSSIONIINITIATIVES/COMMENTS ITEM#75214 (Continued) Council Member Berlucchi referenced a questionnaire emailed to the Body from the Virginia Beach Cannabis Advisory Task Force (CATF) and requested that Council Members take a few minutes to complete. Council Member Berlucchi explained the input on zoning, economy, health and enforcement perspectives will be used to shape the work ahead. January 23, 2024 47 CITY COUNCIL DISCUSSIONANITLITIVES/COMMENTS ITEM#75215 (Continued) Council Member Ross-Hammond advised Hampton Roads Transit has expressed their opposition to having any more funding reduced from the Hampton Roads region and advised the City will soon have a terminal for electric buses to give the region a total of three(3)with one(1)in Norfolk and the other in Hampton. January 23, 2024 48 CITY COUNCIL DISCUSSIONANITIATIVES/COMMENTS ITEM#752I6 (Continued) Council Member Schulman acknowledged City staff for organizing the Community Conversation last week and was excited to see so many in attendance and looks forward to receiving the report. Council Member Schulman also took a moment to express his appreciation to all of the City staff who have and continue to support all of the Town Hall meetings for the Body. January 23, 2024 49 CITY COUNCIL DISCUSSIONIINITIATIVES/COMMENTS ITEM#75217 (Continued) Council Member Wooten advised she went to the General Assembly today and expressed her appreciation to those who were there to lobby for HB 642, as approved and supported by the Body. Council Member Wooten advised it was good to see them actively involved and took a moment to speak to them and give them encouragement to continue. January 23, 2024 50 CITY COUNCIL DISCUSSIONIINITL4TIVES/COMMENTS ITEM#75218 (Continued) Council Member Wooten advised she is hosting a Veterans event this Saturday and will have former Governor McDonnell as a guest speaker. Council Member Wooten advised the event will focus on several programs such as education,family, wellness and the transition assistance program offered at the HIVE. January 23, 2024 51 CITY COUNCIL DISCUSSIONANITLITIVES/COMMENTS ITEM#75219 (Continued) Council Member Rouse advised Operation Smile, located near Tidewater Community College, will be hosting an event to kick off Black History Month on January 24�h from 5:30—8:00 P.M. Council Member Rouse advised the event is named, "South of the Sahara Showcase"and will focus on medical contributions in Sub-Saharan Africa with exhibits,food and dance and is free to the public. January 23, 2024 52 CITY COUNCIL DISCUSSIONIINITIATIVES/COMMENTS ITEM#75220 (Continued) Council Member Taylor referenced a memo from the City Manager that the Body received on January 19`h regarding a request from the Atlantic Park developer for a construction change order and compensation for matters the City is not required to pay. Council Member Taylor advised if any member of the public would like more information to email their Council Member,adding he does not believe the public is aware of the request. Council Member Taylor advised the memo also requested the Body to identify items in the approved project scope to remove which will be discussed in today's Closed Session. Council Member Taylor advised he recently learned there were not as many infrastructure studies completed as are being asked for in the Capstone project and believes the City will now pay the price for not doing its due diligence. Council Member Taylor asked City Manager Duhaney what the delta is between the original cost and the cost now. City Manager Duhaney advised initially the cost was approximately$90-Million and it is now$152-Million with a difference of$60-Million. Council Member Taylor asked City Manager Duhaney when is the return on investment expected? City Manager Duhaney advised initially it was expected between six(6) and seven (7)years but is unsure what it is now with the increased costs. Council Member Remick advised after today's Closed Session discussion, there will be updated information shared. Council Member Remick advised the project is approximately 40%complete and explained the contractor and developer have had issues with the soil condition which will be discussed and believes once the project is complete and open, it will be transformative to the City. January 23, 2024 53 ITEM#75221 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: LEGAL MATTERS: Consultation with legal counsel employed or retained by a public body regarding specific legal matters requiring the provision of legal advice by such counsel pursuant to Section 2.2- 3 711(A)(8). • Atlantic Park Project 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 • Performance of Council Appointees January 23, 2024 54 ITEM#75221 (Continued) Upon motion by Council Member Rouse,seconded by Council Member Ross-Hammond, City Council voted to proceed into CLOSED SESSION at 4.02 P.M. Voting: 10- 0 Council Members Voting Aye: Michael F. Berlucchi,Mayor Robert M.Dyer, Barbara M. Henley,David Hutcheson, Robert W. "Worth"Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse,Joashua F. "Joash"Schulman, Chris Taylor and Sabrina D. Wooten Council Members Absent: Vice Mayor Rosemary Wilson Break 4:02 P.M. —4:10 P.M. Closed Session 4:10 P.M. —5:38 P.M. January 23, 2024 55 CERTIFICATION ITEM#75222 Mayor Dyer RECONVENED the Special Formal Session in the City Council Conference Room at 5:38 P.M. Upon motion by Council Member Berlucchi, seconded by Council Member Ross-Hammond, City Council CERTIFIED THE CLOSED SESSION TO BE INACCORDANCE 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: Michael F. Berlucchi, Mayor Robert M.Dyer, Barbara M. Henley,David Hutcheson, Robert W. "Worth"Remick, Dr. Amelia N. Ross-Hammond, Jennifer Rouse,Joashua F. "Joash"Schulman, Chris Taylor and Sabrina D. Wooten Council Members Absent: Vice Mayor Rosemary Wilson January 23, 2024 G, BEgc OR OUR MAl"iS RESOL UTION 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#75221 on Page 54 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 RESOL VED: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. A a a Barnes, MC City Clerk January 23, 2024 56 ADJOURNMENT ITEM#75223 Mayor Robert M. Dyer DECLARED the City Council SPECIAL FORMAL SESSION ADJOURNED at 5:39 P.M. s Chief Deputy City Clerk A n a Barnes Robert M. Dyer City Clerk, MMC Mayor City of Virginia Beach Virginia January 23, 2024