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NOVEMBER 21, 2024 SPECIAL FORMAL SESSION MINUTES
.B a i U d 00-0 0310� VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia November 21, 2024 Mayor Robert M. Dyer called to order the CITY COUNCIL SPECIAL FORMAL SESSION in the City Council Conference Room, City Hall, on Thursday,November 21, 2024, at 2:30 P.M. Council Members Present: Michael F. Berlucchi,Mayor Robert M. Dyer, Barbara M. Henley,David Hutcheson,Amelia Ross-Hammond, Robert W. "Worth"Remick,Jennifer Rouse and Joashua F. "Joash"Schulman Council Members Absent: Chris Taylor—Arrived at 2:35 P.M. Sabrina D. Wooten—Arrived at 2:54 P.M. Vice Mayor Rosemary Wilson 2 MAYOR'S CALL FOR SPECIAL FORMAL SESSION ITEM#76385 "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 SPECL4L FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL Thursday,November 21,2024 2:30 P.M. City Council Conference Room 2034 Building 1, City Hall, rd Floor 2401 Courthouse Drive The purpose of this SPECIAL FORMAL SESSION is to allow the City Council to receive public briefings as identified in the attached Agenda. Sincerely, Robert M. Dyer Mayor" cc: City Manager City Attorney City Clerk Deputy City Managers FOIA Officer Communications Office November 21, 2024 U' � _ s City of Virginia. Beach . . L r s 99�s Op OUR NA"O�e�t virginiabeach.gov ROBERT.M."BOBBY'DYER MUNICIPAL CENTER MAYOR BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH,VIRGINIA 23456-9000 (757)3854581 CELL:(757)7494659 bdverftyboov.com November 15, 2024 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 Thursday,November 21,2024 2:30 P.M. City Council Conference Room 2034 Building 1, City Hall,2nd Floor 2401 Courthouse Drive The purpose of this SPECIAL FORMAL SESSION is to allow the City Council to receive public briefings as identified in the attached Agenda. Sincerely, Robert M. Dyer Mayor cc: City Manager City Attorney City Clerk Deputy City Managers FOIA Officer Communications Office 3 CITY COUNCILS BRIEFING'S VIRGINIA BEACH COMMUNITYDEVELOPMENT CORPORATION(VBCDC) & NATIONAL ALLIANCE ON MENTAL ILLNESS(NAMI) UPDATE ITEM#76386 2:32 P.M. Mayor Dyer welcomed Kathy Warren, Director—Planning and Jessica Guglielmo, Executive Director— VBCDC. Ms. Guglielmo expressed her appreciation to City Council for their continued support and distributed copies of today presentation, attached hereto and made apart of the record. Mayor Dyer expressed his appreciation to Ms. Warren and Ms. Guglielmo for the presentation. November 21, 2024 VBCDC NAMI Attainable Housing Project City Council Briefing Virginia Beach COMMUNITY OEYELOPMENT CORPORAtION November 2024 9uld+nq,Supp�trllq s PtNIYIIIq GOTrrwMlMS wKf � Qnflmi Presented �.Jessica Guglielmo WNona ANtence« MSM.1 nt,es. Coastal Virginia President • CEO Virginia Beach Community Development VBCDC is anon-profit 501©3 VBCDC is a hybrid organization Corporation Independent non-profit organization Bylaws and board membership are governed by City Council Part of City's Financial Entity Virginia Beach COMMUNITY DEVELOPMENT CORPORATION Building,Supporting 6 Preserving Communities since I M. 2 Virginia Beach City Council Board of Directors Community Liaisons - - • - J. David Crain, Jr. President Corporation Michael Berlucchi Dr. Audrey Douglas-Cooke • - - District 3 Vice President ' Gary Sharpe Robert W. "Worth" Remick Secretary/Treasurer District 6 Frank McKinney Christopher Brown Robert Ewell Jeremy C. Johnson Marshall Brice Kay Ashby Matthew Hamaker &Virginia Beach COMMUNITY DEVELOPMENT CORPORATION 3 Building,Supporting d Preserving Communities since 7985. About the Team Who: Our team consists of two nonprofits, Virginia Beach Community Development Corporation (VBCDC) and NAMI Coastal Virginia, as well as resident stakeholders. Why: The project concept seeks to incorporate a mixed-use model including office space for NAMI with much needed attainable housing for the community. wnflifli YD(�� Virginia Beach National Alliance on Mental Illness COMMUNITY DEVELOPMENT CORPORATION Coastal Virginia 84idd,ng,Svpoorfmq A Prrttrrrnq Con+nwmbes'.n(c 198$ MISSION: Our mission is to assist the City of Virginia Beach to provide quality affordable housing opportunities for low- MISSION: We advocate at the local, state,and national levels to eradicate stigma, and moderate-income people. and are committed to improving the lives of the those with a mental health condition and their families by providing free support groups, VISION: To be champions for a supportive community where free classes, educational programs,and community outreach. people can be empowered to live their best lives and thrive. About the Project J y�• � ray 3'� • ^ T. w'.f�Z 4 � 0. General Information ;v • Project will include up to 60 units, with a " . tam;- , 15% (9 units) set aside of Permanent Supportive Housing units for households ` with a mental health diagnosis. r - .. • Will include commercials ace for NAMI Coastal Virginias new headquarters • Rents will be affordable to households earning up to 80% of the area median - Q income • A mix of 1-, 2-, and 3-bedroom units are :" e " ` planned , _ .; Amenities Proposed Site • Onsite Support Services & Property Management 3.18 acres of land located at the corner of Princess Anne Road and Community College Place • Universal Design & Green Building Certified Development • Currently zoned to B2. Will require a rezoning to B4 for • Located within % mile to public transportation and near residential with a mixed use component medical facilities, grocery, retail, education, and employment opportunities • City owned land with a tax assessment of $1,889,700 • Green Space will be incorporated into the project design /`� Virginia Beach nfi M I COMMUNITY DEVELOPMENT CORPORATION "'"°" "`°°"" " cj Q»+0.+. $a...,„n,C—r—, ,,,1"5 Coastal Virginia About the People 4 The development will serve our community's workforce (hotel Rents will be affordable to workers, retail, teachers, first households earning up to 80% of the responders, frontline workers, area median income (AMI). Often, administrative personnel, bank these households are the workforce clerks, nursing assistants etc.) with a of our community such as teachers, r: small set aside of units for persons service, or frontline workers. livingwith a mental health diagnosis. ' g 1''y Virginia Beach NMI COMMUNITY DEVELOPMENT CORPORATION ranor Aw,ce on NMI „Qay.,:k..*vc-.M.-IM Coastal Virginia More Info About the Project air Timeline • This project anticipates a 3-year development cycle to include — '- '' .k- � r 9 community engagement, feasibility assessments, rezoning of the parcel, and funding applications. Current Permanent Supportive Housing Developments -- Owned & Operated by VBCDC f w e Virginia Beach r ° nflmi COMMUNITY DEVELOPMENT CORPORATION 7 �d14.mend•9an.....,..wc vrr..,1-11m Coastal Virginia History In 2021, VBCDC and NAMI began working with its Council Liaisons and City Staff to identify possible sites for the project. Five sites were evaluated throughout the City. In June 2023, City Council directed city staff to work with VBCDC on exploring the proposed site for an affordable housing development. • This site best meets the VBCDC NAMI project needs due to the following factors: • The land is developable, • Located within % mile to public transit, • Located close to medical, retail, grocery, retail and employment opportunities, • Provides excellent frontage for NAMI Coastal Virginia's office and a convenient location for citizens to access NAMI's programs and services, • The site is not in a high noise or crash zone. r Virginia Beach NMI National Alli-on Menbl ItMeaa Q COMMUNITY DEVELOPMENT CORPORATION Coastal Virginia (� hard,$,,4,suotw e'"&pmwv"Gammunetiws S-Wr f m Public Engagement Strategy Utilizes an informative & planning engagement strategy to involve stakeholders. INFORM We are committed to keeping stakeholders informed, acknowledging concerns and aspirations, and formulating solutions that Public COLLABORATE incorporate the public voice as much as Engagement feasible. CONSULT y-3Virginia Beach nnmi COMMUNITY DEVELOPMENT CORPORATION National AM—onMern,Mn— ewr�ro.srvw«an...,,ac ..wx,.ax.r+n Coastal Virginia 9 Public Engagement loll First A Community After the site Resident StakeholderF Design layout was Advisors began Meeting was Charrette was developed, a rAug working with • ••- held to held to obtainrN lberthird input 2023 VBCDC&NAMI 1 2023introduce the May 124 feedback on 2024 i meeting was on the project project concept design held to present concept. to the elements and the site community. site layout. concept. Community, resident and stakeholder engagement will continue once the site option is approved and site renderings are developed. There will also be public input during the proposed rezoning process. " >'y-,)Virginia Beach nflmi COMMUNITY DEVELOPMENT CORPORATION Coastal Virginia .� 0 Community Input Recap October 2023 In October 2023, VBCDC staff attended a meeting at the Buckner Woods Community to brief the homeowners on the project concept. Concerns Identified from the Community Project Team Feedback on Concerns Is the site appropriate and why was it selected? The project team and city staff looked at numerous sites and this location meets all requirements.The land is developable,within X mile to public transit,close to medical, retail,grocery, retail and employment opportunities,and is not in a high noise or crash zone. The site may have wetlands An environmental study will be a part of the project's feasibility assessment and determine any wetland components. Potential drainage implications on neighboring communities The project will meet all stormwater management regulations and complete a thorough civil engineering review with the City of Virginia Beach as a part of the rezoning and site plan approval process. Traffic implications During the project approval process the city will analyze traffic implications and traffic engineering components. Noise and light pollution The project will operate in a manner to offer peaceful and quiet enjoyment of the premises and follow all city noise ordinances. A photometric plan will be completed to address light pollution and screening needs.This will be reviewed by the City and a part of the site plan approval process. Foot traffic through neighboring communities The project design will incorporate landscape and property screening to prevent foot traffic cut throughs. Impact on property values Research shows that affordable housing is built to high design standards and contributes to property values rather than decreasing values. 1'''y*'-Z')V1rgin1a Beachicnai COMMUNITY DEVELOPMENT CORPORATION W...AIII. eon Me1a161Me5 8.1.",Sn,gpi— 9&Poa _9 Carom 1.,—,Ito Coastal Virginia 11 Design Charrette Results May 2024 III hoii 11 �al+ill6�li,iiilll �'���� } m rr-=. m maw���, a, a:SWAM I maw lib 'arz ... i, �'w WE 'at I I koVirginia Beach nflml I ARNOLD COMMUNITY OEVEIOPMENf CORPORATION "" DESIGN STUDIO .tea...--. -.«,.-»c.....,,...«..,M« Coastal Virginia Concept Design Presented November 2024 All . 60 residential units ..' . • _. ; . 118 parking spaces required 122 parking spaces provided .r t J� Y vl .. x a a- � r C, \t I 's;Virginia Beach nfiml OMMUNITY DEVELOPMENT CORPORATION NAMhMU�LTI-FAMILY CONCEPT LAYOUT o. o�. aw.r �_� � ��..t�+.m TIMMONS GROUP••''ice � ��^v.sww+ »van..»�.cn».�.Im Coastal Virginia 13 Progress Recap 2021 •Project Conceptualized &Site Identification Underway ' •Evaluated 4 sites, all of which were not feasible 2022 •Site Identified •Council Support to explore site for affordable housing development •Resident Advisory Group formed 2023 •Preliminary Site feasibility analysis conducted • 1st Community Meeting Held October 2023 • Predevelopment Funding Secured 2024 • Community Design Charrette held in May 2024 • Conceptual Site Layout presented to Community • Site Option under consideration by City Virginia Beach nfiml COMMUNITY DEVELOPMENT CORPORATION VefiOnMA"'A —MM181111nPSs a d".swopo •pA P'tw"w Cc .fthws VW,t9a5 Coastal Virginia 14 Next steps ak I Oft Finalize a site option with Work with the design build Complete feasibility Apply for rezoning of the Obtain project financing. Continue to seek community the City of Virginia Beach team on project renderings assessments including parcel.Rezoning will require engagement to ensure the environmental studies a traffic analysis, project complements the photometric plan,storm surrounding neighborhoods water management plan and and contributes value to the site renderings. community at large. Virginia Beach nfin COMMUNITY DEVELOPMENT CORPORATION NatlonalAglandonMentslpinase Bvad+nq, Coastal V irginia 15 Project Contacts iguglielmo@vbcdc.org 757-500-2745 ` Virginia Beach Ashley - • of - - • • - : Admin. COMMUNITY OEVEIOPMENT CORPORATION $vet d nq,5�pport+nq 6 P.rsenrnq Communrt+rs s+nc�t 995 Services, , - • •• • • • • 0, Ilflllll National Alliance on Mental Illness Coastal Virginia 4 CITY COUNCILS BRIEFING'S CENTRAL BEACH SMALL AREA PLAN ITEM#7638 7 2:56 P.M. Mayor Dyer welcomed Emily Archer, Deputy Director — Economic Development and Joseph Strayer, Senior Urban Design Practice Lead — Renaissance Planning Group. Ms. Archer expressed her appreciation to City Council for their continued support and distributed copies of today presentation, attached hereto and made apart of the record. Mayor Dyer expressed his appreciation to Ms.Archer and Mr. Strayer for the presentation. November 21, 2024 Central Beach Small Area Plan Design Concept Alternatives City Council Briefing November 21, 2024 Joseph Strayer Urban Design Practice Lead Renaissance Planning jstrayer@citiesthatwork.com RENAISSANCE PLANNNG Overview • Project Overview • Task 1 • Existing Documentation Review • Previous Engagement Takeaways • Engagement Key Takeaways • Key Stakeholder Engagement • Community Open Houses • Future Sessions • Task 2 • Conceptual Alternatives • Diagrams • Alternatives • Next Steps Central Beach Small Area Plan Design /.X RENAISSANCE LAN NtNG 11/21/2024 2 Study Area 1� A+ � .. ♦ '4 • , x a Hsu �^u"vt Middle Sahml — �ti h � 'd Littt Nctk Gittk Y r ��, i«„ g Virpna Mo97 CA , a: M �x + 5 ,6"2. A. ^ •� . .>.,, + .k' �Atlantit Park « •' '(,,,,. .,' ,�t b 'U ubl,it Hotcl tr ix .'A s +may ."'# T •�_.v a v d 0--a-y Sc hu *.. �[ .. % r � ► -}gym., n'V t' , -16 ip Scope of Work • Task 1 — Existing Conditions Analysis • Document the existing development, infrastructure, and planned conditions within the study area. It will summarize opportunities and issues and serve as the basis for a Conceptual Small Area Plan created in Task 2. The task will include: Existing Document/ Plan Review • Existing Conditions Analysis • Stakeholder Engagement(Open House/ Key Stakeholder/ Conceptual Preference) • Task 2 — Conceptual Alternatives • Task 2 will involve creating two Small Area Plan scenario that aligns with the RASAP vision. The scenario will illustrate development and infrastructure concepts that address Task 1 opportunities and issues in the study area. The scenario will illustrate enhanced street networks, open spaces, and parking concepts, and include generalized 2D illustrative renderings of existing and proposed buildings. It will focus on differing possibilities for the Convention Center and Sports Center and surrounding areas, such as complementary uses and parking strategies. The task will include: PDRC Meetings • Conceptual Small Area Plans • Task 3 — Preferred Alternative (To Be Completed) FENAI$$ANCE .,A.. G 11 21 2024 4 Schedule and Timeline Schedule April May June July Aug. Sept Oct. Nov. Dec. Jan. Feb. T&*I Existing Conditions Analysis vrolect K.cKoH � Fx sung Document and Regulatory Review Stakeholder Engagement Plqk Ex¢nng Inc Analyses C�nrcu+:ron ana Extrrna.Mr�ebnrs. Corceptua!SmaI A,ea Plans Doctimenution Preferred Small Area Pear,. Draft Preferred Small Area Plan and Implementation Strategy Final Preferred Small Area Plan and implementation Strategy Final Presentations RENAISSANCE eLANNING 11/21/2024 5 Task 1 - Plans • Document Review 2016 Comprehensive Plan Active Transportation Plan APZ-1/AICUZ Resort Area Strategic Action Plan 2008 and 2020(RASAP) CurrentApplicable III rdinances Current Zoning Ordinances Ocean Resort Form-Based Code MP) 2013 Resort Area Parking Strategy Parking 2009 HQ Hotel Shared Use Parking Report City of Virginia Beach Parks and Recreation Outdoors Plan Municipal Parking Garage Priority Areas Plans were reviewed for relevance to the Central Beach study area and are Sports Center As Bui/ts Development/Strategy Maintenance Facility Plan Resort Area Signage and Wayfinding 17th and 18th Street CIP Housing Study 17th Street Engineering Study Central Resort Drainage District Sports Study 17th Street Workshops Neighborhood Plans Ville Connectivity Plan Capstone Proposal CBRE Morket5tudy Private Development Atlantic Park Shared Use Parking Report Central Beach 2011 Convention Center Hotel not presented summaries of earlier efforts. Small Area Plan Design RENAISSANCE PIANNNG Task 1 - Stakeholder Engagement ® Review Previous Planning Atlantic Avenue Association � June 24th 4-8 @Convention Center Study Engagement p Hotel Association Restaurant Association June 25th 12 4p @Atlantic Boardroom Ville Creative District Public Open Houses Old Beach Civic Lea ue Seatack Civic Lea ue Associations Tidewater Veterans Memorial Park Wave Ridin Vehicles Chaplain Propert Double Tree Hotel Business and Property Owners Mt.Olive Ba fist Church 108119th Street Runn mede Developers Ca stone ® Key Stakeholder Interviews MEB Consultants AECOM WSP S orts Center Convention Center Parks and Recreation City of Virginia Beach Comprehensive Plannin Housing Coordinator Traffic En ineerin Transportation Plannin Central Beach EEE Concept Design Feedback November 23rd 1 3p @ Stormwater Small Area Plan Design Convention Center Facilities PI AHNiHG ANCE , Key Takeaways ■■ MIXED HOUSING OPPORTUNITIES DIVERSE RETAIL AND TOURISM There's a need for affordable and workforce housing, Expand retail options beyond the typical offerings on Atlantic • but there is debate over its location and proportion in the Avenue,and explore sports tourism and hotel opportunities development without relying on city subsidies. RELIABLE AND EFFICIENT TRANSPORTATION ESTABLISH MAIN STREET EXPERIENCE E I■■1 Emphasis on establishing efficient,multimoda!transportation Expand retail options beyond the typical offerings on Atlantic networks that include micro-mobility options and are Avenue,and explore sports tourism and hotel opportunities ' accessible and reliable without relying on city subsidies. SAFE AND ACCESSIBLE PUBLIC REALM Msubstontial SUSTAINABLE DEVELOPMENT AND RESILIENCE Prioritize safe,accessible public environments with low-stressEmphasis on balanced housing,regional stormwoter design for pedestrians and cyclists(e.g..Complete Streets, strategies,resilient infrastructure,and preparing for buffered bike lanes). weather events. CONNECTIVITY AND URBAN INTEGRATION CREATING A COMMUNITY ORIENTED DESTINATION Ensure a highly connected urban environment that enhances Cater to all users,creating a community-oriented destination the North-South connectivity and extends to the oceanfront, with mixed-use and mixed-income developments that along with improved sidewalk and bike networks. encourage local ownership and ear-round activity SENSE OF ARRIVAL AND GATEWAY ENHANCEMENTS LOCAL COMMUNITY AND UNIOUE IDENTITY Expand retail options beyond the typical offerings on Atlantic A Preserve the local character and support unique, Avenue,and explore sports tourism and hotel opportunities community-aligned businesses,avoiding suburbanized without relying on city subsidies. development approaches. SPORTS AND CONVENTION TOURISM Offl:mmunicipalities EMBRACE HEALTHY COMPETITION There is a market for additional sports related Tourism andFoster an environment where businesses,communities,and HO hotel. The market should dictate what is viable not strive to innovate,improve quality,and enhance subsidies. services,to enrich urban life. PARKING SOLUTIONS AND WAYFINDING OPEN SPACE NETWORK AND PLACEMAKING Parking issues,especially near major venues,are a concern. An interconnected open space network should be central to Potential solutions include structured parking,woyfinding,and the plan,promoting placemoking and creating vibrant public • a cohesive parking management strategy. spaces. RENAISSANCE PLANNING 11/21/2024 8 Public Open Houses • In June, two open house sessions encouraged residents, business owners, and key stakeholders with the opportunity to meet the project team, learn about the study, and share input through three engagement activities. • The activities aimed to understand the vision for the study area and the most desired investment areas. • Approximately 100 people attended the open house sessions; the turnout was an equal mix of Virginia Beach residents and business owners. t RENAISSANCE nLANN IC 11/21/2024 9 Open House Information and Activities General - �', OVERVIEW OVERYIEW �,� Resort Area Strategic Action Plan 2030(RASAP) (RAMP) Based Code What do you envision for VA Beach? Investments Tall< to us! t ray _ II ti, • • Res(dencs r Place to live for Residents PENAISSANCE Destination for Tourists Results: What do you • for Beach? Business owners and Residents indicated their 1 vision for the future of the _ Central Virginia Beach Area. While it is clear there is a desire for all the visions provided, a Destination for Tourists and Place to Live for _ Residents is favored, indicating Resid- a common vision of "live-play" v for the area. Place to live for Residents ���A aNA No "�E 11/21/2024 11 Results: Preferred Investments MARKET RATE HOUSING WORKFORCE HOUSING PEDESTRIAN FACILITIES PARKING Business owners and Residents indicated their top three areas of preferred investments using sticky notes. The top selections were Open Space Network (22%), OPEN SPACE NETWORK BIKE LANES i MULTIPURPOSE FACILITIES Oh, TRANSIT CLEAR GATEWAYS INTO VIRGINIA BEACH Parking (14%), and Bike lanes & Multipurpose Facilities (14%). RENAISSANCE oLANNING 11/21/2024 12 Results: What's your vision? Restaurants Family Friendly Business owners and Residents shared what ransiL their vision is for the �CA area. • The word cloud was M Is ike Friendly PXa r k ' M Sidewalks created by extracting key words and themes Art se from the visions. Affordable Housing. CrosswalksP i � lel' lVSafe Gateaway S o its Center,-)ffice p . Y(§ ar , Round Local Character Headquarter Hotel Convention Center RENAISSANCE DLANN NG 11/21/2024 13 Task 2 — Conceptual Alternatives Z o �c Fa`� Iz �� a m � o v 40 h � a a a a° a w DesignCentral Beach Small Area Plan 11/21/2024 14 Conceptual Alternatives Guidance Creating a "Vision of a place that the community wants to visit for no reason" by adhering to the key takeaways we heard from current and previous engagement efforts (1) Mixed Housing Opportunities (7) Parking (13)Open Space Network (2) Multimodal (8) Local Ownership (3) Safe Pedestrian Facilities (9) Establish a Mixed Use "Main Street" (4) Connected (10)Development Patterns (5) Clear Gateways into Virginia Beach (11)Community Oriented Destination (6) Sports and Convention Tourism (12)Embrace Healthy Competition A variety of schemes were explored that: (1) Consolidated surface parking into shared garages, (2) Maintained and extended the street framework, (3) Expanded open space and connectivity, (4) Enhanced the 17th Street Main Street (5) Retained convention and sports tourism with necessary associated uses (hotel, commercial, residential, etc) RENAPLANNING ANTE 11/21/2024 15 .arVr►• Np.�rM M9 Conceptual Alternatives AF a .. 42 Central Green North /South Connections PENAI$$ANCE ���OLAN Nt NG 11/21/2024 16 Master Plan Central Green LEGEND Mk. _Mixed Use(Ground Floor Retail) 3 Retail Civic Hotel _Structured Parking Garages R h,; Multifamily Apartments r Missing Middle Housing ri, Single Family Housing t Open Space 00 6-1 e J 3 ' c +.iillYllrt_. ... •... p RENAISSANCE r �* f _ �,t � M 4 �4; y I� i 'N'.�•. � w 9 �; of_ a °' W �.,�. :. �••, .#` , .w4`t" �. '�„ <Ya"' 11/21/2024 17 vw +4 Precedent Model Central Green 1 41 . .>.� ONBO Crwrw.DMr�n Ile, 1 �J ^CMc/5 l� pwif Uf91ct Hig RENAISSANCE 'E.rs+inamrxemen •��I'G1—.G 11/21/2024 18 Diagramming Central Green BUBBLE DIAGRAM STREET FRAMEWORK hW- COTP+ts.—_.. -1 Co--i-I Coro --- 3 Conventionond Sports District IY e Nigh Densfry � Moin Street! C.—ity (Cenrmt Green\ Comnuniy Space Mixed use Mold Street Low Density Community PARKING CIRCULATION OPEN SPACE CONNECTIVITY P i=K a O low _ 1 .. -� O - o RENAISSANCE ��]_ /��� at ANHG -9—Pq.—IRe Id—Parking Access T Potential Patkhg Visilw Access Park Spate y--aJ Palk Connection 0.,..- ,O Sreet ,Connection 11/21/2024 19 a Phasing Diagram Central Green �v m 22nd Street i 19th Street I 1; •••'• 17th Street 4p� 14th Street D� �D�O�kAv m m 0 n iL RENAISSANCE PLANNG 11/21/2024 20 Existing Conditions Central Green to � C V cu P� v ,fir AIN . w" 1 ., qqq' ,22 d creek $[ ,+ '�r4� mow. �'�►''., "*sNmxana' ;'+'�' ��'.sY��wn� � �^'• e� 1711 Street I , Y• Norfolk Avenue �., it SL I REAISSANCE�1 ...ING 11 21 2024 21 Phase 1 Central Green (1) Central Green (Phase 1) 'II Q (1) Indoor Market o (2) Main Street Mixed Use � v Y (2) HQ Hotel I (3) Mixed Use Buildings/Shared Parking /,264 00 Garages 22AStreet (4) Mixed Use Convention Center Building (Shared Parking/ Hotel or Office/ Ice Rink / Residential) (5) Regional Storm Water (6) Facilities Department 1711 Street a, : F LEGEND Mixed Use(Ground Floor Retail) Retail '- • Civic Norfolk q Y venue, Hotel Structured Parking Garages _Multifamily Apartments x F Missing Middle Housing n w°r Single Family Housing _ Open Space RENAISSANCE VLANNNG 11/21 2oza 22 Phase Two Central Green r (1) Library and Visitor Center renovation at Q MoCA Y (2) Public Safety Building a (3) Central Green [Phase 2] /.2 co N (1) HQ Hotel 6q � , (2) Standalone Retail Spaces ra 22"dstreet (4) 17th Street "Main Street" Mixed Use (5) Community Green (6) Residential Community (1) Single Family Attached (21 Duplex ,. (3) Apartment Houses 1711 Street ,. 411 LEGEND _Mixed Use(Ground Floor Retail) Retail rl Civic Norfolk Ave"oe « . » Hotel Structured Parking Garages �� � �,�c,v,;'�, ,� Multifamily Apartments Missing Middle Housing v. I • w ��° i M* 'CAA�t �`.-� ai,� M .�.' �.. • �. � �,���;^ ,° , Single Family Housing Open Space IZENAISSPLA ANCE NNING 11/21/2024 23 Phase Three Central Green ,;. (1) Action Sports Facility ° (2) Double Tree Extended Stay expansion o .; (3) Central /Shared Parking Garage 12 (4) Office Development along 21s'and 22nd i ? mlt;�: � t '.�i � ; sa (5) ViBe Community Infill and Mixed Use 22"dStreet "Main Street" on 18th 19th, 20th and 215t Street (6) Transfer Center/ Mixed Use/ Parking � � x Garage (7) Extension of Mixed Use "Main Street" on 171171h Street A. ..*6a. MiAf reef t � w tw^ + 'k,�n �t �y LEGEND Mixed use(Ground Floor Retail) Retail M� r Civic Hotel UL whim Structured Parking Garages i q . Multifamily Apartments . . n ! Missing Middle Housing , � " �a .� Single Family Housing Al . ,... , �.� r . �Open Space RENAISSANCE PL ANN,NG 11 21 2024 24 Phase Four Central Green �.""�`'. ` �;'��a'. .it � ,• � �; � "*gip > �16y�u,p '#...» � �;; (1) Mount Olive Expansion oie (2) Residential Multifamily and Shared Garages Marquee office building e i, n . (U' (4) Grocery store, office, and shared garage. Y 171h Street #trc* s. � LEGEND Mixed Use(Ground Floor Retail) Retail Civic e � s r 'Vorfolkgyeque '" ^ ` Hotel Structured Parking Garages Multifamily Apartments r t Y. Y b t r �+ Missing Middle Housing Single Family Housing � a ,t vr , a, a,, „ ki T s� .x Open Space RENAISSANCE o,A—G 11/21/2024 25 y ) e m o ti s Y V v Master Plan Central Green C Cl /.'61 m 22"d Street o 1711 Street ;i - LEGEND 1 Mixed Use(Ground Floor Retail) Retail Civic NOrrolk gvenue Hotel mum Structured Parking Garages Multifamily Apartments f� � � fi f�Z�S". ✓ ��1M.. 1 Yit ty�p Missing Middle Housing Single Family Housing Open Space LL RENAISSANCE }PLANNING 11/21 2024 26 Concept Information Central Green CONNECTIVITY OPEN SPACE • Pedestrian connections take many different forms,,natural Large central park that is dual purpose as an amenity Potential New Develo ment connections with park space,and via roads and storage facility. Total SF 17M • Connecting the grid to promote North-South and East- Natural feeling landscaped parks connecting to more Residential Units 10,00 West access through the area. urban. New Residents 19,00 • Chaplain property to be the area that blends both Reliance on streetscapes to connect the remaining grid Convention and community. DEVELOPMENT PROGRAM New Jobs 9,00 BLOCKS Expand on the Ville District as the"Main Street"core Hotel Keys 90 • Connecting the grid to promote North-South and East- through a series of pedestrian malls and Civic 340,00 West access through the area.Chaplain property to Two new 300-350 room hotels with a shared parking Action Sports 100, be the area that blends both Convention Center and garage across the street. Facilities 60,0 Community Repurpose the existing MOCA building as a library. STORMWATER Food Hall anchoring the central green space Public Safe 80,00 • Large central park that is dual purpose as an amenity and ' Ice Center/Hotel/Parking to be a combined facility. Ice Rink 300, storage facility. Transfer Center closer to oceanfront and 17th street. Parking Provided 16,00 • Park spaces to be designed to treat storm water.Larger EXISTING USES Structured 8, parks to be appropriately designed for larger storm events. Visitor Center activities are shifted to a mobile option Garage. 3,50 • Streets to be designed with green infrastructure(porous Public safety/service buildings consoldiated into one Surface 2,50 paving,bioretention,etc.) building. • Extend RSW and redesign to make it a landscape as Public works to be rebuilt to address street with rear yard. Streets 2,00 opposed to an engineering solution. Uses that are better at the ocean to be moved. Open Space +-45 Acre STREETS • Street design will accommodate greenways for bicyclists and pedestrians,via a cycle track or bicycle laying or a wider sidewalk,etc. • Explore closure of 19th Street from new Action Sports facility to Atlantic Park 0@4aENA!SSANCE 11/21/2024 27 = ". NorthMaster Plan •uth Connections i, LEGEND € Mixed Use(Ground Floor Retail) Retail Civic Hotel Structured Parking Garages Multifamily Apartments >11111F110 dwp Missing Middle Housing 1 Single Family Housing Open Space 41 RENAI "^,;s �. n w ° L4 4 "A4 a "j}y� t� yr p �h OIANHING ANCE �.. �µ }C. " 4� �y*3» 'ri' /�y9T�' n_y'^ }g' 11/21/2024 20 7 ?r✓' eF�'v.r w h Lr. i M°+ 3 � f R4 T..11c.,l' f,Lf.,� R`I%t - :/ NorthPrecedent Model •uth Connections / Mla�o No , C J J \ t Ch r h QC � O P o ED I s • VIBe Creative District High Density Community Mixed Use Main Street Low Density Community �11 RENAfSSANCE IMI^Commercial Core �._..._.Existing to Remain 11 A �`i MANNING ,=Civic/Sports District 11/21/2024 29 NorthDiagramming •uth Connections BUBBLE DIAGRAM STREET FRAMEWORK comm.miai _co= Nigh DonsiryI M/retl-UseCDmmuniry Com�nNan/sports/ paeesulcm Civic Campus Malls Commercial Car. Low Danslry Community PARKING CIRCULATION OPEN SPACE CONNECTIVITY RENAISSANCE 'n D,4NN�NG T—pMm W R-s hl Pa king Accesf kJQL.Pol W Perkhg VlNlor Access �Nrk Sp— QUO Pok Conn *h 0.........,O Sneelic CDnnectbn 11/21/2024 30 N O N N r-I AW Pacific Ave v a, v) N H ry Mediterranean Ave Mediterranean Ave s v Parks Ave Ina E a �o � • h q Oqp s • w � 2 Q h ai Q� Z� W� �6 Existing Conditions North •uth Connections v v a 0 � v Y � U � C v /.'61 m 2211 Street ^RF 1711 Street r Norrolkql/en t ' ue i M, 6 �„ r I v` Yl L�/`■ k...a @ra wig�u, :v t e1aet /C/�0 A...1 aNCE 'ram 11/21/2024 32 Phase One North-South Connections (1) Regional Storm Water 73 Q (2) HQ Hotel o Y (3) Mixed Use Buildings/Shared Parking Garages 1Z64 m (4) Mixed Use ViBe Creative District Infill 221d Street y t 1711 Street u� x LEGEND ,. .. ' t Mixed Use(Ground Floor Retail) Retail Civic Norfolk Avenue t Hotel Structured Parking Garages Multifamily Apartments Missing Middle Housing Single Family Housing Open Space RENAISSANCE VLANNING 11/21/2024 33 NorthPhase Two • Connections (1) Commercial Business District (2) Mixed Use/Shared Parking Garages (3) New Library (4) Public Safety Building :'64 °° 2 (5) 17th Street Main Street -- 22°1 street . �, (6) Residential Community (1) Single Family Attached (2) Duplex u ; y ' (3) Apartment Houses �9" Nary k nn w v 64 171h Street LEGEND d Floor Retail) � , 9 s (Ground oor- - Mixed use G Retail Civic Norfolk Avenue :Hotel s �tufi`t' rj' ®Structured Parking Garages �,, r 4 � Multifamily Apartments 40 Missing Middle Housing Single Family Housing Open Space RENAt55ANCE PLANNING 11 21 2024 34 NorthPhase Three • Connections (1) Central Parking Facility (2) Convention Center expansion w/ HQ m � �.� Hotel S"ZT,� (3) Double Tree Extended Stay expansion (4) Indoor Market/ Food Hall expansion ,�;w. ••r a a�ree (5) Residential Community (1) Single Family Attached (2) Duplex (3) Apartment Houses -� (6) Community Green and pocket � ✓ neighborhood commercial b Cl o to 48 ' 7 ,�t g ° � n LEGEND ✓ t _ Ord. Mixed use(Ground Floor Retail) m* #4 � � ° Retail Civic r Hotel ° Structured Parking Garages ° ? °' �^ j" s + Multifamily Apartments r ,' rF Missing Middle Housing Single Famil Housing Open Space PLANNiiNGANCE 11/21/2024 35 NorthPhase Four • Connections " c ! (1) HQ Hotel , ?� (2) Commercial Business Core Y ( f (3) Art Museum (4) Residential Multifamily and Shared Garages � sw. , (5) Tidewater Veteran's Memorial Park (Partially °; , rr. zz^�� treet relocated to same site) (6) Convention Center Green (7) Action Sports Facility g O r4. a (8) Mount Olive Expansion (9) Commercial Business Core "3 y (1) Grocery store,office/ground floor retail,and shared garage. 17Lh Street , LEGEND Mixed Use(Ground Floor Retail) Retail Civic Nortolk Avenue Hotel Structured Parking Garages Multifamily Apartments �,� �y,'° gtitt V,`" Y ._ f ^v5 ��a, a ,rr Missing Middle Housing 1 b Single Family Housing " c Open Space ��►' 11/21/2024 36 North South Connections v a Master Plan c o � � v Y � U f6 N C N a �.Z64 ro f, �► _. 22"a Street 171"Street LEGEND _ Mixed use(Ground Floor Retail) Retail * � Civic Norfolk Avenue Hotel Structured Parking Garages _Multifamily Apartments Missing Middle Housing Single Family Housing Open Space r ae rv�t S S A v,'E ���' 11/21/2024 37 Concept Information North •uth Connections New Development Calcs CONNECTIVITY OPEN SPACE Total SF 16M • Pedestrian connections take many different forms,North Natural feeling landscaped parks connecting to more Residential Units 8,00 South mixed use pedestrian malls,natural connections urban. New Residents 14,500 with park space,and via roads Reliance on streetscapes to connect the remaining grid New Jobs 8,00 BLOCKS Bridge connecting over 1-264 Hotel Keys 1,20 • Connecting the grid to promote North-South and East- DEVELOPMENT PROGRAM Civic 643,000 West access through the area..Chaplain property to be the Expand on the ViBe District as the"Main Street"core Action Sports 100,00 area that blends both Convention and community through a series of pedestrian malls and Two new 300-350 room hotels with a shared parking Libra 60,00 STORMWATER• Extend RSW and redesign to make it a landscape as garage across the street. Public Safety 75,00 opposed to an engineering solution. Transfer Center closer to oceanfront and 17th street. Mount Olive Rebuilt 10,00 • VDOT triangle to be designed for regional stormwater EXISTING USES Museum 125,00 solution Visitor Center activities are shifted to a mobile option and Convention/Ice Rink 273,00 • MOCA to be demolished for stormwater park the land is transitioned to stormwater retention pond. Parking Provided 17,00 STREETS Public safety/service buildings consoldiated into one • Street design will accommodate greenways for bicyclists building. Structured 9,50 and pedestrians,via a cycle track or bicycle laying or a Public works to be moved to multiple storage facilities Garage 3,00 wider sidewalk,etc. along oceanfront. Surface 2,50 • Explore closure of 19th Street from new Action Sports Street 2,00 facility to Atlantic Park Open Space +-25 Acres RENAISSANCE r`� -,-<a. 11/21/2024 38 Project Information g Diagrams Master Plan The City of Virginia Beach . p. wants your thoughts on the - 3 future of the Central Beach area!As rrwr , e A JOIN US! DATE: Saturday, November 23.2024 TIME: P P ® � 1 100 m.-3:00 m. V13 • r 1 r 1\ LOCATION: � .J Virginia Beach Convention Center '- 100019th Street Virginia Beach,VA 23451 _ Central Beach Small Area Plan Design RENAISSANCE max.VIPN S S CITY COUNCILS BRIEFING'S CAPSTONE/CENTRAL BEACH MARKET ANALYSIS UPDATE ITEM#76388 3:33 P.M. Mayor Dyer welcomed Amanda Jarratt, Deputy City Manager and David Fuller, Senior Vice President— CBRE Hotel Advisory. Ms.Jarratt expressed her appreciation to City Council for their continued support and distributed copies of today presentation, attached hereto and made a part of the record. Mayor Dyer expressed his appreciation to Ms.Jarratt and Mr. Fuller for the presentation. November 21, 2024 CBRE Executive Summary of Feasibility Study for Proposed Mixed - Use Development City Council Briefing November 21, 2024 Presented and prepared by: Michael P. Cummings, MAI, ISHC David R Fuller, MAI Senior Vice President Senior Vice President 4 ..,: — ; !j s a► w u - M f. �y Agenda 1. Executive Summary 2. Hotel 3. Multi-Family/ Apartments 4. At-Grade Retail 5. Structured Parking 6. Discounted Cash Flow 7. Internal Rate of Return Confidential&Proprietary ©2024 CBRE,Inc. 2 DEVELOPMENTVIRGINIA BEACH VirginiaBeach Mixed-Use • • • Study ■ The following is a breakdown of the various proposed uses for the subject site. ■ Our research presented in the full reported submitted to the Virginia Beach Development Authority. ' ' ■ We note that we have analyzed each proposed 4 r. s •may use individually and the entire project to 1*- - 0` determine whether the proposed project is feasible. SUBJECT ■ We have accounted for the existing, latent and induced demand per use and forecasted future - . cash flows. " ■ We have determined that the overall project is feasible and should not materially impact existingsupply within the market. -- Y p p Y Confidential&Proprietary ©2024 CBRE,Inc. 3 AUTHORITYVIRGINIA BEACH DEVELOPMENT Virginia • -Use Development Feasibility • ' Summary we have provided our projections of the occupancy and average daily room rate (ADR)that the proposed Hotel could reasonably be expected to achieve for its first 10+years of operations. For purposes of this study and report, a 360-room hotel has been considered in our analysis.The following table presents a hypothetical breakdown of the room mix, division of meeting space, food and beverage outlets and amenities for the proposed hotel. Recommended Facilities Food and Beverage Property Type Lifestyle Upscale Potential • Projected Opening Date: Number of Rooms 360 Potential SF Seats Capacity GBA 216,000 SF Signature Restaurant 3,200 SF 160 160 July 1, 2027. GBA per Room 600 SF Fboftop Bar 3,200 SF 210 210 Cafe 400 SF 40 40 Guestroom Number SF/Fbom Totals 6,800 SF 410 410 . Projected Stabilized King Standard Fboms 162 45% 320 Amenities Double Queen Standard Fboms 126 35% 350 Property In Fbom o King Junior Suites 36 10% 480 Fitness Center Walk In Shower Occupancy Rate: 75/0 Double Queen Junior Suites 18 5% 520 Business Center Iron/Iron board King Suites 18 5% 600 Concierge Minifridge Totals 360 100% 350 Laundry Valet Safe Projected Stabilized ADR: Parking Garage Sofa Sleeper $229 Meeting Space Ice Machine/Vending Living Area Divisible Potential Potential SF by Capacity The potential guestrooms mix, as well as size and capacity of all Ballroom 9,000 SF 6 600 the facilities are presented as estimates and standards for • Projected Stabilized Net Breakout 3,500 SF 4 230 illustrative purposes based on comparable, prototypical, and Board Fbom 2,000 SF 4 130 market benchmarks Upon final planning, the above estimates are Income: $10.58 million Pre-Function 3,500 SF 0 230 likely to chanqe. Totals 18,000 SF 14 1,190 Per Room 50 SF Source: CBFE Hotels n Confidential&Proprietary I©2024 CBRE,Inc. DEVELOPMENT Virginiai ' . • Development • Study Multi-Family Apartments We have provided our projections of the absorption, occupancy and rents for 950 residential units. The following chart shows a summary of the improvements. Property Type Multifamily (Multi-Family Mid/High Rise) Number of Buildings 4 Number of Stories 5 • Projected Opening Date: July 1, 2027. Gross Building Area 1,844,500 SF (975,625SF Apt,158,220 Retail,515,530 Parking Net Rentable Area 975,625 SF Number of Units 950 . Projected Leasing Pace: 22 Units Per Average Unit Size 1,350 SF Parking Improvements Deck Month Parking Spaces: 1,663 Year Built 2027 Functional Utility Typical Source: Various sources compiled by CBRE • Projected Stabilized Occupancy: 95% UNIT MIX • Projected Stabilized Average Rent: Unit Size UnitMix/Type Comments No.Units (SF) NRA $2,261 Per Month 1BD/1BA 140 14.7% 700 98,000 1BD/1BA 140 14.7% 775 108,500 1BD/1BA 140 14.7% 800 112,000 • Projected Stabilized Net Income: 2BD/2BA 136 14.3% 1,100 149,600 2BD/2BA 136 14.3% 1,150 156,400 $22.39 million 2BD/2BA 136 14.3% 1,225 166,600 3BD/2BA 61 6.4% 1,475 89,975 3BD/2BA 61 6.4% 1,550 94,550 Source: Various sources compiled by CBRE Confidential&Proprietary I©2024 CBRE,Inc. 5 DEVELOPMENTVIRGINIA BEACH • Virginia Beach Mixed-Use Development Feasibility Study - Executive Summary At-Grade Retail We have provided our projections for the proposed 158,220 square feet of retail space. The proposed retail space is expected to satisfy the demand generated by the 950 residential units, hotel guests and daily visitors to the convention center. • Projected Opening Date: July 1, 2027. " _ "'"'� �` = • Projected Stabilized Occupancy: 96% �'"` �'' • Projected Stabilized Average Rent: $36.75 Per SF �� ��'• I'�c 'i."� { p.'Via, A °w9�: . %f • Projected Stabilized Net Income: $5.5 million �. c. r b • fir y...+, L I� F Rendering,not the actual design h Confidential&Proprietary I©2024 CBRE,Inc. VIRGINIA BEACH DEVELOPMENT Virginia Beach Mixed-Use Development Feasibility Study - Executive Summary Structured Parking We have provided our projections of the parking associated with the hotel, multi-family units, retail and daily use. In total, there is projected to be approximately 3,500 parking spaces. Out of this total, approximately 1,660+/- spaces will be allocated to the residential units, 400 to the hotel and the 1,500+/- balance to daily use for the Convention Center and/or the Sports Center. • Estimated Daily Use Spaces: 1,500 • Projected Daily Rate: $15.00 • Projected Stabilized Net Income: $3.0 million We note that if the city elects to construct and contribute the 1,500-space parking deck that will be allocated to the Convention Center and/or Sports Center, then the projected income will be removed from the cash flow. f Confidential&Proprietary I©2024CBRE,Inc. 7 DEVELOPMENTVIRGINIA BEACH Virginia Beach ' • -Use Development FeasibilityStudy Discounted Cash Flow The following is the projected discounted cash flow on an As Completed basis. AllilliIIIIIIIIIiii AM Number of Rooms 360 360 360 360 360 360 360 360 360 360 3,0 Annual Available Rooms 131,400 131,400 131,400 131,400 131,400 131,400 131,400 131,400 131,400 131,400 131,400 Occupied Rooms 77,526 90,666 98,550 98,550 98,550 98,550 98,550 98,550 98,550 98,550 98,550 Occupancy 59.0% 69.0% 75.0% 75.0^,6 75.0% 75.0% 75.046 75.0% 75.0% 75.0% 75.0% Average Rate $216.16 $222.65 $229.33 $236.21 $243.29 $250.59 $258.11 f265.85 5273.83 f282.04 $290.51 REVENUE Rooms f16,758,285 f20,186,632 f22,600,251 f23,278,259 f23,976,606 $24,695,905 $25,436,782 f26,199,885 $26,985,882 f27,795,458 $28,629,322 Food&Beverage 4,667,352 5:425:684 8,955,856 9:224,532 9,501,268 9,786,306 10,079,895 10:382,292 10,693,760 11,014,573 11,512,668 Other Operated Departments 957,482 1,094,411 1,194,114 1,229:938 1:266,836 1,304,841 1,343,986 1,384,306 1,425,835 1,468,610 1,512,668 Miscellaneous Income(Net) 186,694 217,027 477,646 491,975 506,734 521,936 537,594 553:722 570,334 587,444 605,067 Total Operating Revenue ;22,569,S,3 ;26,923,754 f33,227,867 f34,224,703 f35,251,444 $36,308,987 $37,398,257 $38,520,204 $39,675,811 ;40,866,085 $42,092,067 DEPARTMENTAL EXPENSES Rooms Expense $3912,171 $4,264,495 $4537634 $4,673,763 $4813,976 $4,958,395 $5,107,147 $5260361 $5,418,172 $5,580,717 f5,748,i39 Food&Beverage Expense 4:293,813 4,737,967 6:716:892 6,918,399 7:125,951 7,339,729 7,559,921 7:786:719 8,020,320 8,260,930 8,508,758 Other Operated Departments Expense - - - Total Departmental Expenses $8,205,984 $9,002,461 ;11,254,526 ;11,592,161 $11,939,926 $12,298,124 f12,667,068 $13,047,080 $13,438,492 $13,841,647 $14,256,896 DEPARTMENTAL PROFIT $14,363,828 $17,921,293 $21,973,341 $22,632,541 $23,311,518 $24,010,863 $24,731,189 $25,473,125 $26,237,318 ;27,024,438 $27,835,171 UNDISTRIBUTED OPERATING EXPENSES Administrative and General $1,952,033 $2,077,414 $2,181,030 $2,246,461 $2,313,855 $2,383,271 $2,454,769 $2,528,412 ;2,609,264 $2,682,392 ;2,762,864 Information and Telecommunications Systems $195,203 $207,741 $218,103 $224,646 $231,386 $238,327 $245,477 $252:841 $260,426 $268,239 $276,286 Sales and Marketing $1,756,830 $1,869,672 $1,962,927 $2,021,815 $2,082,470 $2,144,944 $2,209,292 $2,275,571 f2,343:838 $2,414,153 $2,486,578 Franchise Fees(Royalty) $837,914 $1,009,332 $1,130,013 $1,163,913 $1,198,830 $1:234,795 $1,271,839 $1,309,994 $1,349,294 $1:389:773 $1,431,466 Property Operations and Maintenance $764,206 5824,551 5872,412 $898,585 $925,542 $953,308 ;981,908 $1:011:365 51,041,706 $1,072,957 f1,105,146 Utilfties $784,505 $846,453 $895,586 $922,453 $950,127 $978,631 $1,007,989 $1,038,229 $1,069,376 $1,101,457 $1,134,501 Total Undistributed Expenses $6,290,692 33 $6,835,163 $7,260,071 $7,477,873 $7,702,209 $7,9 ,276 $8,171,274 $8,416,412 $8,668,904 $8,928,972 $9,196,841 GROSS OPERATING PROFIT $9,073,136 f11,086,130 514,713,270 $15,154,668 $15,609,308 ;16,077,588 $16,559,915 $17,056,713 ;17,568,414 f18,095,466 ;18,638,330 Management Fee $902,793 $1,076,950 $1,329,115 $1,368,988 $1,410,058 $1,452,359 $1,495,930 $1,540,808 $1,587,032 $1,634,643 $1,683,683 INCOME BEFORE NON-OPERATING INCOME AND EXPENSES $7,170,344 $10,009,180 $13,384,155 $13,785,680 $14,199,251 $14,625,228 $15,063,985 $15,515,904 $15,981,382 $16,460,823 ;16,954,648 NON-OPERATING INCOME AND EXPENSES Property Taxes $1,184,158 $1,219,683 $1,256,273 $1,293,962 $1,332,781 $1,372,764 $1,413,947 $1,456,365 ;1,500,056 $1,545,058 $1,591,410 Insurance $411,166 $423,501 $218,103 $224,646 $231,386 $238,327 $245,477 $252,841 $260,426 $268,239 $276,286 Reserve for Replacement $0 $538:475 $1,329,115 $1,368,988 $1,410,058 $1,452,359 $1,495,930 $1,540,808 ;1,587,032 $1,634,643 $1,683,683 Total Non-Operating Income and Expenses $1,595,324 $2,181,659 $2,803,491 $2,887,596 $2,974,224 $3,063,451 $3,155,354 $3,250,015 ;3,347,515 ;3,447,941 $3,551,379 NET INCOME(EBITDA) $5,575,019 $7,827,521 $10,580,664 $10,898,084 $11,225,027 $11,561,778 $11,908,631 $12,265,890 $12,633,866 $13,012,882 $13,403,269 B Confidential&Proprietary I©2024 CBRE,Inc. DEVELOPMENTVIRGINIA BEACH • Virginia Beach Mixed-Use Development Feasibility Study - Executive Summary Internal Rate of Return ■ The calculation of the IRR is based on a total investment (cost) of$490,100,000. ■ Based on this estimated cost to construct the facility, we project an internal rate of return of 12.3% as shown below. The 12.3% return is considered above Internal Rate ofReturn ofthe Proposed Nfixed Use Development average based on accepted market returns for similar investments. Therefore, we Year Hotel Multi-Family Retail Other Parking Total conclude that the construction of the Ending Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Cost Basis ($102,300,000) ($352,000,000) ($35,800,000) ($490,100,000) proposed uses is feasible. 6/30/2028 $5,575,019 $21,313,088 $5,647,353 $3,000,000 $35,535,461 6/30/2029 $7,827,521 $21,845,915 $5,737,132 $3,090,000 $38,500,569 The conclusions reached are based on our 6/30/2030 $10,580,664 $22,392,063 $5,505,622 $3,182,700 $41,661,050 knowledge of the competitive market as of 6/30/2031 $10,898,084 $23,063,825 $6,196,004 $3,278,181 $43,436,094 the completion of our fieldwork in June of 6/30/2032 $11,225,027 $23,755,740 $6,852,338 $3,376,526 $45,209,631 2024. As in all studies of this type, the 6/30/2033 $11,561,778 $24,468,412 $7,316,268 $3,477,822 $46,824,280 6/30/2034 $11,908,631 $25,202,465 $7,819,952 $3,582,157 $48,513,204 estimated results are based upon 6/30/2035 $12,265,890 $25,958,539 $7,823,325 $3,689,622 $49,737,375 competent and efficient management and 6/30/2036 $12,633,866 $26,737,295 $8,611,234 $3,800,310 $51,782,705 presume no significant change in the 6/30/2037 $180,769,926 $461,362,542 $140,345,436 $51,864,734 $834,342,638 IRR 12.3% competitive market from that as set forth in Compiled by CBRE ^Includes reversionary value this report. Confidential&Proprietary I©2024 CBRE,Inc. 9 CBRE Thank you _ r r The District Mixed Use Proposal Next Steps Amanda C. Jarratt, Deputy City Manager City Council Briefing, November 19, 2024 CITY-Oi VIRGINIA BEACH I Background • Resort Area Strategic Area Plan Adopted 2008 • City issued a Request for Letter of Interest and Qualifications for a Mixed-Use Development Adjacent to Convention Center in May 2022 • One response received • Briefing from RFII Respondent October 2023 • Resolution providing direction to staff adopted January 2024 • Central Beach Small Area Plan • Mixed Use Proposal Feasibility Study • Infrastructure Cost Analysis 2 L 4.5 PUBLIC & PRIVATE ., DEVELOPMENT = ~~~~ OPPORTUNITIES z_: -;w-�-• Key development projects will be O .�..�, ,. needed to increase density and achieve the goal of a year-round resort Below are a few examples Of o,p developments in progress as well as future opportunities Q` , 1. Virginia Aquarium Expansions �• `' 2. Atlantic Avenue Corridor 416 1 3. Sports Center 4. Convention Center Hotel S. Visitor Center/21sit Street ` i di c.wnr owe .� Gateway _ 6 Manna District Improvements _ _ _ w.c 7 17th Street Corridor �, T O j Q ee w M n 8 Rud loop 1O°' ..C&A 4. Dome Site 10 frshcng Pier(private Or public partnership.multiple FIG 4 5 0 DEVELOPMENT OPPORTUNITIES MAP location options) 11.Potential redevelopment area With deve4oprnent oppwlunities come the responsobdity of The Federal Opporluruty respecting and rehabilitating the historic properties in the i Zones incentrve is a NOTE_Numbers above are used to resoo area Adaptive reuse projects are a sustainable way community investment tool key development opportunities to the map and do not in any way to preserve the history of the area New urban infill pro)ects esitablitshed by ConWess in represent Order Of priority or the wdl need to take a look at histomric structures on adjacent the Tax Cuts air-od)obs Act of potential for public funding sdes,and respect those buildings both in massing and mth a r { contemp(xary compatible design investments in low-irKorne Next Steps • Central Beach Small Area Plan Next Steps • Public Engagement - Saturday November 23rd • PDRC - December 3rd • Resort Advisory Committee - December 5tn • Planning Commission Briefing — Date TBD • City Council Adoption — Date TBD 4 Next Steps • Council may direct staff to pursue one or more components of the Mixed-Use Proposal based on CBRE's analysis • Hotel • Parking • Retail • Apartments • City Council may consider authorizing staff to move forward with the infrastructure analysis to fully understand a potential City investment • City Council may provide alternative direction to staff 5 Tax w e �y, n t DISCUSSION PEMBROKE SQUARE REDEVELOPMENT 6 6 CITY COUNCILS BRIEFING'S UP RETREAT PRE-BRIEFING(ECONOMIC& TO URISM DE VEL OPMENT) ITEM#76389 4:18 P.M. Mayor Dyer welcomed Emily Archer, Deputy Director—Economic Development. Ms. Archer expressed her appreciation to City Council for their continued support and distributed copies of todays presentation, attached hereto and made a part of the record. Mayor Dyer expressed his appreciation to Ms.Archer for the presentation. November 21, 2024 Economic and Tourism CIP City Council Retreat Pre-Briefing Emily Archer, Economic Development Deputy Director November 21, 2024 Ci i Y OF VIRGINIJ'., CIP Section Overview , t 4 . . , ,, _ • FY 2024-25 Adopted CIP - 34 projects totaling $532.6 �.. million including appropriations to date • Funding Sources: • General Fund (35%) • Cigarette Tax Dedication AW19 ' • Sale of Property ' ' = .: �' • Tourism Investment Program (44%) y` Federal and State Grants � — Parking Enterprise Fund • Town Center SSD • Lease and sale of Properties (BRAC) p2 VB Year of Project Number/Name District Origin FY26 FY27-30 wA 100002: 1711 St Improvements 6 2019 On Hold 293,630 0 0 293,630 76,813,199 Ph II 100399: Strategic Growth Area Citywide 2008 Construction 12,279,687 250,000 1,000,000 13,529,687 - Program 100459: ViBe District St 5, 6 2016 Construction 10,844,046 0 0 10,844,046 - Infrastructure 100576: Va Beach Innovation 2 2021 Construction 18,659,000 0 0 18,659,000 7,000,000 Park Infrastructure Ph II 100635: Corporate Landing 5 2022 Construction 10,000,000 0 0 10,000,000 13,000,000 Business Park Infrastructure 100666: Dam Neck-London 5 2023 Construction 22,500,000 0 0 22,500,000 - Bridge Connector Improvements Year of Project Number/Name District D AT Y2C FY27-30 Total Origin ' i 100575: 31st Street Stage Canopy 6 2021 Construction 3,128,720 0 0 3,128,720 - 100014: APZ-1 Economic Citywide 2016 Ongoing 1,857,692 0 0 1,857,692 - Incentives 100048: Burton Station Road 4 2011 Design 17,611,645 0 0 17,611,645 10,373,115 Improvements III 100157: Economic Development Citywide - Ongoing 12,075,696 1,502,567 5,236,097 18,814,360 - Investment Program II* 100251: London Bridge 6 2016 Design 3,895,100 0 0 3,895,100 - Commerce Center Ph 1 100262: Lynnhaven Parkway 3 2017 Design/Bid 5,775,000 0 0 5,775,000 - Corridor Improvements Total: - - - 118,920,216 1,752,567 6,236,097 126,908,880 107,186,314 off • • • ' • • • • . . • • • Sale of Property Funded Projects District 0rgJ AT Project Number/Name n D Acquisition & Disposition • This project provides funding for acquisition of strategic opportunities that support economic, tourism, and redevelopment goals • Single above target request this year in order to have a dedicated fund to contribute to acquisition opportunities as they arise to achieve growth and redevelopment goals 5 44 Year o Project Number/Name District Stat ATD FY2 FY27-301i Total BTC Origin lip 100145: Atlantic Park Dev 6 2020 Construction 9,194,182 0 0 9,194,182 - Acquisition 100146: Atlantic Park 6 2018 Construction 54,997,614 0 0 54,997,614 - Entertainment Venue 100147: Atlantic Park Parking 6 2019 Construction 45,950,000 0 0 45,950,000 - 100148: Atlantic Park 6 2018 Construction 6,000,000 0 0 6,000,000 - Streetscapes 100283: Oceanfront Capital 5, 6 2018 Design-Build 7,331,862 600,000 2,400,000 10,331,862 - Projects Reinvest* 100300: Atlantic Ave Street 5, 6 2020 Design-Build 33,900,000 7,900,000 6,300,000 48,100,000 - Improvements 100456: Amphitheater Capital 2 2010 Construction 4,241,446 200,000 800,000 5,241,446 - Maintenance* Project Number�Name District Origin Stat ATD FY27-30 ". Total 100489: Winston Salem Avenue 5 2013 Construction 18,558,235 0 0 18,558,235 Improvements* - 100606: Atlantic Park Offsite 6 2021 Construction 36,567,955 0 0 36,567,955 Infrastructure* - 100628:Visitor Information Services 5, 6 2022 Construction 1,000,000 0 0 1,000,000 - 100629: Sports Tourism Infrastructure Citywide 2022 Construction 19,500,000 0 0 19,500,000 - 100001: 17th Street Phase I- Pacific to 5,6 2019 Design 48,843,040 0 0 48,843,040 Cypress - 100286: Oceanfront Restrooms 5,6 2019 Design 2,833,484 0 0 2,833,484 - 100631: Resort Area Site Acquisition 5,6 2022 Complete 12,900,000 0 0 12,900,000 - 100059: Resort Parking District 5,6 2019 Design 26,125,000 0 0 26,125,000 - Total: - - - 327,942,818 8,700,000 9,500,000 346,812,818 - ear of Project Number/Name Distri � Status ATD FY26 � FY27-30 Total BTC 100282: Oceana & ITA Conformity & 2 3, 5, 6 2015 Ongoing 8,642,317 0 4,000,000 12,642,317 - Acquisition II 100630: 17th St Regional Stormwater 6 2022 Design 28,700,000 0 0 28,700,000 - Management Facility 100639: Cape Henry Lighthouse 6 2012 Design 1,918,119 0 0 1,918,119 - Restoration Total: - - - 39,260,436 0 4,000,000 43,260,436 - Also funded by ' Fund Town SSD Funded Projects ear of ` Project Number�Name District Status FY27-30 Total Origin 100420: Town Center Garage & 4 2018 Ongoing 4,180,127 352,726 1,410,904 5,943,757 - Plaza Cap. Maintenance Ph II 100421: Town Center 4 2018 Ongoing 1,050,000 sell 600,000 1,800,000 - Reinvestment VB Total: - - - 5,230,127 502,726 2,010,904 7,743,757 - Parking Enterprise Funded Project Project Number/Name District Year of Status ATD FY26 FY27-30 Total BTC Origin 100285: Oceanfront Parking 5, 6 2018 Ongoing 5,853,366 500,000 2,000,000 8,353,366 - Facility Cap Maintenance/Dev Total: - - - 5,853,366 500,000 2,500,000 8,353,366 - Project Number/Name Funding Source Local I FY26M FY27-30 40 Total 100001: 171h St. Improvements Phase I TIP 48,843,040 0 0 48,843,040 - 100002: 17th St. Improvements Phase II General Fund 293,630 0 0 293,630 76,813,199 100014: APZ-1 Economic Incentives General Fund 1,857,692 0 0 1,857,692 - 100300: Atlantic Avenue Street TIP 33,900,000 7,900,000 6,300,000 48,100,000 - Improvements 100048: Burton Station Rd General Fund 17,611,465 0 0 17,611,465 - Improvements III 100157: Econ Dev Investment Program II Cigarette Tax 121075,986 1,295,986 4,451,625 17,823,597 - 100251: London Bridge Commerce Center Ph I General Fund 3,895,100 0 0 3,895,100 - 100262: Lynnhaven Parkway Corridor 5,775,000 Improvements General Fund 5,775,000 0 0 - 100286: Oceanfront Restrooms TIP 2,833,484 0 0 2,833,484 Local Locally Funded Projects with Flexibility Cont. Project Number/Name Funding Source ATD " rY2 FY27-30 Total 100059: Resort Parking District TIP 26,125,000 0 0 26,125,000 - 100399: Strategic Development Projects General Fund 12,279,687 250,000 1,000,000 13,529,687 - 100630: 17th Street Regional Stormwater State Funding/TIP 18,700,000 0 0 18,700,000 - Facility 100628: Visitor Information Services TIP Mell Mell - Tonal: - 185,190,084 9,445,986 11,751,625 206,387,695 - 100001 : 171h Street Improvements Ph • Project to rehabilitate 17t" St/Virginia Beach Blvd between Pacific and Cypress Avenues including: ,r • Wide, continuous sidewalks " Street trees r t gr VB� Bicycle lanes 3-V Undergrounding of overhead utilities a : "�' ` ---- • Project is in the final stages of design `� • On track for Q1 2025 construction bid and October 2025 construction • Council districts 5 & 6 • TIP Funded p13 VB 100002 : 171h Street Improvements Ph 11 • Project to rehabilitate 17t" St/Virginia Beach Blvd between Cypress Avenue and Birdneck Road including: • Wide, continuous sidewalks • Street trees - - ` • Undergrounding of overhead utilities x • Street Lights .-,,�,, • Project completed a preliminary engineering -- " report in 2021 • Council district 6 • General Fund funded r„ p14 VB 100630: 171hStreet Regional Stormwater Facility j SU2417754499 �..._I Project includes the design and construction Sports Center of I regional stormwater management facility Virginia Beach Blvd to address flooding ofstreetsand facilitate St/Virginiathe redevelopment of properties along the south side of 17 �rill, 30% design phase achieved, construction anticipated in 2027 (-Seabridgl v'Square I 1 I Council district • f� I 7 ID os ,( • 1 • State funded Q SU24 1 77 51 024 " al � 07 ! / Colony Mobile Home Park 100300: Atlantic Avenue Street Improvements Syr. ; • Project to rehabilitate Atlantic Avenue between 5tn t and 40t" Streets per the Resort Area Mobility Plan ( RAMP) recommendations including: • Sidewalk replacement and updated furnishings • Lane and curb adjustments Dedicated Bicycle lanes Improved plantings and street trees • Being delivered via a progressive design-build �� . contract in phases • At 30% design, phase one construction October 2025, Public Open House in January 2025 • Council districts 5 & 6 TIP funded p16 VB 100014 : APZ-1 Economic Incentives • This project provides economic incentives to convert or relocate non-conforming businesses located in APZ-1 areas • Since the program's inception in FY2016-17, it has funded $3.2 million to assist 43 businesses and estimated to generate $65.4 million in new and retained private investment • Multiple council districts • General Fund funded p17 ✓ 100048 : Burton Station Rd Improvements III f • yb • This project provides funding to connect roadways ° Aand utilities per the Burton Station SGA Ian p " * �" "r ' • et for� Project is at the 90% design phase and on tar, 1 g p g r construction in 2026 • Council district 4 r • $10 Mil balance to complete • General Fund funded -a 1'�U p18 Google 100157 : Economic Dev Investment Program Ph 11 414� - virginia beach . This project supports and enhances the viability of w the City's Economic Development Program and - �- strategic plan ,.a ` ` z �' • EDIP funding is discretionary, performance based P and is the primary local incentive offered to attract ry economic development to the City .., ' " • Citywide program 2021?0:4 COMMUNITY PROFILE �\`� • Funded by dedication of the City's Cigarette tax CHOOSE VIRGINIA BEACH pig VB 100251 : London Bridge Commerce Center Infrastructure • Project to provide funding for a road and utility work , to a new 18-acre industrial park } • The property was sold in May 2023 and is currently being used for storage and staging in support of off- shore wind energy development • Council district 6 • General Fund funded p20 VB 100262 : Lynnhaven Pkwy Corridor Improvements {`� • Project to provide funding for connectivity, safety and aesthetic improvements along Lynnhaven w Parkway from 1-264 to Lishelle Place including: • Sidewalks on both sides of the road ` • Gateway signage • Pedestrian lighting 1 • Project design is complete and is scheduled to be bid I r LYNNHAVEN before the end of the year with construction beginning in summer 2025 • Council district 3 • General Fund funded p21 100286 : Oceanfront Restrooms • Project to construct additional, modern, restroom <<Ey facilities at the Oceanfront • Funded the 2nd St Shower and 20t" Street Restroom ` Facilities • Schematic design underway for another restroom facility at the 6t" Street Connector Park. Could achieve construction as early as winter 2025/2026 • Council districts 5 & 6 ; - — • TIP funded p22 100059 : Resort Parking District '.. yr. �.fi . � � _ • Project funds public parking spaces at the . : � J p p g p Oceanfront in public garages or private garages through cost participations • In FY2025/26 we anticipate the request to ➢- purchase 200 public parking spaces in a new garage on 35t" Street and Pacific Ave. yF : .:. • Council districts 5 & 6 • TIP Funded P. p23 VB 100399 : J Strategic Development Projects • Project provides funding for planning, design, construction, and acquisition to support the implementation of the eight strategic growth ' areas and advance strategic development 1. initiatives city-wide including: +=- • Comprehensive Plan Update • African American Historic Community Signs ew �� • Temporary 31s' St Canopy relocation to ViBe Park • Forthcoming Shore Drive Study updates � R R A• `�' • City-wide • General Fund funded 2„ p 24 100628 : Visitor Information Services • Project to modernize and support visitor services, enhance curb appeal, and strengthen branding including • Implementation of mobile visitor kiosks • Replacement of Visitor's Center entrance sign ' Development of advanced guest services through �.b '���►, mobile applications and targeted communications • Council districts 5 & 6 • TIP funded Estimated Cost 17t" Street Phase II — Cypress to Birdneck $76,813,199 Strategic Site Acquisition and Disposition Requesting $500,000 annually Total $76,813,199 " i 1. Thank You Questions? VBi CITY OF= VIRGINIA �_..,•�...,� BEACH 27 7 ADJOURNMENT ITEM#76390 Mayor Robert M. Dyer DECLARED the City Council SPECIAL FORMAL SESSIONADJOURNED at 4:39 P.M. Terri elius Robert M.Dyer Chief Deputy City Clerk Mayor City of Virginia Beach Virginia November 21, 2024