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HomeMy WebLinkAboutJANUARY 27, 1998 MINUTES "WORLD'S LARGEST RESORT Crrv CITY COUNCIL MAYOR MEYERA E. OBERNDORF, At-Large VICE MAYOR WILLIAM D. SESSOMS, JR., At-Large JOHN A. BAUM, Blackwater Borough LINWOOD O. BRANCH, III, Virginia Beach Borough WILLIAM W. HARRISON, JR., Lynnhaven Borough HAROLD HEISCHOBER, At-Large BARBARA M. HENLEY, Pungo Borough LOUIS R. JONES, Bayside Borough REBA S. McCLANAN, Princess Anne Borough NANCY K. PARKER, At-Large LOUISA M. STRAYHORN, Kempsville Borough f@oll I'I'N' JAMES K. SPORE, City Manager CITY COUNCIL AGENDA 2@l LESLIE L. LILLEY, City Attorney RUTH HODGES SMITH, CMC/AAE, City Clerk JANUARY 27, 1998 I. CITY MANAGER'S BRIEFINGS - Conference Room - 1:30 PM A. COMMUNICATION TOWERS William M. Macali, Deputy City Attorney David C. Sullivan, Director, Information Technology William Gambrell, City Planner, Department of Planning B. HAMPTON ROADS SOCCER STATUS REPORT J. Barry Frankenfield, Planner, Parks and Recreation II. REVIEW OF AGENDA ITEMS III. CITY COUNCIL CONCERNS IV. INFORMAL SESSION - Conference Room - 3:30 PM A. CALL TO ORDER - Mayor Meyera E. Oberndorf B. ROLL CALL OF CITY COUNCIL C. RECESS TO EXECUTIVE SESSION V. FORMAL SESSION - Council Chamber - 6:00 PM A. CALL TO ORDER - Mayor Meyera E. Oberndorf B. INVOCATION: The Reverend Randy Orwig The New Tidewater United Church of Christ C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THF UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF CITY COUNCIL E. CERTIFICATION OF EXECUTIVE SESSION F. MINUTES 1. INFORMAL & FORMAL SESSIONS January 13, 1998 G. AGENDA FOR FORMAL SESSION H. CONSENT AGENDA The Consent Agenda will be determined during the Agenda Review Session and considered in the ordinary course of business by City Council to be enacted by one motion. I. PUBLIC HEARINGS 1. EXCESS CITY REAL ESTATE PROPERTIES: a. Virginia Beach Boulevard 5,928 Acres (LYNNHAVEN BOROUGH) b. Level Green Boulevard 0.05 Acres (K-EMPSVILLE BOROUGH) C. South Independence Boulevard 7.7 Acres (KEMPSVILLE BOROUGH) d. First Court Road 1.5873 Acres (BAYSIDE BOROUGH) 2. TAX EXEMPTION: REAL AND PERSONAL PROPERTY a. Samaritan House. Inc J. ORDINANCES 1. Ordinances to declare EXCESS PROPERTY: a. 3432 Virginia Beach Boulevard For disposition of 5.928 Acres (LYNNHAVEN BOROUGH) to the Virginia Beach Development Authority re SALE, LEASE and FINANCING of the Department of Social Services building. b. Level Green Boulevard adjacent to Colonial Court Apartments (formerly College Square Apartments, 0.05 Acres (KEMPSVILLE BOROUGH), to be EXCHANGED for an immediately adjacent site re construction of a Pump Station, Reon Drive Sanitary Sewer Improvements Project (CIP 6-949). C. South Independence Boulevard, (Constitution Drive Flyver) adjacent to the Larkspur Subdivision, re SALE of 7.7 Acres (KEMPSVILLE BOROUGH); and authorize the City Manager dispose of same. 2. Ordinance to APPROPRIATE $140,000 from the General Fund to provide an interest-free loan to the Davis Corner Volunteer Rescue Squad re purchase of a replacement squad truck. 3. Ordinance to authorize acquisition of property (Parcel A - 35,667 square feet and Parcel B - 1,434 square feet), in fee simple from Hubert L. and Mona H. Dail re a site for Little Neck Neighborhood Park (CIP 4-950.05), either by agreement or condenmation (L,YNNHAVEN BOROUGH). K. RESOLUTIONS 1. Resolution re support for legislation to designate real and personal property owned by Samaritan House, Inc. TAX EXEMPT from State and Local Real and Personal Property. 2. Resolution of endorsement to the Commonwealth Transportation Board re The Ferry Plantation House Restoration, Phase 1, as a proposed project for the Federal Transportation Enhancement Program (80%-20% match), authorized by the Intermodal Surface Transportation Efficiency Act (ISTEA) L. PUBLIC HEARING - PLANNING PLANNING BY CONSENT - to be determined during the Agenda Review Session. 1. NON-ACTION ITEM DEFERRED BY PLANNING COMMISSION 14 January 1998 a. Application of DAVISVILLE PROPERTIES, L.L.C. for a Change of Zoning District Classification from R-10 Residential District and B-2 Community Business District to Conditional B-2 Community Business District at the Southwest intersection of First Colonial Road and Republic Road, containing 11.681 acres more or less (LYNNHAVFN BOROUGH). 2. Ordinances re discontinuance, closure and abandonment in the Petitions of: a. BAYVILLE FARMS ASSOCIATES, L.C. of a portion of First Court Road, beginning at the Southern boundary of Shore Drive and running 1165.07 feet in a Southwesterly direction, containing 1.42 acres (BAYSIDE BOROUGH). Deferred for Compliance: 08 July 1997 Recommendation: FINAL APPROVAL b. R. LEWIS BOGGS (VIRGINIA BEACH BOROUGH): (1) Parcel 1: Alleyway located between 29th and 30th Streets beginning at the Western Boundary of Arctic Avenue and running in a Westerly direction to the Eastern boundary of Holly Road (2) Parcel 2: Alleyway located 140.15 feet North of 27th Street beginning at the Eastern boundary of Holly Road and running 49.93 feet in an Easterly direction (Parcels 1 and 2 contain 6,086.45 square feet). Deferred for Compliance: 09 January 1996 Additional 180-Day Deferral: 09 July 1996 Additional 180-Day Deferral: 14 January 1997 Additional 180-Day Deferral: 07 August 1997 Recommendation: ADDITIONAL 180-DAY DEFERRAL C. POTTERS ROAD INVESTMENT GROUP - Potters Road beginning at the Southeast intersection of Potters Road and Wesley Drive, running in an Easterly direction 270 feet, more or less, , containing 6,577.56 square feet (LYNNEAVEN BOROUGH). Deferred for Compliance: 09 July 1996 Additional 180-Day Deferral: 04 January 1997 Additional 180-Day Deferral: 07 August 1997 Recommendation: ADDITIONAL 180-DAY DEFERRAL d. THE RUNNYMEDE CORPORATION - following streets, containing 1.385 acres (LYNNHAVEN BOROUGH): (1) Pine Street: Beginning at the Southern boundary of Fourth Street and running 457.03 feet in a Southerly direction to the Northern boundary of South Boulevard. (2) Poplar Street: Beginning at the Southern boundary of Fourth Street and running 456.99 feet in a Southerly direction to the Northern boundary of South Boulevard Deferred for Compliance: 08 July 1997 Recommendation ADDITIONAL 180-DAY DEFERRAL e. DEFORD LIMITED, a Virginia Corporation - portion of Wishart Point Court beginning on the Eastern boundary of Battle Royal Circle and running 538.18 feet in an Easterly direction, thirty feet (30') in width and containing 14,711 square feet (BAYSIDE BOROUGH). Recommendationi APPROVAL 3. Application of JOHN B. and JUNE H. MYERS for a Variance to Section 4.4(b) of the Subdivision Ordinance which requires lots created by subdivision meet all requirements of the City Zoning Ordinance at 4012 Richardson Road re subdivision of 5.3 acre parcel into three (3) lots, two of which do not meet the lot-width requirement of the R-40 Residential District (BAYSIDE BOROtJ(', Hi. Recommendation APPROVAL 4. Application of ABUNDANT LIFE MINISTRIES for a Conditional Use Permit for a church and a school on the North side of Indian River Road, 150 feet more or less West of Military Highway (6530 and 6532 Indian River Road), containing 3.636 acres (KEMPSVILLE BOROUGH). Recommendation APPROVAL 5. Application of FAITH MISSION C.O.C.D. for a Conditional Use Permit for a church on the South side of Lake Edward Drive 134.76 feet more or less West of Newtown Road (575 Lake Edward Drive), containing 7,370 square feet (BAYSIDE BOROUGH). Recommendation APPROVAL 6. Application of MARTHA L. MARCEL for a Conditional Use Permit for vehicle and trailer rentals (U-Haul) on Parcels A4 and A5, Parcel 4, Cedar Hill Section A, containing 4.821 acres (KEMPSVILLE BOROUGH) Staff Recommendation: DENIAL Planning Commission Recommendation APPROVAL M. UNFINISHED BUSINESS N. NEW BUSINESS O. ADJOURNMENT If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERKIS OFFICE at 427-4303 Hearing impaired, call: TDD only 427-4305(TDD - Telephonic Device for the Deaf) 01/22/98cmd AGENDA\01/27/98.PLN www.virginia-beach.va.us M I N U T E S VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia Janua 27, 1998 Mayor Meyera E. Oberndorf called to order the CITY MANAGER'S BRIEFINGS in the Council Conference Room, City Hall Building, on January 27, 1998. at 1:30 P.M. Council Members Present. John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf. Nanc.i K Parker and Vice Mayor William D, Se.@,@oms, Jr Council Members Absent. Louisa M Strayhorn [ENTI,RFI) i.50P.M.] CITY MANAGER'S BRIEFING OCEAN GATEWAY PARK 1:30 P.M. ITEM # 43108 Cheyney Cole, Chair of the Resort Area Advisor Commissiony, distributed copies of the "Ocean Gateway" Concept and advised this is part of the overall Laskin Road Corridor project. This was devised in the early summer of 1997. Tim Barrow and Billy Almond, as a follow-up to the Charrete Group's work, have contributed an enormous amount of time and effort in this plan. RAAC endorsed the concept unanimously at their January 8, 1998, meeting. RAAC believes this Plan successfully addresses the similarly contradictory objectives of creating a distinctive public open space feature on the ocean, while at the same time optimizing the tax generation potential of this area. This development in tandem with the Harris-Teeter project can certainly be the catalystfor the revitalization of the entire Thirty-first Street Corridor. Tim Barrow, advised the package contains a color copy of the plan and a two page summary of the Ocean Gateway Concept. Billy Almond, Landscape Architect, and Mr. Barrow picked up the overall plan and developed a more detailed plan. Mr. Barrow advised they have examined the Development Authority's property in the immediately adjoining site. A suggestion has been advanced to consider the entire four-block area bounded by Pacific Avenue, the Oceanfront, 31st and 29th Streets. The genesis for this entire four- block area is to give a sense of identity with the same type of design elements, streetscape improvements, signage, landscaping being utilized throughout the entire four-block area. This area includes slightly over 14 acres - 9.2 acres of which are owned by the City, 4.8 acres of this area is owned by the private sector. The public, just by virtue of ownership, has a distinct role to play in the revitalization and capitalization of this potential. The principle elements of the Plan are "The Green: 31st Street (just a green space which would be a relief from the normal program of what goes on in the resort area). Entrance to the public green would be distinguished by a light and infrastructure at this point where you enter the park space. The same element would be repeated at the 30th Street. Both 30th as well as 31st Street are major approaches to the Oceanfront; therefore, at both of these entries to the public space, a visual focal point would be created at the entryway into the park space. At the point where the green meets the boardwalk, a Play Fountain has been suggested to be located right on the axis of the boardwalk. It would be similar to the Olympic fountain in Atlanta. It was also suggested to include water steps to fall off to the level of the beach down below. At night this would be a visual focal point and would also be set so that the fountain, infact, could be cut off during special occasions, i.e. the Neptune Festival or Arts Festival. The center of the Fountain could be utilized as a stage for casual seating on the green overlooking the public space. It would be another entertainment venue during those special occasions. It would not be a nightly entertaining venue more of a casual space. A landscape edge outlines the perimeter to the the Thirtieth Street entrance to the Thirty-first Street entrance. The other public components of the program include a small performance stage right at the end of the point where the walkway meets. Another major feature of the proposal would be this small stage would be for nightly entertainment and would work in conjunction with the Gateway Park Hotel. This proposal has been based around the PFP proposals that the City has been negotiating to attempt to devise a program to combine a well designed public function space with private investment that would generate tax revenue and help pay for the improvements, of the park itself. The hotel element is located toward the southern center of the block and this hotel is proposed to be raised on a terrace level. It would not be at the grade of the park. A green landscape edge would be all the, way around the public park space defining the public park space and providing privacy for the terrace levele, the cafe level, the pool level, etc. Therefore, there would be privacy. The cafe levels would overlook the small performing stage. The pool level would look out over the ocean. The club level would look out over the green and essentially become the "box seat " overlooking the public space. Another key component of the park development scheme is a location called "Ocean Terrace". In a public space, quality public restrooms are needed as well as some type of concession to provide refreshments. A two-level facility has been suggested, one at grade, which would be oriented toward Atlantic Avenue. A terrace level facility was also suggested to overlook the "green " and public space. The other component of this public element of the plan includes an Ocean Pier. This would be an extension ofthe boardwalk environment. It is it public walking space. It has been suggested that at the center of the pier, there would be a series of attractively designed kiosks which could be made available for public venue: Marine Science Museum, the Arts Center, Life Saving Museum, to provide samples of Virginia Beach.. The consultant did not believe this would be an extravagantly expensive proposition. The oceanfront end which is currently owned by the Vakos family, would also be included in the overall sense of this public space. The consultant is very interested in adding additional rooms to their hotel and conference facilities. The Vakos family also owns a significant portion of the old Plantation Hotel, as well as a garage location, which provides a unique opportunity to integrate the refurbishment of the oceanfront end and these adjoining properties into something that would expand the public space by extending along the Atlantic Avenue frontage an extension of the landscape edge and landscape treatment in the park itself. 1 3 CITY MANAGER'S BRIEFING OCEAN GATEWAY PARK ITEM # 43108 (Continued) It was suggested, as part of the redevelopment, all or a substantial part of the parking of this oceanfront end would be relocated from that location into a new Multi-level Garage structure that would occupy the entire block between 30th and 29th Street and Pacific and Atlantic. That garage would have retail frontage on the 30th Street side as well as along Atlantic Avenue and would include parking for the Oceanfront Inn, Gateway Park Hotel, public beach parking and parking for the public park space. In addition, it would provide parking for a Retail Entertainment Center that would occupy the entire block between 31st and 30th at Pacific and Atlantic. This complex would be linked at the second floor level, which would be the public parking level. It was suggested that the primary entrance and exit to the garage actually be located off 29th Street, so there would not be congestion at the 30th Street entrance. It was also suggested there might be valet parking included on both 30th and 31st Street, so that visitors coming to the park could actually park their car at the curb and have it parked for them, coming back to the garage at a later time. Januaty 27, 1998 - 4 CITY MANAGER'S BRIEFINGS COMMUNICATION TOWERS 1:55 P.M. ITEM # 43109 David G. Sullivan, Director Information Technology, advised relative Wireless Telecommunications Providers: 77 existing wireless sites on 38 towers 38 on private property 3 on VDOT right-of-way 2 on City property All existing towers can accommodate multiple users. The City has two sites: Great Neck and Pleasure House Road where one tower supports four different companies Four licensed operators GTE - Mobilnet 360 communications Primeco AT & T Wireless FUTURE Two more licensed operators are beginning to build their networks and will enter this market: Nextel Sprint PCS All six operators will need additional sites New operators need their initial sites Existing operators need more sites to accommodate growth and new technologies. Given these conditions, we can easily expect the number of wireless sites to double in Virginia Beach within the next three to five years. Virginia Beach needs a first class telecommunications infrastructure to support economic development and meet its customers needs. The issues regarding why so many towers are needed are geographic coverage and each tower can only accommodate a certain number of phone calls. Make More City Sites Available 13 Water Tanks 10 high schools with stadium lighting 5 or more sites with existing towers or suitable for a new tower. Januar .y 2 7. 1998 5 CITY MANAGER'S BRIEFINGS COMMUNICATION TOWERS ITEM # 43109 (Continued) Why Use City Sites Takes advantage of existing tall structures and sites suitable from a land use and neighborhood comparability standpoint. To provide alternative to wireless providers that are less controversial than undeveloped private sites. Revenue generated to the City. Creates opportunity for City to collate public safety and government wireless sites on towers constructed and maintained by wireless providers. Revenue Potential Current lease negotiations suggest that a single tower on City property with two wireless providers would generate approximately $200,000 in lease revenue over the first five years. We have been approached by their wireless industry on twelve sites to date. If all twelve sites could be leased, the five year revenue estimate would be $2.4-MILLION. Mr. Sullivan advised the Process: Staff would develop a standardized lease working with the wireless providers. Staff would work with the providers to determine the best sites to lease Ordinance would be drafted requesting bids on the particular site or sites using the standardized lease. Council would approve the ordinance requesting bids Bids advertised for four successive weeks Council opens bids in public session and closes bidding. Staff will evaluate the bids and recommend to City Council for award Council adopts ordinance awarding lease Successful lease holder applies for conditional use permit January 27, 1998 6 CITY MANAGER'S BRIEFINGS COMMUNICATION TOWERS ITEM # 43109 (Continued) William Gambrell, City Planner - Department of Planning, advised, in his communication with individuals around the State, the towers disguised as trees are not well disguised. Each of the towers coming before City Council have many times come before Mr. Gambrell as higher towers. The staff attempts to squeeze the height down. It depends upon the location of the other towers and how they are talking to one another as to where the height can change up or down. Tower heights are not necessarily going to increase except in the rural areas where there may be expanded coverage, as there are a limited number of phone calls that are occurring. Towers are more likely going to reduce in size because of numbers of towers in existence. Council Lady McClanan referenced articles in the January 11, 1998, New York Times relative cellular towers, depicting one mounted on a church tower and another installed in a cactus. The article on Sunday, January 4, 1998, in the Daily Press, advised the companies are offering amenities to address the neighborhood concerns. The tower in Great Neck with the triangular top is one of the largest of any in the City. This tower prompted the modification to the City Zoning Ordinance. Councilman Harrison advised there are approximately 35 antennas on a clear day viewed from his tenth floor offic in Norfolk. William Macali, Assistant City Attorney, advised localities have not faired well under the telecommunications act. However, if there are alternative sites, which City Attorney Macali believes will be available on commercially reasonable terms, this would definitely be a factor in supporting a City Council denial of a tower. Mr. Gambrell advised the HQ tower by the interstate was a smaller tower, and the City requested this be taken down and a second tower constructed on the same site which would accommodate multiple users. The first tower did not have this technology. Mr. Gambrell advised a tower has been recommended by the School Board to be erected on a ballfield at Bayside High School. This will be coming to City Council for consideration. This proposed tower has a very unique design on the antenna. Mayor Oberndorf suggested utilizing the Planning Commission's van for City Council to look at the various towers within the City. City Council concurred it is acceptable to pursue the concept of leasing public sites. January 2 7, 1998 7 CITY MANAGER'S BRIEFINGS HAMPTON ROADS SOCCER STATUS REPORT 2:35 P.M. ITEM # 43110 J. Barry Frankenfield, Planner - Parks and Recreation, referenced the report of November 1997 regarding Hampton Roads Soccer Council, as it relates to the Soccer Complex in the Princess Anne Borough and the Conditional Use Permit requirement of August 8, 1995. Condition 3 stated. 3. A twenty-foot (20') wide landscaped buffer consisting of a double row (staggered) of wax myrtle or an equivalent species of evergreen shrub shall be incorporated into the site design on the Western side of the proposed parking area. The spacing for the required landscaped materials shall be a maximum of eight feet (8), on center, with the intent of providing a continuous buffer for the adjacent residential homes. A plan incorporating this condition must be submitted and approved by the Planning Department prior to final site plan approval. Landscaping material shall be placed on the parking lot side of the ditch. This has not been installed primarily due to funding. There has been concern by the Salem Lakes Civic League. Basically the bottom line is if a berm is installed, parking must be removed. The City staff met with the neighborhood on January 15, 1998, and discussed alternatives. One of the alternatives was to provide a planting buffer and/or a fence resembling that next to the Elementary School, which at present time consists with considerable hedge, some natural trees and a fence. At that time, the Civic League did not support the fence or the planting buffer. City Council Members present at the meeting requested the staff develop detailed plans and costs for different alternatives. Last night, January 26, 1998, the City staff met with the Civic League and talked in greater detail relative the berm of approximately 3 ½-feet. The proper planting that will be appropriate would be native plantings, indigent plantings, flowering trees, canopy shade trees, wax myrtle, bayberry on top of the berm and evergreen trees. This does screen the neighborhood. The Civic League believed this to be an appropriate solution as this berm resolves their key issues of sound and appearance. The paving of the parking lots was also discussed as another issue. The members agreed they would prefer to have the lots paved and this was primarily due to the dust. There are three neighbors with pools along this property line who have found their pools full of dust during this time. Mr. Frankenfield cited three choices: Fence and Planting Alternative $ 40,000 Berm, no significant new Planting, and new gravel parking $195,000 Berm, pave existing parking lot, pave newparking lot, new Planting $395,000 The Parks and Recreation Capital Improvement Program is a funding alternative. The Princess Anne Park Project currently has funding of $411,000, however, there are certain items that are planned or projected for that. The $40,000 relatively has minor impact. This could certainly be absorbed. The $195,000 would delay Mount Trashmore Park Renovation and the removal of the Soap Box Derby. In the proposed CIP, Parks and Recreation proposes to transfer funds from the existing Princess Anne Park Project to the Mount Trashmore Project. A $395,000 alternative from the Parks and Recreation CIP would delay Mount Trashmore and certain tennis court renovations. There are 69 tennis courts planned to be renovated within the next six years. Approximately eight of those would be delayed over a period of time. The Soccer Council requests the City provide a grant to the Hampton Roads Soccer Council (or the City perform the work) of the amount necessary to provide the following infrastructure for the Soccer Complex.: Install water and sewer lines up to the Soccer complex lease line (estimated cost $50,000) January 27, 1998 - 8 - CITY MANAGER'S BRIEFINGS HAMPTON ROADS SOCCER STATUS REPORT ITEM# 43110 (Continued) Install a fence and additional landscaping to screen the Soccer Complex parking lot from the neighboring residences (estimated cost ($40,000); Construct walkways out of the Soccer Complex parking lot (estimated cost $5,000); Pave parking lot (if required) (estimated cost $75,000) Construct additional parking lot (gravel) (estimated cost $125,000); and Landscape all parking lots (estimated cost $15,000). C. Grigsby Scifres, President - Soccer Council, referenced his correspondence, which is hereby made a part of the record. The Soccer Council requests the City make an interest free loan to HRSC in the amount of $450,000. Repayment will be made at the rate of S8,350 per month ($100,000/year) beginning June 1, 2000. HRSC needs to delay commencing repayment until after it has repaid its existing loan (originally $300,000) to First Coastal Bank. This loan will he used to accomplish the following: Construct and equip a 3900+ square feet building containing public restrooms, concessions, first aid clinic, meeting an office space, and maintenance storage and garage (estimated cost $300,000); Construct four picnic pavilions (estimated cost $30,000); Install signage on and off-site (estimated cost $5,000); Install security fencing (estimated cost $12,500); Install drainage pipe at cross-walks (estimated cost $7,500); Install landscaping on-site (estimated cost $25,000); Install additional well and pump for irrigation system (estimated cost $8,500); Purchase "gator" vehicle to be used by HRSC grounds keeper (estimated cost $9,000); and Purchase portable bleachers and team benches (estimated cost $20,000) Mr. Frankenfield advised manual service contracts would be utilized through the Public Works Department, which is a unit cost contract and can be implemented fairly quickly. The City would stockpile the dirt, from the school site construction project, which already has a commitment from that contractor. The staff would plan to have the berm installed by mid April to stabilize the seed and have the plants grow. The trees would be planted by mid april at the latest. The development of the new parking and paving can also be performed through an annual service contract. BY CONSENSUS, City Council agreed to follow the plan encompassing the berm with planting, paving the existing lot closest to the neighborhood and build the new parking lot with gravel, to be completed by April at a cost of approximately $335,000. Parks and Recreation and the Citt Attorney's office will review the lease for possible amendment. Nadia Thom, representative Salem Lakes Civic, League, advised the League was concerned mainly with the berm and the planting. It was not this initial request for the City to pay for the parking lot paving. January 2 7, 1998 9 AGENDA REVIEW SESSION 3:20 P.M. ITEM # 43111 The City Attorney advised the individual requesting the Excess property at First Court Road never completed the application; therefore, it would not be considered for ADOPTION: Ordinance to declare EXCESS PROPERTY 1.5873 acres - Property located adjacent to First Court Road between Baylake Road and Shore Drive This Public Hearing was advertised and therefore must be conducted ITEM # 43112 BY CONSENSUS, the following items shall compose the CONSENT AGENDA: ORDINANCES/RESOLUTIONS J.1. Ordinances to declare EXCESS PROPERTY a. 3432 Virginia Beach Boulevard For disposition of 5.928 Acres (LYNNHAVEN BOROUCTH) to the Virginia Beach Development Authority re SALE, LEASE and FINANCING of the Department of Social Services building. b. Level Green Boulevard adjacent to Colonial Court Apartments (formerly College Square Apartments), 0.05 Acres (KEMPSVILLE BOROUGH), to be EXCHANGED for an immediately adjacent site re construction of a Pump Station, Reon Drive Sanitary Sewer Improvements Project (CIP 6-949) c. South Independence Boulevard, (Constitution Drive Flyover) adjacent to the Larkspur Subdivision, re SALE of 7.7 Acres (KEMPSVILLE BOROUGH), and authorize the City Manager dispose of same J2. Ordinance to APPROPRIATE $140,000 from the General Fund to provide an interest-free loan to the Davis Corner Volunteer Rescue Squad re purchase of a replacement squad truck. J3. Ordinance to authorize acquisition of property (Parcel A - 35,667 square feet and Parcel B 1,434 square feet) in fee simple from Hubert L. and Mona H. Dail re a site for Little Neck Neighborhood Park (CIP 4-950.05), either by agreement or condemnation (L Y/VArH,4 V@,N BOROtJGllj K.1. Resolution re support for legislation to designate real and personal property owned by Samaritan House, Inc. TAX EXEMPT from State and Local Real and Personal Property K.2. Resolution of endorsement to the Commonwealth Transportation Board re The Ferry Plantadon House Restoration, Phase I, as a proposed project for the Federal Transportation Enhancement Program (80%-20% match), authorized by the Intermodal Surface Transportation Efficiency Act (ISTEA) January 27, 1998 10 AGENDA REVIEW SESSION ITEM # 43113 Councilman Jones referenced this item and advised this application must be deferred for two weeks, or sent back to the Planning Commission after discussion with the applicants attorney: L.2. Ordinance re discontinuance, closure and abandonment in the Petition of: a. BAYVILLE FARMS ASSOCIATES, L.C. of a portion of First Court Road, beginning at the Southern boundary of Shore Drive and running 1165.07 feet in a Southwesterly direction, containing 1.42 acres (BA YSIDE BOROUGH) ITEM # 43114 Councilman Harrison questioned the reason this application continued to appear under the name of Boggs, when the title of the property has transferred to Harris Teeter. L.2. Ordinance re discontinuance, closure and abandonment in the Petition of: b. R. LEWIS BOGGS (VIRGINIA BEA CH BORO(I(;H,, Parcel 1. Alleyway located between 29th and 30th Streets beginning at the Western Boundary of Arctic Avenue and running in a Westerly direction to the Eastern boundandary of Holly Road Parcel 2: Alleyway located 140.15 feet North of 27th Street beginning at the Eastern boundary of Holly Road and running 49.93 feet in an Easterly direction (Parcels 1 and 2 contain 6,086.45 square feet) The City Attorney advised the original application was under the name of Boggs. Councilman Harrison requested the current applicant (Harris-Teeter) be advised and all Conflict of Interest filed with this application. ITEM # 43115 Council Lady Strayhorn advised this application will be discussed during the Formal Session. L.6. Application of MARTHA L. MARCEL for a Conditional Use Permit for vehicle and trailer rentals (U-Haul) on Parcels A4 and A5, Parcel 4, Cedar Hill Section A, containing 4.821 acres (KEMPSVIILE BOROUGH), ITEM # 43116 BY CONSENSUS, the following items shall compose the PLANNING BY CONSENT AGENDA. L.2. Ordinances re discontinuance, closure and abandonment in the Petitions of: a. BAYVILLE FARMS ASSOCIATES, L. C. of a portion of First Court Road, beginning at the Southern boundary of Shore Drive and running 1165.07 feet in a Southwesterly direction, containing 1.42 acres (BA YSIDE BOROU(;H) Janua 21',1998 11 AGENDA REVIEW SESSION ITEM # 43116 (Continued) b. R. LEWIS BOGGS (VIRGINIA BEACH BOROUH). (1) Parcel 1. Alleyway located between 29th and 30th Streets beginning at the Western Boundary of Arctic Avenue and running in a Westerly direction to the eastern boundary of Holly Road (2) Parcel 2. Alleyway located 140.15 jeet North of 27th Street beginning at the Eastern boundary of Holly Road and running 49.93 feet in an Easterly direction (Parcels 1 and 2 contain 6,086.45 square feet). C. POTTERS ROAD INVESTMENT GROUP - Potters Road beginning at the Southeast intersection of Potters Road and Wesley Drive, running in an Easterly direction 270 feet, more or less,, containing 6,577.56 square feet (L YNNHA VE V 130ROUCjH). d THE RUNNYMEDE CORPORATION - following streets, containing 1.385 acres (LYAINIIAVENBOROII(;H) (1) Pine Street: Beginning at the Southern boundary of Fourth Street and running 457.03 street in a Southerly direction to the Northern boundary of South Boulevard (2) Poplar Street. Beginning at the Southern boundary of Fourth Street and running 456.99 feet in a Southerly direction to the Northern boundary of South Boulevard e. DEFORD LIMITED, a Virginia Corporation portion of Wishart Point Court beginning on the Eastern boundary of Battle Royal Circle and running 538.18 feet in an Easterly direction, thirty feet (30') in width unit containing 14,711 square feet (BAYSIDE BOROUGH) L.3. Application of JOHN B. and JUNE H. MYERS for a Variance to Section 4.4(b) of the Subdivision Ordinance which requires lots created by subdivision meet all requirements of the City Zoning Ordinance at 4012 Richardson Road re subdivision of 5.3 acre parcel into three (3) lots, two of which do not meet the lot-width requirement of the R-40 Residential District (BARSIDE BOROUGH) L.4. Application of ABUNDANT LIFE MINISTRIES for a Conditional Use Permit for a church and a school on the North side of Indian River Road, 150 feet more or less West of Military Highway (6530 and 6532 Indian River Road), containing 3,636 acres (KEMP,5VILLE BOROU(T'l-I)@ L.5. Application of FAITH MISSION C.O.C.D. for a Conditional Use Permit for a church on the South side of Lake Edward Drive 134.76 feet more or less West of Newtown Road (575 Lake Edward Drive), containing 7,370 square feet (BA YSIDE BOROUGH), Item L.2a.. will be DEFERRED, BY CONSENT, until the City Council Session of February 10, 1998. Item L.2b. and L.2.c. and L.2.d. will be APPROVED, BY CONSENT, for an additional 180-DAY DEFERRAL, until the City Council Session of July 14,1998. Item L.2.e. will be APPROVED, BY CONSENT, subject to compliance of conditions by July 14, 1998. Janua 27. 1998 1 13 ITEM # 43123 Mayor Meyera E. Oberndorf called to order the INFORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the City Council Conference Room, City Hall Building, on Tuesday, January 27, 1998, at 3:35 P.M. Council Members Present.- John A. Baum, Linwood 0. Branch, III, William W. Harrison, Jr., Harold Heischoher, Barbara M. Henley, Louiv R. Jones, Reba S. McCianan Mayor Meyera E. Oberndorf, Nancy K. Parker, Vice Mayor William D. Sessoms, Jr and Louiva A4 Str(i.vhorn Council Members Absent. None January 27, 1998 14 ITEM # 43124 Mayor Oberndorf entertained a motion to permit City Council to conduct its EXECUTIVE SESSION, pursuant to Section 2.1-344, Code of Virginia, as amended, for the following purpose: PERSONNEL MATTERS- Discussion or consideration of or interviews ofprospective candidates for employment, assignment, appointment, promotion, performance, demotion, salaries, disciplining, or resignation of specific public officers, appointees, or employees pursuant to Section 2.1-344 (A)(1) To Wit: Appointments: Boards and Commissions Human Rights Commission Personnel Board Shore Drive Advisory Commission Youth Services Coordinating Council PUBLICLY-HELD PROPERTY: Discussion or consideration of the condition, acquisition, or use of real property for public purpose, or of the disposition of publicly-held property, or of plans for the future of an institution which could affect the value of property owned or desirable for ownership by such institution pursuant to Section 2.1-344(A)(3) To-Wit. Kempsville Borough Virginia Beach Borough LEGAL MATTERS: Consultation with legal counsel or briefings by staff members, consultants, or attorneys pertaining to actual or probable litigation, or other specific legal matters requesting the provision of legal advice by counsel pursuant to Section 2.1- 344(A)(7). To-Wit: City of Virginia Beach v. Virginia Marine Resources Commission Contract Negotiation/Selection - Lobbyist Cellar Door - Beach Events Contract Upon motion by Vice Mayor Sessoms, seconded by Council Lady Parke, City Council voted to proceed into EXECUTIVE SESSION. Voting. 11-0 Council Members Voting Aye John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K Parker, Vice Mayor William D. Sessoms, Jr. and Louisa A4 Stravhorn Council Members Voting No None Council Members Absent. None January 2 7, 1 998 15 - FORMAL SESSION VIRGINIA BEACH CITY COUNCIL January 27, 1998 6:15 P.M. Mayor Meyera E. Oberndorf , called to order the FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the Council Chamber, City Hall Building, on Tuesday, January 27, 1998, at 6.15 P.M. Council Members Present. John A. Baum, Linwood 0. Branch, III, William W. Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. 5essoms, Jr. and Louisa Al Strayhorn Council Members Absent.- None INVOCA TION Ruth Hodges Smith, CMCI'AAE City Clerk PLEDGE OF ALLEGIANCE TO THE FLA G OF OFAMERICA Vice Mayor Sessonu, being a Corporate Officer of Central Fidelity Bank disclosed there were no matters on the agenda in which he has a '@ersonal interest", as defined in the Act, either individually or in his capacity as an officer of Central Fidelity Bank. 7he Vice Mayor regularly makes this Disclosure as he may or may not know of the Bank's interest in any application that mav come before City Council. Vice Mayor @5essom,v'letter OfJanuary 1, 1998, is hereby made a part of tht, r(,(orti January 2 7. 1998 16 - Item V-E. CERTIFICA TION OF EY*ECUTIVE SESSION ITEM # 43125 Upon motion by Vice Mayor Sessoms, seconded by Council Lady Strayhorn, City Council CERTIFIED THE EXECUTIVE SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS. Only public business matters lawfully exempted from Open Meeting requirements by Virginia law were divctased in Executive Session to which this certification resolution applies A ND, Only such public business matters as were identified in the motion convening the Executive Session were heard, discussed or considered by Virginia Beach City Council Voting: 11-0 Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D Sessoms, Jr. and Louisa A4 5tra horn Council Members Voting Nqv, None Council Members Absent.- None January 2 7, 1998 Resolution CERTIFICATION OF EXECUTIVE SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into EXECUTIVE SESSION, pursuant to the affirmative vote recorded in ITEM # 43124, Page 14, and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.1-344. of the Code of Virginia requires a certification by the governing body that such Executive Session was conducted in conformity with Virginia law. NOW, THEREFORE, BE IT RESOLVED: That the Virginia Beach City Cotmcil 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 Executive Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Executive Session were heard, discussed or considered by Virginia Beach City Council. R th Hodges mith, CMC@AAF, City Clerk January 27, 1998 1 7 Item V-F.1. MINUTES ITEM # 43126 Upon motion by Vice Mayor Sessoms, seconded by Council Lady Strayhorn, City Council APPROVED the Minutes of the INFORMAL AND FORMAL SESSIONS of January 27,1998. Voting. 11-0 Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa A4 Stra horn Council Members Voting No None Council Members Absent. None January 2 7, 1998 18 Item IV-G. ADOPT AGENDA FOR FORMAL SESSION ITEM # 43127 BY CONSENSUS, City Council ADOPTED: AGENDA FOR THE FORMAL SESSION January 27, 1998 19 Item IV-J 1.a/b/c/d. PUBLIC HEARING ITEM # 43128 Mayor Oberndorf DECLARED A PUBLIC HEARING: EXCESS CITY REAL ESTATE PROPERTIES: Virginia Beach Boulevard 5.928 Acres (LYNNHAVEN BOROUGH) Level Green Boulevard 0.05 Acres (KEMPSVILLEBOROUGH) South Independence Boulevard 7.7 Acres IKEMPSVILLEBOROUGH) First Court Road 1.5873 Acres (BAYSIDEBOROUGH) There being no speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING. Janua 27, 1998 20 - Item V-I.2.. PUBLIC HEARING ITEM # 43129 Mayor Oberndorf DECLARED A PUBLIC HEARING: TAX EXEMPTION: REAL AND PERSONAL PROPERTY Samaritan House, Inc. There being no speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING. January 27, 1998 21 - Item V-J/K. ORDINANCES/RESOLUTIONS ITEM # 43130 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council APPROVED IN ONE MOTION Ordinances 1 a,b,c and 2, and Resolutions 1 and 2 of the CONSENT AGENDA. Voting: 11-0 Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Nancy K. Parker, Vice Mayor William D, Sessoms, Jr. and Louiva W. Stru i,horn Council Members Voting Nay None Council Members Absent. None Janua 27, 1998 22 - Item V-J.1.a. ORDINANCES/RESOLUTIONS ITEM # 43131 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinance to declare EXCESS PROPERTY 3432 Virginia Beach Boulevard For disposition of 5.928 Acres ILYNNHAVEN BOROUGH) to the Virginia Beach Development Authority re SALE, LEASE and FINANCING of the Department of Social Services building. Voting: II -0 (By Consent) Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr and Louisa A4 Siral,horn Council Members Voting Nov. None Council Members Absent: None January 27. 1998 1 AN ORDINANCE AUTHORIZING THE 2 SALE OF 5.928 ACRE PARCEL OF 3 LAND AND IMPROVEMENTS TO CITY 4 OF VIRGINIA BEACH DEVELOPMENT 5 AUTHORITY, THE LEASE OF SAME 6 FROM THE DEVELOPMENT AUTHORITY 7 AND THE EXECUTION AND DELIVERY 8 OF OTHER DOCUMENTS RELATING TO 9 THE SALE, LEASE AND FINANCING 10 OF THE SOCIAL SERVICES BUILDING 11 WHEREAS, the City of Virginia Beach (the City) has undertaken 12 the construction of a new approximately 75,000 square foot social 13 services building (the Project) on the site of the existing social 14 services building the City having determined that such existing 15 facility is no longer adequate in terms of size and physical 16 condition; and 17 WHEREAS, by resolutions adopted on August 20, 1996, December 18 16, 1997, and January 20, 1998, the City of Virginia Beach 19 Development Authority (the Authority) agreed to undertake the 20 acquisition and permanent financing of the Project and, in 21 accordance with such plan of finance, to lease the Project to the 22 City pursuant to the provisions of a deed of lease (the Lease) 23 between the Authority, as lessor, and the City as lessee; and 24 WHEREAS, the Project is expected to be completed and ready for 25 occupancy on or about March 1, 1998; and 26 WHEREAS, representatives of the City and the Authority have 27 advised that the permanent financing of the Project should now be 28 undertaken by the issuance of the Authority's lease revenue bonds 29 (the Bonds), such Bonds to be issued pursuant to an Indenture of 30 Trust (the Indenture) to be dated as of February 1, 1998, between 31 the Authority and First Union National Bank, as Trustee, and such 32 Bonds to be payable from certain receipts derived by the Authority 33 under the Lease, such receipts and the Lease being assigned to the 34 Trustee pursuant to the Indenture and an Assignment of Leases and 35 Rents (the Assignment) to be dated as of February 1, 1998, between 36 the Authority and the Trustee; and 37 WHEREAS, in order to implement the above plan of finance, it 38 is necessary that the Project and the :and on which the Project is 3 9 located (the Land) be sold by the City to the Authority at a 40 purchase price satisfactory to the City and the Authority and 41 subsequently leased by the City from the Authority pursuant to the 42 Lease, all in accordance with a Coordination Agreement 43 substantially in the form attached hereto (the Coordination 44 Agreement), and 45 WHEREAS, a public hearing has been held in accordance with law 46 on the date of this ordinance with respect to the conveyance of the 47 Land and the Project (collectively hereinafter referred to as the 48 Facility) to the Authority; and 49 WHEREAS, the Council finds that the Social Services Department 50 is an essential component of the City's governmental function, and 51 the sale of the Facility by the City to the Authority and its S2 subsequent lease by the City from the Authority will enhance such 53 governmental function. 54 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 55 OF VIRGINIA BEACH 56 1. The sale of the Facility to the Authority for a 57 purchase price of not more than the original principal amount of 58 the Bonds is hereby approved and the City Manager, or his designee, 59 and the City Clerk are hereby authorized and directed to execute 60 the Coordination Agreement and an appropriate special warranty deed 61 (the Deed) with respect to the Facility and subject to the review 62 and approval of the Deed by the City Attorney and receipt of the 63 purchase price for the Facility, to deliver the Deed to the 64 Authority. 65 2 . The City Manager, or his designee, and the City 66 Clerk are hereby authorized and directed to execute the Lease and, 67 upon approval of the form and substance of the Lease by the City 68 Attorney, to deliver the Lease to the Authority. The Lease shall 69 be in substantially the form attached hereto with such changes 70 therein as may be approved by the City Attorney the execution and 71 delivery of the Lease by the City Manager or his designee, being 72 conclusive evidence of the City Attorney's approval of the form and 73 substance of the Lease. 74 3 . The issuance of the Bonds to finance the purchase of 75 the Facility, to fund any required debt service reserve fund and 76 repair and replacement fund, and to pay the cost of issuance and 77 other related costs related to the execution and delivery of the 78 Bonds, subject to the limitations set forth below, are hereby 79 approved. The Bonds shall be sold at public sale and the City 80 Manager is hereby authorized to approve- the terms of the Bonds and 81 to agree to the award of the Bonds to the winning bidder so long as 82 the aggregate principal amount of trie Bonds does not exceed 83 $11,000,000, the net interest cost of the Bonds, taking into 84 account any applicable original issue discount or premium, does not 85 exceed six percent (6%) per annum, the final maturity of the Bonds 86 does not exceed twenty-five (25) years and the terms and conditions 87 of the Indenture, the Assignment and any agreements or commitments 88 with any municipal bond insurer providing a policy of insurance 89 with respect to payment of the Bonds are in form and substance 90 satisfactory to the City Manager or his designee. 91 4. The City Manager, upon advice of the City Attorney, 92 is hereby authorized and directed to approve the Preliminary 93 Official Statement and final Official Statement with respect to the 94 Bonds. The City Manager is hereby further authorized, upon advice 9 5 of the City Attorney, to execute and deliver a final official 96 Statement and continuing disclosure agreement or similar agreement 97 with respect to the Bonds as required by Rule 15c2-12 of the 98 Securities and Exchange Commission. 99 5. All costs and expenses incurred by the City in 100 connection with the financing of the Facility and the issuance of 101 the Bonds shall be paid from the proceeds of the Bonds or from 102 funds of the City pursuant to the Coordination Agreement. If for 103 any reason the Bonds are not issued, it is understood that all such I 0 4 expenses shall be paid by the City and that the Authority shall 105 have no responsibility therefor. 106 6. All other acts of the officers of the City which are 107 in conformity with the purposes and intent of this ordinance and in 1 0 8 furtherance of the sale of the Facility to the Authority, the 109 execution and delivery of the Coordination Agreement, the Deed and 110 the Lease, and the issuance and sale of the Bonds, subject to the ill limitations set forth herein, are hereby approved and confirmed. 112 7. The Bonds, the premium, if any, and the interest 113 thereon and the City's payment obligations under the Lease shall 114 not be deemed to constitute a debt or a pledge of the faith and 115 credit of the Commonwealth of Virginia or the City. Neither the 116 Commonwealth of Virginia nor the City shall be obligated to pay the 117 principal of, premium, if any or interest on the Bonds or other 118 costs incident thereto except from the revenues and receipts 119 pledged therefor by the Authority under the Indenture, and neither 120 the faith and credit nor the taxing power of the Commonwealth of 121 Virginia or the City is pledged to the payment of the principal of, 122 premium, if any, or interest on the Bonds or other costs incident 123 thereto. The City's payment obligations under the Lease shall not 124 constitute a debt of the City within the meaning of the L25 Constitution and statutes of the Commonwealth of Virginia, L26 including the City Charter, and all such Lease payment obligations 127 shall be payable only to the extent that funds therefor shall have 128 been appropriated and budgeted in any fiscal year of the City, such 129 appropriation and budgeting being within, the sole and absolute 130 discretion of the City Council. 131 8. This ordinance shall take effect immediately upon 132 its adoption. 133 Adopted by the Council of the City of Virginia 134 Beach, Virginia on the 27 day of January, 1998. 135 Note: Pursuant to V.C-A. §15-2-2100, a recorded affirmative vote 136 of three-fourths of all the members elected to Council is required. 137 CA-6892 138 NONCODE\CA-6892.ORl 139 R-1 140 PREPARED: January 13, 1998 APPROVED AS TO CONTENTS SIGNATURE Department of Finance DEPARTMENT APPROVED AS TO LEGAL SUFFICIENCY AND FORM CITY ATTORNEY COORDINATION AGREEMENT SOCIAL SERVICES BUILDING THIS COORDINATION AGREEMENT (the Coordination Agreement") is entered into as of the __ day of , 199 , by and between the CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia (the "City"), and the CITY OF VIRGINIA BEACH DEVELOPMENT' AUTHORITY, a political subdivision of the Commonwealth of Virginia (the "VBDA") R E C I T A L S: WHEREAS, subject to the execution and delivery of this Agreement by the City, the VBDA is willing to enter into certain contractual arrangements with the City for the purchase by the VBDA of certain property described in Exhibit A attached hereto from the City on which an office building containing approximately 75,000 square feet of gross floor area (the "Property") is being constructed, to be financed by the issuance and sale of lease revenue bonds (the "Bonds") issued by the VBDA and for the lease of the property to the City in accordance with the provisions of the Lease substantially in the form attached hereto as Exhibit B (the "Lease"). WHEREAS, as an inducement to the VBDA to enter into this Agreement and the Lease, the City is willing to sell the property to the VBDA and, subject to appropriation by City Council, to lease the Property from the VBDA pursuant to the Lease; and WHEREAS, the parties desire to enter into this Agreement for the purpose of coordinating their respective rights and obligations with respect to the sale and lease of the Property. AGREEMENTS NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows: ARTICLE I. DEFINITIONS Unless the context otherwise requires, the capitalized terms used herein shall have the following specified meanings: (a) "Closing Date" shall mean the date of issuance of the Bonds which is expected to occur on February 17, 1998. (b) "Resolution" shall mean the resolutions adopted December 16, 1997, and January 20, 1998, by the VBDA, copies of which are attached hereto as Exhibits C-1 and C-2 respectively. ARTICLE II. CITY'S UNDERTAKINGS 2.1 Sale of Property. On or before the Closing Date, the City shall sell the Property to the VBDA for the purchase price of $ , and shall transfer the Property to the VBDA by Special Warranty Deed. 2.2 Lease. The City agrees to lease the Property from the VBDA on terms substantially in accordance with the Lease, and further agrees that the VBDA's interest in the Lease may be pledged as security for the Bonds. 2.3 Funding for City's Obligations as Tenant. Subject to appropriation by City Council, the City agrees to make the payments due under the Lease in a timely fashion to enable the VBDA to perform its obligations under the Bonds. 2.4 Execution of Bond Documents. The City agrees to cooperate with the VBDA in executing all documents related to the issuance of the Bonds if required by the VBDA's bond counsel. 2.5 Expenses Related to Financing. All costs and expenses incurred by the City in connection with the financing of the Property and the issuance of the Bonds shall be paid from the proceeds of the Bonds or from other funds appropriated therefor by City Council. If for any reason the Bonds are not issued, all such expenses shall be paid by the City from funds appropriated therefore. ARTICLE III. VBDA'S UNDERTAKINGS 3.1 Bonds. The VBDA shall issue the Bonds which shall be sold in accordance with the provisions of the Resolution. 3.2 Purchase of Property. From the proceeds of the issuance and sale of the Bonds, the VBDA shall purchase from the City the Property for the purchase price of $__ 3.3 Lease. The VBDA agrees to lease the Property to the City on terms substantially in accordance with the Lease. 3.4 No Liens etc. Except as expressly permitted by this Agreement or the Lease, or as required in connection with the issuance of the Bonds, the VBDA shall not grant or suffer to exist any lien on or security interest in or otherwise encumber the VBDA's right, title and interest in and to the Property, the Lease or any payments due under the Lease without, in each instance, the City's prior written consent, which may be withheld in its sole discretion. ARTICLE IV PURCHASE AND FIRST OFFER RIGHTS 4.1 Purchase Option. In the event reimbursement funding by the Commonwealth of Virginia or the Federal Government ceases to be adequate for the City to meet its obligations under the Lease, the City shall have the right to purchase the Properyt for an amount equal to fair market value as determined by appraisal satisfactory to the City and the VBDA. 4.2 First Offer. In the event the VBDA elects to sell or lease the Property, the VBDA shall first offer to sell the Property to the City for an amount equal to fair market value as determined by appraisal satisfactory to the City and the VBDA. Following such offer, the City shall have ninety (90) days to purchase the Property, or if the City elects not to do so, the VBDA shall be free to then sell the Property to any third party subject, however, to the Lease. ARTICLE V MISCELLANEOUS PROVISIONS 5.1 Notices. (a) Unless otherwise provided in this Agreement, all notices, demands or requests from one party to another may be personally delivered or sent by mail, certified or registered, return receipt requested, postage prepaid to the addresses below, and shall be deemed to have been given at the time of personal delivery or at the time of receipt. (b) All notices, demands or requests from the City to the VBDA shall be given to the VBDA at: One Columbus Center, Suite 300 Virginia Beach, Virginia 23462 Attention: Chairman With a Copy to Director of Economic Development One Columbus Center, Suite 300 Virginia Beach, Virginia 23462 (c) All notices, demands or requests from the VBDA to the City shall be given to the City at: Municipal Center Virginia Beach, Virginia 23456 Attention: City Manager (d) Either party may change its address for notices from time to time by giving notice of its new address to the other party pursuant to this Section 5.1. 5.2 Assignment. Neither the City nor the VBDA shall have the right to assign or transfer its respective rights, liabilities and obligations under this Agreement to any person without the prior written consent of the other party. Subject to the foregoing, this Agreement shall be binding upon, more to the benefit of and be enforceable by the City and the VBDA and their respective successors and permitted assigns. 5.3 No Third Part Beneficiaries. No person shall be a third party beneficiary of this Agreement. 5.4 Entire Agreemet; Amendments. This Agreement constitutes the entire understanding between the parties with respect to the Subject matter hereof and supersedes all prior negotiations, representations, statements or agreement, whether written or oral, between the parties hereto. This Agreement may be amended only by a written agreement executed and delivered by each party hereto. 5.5 Relevant Law. This Agreement shall be governed by Virginia law. All actions relating to this Agreement shall be instituted and litigated in state or federal courts sitting in Virginia. 5.6 Partial Invalidity. If any term or provision of this Agreement or the application thereof to any person or circumstance shall to any extent be held invalid or unenforceable by a court of competent jurisdiction, the other provisions of this Agreement, or the application of such provisions to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 5.7 Counterparts. This Agreement may be executed in any number of counterparts and all such counterparts together shall constitute but one and the same agreement. IN WITNESS WHEREOF, this Agreement has been executed on behalf of the VBDA and the City by their respective duly authorized representatives. CITY OF VIRGINIA BEACH CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY By: Bv City Manager/Designec ('hair/Vice Chair (i \DATA\FORMS\LEASES\SOCIALSI- BI (i@( OORI)IN VI< EXHIBIT A ALL THAT certain lot of land, together with the buildings and improvements thereon and all appurtenances thereunto belonging, situate in the City of Virginia Beach, Virginia, known and designated as "LOT A 5.928 Acres" on that certain plat entitled 'SUBDIVISION OF SHOPPING AREA 'MALIBU' LYNNHAVEN BOROUGH - VIRGINIA BEACH, VIRGINIA", made by John E. Sirine and Associates, Surveyors and Engineers, dated March, 1976, as revised March 24, 1976, and April 9, 1976, which plat is duly recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, in Map Book 114, at page 11. IT BEING the same property conveyed to the City of Virginia Beach from S and C Co., a general partnership, by deed dated April 9, 1976, duly recorded in the aforesaid Clerk's Office in Deed Book 1561, at page 562. TOGETHER WITH the following nonexclusive easements, which easements shall be appurtenant, and shall run with the title, to the property described above: 1. A nonexclusive easement, right and privilege to use all parking facilities now or hereafter constructed on each of those two certain strips of land (hereinafter collectively referred to as the "Parking Easement Strips") designated on the aforesaid plat as "50' NONEXCLUSIVE PARKING EASEMENT"; 11. A non-exclusive easement, right and privilege to use that certain strip of land designated on the aforesaid plat as "38' NONEXCLUSIVE ACCESS EASEMENT" for ingress, egress and regress to and from (i) that portion of Lot A situated south of the southern wall of the building constructed thereon and that portion of Lot A situated north of the northern wall of said building constructed thereon, (ii) the Parking Easement Strips (referred to in paragraph I above), and (iii) Lot A and the Ingress- Egress Easement Strip (as defined and described in paragraph III below); III A nonexclusive easement, right and privilege to use the strip of land (hereinabove referred to as the "Ingress-Egress Easement Strip") for ingress, egress and regress to and from Lot A and Little Neck Road (formerly North Plaza Trail) designated as "30' Non-Exclusive Ingress/Egress Easement to be dedicated to the City of Virginia Beach" and more particularly described in, and shown on the plat attached to, that certain Deed of Dedication and Vacation dated March 27, 1985, by and among S and H Company, a Virginia general partnership, et al, duly recorded in the aforesaid Clerk's Office in Deed Book 2406, at page 1127. IV All other recorded easements for drainage, utilities and/or access as originally established or conveyed, as same may have been modified or relocated, which are appurtenant to the property described above. G:\DATA\FORMS\DEEI)S\WORKIN(-,\I)F383) DES SOCIAL SERVICES BUILDING DEED OF LEASE THIS DEED OF LEASE (this "Lease") is made as of the 1st day of February, 1998, by and between the CITY of VIRGINIA BEACH DEVELOPMENT AUTHORITY, a political subdivision of the Commonwealth of Virginia ("Landlord"), and the CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia ("Tenant") WITNESSETH: A. PREMISES: Landlord does hereby lease to Tenant and Tenant does hereby lease from Landlord, the premises described on Exhibit A attached hereto, together with all buildings and improvements thereon, located in the City of Virginia Beach (the "Premises"), with the office building located on the Premises (the "Office Building") containing approximately 75,000 square feet of gross floor area and having a street address of 3432 Virginia Beach Boulevard, Virginia Beach, Virginia 23452. All references herein to the Premises shall be construed to include the Office Building. B. USE CLAUSE: The Premises shall be used solely for governmental purposes including, but not limited to, a Social Services Building for the provision of services to the public by Tenant's Social Services Department. C. LEASE TERM: The lease term (the "Term") shall be twenty (20) Lease Years plus the balance of any partial month, if any, for the month during which the Premises are delivered to Tenant, commencing on the Commencement Date. The "Commencement Date" shall be the date which is: (a) thirty (30) days after Landlord notifies Tenant in writing that the Office Building is ready for fixturing, or (b) the date that the Tenant opens the Office Building for business, whichever (a) or (b) is sooner, and the Term shall terminate on last day of the twentieth (20th) Lease Year (the "Termination Date"). D. LEASE YEAR DEFINITION AND OTHER DEFINITIONS: The first "Lease Year" shall commence on the first full month of the Term, and include part of the previous month, if applicable, and shall end at the close of the twelfth (12th) full calendar month following the Commencement Date. Thereafter, each Lease Year shall consist of successive periods of twelve (12) calendar months. If the Commencement Date is not on the first day of a calendar month, Rent for the period between the Commencement Date and the first day of the following month shall be apportioned on a per them basis per specific month at the rate provided in Paragraph E and shall be payable on the Commencement Date. The following words and terms as used in this Lease shall have the following meanings unless a different meaning clearly appears from the context: "Additional Rent" shall mean that portion of the Rent constituting the Reserve (hereinafter defined) plus an amount equal to one-eighth of one percent of the outstanding principal balance of the Bonds on each December 1, one half of such amount being payable in advance, semi- annually, on each May 1 and November 1 beginning May 1, 1998, plus the fees and expenses of the Trustee in performing its duties under this Lease, the Indenture and the Assignment plus any "Rebatable Arbitrage" as defined in the Indenture. "Assignment" shall mean the Assignment of Leases and Rents dated as of February 1, 1998, between the Landlord and the Trustee, pursuant to which this Lease and all other leases of all of any portion of the Premises and the rents thereunder (other than Additional Rent) are assigned to the Trustee as additional security for the Bonds "Basic Rent" shall mean the payments required by Section 502 of the Indenture for deposit into the Bond Fund (as defined in and established by the Indenture) and constituting amounts sufficient to pay the principal of, and premium, if any, and interest on the Bonds when due in accordance with the provisions of the Bonds "Bonds" shall mean the lease revenue bonds of the Landlord issued pursuant to the Indenture and designated "Lease Revenue Bonds (Social Services Facility) Series 1998." "Indenture" shall mean that certain Indenture of Trust dated as of February 1, 1998, between the Landlord and First Union National Bank, Trustee, pursuant to which the Bonds are authorized to be issued, including any Indenture supplemental thereto as therein permitted. E. RENT: Tenant agrees to pay Landlord as rent for the Premises ("Rent") on each May 1 and November 1, beginning May 1, 1998, the sum of Basic Rent and Additional Rent due and payable hereunder. Each semi-annual installment shall be due and payable without demand therefore being made and without offset of any kind at the office of and made payable to Landlord at the address listed below, or at such other place and to such other payee as Landlord may, from time to time, designate in writing or as may be required by the Indenture. A portion of the Additional Rent equal to $50,000 per semi-annual installment of Rent, or such other amount as may be agreed upon from time to time by Landlord and Tenant as hereinafter provided (the "Reserve"), shall be placed by Landlord in an account maintained by Landlord and hereby established (the "Reserve Account") for use as set forth in Paragraph E(4) below. Notwithstanding the above provisions of this Paragraph E(1), that portion of Additional Rent constituting the fees and expenses of the Trustee and "Rebatable Arbitrage" as defined in the Indenture shall be due and payable in accordance with the provisions of the Indenture. 2. Basic Rent shall be payable as follows: (a) On each May 1, beginning May 1, 1998, the amount of interest due on the Bonds on the next interest payment date established by the Indenture; and (b) On each November 1, beginning November 1, 1998, the amount of principal and interest due and payable on the Bonds on the next principal and interest payment date established by the Indenture. The above subparagraphs notwithstanding, Basic Rent shall be due and payable in amounts sufficient to pay the principal of, and premium, if any, and interest on the Bonds when due in accordance with the provisions of the Bonds. 3 . Funds deposited in the Reserve Account shall be held by Landlord for the benefit of Tenant and shall be invested only in investments which are at the time legal investments for public funds under Section 2.1-328, et seq, of the Code of Virginia of 1950, as amended, or other provision of law applicable to such investments. With the mutual consent of Landlord and Tenant, the portion of Additional Rent allocable to the Reserve may be adjusted every five (5) years during the Term or every four (4) years during any extension thereof to provide adequate funds in the Reserve Account to be expended for the purposes set forth in Paragraph E (4) below. All earnings on the Reserve Account shall be accumulated and held in the account for use as set forth in Paragraph E (4) below. Any shortfall in the Reserve Account shall be the sole responsibility of Tenant and shall be paid as Additional Rent. 4. The Reserve shall be used as needed from time to time for capital and structural improvements, maintenance and repair of the Premises and for refurbishment of the Office Building (including, but not limited to, carpet and floor covering replacement, re-tiling and repainting), F. OPTIONS TO RENEW: Tenant shall have three (3) successive options to renew this Lease for periods of four (4) years each ("Renewal Term") commencing at the end of the initial Term. Such options shall be exercised by Tenant giving Landlord notice of the exercise of such option at least six (6) months prior to the expiration of the initial Term or any subsequent Renewal Term. Each Renewal Term shall be on the same terms and conditions as set forth herein, except that the Rent shall be adjusted to a fair market rate acceptable to both Tenant and Landlord taking into account market conditions, condition of the Premises and other commercially reasonable considerations. In the event Tenant and Landlord have not agreed upon such fair market rate for the Rent for any Renewal Term within sixty (60) days after notice of the exercise of the renewal option has been given, the provisions of Paragraph G shall apply. Anything in the foregoing to the contrary notwithstanding, so long as the Bonds are outstanding, there shall be no adjustment to Basic Rent. G. AUTOMATIC RENEWAL: Unless otherwise renewed or terminated as herein provided, at the end of the initial Term, this Lease shall automatically renew and continue in full force and effect from year-to-year to and including the thirty-second (32nd) Lease Year at the same annual rental for the preceding year, and due and payable in the same fashion as provided in Paragraph E. Such year-to-year renewal shall continue to renew automatically unless this Lease is terminated as provided herein. H. ADDITIONAL CHARGES: In Addition to the Rent, Tenant shall pay the following "Additional Charges") 2 1. All real estate taxes, if any, assessed against the Premises or its leasehold interest hereunder. The same include, but are not limited to, real estate taxes, ad valorem taxes and assessments, taxes on real estate and rental receipts, or any other taxes imposed upon or levied against the Premises or upon the owners of same as such, or payments made to local authorities by Landlord in lieu of any such taxes or assessments allocable to the Premises. The same are all collectively referred to herein as "Taxes." 2. All charges when due for water and sewage, gas and electricity and other utility charges and utility taxes in connection with the use of the Premises. 3. The cost of all insurance policies required by Paragraph 1 below. 4. The cost of janitorial services, trash removal, sanitary control, pest control, safety and security services, landscape services, snow removal and all other operational costs related to the Premises, all of which shall be the responsibility of Tenant. I. INSURANCE: Tenant shall obtain and keep in force during the Term, and any Renewal Term, a policy or policies of insurance, covering loss or damage to the Office Building, in an amount not less than eighty percent (80%) of the replacement costs thereof, providing protection against all perils included within the classifications of fire, extended coverage, vandalism, malicious mischief, special extended perils (all risks), together with public liability insurance with established limits of coverage deemed appropriate by Landlord for personal injury or injuries. Anything in the foregoing to the contrary notwithstanding, Landlord acknowledges that Tenant may satisfy the public liability insurance requirements through any program of self-insurance which it may establish or in which it may participate. All such policies shall name Landlord and the Trustee as additional insureds and/or co-payees, as appropriate, as their interests may appear. J. NO ASSIGNMENT OR SUBLEASE: Tenant covenants not to assign, mortgage or encumber this Lease nor sublet or suffer or permit the Premises or any portion thereof to be used by others without the prior written consent of the Landlord in each instance. If this Lease is assigned, or if the Premises or any part thereof is sublet or occupied by anyone other than the Tenant, without the prior written consent of the Landlord and the Trustee, the Landlord and the Trustee are permitted to collect Rent from the assignee, subtenant or occupant and apply the net amount collected to all Rent herein due and reserved, but the application of such Rent shall not be regarded as implied or written consent to any assignment or sublease. Collection of Rent shall not be deemed a waiver of the covenants contained in this Section. The acceptance of the assignee, subtenant or occupant as Tenant does not constitute a release of the performance of the covenants required to be performed by Tenant. Landlord and Tenant agree that this Lease and the Basic Rent due hereunder may be assigned by Landlord lo the Trustee as security for the repayment by Landlord of the Bonds. K. OPERATIONS: As a material inducement to the Landlord to enter into this Lease, Tenant agrees to open in the Office Building for business on the Commencement Date and to keep the Office Building open for business thereafter. Tenant shall use the Office Building for the purposes stated in Paragraph B during the Term, carrying on therein Tenant's governmental purposes and functions diligently. Tenant shall keep the Office Building open and available for therein, during such days and hours as are customary except when prevented by fire, casualty or other causes beyond the Tenant's control. L. ACCEPTANCE OF PREMISES: Tenant hereby agrees to accept the Premises from the Landlord as they are found by Tenant on the date that Tenant takes possession for fixturing in "what is, as is and where is" condition, unless the Premises condition found "as is" is to be modified, altered or changed by Landlord, per Tenant's request and reduced to writing and made part of this Lease. After Tenant uses the Premises and/or opens for business in the Premises, it shall have no legal or equitable remedy based either upon a claim that Landlord failed to deliver possession in accordance with this Lease or based on a claim that the size, location, lay-out dimensions or construction of the Office Building were not completed and/or furnished in accordance with the terms of this Lease. M. ESTOPPEL CERTIFICATE: Tenant shall, from time to time and within twenty (20) days after request therefore by Landlord, execute, acknowledge and deliver to Landlord a written Estoppel Certificate in recordable form. The Estoppel Certificate shall certify to Landlord, its mortgagee or other party designated by Landlord, as of the date of such Estoppel Certificate, that (a) Tenant is in possession of and is currently paying the Rent and Additional Charges reserved hereunder; (b) the following Lease dates are and have been established: the Commencement Date, the Termination Date and that date upon which the Tenant started to pay rent; (c) this Lease is 3 unmodified and in full force and effect, or if there have been modifications, that the same are in full force and effect as modified and setting forth such modifications; (d) there are no existing set-offs or defenses against the enforcement of any rights or remedies of the Landlord, or any duty or obligation of Tenant, hereunder, or if so, specifying the same in detail; (e) Tenant has no knowledge of any event having occurred that will authorize the termination of this Lease by Tenant; and (f) Tenant has no knowledge of any uncured defaults on the part of Landlord under this Lease, or if Tenant has such knowledge, specifying the same in detail. N. SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT: Tenant agrees that this Lease is subordinate to any mortgage or lien resulting from financing or refinancing, now or hereafter placed upon the Premises by Landlord; provided Tenant shall first have executed a Subordination, Non-Disturbance and Attornment Agreement acceptable to Tenant in which (a) the beneficiary of such mortgage or lien agrees that so long as Tenant is not in default under this Lease, Tenant's possession and quiet enjoyment of the Premises will not be disturbed upon a foreclosure or deed-in-lieu thereof, (b) Tenant agrees to attorn to and acknowledge the foreclosure purchaser or purchasers as Landlord hereunder and (e) the beneficiary of such mortgage or lien agrees that prior to taking any action to effect a foreclosure sale or accept a deed in lieu of foreclosure following a default by Landlord, such beneficiary shall give Tenant written notice of its intention to do so, following which Tenant shall have the right to cure such default within thirty (30) days and the additional right to acquire from such beneficiary the obligation secured by such mortgage or lien upon payment to such beneficiary, within forty-five (45) days after such notice, of all amounts then owing to such beneficiary under such obligation and/or all other documents evidencing and/or securing such obligation, excluding any loan transfer fee, prepayment premium and default interest which may be payable to such beneficiary. Upon the request of any party in interest, Tenant shall promptly execute such instrument oi certificate to carry out the intent hereof. O. QUIET ENJOYMENT: Landlord hereby covenants that Tenant, upon fully complying with and promptly performing all the terms, covenants and conditions of this Lease, on its part to be performed, and further, upon the prompt and timely payment of all Rent due hereunder, shall lawfully and quietly hold, occupy and enjoy peaceful possession and use of the Premises for the Term and any Renewal Term. P. MAINTENANCE: Tenant covenants that it will, at its own cost and expense and with reasonable dispatch after becoming aware of the need therefore, maintain, repair and/or replace all improvements on the Premises, including, but not limited to, the foundation, roof, gutters, down spouts, outside walls, sprinkler system, elevators, parking lots, lighting and striping, the heating, ventilating and air conditioning system (the "HVAC System") (including compressors and other major components), toilets, pipes, plumbing, wires and conduits, electric lines, electric panel box, glass, doors, and fixtures, keeping same in good condition and repair and making such replacements as may be necessary from time to time. Tenant understands and agrees that it is also responsible for any condensation in and/or around the HVAC system and its duct work. It is hereby understood that Landlord shall have no liability whatsoever for any maintenance, repairs, or replacements, nor for damage or injury to person or property, including inventory, fixtures, ceiling tiles, lighting fixtures, carpet, wallpaper and paint that results from leaks caused by any defect in the Premises, including, without limitation, the roof, outside walls, gutters and/or down spouts, HVAC System duct work, sewer back-up, sprinkler defects and/or freezing. Q. LANDLORD AND TENANT TAX COVENANTS 1. PREMISES FINANCED WITH TAX-EXEMPT OBLIGATIONS: Landlord and Tenant acknowledge that the Premises were permanently financed with the proceeds of the Landlord's $ Lease Revenue Bonds (Social Services Facility) Series 1998 (the "Bonds") issued, executed and delivered by Landlord. In order to prevent the Bonds from becoming "Private Activity Bonds" within the meaning of the Internal Revenue Code of 1986, as amended (the "Code"), Landlord and Tenant hereby agree that the Premises shall be used solely for governmental purposes including, but not limited to, Tenant's Social Services Building for the provision of services to the public by Tenant's Social Services Department, at all times while the Bonds are outstanding and at all times during the term of this Lease. 2. ARBITRAGE COVENANTS: Landlord and Tenant (to the extent such is within the knowledge and control of either party) shall not take or approve any action, investment or use of the proceeds of the Bonds which would cause the Bonds to be "Arbitrage Bonds" within the meaning of the Code and the Treasury regulations thereunder. Barring unforeseen circumstances, Landlord shall not request or approve the use of the proceeds of the Bonds other than in accordance with the Landlord's non-arbitrage certificate delivered at the time of the initial issuance of the Bonds. 4 3. ARBITRAGE AND REBATE: Landlord hereby covenants with, and certifies to, and for the benefit of the registered owners of the Bonds and Tenant, that so long as the Bonds remain outstanding, monies on deposit in any fund or account established, maintained or permitted to be established or maintained under any of the financing documents executed and delivered with respect to the Bonds, whether or not such monies were derived from the proceeds of the sale of the Bonds or from any other source, will not be used or invested in a manner which will cause the Bonds to be classified as Arbitrage Bonds within the meaning of Section 148 (a) of the Code. Landlord and Tenant obligate themselves to comply with the requirements of Section 148 of the Code and any regulations promulgated thereunder or relating thereto (such Section 148 and such regulations being hereinafter referred to as the "Arbitrage Rules"). Without limiting the generality of the foregoing covenant relating to arbitrage, unless otherwise advised in writing by Bond Counsel (hereinafter defined), Tenant agrees to cause to be prepared by an independent certified public accountant or other expert in tax arbitrage matters reasonably acceptable to the Trustee a statement or report as to the amount of "rebatable arbitrage" with respect to the Bonds computed in accordance with and at all times required by the Arbitrage Rules (hereinafter, a "Rebate Statement") and to promptly fumish the same to the Trustee. Tenant shall pay to the Internal Revenue Service all amounts shown on any Rebate Statement as payable thereto at the times and in the manner required by the Arbitrage Rules. Tenant shall retain records with regard to each Rebate Statement for a period of six (6) years following payment in full of the Bonds. Nothing herein contained shall be interpreted or construed to require Landlord to calculate or to pay any amounts shown on any Rebate Statement, the same being the sole and exclusive responsibility and obligation of Tenant 4. USE OF BOND PROCEEDS: Landlord and Tenant shall not cause any proceeds of the Bonds to be expended except pursuant to the financing documents governing the issuance of the Bonds. 5. AVERAGE MATURITY AND ECONOMIC LIFE: Landlord hereby represents that the weighted average maturity of the Bonds does not exceed 120% of the reasonably expected economic life of the Office Building. 6. USE BY UNITED STATES OR ITS AGENCIES: Neither Landlord nor Tenant shall permit the Premises to be used or occupied, other than as a member of the general public, in any manner for compensation by the United States or any agency or instrumentality thereof, including any entity with statutory authority to borrow from the United States unless Landlord and Tenant shall receive an opinion of counsel issued by a firm of attorneys nationally recognized on the subject of tax- exempt obligations ("Bond Counsel") to the effect that such use will not impair the exemption of interest of the Bonds from federal income taxation. 7. ACTIONS JEOPARDIZING TAX-EXEMPT STATUS OF BONDS: Landlord and Tenant agree that neither shall take any action under this Lease or otherwise which would cause the loss of exemption of interest on the Bonds from federal income taxation. Landlord and Tenant covenant that each shall file or cause to be filed any reports or statements or take any other action as may be required from time to time with respect to the qualification of the Bonds as "governmental obligations" under the Code. Landlord and Tenant hereby represent and warrant that they have been informed of the purpose and scope of the sections of the Code relating to "governmental bonds" and "Arbitrage Bonds" and the representations and covenants made herein and in all other documents, instruments and certificates executed and delivered in connection with the issuance of the Bonds may be relied upon by the Trustee in its execution and delivery of such documents, instruments and certificates and by Bond Counsel, as defined in such documents and giving the opinions required by such documents. R. ADDITIONAL TENANT COVENANTS: 1. ALTERATIONS: Tenant shall not make alterations, additions or improvements to the structural components of the Office Building without first obtaining Landlord's written approval and consent. For purposes of this Lease, the structural components of the Office Building are hereby defined as the foundation, structural steel, roof and exterior walls. Tenant shall present to Landlord plans and specifications for any such work at the time approval is sought from Landlord for Tenant structural modifications. 2. FIXTURES: Tenant has the right to install its office fixtures in the Office Building, provided that such installation does not damage the construction or structural integrity of nor interfere with the structural components of the Office Building. Such installations shall be at the sole risk and at the expense of Tenant. All fixtures installed by Tenant shall remain the property of Tenant, and provided Tenant is not in default hereunder, the same fixtures may be removed by Tenant at the expense of Tenant at the end of the Term or any extension thereof. Tenant further agrees to repair and/or to reimburse Landlord for the cost of repair for any damage to the Office Building caused by the installation and removal of its office fixtures. In the event that fixtures are left behind or 5 abandoned, Tenant shall pay to Landlord any expenses associated with repairs to the Office Building caused by the removal of same fixtures. 3. SIGNS: Design of signage and fabrication and installation of the same shall be at Tenant's expense. Tenant further agrees to maintain such signage, awning signs, canopy signs, window lettering, door signs or additional similar signs in a good condition of repair and attractive display at all times. Signs installed by Tenant are the property of Tenant, and if Tenant is not in default hereunder, may also be removed by Tenant at the expense of Tenant at the end of the Term or any extension thereof. Signs that are left behind or abandoned become the property of Landlord. If Tenant abandons any sign upon earlier termination of the Lease, Landlord shall have the right to remove the sign from the Premises, and Tenant agrees to be responsible and liable for the cost of such removal and the cost of any repairs occasioned by such removal. 4. COMPLIANCE WITH LAWS: Tenant will not use nor permit the Premises to be used for any illegal or immoral purpose. Tenant hereby agrees to comply with all Federal, State and Municipal laws, ordinances and regulations as they relate to the Premises and Tenant's use thereof, including the use, storage and disposal of hazardous substances 5- NUISANCE: Tenant agrees to contain within the Premises any and all noise, music, or odors and/or aromas, to the extent that no nuisance will be created 6. TRASH REMOVAL: Tenant shall store all trash, rubbish and garbage in fully closed containers at the location on the Premises provided therefor by Landlord, and Tenant shall pay all costs incidental to the removal thereof. Tenant shall not burn or otherwise dispose of any trash, waste, rubbish or garbage on or about the Premises. Any expenses incurred by Landlord related to the removal of the same shall be reimbursed by Tenant 7. INFESTATION: Tenant covenants that it will, at its own expense, take such steps as shall be necessary to keep the Premises free of termites, rodents, insects and other pests and that it will save Landlord harmless from any damage caused thereby. This obligation shall extend to any neighboring property should Tenant's use of the Premises be of a nature that likely will cause the same problems in the neighboring property. Any expense incurred by Landlord in the removal or extermination of the same shall be reimbursed to Landlord by Tennant. 8. INSURANCE CANCELLATION: Tenant shall not make any use of the Premises which would make voidable or void any policy of fire or extended coverage insurance covering the Office Building or cause the Office Building to become uninsurable. Tenant hereby covenants that it shall cease and desist any activity so affecting the insurability of the Office Building upon written demand of Landlord. 9. ADVERTISING/LOUDSPEAKERS: Tenant will not use nor permit to be used any external advertising medium or device such as audio broadcast, loudspeaker, radio, public address system, remote radio station, or flashing or digital reader sign, without the prior written consent of Landlord. 10. ACCIDENTS: Tenant shall notify Landlord in writing of all accidents or security-related incidents, i.e. crimes against person(s) and property, of which Tenant is aware, which occur in or on the Premises. 11. ANTENNAE: No radio or television aerial or satellite dish or disk shall be erected on the Premises without the written consent of Landlord in each instance. Any aerial so installed without such written consent shall be subject to removal by Landlord without notice at anytime, and tenant shall pay Landlord, on demand, the cost ofsuch removal. 12. FREEZE DAMAGE: Tenant is hereby responsible and liable for any freezing in pipes and/or within plumbing fixtures and shall pay for the damages incurred. Tenant shall keep the Office Building at a sufficient temperature to prevent such freezing or make such arrangements with the local utility to prevent freeze-ups. S. LANDLORD INSPECTION AND ACCESS: Landlord or its agents, assigns, employees and/or contractors shall have the right to enter the Premises at any reasonable time to examine the same, and during the last six (6) months of the Term or any Renewal Term, to show the Premises to prospective purchasers, lenders, or prospective tenants of the Premises; and to make such repairs, alterations, improvement or additions or additions as Landlord may deem necessary or desirable. If Tenant is not personally present to permit entry and an entry is necessary, Landlord or its agent may, in the case of emergency, or if the Premises are unsecured and temporarily unoccupied, forcibly enter or secure the same, or take such other steps to address the emergency that Landlord deems appropriate, without rendering Landlord liable therefore. Otherwise, all such work and installation shall be done, so far as practical, so as not to unreasonably 6 interfere with Tenant's use of the Premises. Tenant also hereby grants unto Landlord and its agents the right, within six (6) months prior to the termination of the Term or any Renewal Term, to post and to remain thereon, without hindrance or destruction, the usual notice of "For Rent" on the Premises and on office windows or front walls of the Office Building. The exercise of any of these reserved rights by Landlord shall not be deemed as an eviction or disturbance of Tenant's use, possession and quiet enjoyment of the Premises and shall never render Landlord liable in any manner to Tenant or any other person. Due to the nature of Tenant's use of the Premises and the need for security and confidentiality of Tenant's records, Landlord shall make reasonable efforts to notify Tenant and to have a representative of Tenant on the Premises whenever Landlord enters the Office Building outside of Tenant's normal business hours. T. WAIVER OF SUBROGATION: Tenant hereby releases Landlord from liability and waives all rights of recovery against Landlord for any loss in or about the Premises, from perils insured against and under the fire insurance contract, including any and all endorsements thereof, whether due to negligence or any other cause. This release of liability shall be operative only as long as waiver of subrogation clauses are available on insurance policies, in the amounts, form, kinds and with a company satisfactory to Landlord's mortgagee or to such mortgagee, as Landlord, in the event of foreclosure. U. LIENS: In no event shall Landlord or any of Landlord's property be liable for or chargeable with any expense or lien for work, labor or materials used for and in the Premises; or for any improvements thereof of changes made upon the order of Tenant, or to discharge the obligations of Tenant. V. FIRE AND/OR DESTRUCTION: If the Premises shall be damaged or destroyed by fire or other casualty during the Term hereof, Tenant agrees that, unless Tenant exercises its option to terminate this Lease as provided in Paragraph CC, it will restore the Premises with reasonable dispatch to substantially the same condition that they were in immediately prior to such fire or other casualty, and Tenant shall be responsible, at its sole cost and expense, to repair or replace any and all of Tenant's fixtures, equipment and leasehold improvements which were damaged or destroyed by the same insured cause. That portion of Additional Rent allocable to the Reserve payable hereunder shall be equitably and proportionately abated, according to loss of use to Tenant, during the period of time intervening between the date of such fire and/or casualty and the date that the Premises are restored so long as no payment default has occurred and is continuing under the Indenture. That portion of Additional Rent allocable to the Reserve shall re-commence on the thirtieth (30th) day after the Office Building is ready for fixturing. However, if the damage is due to the fault or the negligence of Tenant or its employees, there shall be no such abatement of that portion of Additional Rent allocable to the Reserve. W. EMINENT DOMAIN OR LOSS OF TITLE: If the Premises or any portion thereof are condemned or taken by the power of eminent domain exercised by ally governmental or quasi-govemmental authority, or is lost as a result of failure of title, Tenant may exercise its option to terminate this Lease as provided in Paragraph CC, and this Lease shall terminate as of the date that Tenant has complied with Paragraph CC. All funds in the Reserve Account shall be paid to Tenant upon such termination. The condemnation award or title insurance proceeds shall be equitably apportioned between Landlord and Tenant as their respective interests may appear. If only an insubstantial portion of the Premises shall be taken, or is lost as a result of failure of title and the remaining portion of the Premises is suitable for use by Tenant for the purposes set forth in this Lease, then Tenant shall be entitled to an equal and proportionate reduction in that portion of the Additional Rent allocable to the Reserve based on the number of square feet of gross floor area remaining and this Lease shall otherwise remain in full force and effect. Further, Landlord shall make available to Tenant the proceeds of such condemnation award or title insurance, and thereafter, as expeditiously as possible, Tenant shall repair the remaining portion of the Premises to the extent necessary to render the same suitable for the purposes for which the Premises were leased. To the extent permitted by law, Tenant hereby waives any right that it may have to any condemnation award or title insurance proceeds or sum paid under threat of condemnation as a result of a complete or partial taking of, or loss as a result of failure of title to, the Premises (but not to any separately stated award for Tenant's leasehold interest, improvements or property). The foregoing provisions of this Paragraph notwithstanding, if there is only a partial taking of, or loss of title to, the Premises but not including the Office Building, this Lease shall not terminate, but shall remain in full force and in effect as to the remaining portion of the Premises. Tenant and Landlord acknowledge that each has or may have in the future the power of eminent domain, and to the extent permitted by law, each agrees that it will not initiate eminent domain proceedings for purposes of financial convenience or restructuring, including for the purpose of redeeming the Bonds. Whenever there exists an obligation on Tenant to make repairs or restoration to the Premises resulting from any eminent domain proceeding or loss of title, Landlord shall make available to Tenant the proceeds 7 of such condemnation award or title insurance as necessary for the purpose of making such repairs or restoration so long as no payment default has occurred and is continuing under the Indenture. X. TENANT DEFAULT: The occurrence of any one of the following events constitutes a default by Tenant and a breach of this Lease and its covenants by Tenant: 1. The failure by Tenant to make any payment of Rent on or before the due date thereof; 2. The failure by Tenant to make payment of Additional Charges or to otherwise perform its other covenants herein, and such failure or non-performance is continuing and not cured within thirty (30) days after receipt by Tenant of written notice from Landlord and, in the case of any such failure or nonperformance which cannot be cured within such thirty (30) day period, failure by Tenant to diligently pursue the cure of such failure or non-performance within thirty (30) days of receipt of such notice and to cure the same within ninety (90) days of receipt of such notice; or 3 . The filing of a petition by Tenant for bankruptcy, insolvency, or general assignment for the benefit of its creditors, or appointment of a receiver for Tenant for the substantial part of its assets and properties and such petition is not dismissed or such receiver is not removed within sixty (60) days after such filing or appointment. Y. LANDLORD REMEDIES: 1. In the event of default bv Tenant: (a) The Trustee, as the assignee of the Landlord, at its option, may declare all installments of Basic Rent for the remainder of the Term to be immediately due and payable in an amount sufficient to pay the principal of, premium, if any, and interest on the Bonds, whereupon the same shall become immediately due and payable; (b) The Trustee, as the assignee of Landlord, may re-enter and take possession of the Premises without terminating this Lease and sublease the Premises for the account of Tenant, holding Tenant liable for the difference in the rent and other amounts paid by the sublessee and the Rent and other amounts payable by Tenant hereunder and, in addition, all expenses reasonably incurred in reentering the Premises and preparing it for such sublease; (c) The Trustee, as the assignee of Landlord, may terminate this Lease, exclude Tenant from possession of the Premises and use its best efforts to lease the Premises to another party for the account of Tenant, holding Tenant liable for all Rent and other amounts due up to the effective date of such leasing and for the difference in the Rent and the amounts payable by such new lessee and the Rent and other amounts payable by Tenant hereunder and, in addition, all expenses reasonably incurred in excluding Tenant from possession of the Premises and preparing it for such leasing; and (d) The Trustee, as the assignee of Landlord, may take whatever action at law or in equity may appear necessary or desirable to collect the Rent then due and thereafter to become due or to enforce observance or performance of any covenant, condition or agreement of Tenant under this Lease 2. If the Trustee, as assignee of Landlord, exercises any of its rights or remedies hereunder, it shall give notice of such exercise to Tenant in writing in the manner provided herein and by telephone, telegram or any electronic communication, provided that failure to give such notice by telephone, telegram or electronic communication shall not affect the validity of the exercise of any right or remedy hereunder. 3. The failure of Landlord to insist, in any one or more instances, to strict performance by Tenant as to any Lease covenant, shall not be construed as a waiver by Landlord or relinquishment, in the future, of such covenants, but the same shall continue and remain in full force and effect. Acceptance by Landlord of delinquent Rent from Tenant after a Tenant default shall not cure such default or entitle Tenant to possession of the Premises. The receipt by Landlord of Rent with knowledge of the breach of any covenant hereof shall not be deemed a waiver of such breach, and no waiver by Landlord of any covenant hereof shall be deemed to have been agreed upon, unless explicitly reduced to written agreement and signed by Landlord and Tenant. 4. All remedies of Landlord shall be Cumulative. 8 Z. LANDLORD COVENANTS AND TENANT REMEDIES: 1. Landlord covenants to comply with all of its duties and obligations under this Lease and the Indenture. In the event that the Landlord defaults on any of its obligations under the Indenture or hereunder, Tenant shall have such rights at law or equity to which it may be entitled, including the right to terminate this Lease or seek a diminution or reduction of Additional Rent; provided, however, that so long as the Bonds are outstanding, Tenant shall not have the right to terminate this Lease unless all installments of Basic Rent for the remainder of the Term and any Renewal Term, if applicable, have been paid in full. 2. Except as otherwise provided herein, upon the expiration or earlier termination of this Lease, all funds in the Reserve Account shall be paid to Tenant. AA. FIRST RIGHT OF REFUSAL: During the Term and any Renewal Term, Tenant shall have the first right of refusal to purchase the Premises in the event Landlord elects to sell same. Upon receipt by Landlord of any offer to purchase the Premises which is acceptable to Landlord ("Acceptable Offer"), Landlord shall give notice to Tenant and Tenant shall have the right to purchase the Premises at the same price and on substantially the same terms and conditions as contained in the Acceptable Offer, which right shall be exercisable by Tenant giving notice to Landlord within thirty (30) days after notice is given by Landlord to Tenant of receipt of an Acceptable Offer. BB. TERMINATION AND SURRENDER: Upon the expiration or earlier termination of this Lease, Tenant shall surrender the Premises to Landlord in as good as condition as they were found upon Tenant taking possession of the Premises except for ordinary wear and tear, reduction of the Premises by condemnation or damage by fire, destruction or other casualties or causes beyond Tenant's control. Tenant shall deliver to Landlord all keys to the Premises and remove all its personal property, merchandise and trade fixtures and make such necessary repairs or reimbursement pursuant to Paragraphs R(2) and R(3). After Tenant vacating or Tenant abandonment, Landlord may elect to retain or dispose of, in any manner, Tenant alterations and improvements or Tenant's personal property that Tenant does not remove from the Premises before or after the Termination Date. Title to any such Tenant alterations or Tenant personal property that Landlord elects to retain or dispose of after the Term shall vest to and in Landlord. Tenant waives all claims against Landlord for any damage to Tenant resulting from Landlord's retention or disposition of any such alterations or personal property. CC. OPTION TO TERMINATE IN THE EVENT OF DAMAGE, DESTRUCTION, CONDEMNATION OR LOSS OF TITLE. 1. In the case of damage or destruction of the Premises as set forth in Paragraph V, Tenant shall give prompt notice thereof to Landlord and the Trustee. In the case of a taking of all or any part of the Premises or any right therein under the exercise of the power of eminent domain, or loss as a result of failure of title, as set forth in Paragraph W, the party to whom notice of such taking or loss is served shall give prompt notice thereof to the Trustee and the other party hereto. Such notice shall describe generally the nature and extent of such damage, destruction, taking or loss. 2. Tenant may terminate this Lease by purchasing the preimises for an amount provided in subparagraph 4 below if one of the following shall have occurred: (a) The Premises shall have been damaged or destroyed as set forth in Paragraph V to such extent that in the reasonable opinion of Tenant's governing body expressed in a resolution and of an architect or engineer acceptable to Landlord and the Trustee expressed in a written opinion, in each case filed with Landlord and the Trustee, (i) the Premises cannot be reasonably repaired, rebuilt or restored within a period of six (6) months to its condition immediately preceding such damage or destruction or (ii) Tenant is prevented from carrying on its normal operations at the Premises for a period of six (6) months or more. (b) Title to or the temporary use of such portions of the Premises, including the Office Building, shall have been taken under the exercise of the power of eminent domain, or lost as a result of failure of title, which results or is likely to result in Tenant being thereby prevented from carrying on its normal operations therein for a period of six (6) months, as evidenced by the opinion of Tenant's governing body expressed in a resolution and of an architect or engineer acceptable to Landlord and the Trustee expressed in a written opinion, in each case filed with Landlord and the Trustee. 3. To exercise such option, Tenant shall within sixty (60) days after the event authorizing its exercise give notice to Landlord and the Trustee and specify a date not more than ninety (90) days thereafter for the termination of this Lease and purchase of the Premises. Upon receipt by Landlord of satisfactory evidence that available funds for the payment of the purchase price of the Premises will be available on the date set for redemption of the Bonds, Landlord shall cause the Trustee to redeem the Bonds as provided in Section 301 (a) of the Indenture. 4. To terminate this Lease and purchase the Premises under the above subparagraphs of this Paragraph CC, Landlord and Tenant shall agree on a purchase price constituting the fair market value of the Premises and shall agree to pay to the Trustee, for the account of Landlord for deposit in the Bond Fund (as defined in and established by the Indenture), such portion of such purchase price as shall be necessary to provide the Bond Fund (as defined in and established by the Indenture) with cash which, in the opinion of the Trustee, will be sufficient (i) to redeem in accordance with Section 301(a) of the Indenture all Bonds then outstanding at the earliest practicable date, (ii) to pay at maturity all Bonds maturing prior to or simultaneously with such redemption and (iii) to pay to the Trustee the reasonable fees and expenses of the Trustee and any other fees and expenses for which Tenant may be responsible under this Lease, including the costs and expenses of canceling and discharging the Indenture. If the agreed-upon fair market price of the Premises is less than the amount necessary to provide the Bond Fund with the amounts set forth above, Tenant may not terminate this Lease and purchase the Premises pursuant to this Paragraph CC; provided, however, Landlord and Tenant may agree upon a price in excess of the fair market value price if necessary to provide the Bond Fund with the amounts set forth in the preceding sentence. DD. MISCELLANEOUS: 1. EXCULPATION: The term "Landlord" as used in this Lease means only the owner of the Premises at the time of execution of this Lease by Tenant. Landlord shall be liable for the performance of its obligations hereunder only to the extent of Landlord's assets as they pertain to the Premises. The respective employees of Landlord, their heirs, agents, personal representatives, successors and assignees shall not be liable personally. Further, the liability of Landlord shall not extend beyond the period of time of Landlord's ownership of the Premises, except for events which occurred during the period of Landlord's ownership. 2. SUCCESSORS AND ASSIGNS: All the terms, covenants and agreements of this Lease shall extend to and be binding upon Landlord and Tenant and their respective heirs, administrators, executors, successors, assignees, subtenants, and sublessees, if any, and/or upon any person or persons coming into ownership or possession of any interest in the Premises by operation of law or otherwise. 3 . NO JOINT VENTURE: It is hereby agreed that nothing contained in this Lease shall be deemed or construed as creating a partnership or joint venture between Landlord and Tenant, or between Landlord and any other party, or cause either party to be responsible in any way for the debts or obligations of the other party 4. FORCE MAJEURE: In the event that either party hereto shall be delayed or hindered in, or prevented from, the performance of any act required hereunder by reason of strikes, lock-outs, labor troubles, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots, insurrection, war or other reason of a like nature, not the fault of the party delayed in performing the work or doing acts required under the terms of this Lease, then performance ol' such acts, other than the payment of Basic Rent and the obligations contained in Paragraph Q, shall be excused for the period of the delay; and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay 5. NOTICES: Any notice herein provided for to be given to Landlord shall be deemed to be given if and when posted in United States registered or certified mail, postage prepaid, addressed to Landlord at One Columbus Center, Suite 300, Virginia Beach, Virginia 23462, Attn.: Chairman. Any notice herein provided for to be given to Tenant shall be deemed to be given if and when posted in United States registered or certified mail, postage prepaid addressed to Tenant at c/o City Manager, City Hall Building, Municipal Center, Virginia Beach, Virginia 23456, with a copy to Office of Real Estate, Operations Buildings, Room 170, Municipal Center, Virginia Beach, Virginia 23456. Either party may, at any time, change its address for the purposes of notice hereof by sending a written notice to the other party stating the change and setting forth the new address. 6. APPROVALS AND CONSENTS: Whenever any approval or consent is requested or required hereunder, such approval or consent shall not be withheld or delayed unreasonably and shall be deemed given if no response is received by the requesting party within thirty (30) days from the date of receipt of such request by the party whose approval or consent is sought. For the purposes of giving such approval or consent, Tenant hereby designates the City Manager, or his designee, as the "Tenant Representative", and Landlord hereby designates the Director of Economic Development as the "Landlord Representative". Decisions of the Tenant's Representative may be I 0 appealed to the City Council of the City of Virginia Beach, and decisions of the Landlord's Representative may be appealed to Landlord. 7. AGENTS AND BROKERS: Landlord and Tenant warrant and represent to each other that there are no real estate agents, brokers or other persons or entitles entitled to any real estate commissions, finders fees or other charges in connection with this Lease or the rental of the Premises to Tenant. 8. ENTIRE AGREEMENT: This Lease contains the entire agreement of the parties hereto. Any and all oral or written agreements understandings, representations and warranties, promises and statements of the parties hereto or from their respective officials and representatives with respect to the subject matter of this Lease (other than the Indenture and the Assignment), and any matter not covered and mentioned in this Lease, shall be inferior and be merged in and by this Lease. No such prior oral or written agreement, understanding, representation or warranty, promise or statement shall be effective or binding for any reason or purpose, unless specifically set forth in this original Lease. No provision of this Lease may be amended or added to except by an agreement in writing, signed by the parties hereto or their respective successors in interest and the Trustee. This Lease shall not be effective or binding on any party until fully executed by both parties hereto. 9. RELATIONSHIP TO INDENTURE. Landlord and Tenant acknowledge that to the extent the provisions of this Lease are in conflict with the provisions of the Indenture, the Indenture shall be prior to and superior to this Lease and the provisions of the Indenture shall control. 10. NON-APPROPRIATION: It is understood and agreed between the parties hereto with respect to all payment obligations hereunder, including the payment of Rent, that Tenant shall be bound and obligated hereunder only to the extent that funds therefor shall have been appropriated and budgeted in any fiscal year of Tenant by the City Council of the City. In the event that no funds are appropriated and budgeted in any fiscal year for payments due under this Lease, Tenant shall immediately notify Landlord of such occurrence and this Lease shall terminate on the last day of the fiscal year for which appropriation is received without penalty or expense to Tenant of any kind whatsoever. On or before each July 15, beginning July 15, 1998, Tenant shall provide Landlord and the Trustee satisfactory documentation indicating whether or not Tenant has budgeted and appropriated for the fiscal year beginning on the preceding July 1 sufficient funds to pay Tenant's Rent under this Lease. Failure to provide such documentation shall constitute a default within the meaning of Paragraph X.2. of this Lease. Tenant represents that it reasonably believes that funds sufficient to make the payments of Basic Rent and estimated Additional Rent due hereunder will be available, and the City Manager shall include in each proposed annual budget of the City during the Term an amount sufficient to make the payments of Basic Rent and estimated Additional Rent due hereunder. The City Council of the City shall be under no obligation, however, to retain Such amounts in its annual budget as finally adopted. 11. NONDISCRIMINATION: During the performance of this Lease, Landlord agrees as follows: (a) Landlord will not discriminate against any employee or applicant for employment because of race, religion, color, sex or national origin, except where religion, sex or national origin is a bona fide occupational qualification/consideration reasonably necessary to the normal operation of Landlord. Landlord agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. (b) Landlord, in all solicitations or advertisements for employees placed by or on behalf of Landlord, will state that Landlord is an equal opportunity employer. (c) Notices, advertisements and solicitations placed in accordance with federal law, rule or regulation shall be deemed sufficient for the purpose of meeting the requirements herein. Landlord will include provisions of the foregoing subparagraphs, a, b and c in every subcontract or purchase order of over ten thousand dollars ($10,000.00), so that the provisions will be binding upon Such subcontractor or vendor. 12. APPLICABLE LAW/COMPLIANCE WITH ALL LAWS/VENUE: (a) Applicable Law: This Lease shall be deemed to be a Virginia contract and shall be governed as to all matters whether of validity, interpretations, obligations, performance or otherwise exclusively by the laws of the Commonwealth of Virginia, and all questions arising with respect thereto shall be determined in accordance with such laws. Regardless of where actually delivered and accepted, this Lease shall be deemed to have been delivered and accepted by the parties in the Commonwealth of Virginia. i I (b) Compliance With All Laws: Landlord shall comply with all federal, state and local statutes, ordinances, and regulations now in effect or hereafter adopted, in the performance of its obligations set forth herein. Landlord represents that it possesses all necessary licenses and permits required to conduct its business and will acquire any additional licenses and permits necessary for performance of its obligations hereunder. Tenant shall comply with all federal, state and local statutes, ordinances and regulations now in effect or hereafter adopted, in the performance of its obligations set forth herein. Tenant represents it possesses all necessary licenses and permits required to conduct its business and use of the Premises and will acquire additional licenses and permits necessary for performance of its obligations hereunder. (c) Venue: Any and all suits for any claims or for any and every breach or dispute arising out of this Lease shall be maintained in the appropriate court of competent jurisdiction in the City of Virginia Beach. 13 MEMORANDUM OF LEASE: The parties shall execute and acknowledge a Memorandum of Lease for the purpose of recording same in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia. IN WITNESS WHEREOF, this Lease has been truly executed by the parties hereto. LANDLORD: TEN AN'I' CITY OF VIRGINIA BEACH ('IT)' OF VIRGINIA EACH DEVELOPMENT AUTHORITY BY: BY ChairmanNice-Chairman ('ity Manager/Authorized Designee f)f C'itv Manager (SEAL) (SEAL) ATTEST: A'FI'FS'l BY: 13 Y: Secretary/Assistant Secretary Ruth Hodges Smith, City Clerk (i \[)AI'A\FORMS\LEASES\SO('IAI.SF l@l (;\SO( SL@RV VR-, Revised: Jaiiuary 16, 1998 1 2 EXHIBIT A ALL THAT certain lot of land, together with the buildings and improvements thereon and all appurtenances thereunto belonging, situate in the City of Virginia Beach, Virginia, known and designated as "LOT A 5.928 Acres" on that certain plat entitled 'SUBDIVISION OF SHOPPING AREA 'MALIBU' LYNNHAVEN BOROUGH - VIRGINIA BEACH, VIRGINIA", made by John E. Sirine and Associates, Surveyors and Engineers, dated March, 1976, as revised March 24, 1976, and April 9, 1976, which plat is duly recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, in Map Book 114, at page 11. IT BEING the same property conveyed to the City of Virginia Beach from S and C Co., a general partnership, by deed dated April 9, 1976, duly recorded in the aforesaid Clerk's Office in Deed Book 1561, at page 562 TOGETHER WITH the following nonexclusive easements, which easements shall be appurtenant, and shall run with the title, to the propertv described above: 1. A nonexclusive easement, right and privilege to use all parking facilities now or hereafter constructed on each of those two certain strips of land (hereinafter collectively referred to as the "Parking Easement Strips") designated on the aforesaid plat as "50' NONEXCLUSIVE PARKING EASEMENT"; II. A non-exclusive easement, right and privilege to use that certain strip of land designated on the aforesaid plat as "38' NONEXCLUSIVE ACCESS EASEMENT" for ingress, egress and regress to and from (i) that portion of Lot A situated south of the southern wall of the building constructed thereon and that portion of Lot A situated north of the northern wall of said building constructed thereon, (ii) the Parking Easement Strips (referred to in paragraph I above), and (iii) Lot A and the Ingress- Egress Easement Strip (as defined and described in paragraph III below); III. A nonexclusive easement, right and privilege to use the strip of land (hereinabove referred to as the "Ingress-Egress Easement Strip") for ingress, egress and regress to and from Lot A and Little Neck Road (formerly North Plaza Trail) designated as "30' Non-Exclusive Ingress/Egress Easement to be dedicated to the City of Virginia Beach" and more particularly described in, and shown on the plat attached to, that certain Deed of Dedication and Vacation dated March 27, 1985, by and among S and H Company, a Virginia general partnership, et al, duly recorded in the aforesaid Clerk's Office in Deed Book 2406, at page 1127. IV. All other recorded easements for drainage, utilities and/or access as originally established or conveyed, as same may have been modified or relocated, which are appurtenant to the property described above. (i:\DAI-A\FORMS\I)I-@EL)SIWORK[N(;%])F38; 1)],@ 23 Item V-J.1.b. ORDINANCES/RESOLUTIONS ITEM # 43132 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED. Ordinance to declare EXCESS PROPERTY: Level Green Boulevard adjacent to Colonial Court Apartments (formerly College Square Apartments, 0.05 Acres (KEMPSVILLE BOROUGH), to be EXCHANGED for an immediately adjacent site re construction of a Pump Station, Reon Drive Sanitary Sewer Improvements Project (CIP 6-949) Voting: II -0 (By Consent) Council Members Voting Aye John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M. I-Ienley, Louis R. Jones, Reba S. McClanan Mayor Meyera E. Oberndorf Nan K. Parker. Vice Mayor William D. Sessoms, Jr and Louisa M Strayhorn Council Members Voting Nay None Council Members Absent. None Janua 27, 1998 AN ORDINANCE TO AUTHORIZE THE EXCHANGE OF PROPERTIES WITH COLONIAL COURT APARTMENTS INC. FOR A PUMP STATION SITE WHEREAS, the City of Virginia Beach acquired ownership of certain property and a temporary construction easement by deed recorded in Deed Book 3638, at page 200: and WHEREAS, the said property and temporary construction easement were to be used for the construction of a Pump Station in connection with the Reon Drive Sanitary Sewer Improvements Project, CIP 6-949; and WHEREAS, following the conveyance of the property referenced above, the City of Virginia Beach Department of Public Utilities/Engineering Division determined that construction of a Pump Station on the said property would be in conflict with an existing Bell Atlantic 2700 pair interface cable and an existing 42 inch storm drain, and WHEREAS, in an effort to avoid having to relocate the said Bell Atlantic interface cable and the 42-inch storm drain at an estimated cost of $66,902±, the City of Virginia Beach Department of Public Utilities/Engineering Division negotiated a Land Swap Agreement with the adjacent landowner, Colonial Court Apartments, Inc (formerly College Square Apartments, Inc.) in which the City of Virginia Beach would reconvey title to certain property and property interests in exchange for the conveyance of a new site and temporary construction easement for the construction of a Pump Station that would not conflict with the aforesaid Bell Atlantic interface cable and 42-inch storm sewer. The property and property interests to be exchanged are more particularly referenced in paragraph 2 of the Land Swap Agreement attached hereto; and WHEREAS, the City Council is of the opinion that the proposed exchange of properties between the City of Virginia Beach and Colonial Court Apartments, Inc would be in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA 1. That the City Council authorizes the exchange of properties pursuant to § 15.2-1800 et seq., Code of Virginia. as described in the attached "Land Swap Agreement". 2. That the City Manager is hereby authorized to execute the attached Land Swap Agreement and a proper deed conveying the land and temporary easement on behalf of the City of Virginia Beach. This ordinance shall he effective from the date or its adoption. Adopted by the Council of the City of Virginia Beach, Virginia, on the 27 day of January, 1997 ('A- @ROVED AS TO CONTENI' APPROVED AS TO LEGAT@ St FFI('IENCN' .9 ()el This LAND SWAP AGREEMENT, made this 12th day of December, 1997, by and between the COLONIAL COURT APARTMENTS, INC., f/k/a College Square Apartments, Inc., both being Virginia corporations, (hereinafter "COLONIAL COURT"), party of the first part, and the CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia (hereinafter "CITY"), party of the second part. For and in consideration of the exchange of the Property and other good and valuable considerations set forth herein, the receipt of which is herebv acknowledged, the parties agree as follows: 1. Grant of Rihht of Entry. COLONIAL COURT grants the CITY and its agents the right and privilege to enter upon that parcel of land as hereinafter described for the purpose of constructing a pump station, as shown on the plat referenced below. The parties agree that this right of entry shall expire on April 11, 1998, unless COLONIAL COURT gives the CITY a written extension, If closing on the exchange of properties is not consummated before the right of entry expires, upon written request by COLONIAL COURT to do so, the CITY will restore COLONIAL COURT's property to its preconstruction condition. 2, Grant of Option. COLONIAL COURT irrevocably grants to the CITY the exclusive Option to Exchange from COLONIAL COURT that parcel of land containing approximately 1,844 square feet or 0.042 acre as hereinafter described. All that certain lot, piece or parcel of land situate, lying and being in the City of Virginia Beach, Virginia, designated and described as "PUMP STATION SITE TO BE ACQUIRED" " AREA TO BE ACQUIRED - 1,844 SQ. FT. = 0.042 ACRE" as shown on that certain plat entitled: "PLAT SHOWING PROPERTY AND EASEMENT TO BE ACQUIRED FOR REON DRIVE SANITARY SEWER IMPROVEMENTS CIP 6-949 FROM COLONIAL COURT APARTMENTS, INC KEMPSVILLE BOROUGH - VIRGINIA BEACH, VIRGINIA SCALE: 1" = 60' SEPTEMBER 15, 1995 REVISED: OCTOBER 20, 1995 REVISED OCTOBER 7,1997 ROUSE SIRINE ASSOCIATES, LTD.," which plat is duly recorded in the Clerk's Office of the Circuit Court of the Citv of Virginia Beach, Virginia, in Map Book ___, page GPIN: 1456-52-4448 Together with the temporary right and easement to use the additional area(s) designated and described as "TEMPORARY CONSTRUCTION EASEMENT TO BE ACQUIRED" as shown on the aforesaid plat for construction cut and/or fill slopes as required for the proper execution and maintenance of work containing 4,745 square feet (0.109 acre). Said temporary right and easement will terminate when the Grantee grades the property adjacent to the easement so that there no longer exists the necessity for maintenance or until such time as all construction has terminated and the Grantee accepts the work as being completed. for the property of the CITY that contains 2,553 square feet or 0.059 acre as hereinafter described: All that certain lot, piece, or parcel of land, situate, lying and being in the City of Virginia Beach, Virginia, designated and described as "PUMP STATION TO BE ACQUIRED" 'AREA TO BE ACQUIRED = 2,553 SQ. FT. = 0.059 ACRE" as shown on that certain plat entitled: "PLAT SHOWING PROPERTY AND EASEMENT TO BE ACQUIRED FOR REON DRIVE SANITARY SEWER IMPROVEMENTS CIP 6-949 FROM COLONIAL COURT APARTMENTS, INC KEMPSVILLE BOROUGH - VIRGINIA BEACH, VIRGINIA SCALE: 1" = 60' SEPTEMBER 15, 1995 REVISED: OCTOBER 20, 1995 ROUSE-SIRINE ASSOCIATES, LTD," which plat is duly recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, in Map Book 251, page 59. GPIN 1456-52-4534 Together with the temporary right and easement to use the additional area(s) designated and described as "TEMPORARY CONSTRUCTION EASEMENT TO BE ACQUIRED"as shown on the aforesaid plat for construction cut and/or fill slopes as required for the proper execution and maintenance of work containing 2,592 square feet (0.060 acre). Said temporary right and easement will terminate when the Grantee grades the property adjacent to the easement so that there no longer exists the necessity for maintenance or until such time as all construction has terminated and the Grantee accepts the work as being completed. SAVE and EXCEPT that portion of the 1,884 square foot parcel and the 4,745 square foot temporary construction easement area referenced in the property shown on the 10/7/97 plat that overlaps the second parcel shown on the 10/20/95 plat. The parcels of property to be exchanged are hereinafter designated as the "Property." 3. Term. This Option shall continue in effect until 5:00 p.m. on April 11, 1998, and may be exercised in accordance with its terms at any time or before its expiration date by the tendering of written notification from the CITY expressing its intent to exchange the subject parcels of property in accordance with the terms of this Agreement. 4. COLONIAL COURT agrees to execute, acknowledge, and deliver to the CITY, a proper Deed conveying the fee simple title to that parcel of land as described above containing 1,844 square feet and the 4,745 square feet temporary construction easement free and clear of all encumbrances. The CITY agrees to execute, acknowledge, and deliver to COLONIAL COURT, a proper Deed conveying the fee simple title to that parcel of land as described above containing 2,553 square feet and the 2,592 square foot temporary construction easement save and except that portion of the 1,844 square foot parcel and the 4,745 square foot temporary construction easement which overlaps the property and temporary construction easement shown on the 10/20/95 plat.. The drafting of the proper documents to close for the exchange of the Property as described above will be done by the City at its expense. 5. If any material defect in the title to either Property is not corrected as provided herein, then at the option of either COLONIAL COURT or the CITY, this Agreement shall become null and void for all purposes. 6. All deeds shall be executed and delivered by each party to the other and the entire transaction shall be consummated on or before April 11, 1998, after the title has been insured or accepted, unless such time is extended as herein provided. 3 7. Covenants and Representations of COLONIAL COURT and CITY Each party hereby covenants and represents to the other as follows regarding that portion of the Property it currently owns: (a) To the best of each party's knowledge and belief, there are no pending or threatened assessments, condemnations or eminent domain proceedings against the Property, or any portion thereof. Each party shall give the other prompt notice of any such actual or threatened condemnation proceeding. (b) There are no outstanding options or other contracts giving any party other than the parties to this Agreement a right to purchase the property, or any portion thereof, or interest therein. From and after the execution date of this Agreement, each party shall not transfer any interest in, nor grant any easements, or apply for or enter into any application, permit, contractual agreement or understanding, written or oral, with respect to the Property, or interest therein, without the prior written consent of the other party. (c) During each party's ownership and/or occupancy of the Property, the following statements have at all times been true and accurate (i) There has been no release, discharge, disposal, generation or treatment of any hazardous toxic substances upon or in the subject Property, (ii) There has been no release, discharge, treatment, storage, generation or disposal of any hazardous waste as defined in CERCLA, RCRA and to the extent the laws of the Commonwealth of Virginia establish a meaning for said terms. (iii) The Property has not been subject to Federal, State or Local governmental action or third party claim because of the release, threat of release, discharge, storage, treatment, generation, emission or disposal of any hazardous or toxic substances or waste on, in or from the Property; (iv) No wetlands (as defined by Federal, State or Local law or regulation) on the Property have been illegally drained, filled or otherwise modified. (v) No lien from environmental investigation or remediation, citizen suit or other litigation, administrative order or proceeding, investigation or settlement is either in existence or, to the best of each party's knowledge, proposed or anticipated with regard to anv environmental matter regarding the Property. (d) During each party's ownership all operations conducted on the Property have been in compliance with all applicable Federal, State and Local laws, regulations and rules 8. Option Unrestricted. The granting of this Agreement to exchange, its acceptance and possible future exercise by each party is not conditioned upon, nor in consideration of, approval by COLONIAL COURT or CITY of any plan of development either currently pending or submitted in the future that COLONIAL COURT may have of the Property or properties adjacent thereto. 9. Notices. Any notice which may be or is required to be given pursuant to the provision of this Agreement shall be delivered or sent by certified mail, postage prepaid. return receipt requested, and addressed as follows: If to Owners, to Colonial Court Apartments, Inc Attn: Danny Hamm 1001 Riviera Dr. Virginia Beach, Virginia 23464 If to City, to James K. Spore City Manager Municipal Center Virginia Beach, Virginia 23456 With a copv to David S. Hay, Esquire City Attorney's Office Municipal Center Virginia Beach, Virginia 23456 11. The parties acknowledge that the obligations, responsibilities and benefits as expressly set forth in this Agreement shall survive a closing and settlement in accordance herewith. 12. Benefit. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors or assigns. IN WITNESS WHEREOF, the parties hereof have signed this Agreement as of the date first above written. COLONIAT. ('OURT APARTMENTS, INC By (SEAL) CITY 01@ VIR(iiNIA BEACH BY City Manager/Authorized Designee of the Citv Manager (SEAL) ATTEST APPROVED AS TO, CONTENT 3IG"TURE Ruth Hodges Smith, City Clerk DEPAirrMENT V AS 10 COi,41 LN: si@TU L/ I)FPARTME@IT 6 STATE OF Virginia CITY/County OF Henrico, to-wit: The foregoing instrument was acknowledged before me this 12 day of December 1997, by Arther E. Havens III, President (title) of Colonial Court Apartments, Inc., on its behalf C-) IL4AY4 L Notary Publit 1 .4 My commission expires@ / a( @ ( T STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit The foregoing instrument was acknowledged before me this _ day of 199@ by , City Manager/Authorized Designee of The City Manager, on behalf of the City of Virginia Beach, Virginia, o Public My commission expires: STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this __ day of 199_, by RUTH HODGES SMITH, City Clerk, on behalf of the Citv of Virginia Beach, Virginia My commission expires: LOCATION MAP SCALE 1" 1,600' LOCATION MAF ERTIES TO BE EXCHANGED B LONIAL COURT APARTMENTS, IN THE CITY OF VIRGINIA BEAC @ I @@- @ FOR @ @ t REON DRIVE SANITARY SEWER IMPROVEME@ 6-949 i@ 11 I' 200' Ld LI Is QC,, Fj wo - 24 - Item V-J.1.c. ORDINANCES/RESOLUTIONS ITEM # 43133 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED Ordinance to declare EXCESS PROPERTY: South Independence Boulevard, (Constitution Drive Flyover) adjacent to the Larkspur Subdivision, re SALE of 7.7 Acres (KEMPSVILLE BOROUGH), and authorize the City Manager dispose of same. Voting: I I - 0 (By Consent) Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W. Harrison, Jr., Harold Heischober, Barbara M Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr and Louisa M Strayhorn Council Members Voting Nav None Council Members Absent.- None January 27, 1998 1 AN ORDINANCE DECLARING CERTAIN 2 PROPERTY EXCESS AND AUTHORIZING THE 3 CITY MANAGER TO DISPOSE OF SAME 4 WHEREAS, the City of Virginia Beach acquired ownership of the 5 Property described below by deed recorded in Deed Book 3337, at page 2057; 6 and 7 WHEREAS, the City Council is of the opinion that the Property 8 is in excess of the needs of the City of Virginia Beach. 9 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 10 VIRGINIA BEACH, VIRGINIA: 11 1. That the following described property is hereby declared to 12 be in excess of the needs of the City of Virginia Beach and that the City 13 Manager is authorized to convey said property in the manner he deems in 14 the best interests of the City of Virginia Beach including but not limited 15 to reserving any easements he deems necessary: 16 All that certain lot, piece or parcel of land 17 situate in the City of Virginia Beach, Virginia, and 18 being designated as "the Portion of Resubdivided 19 Parcel B-3 - 7.687 acres", as shown on that certain 20 plat entitled "Plat of Property for Kernpsville 21 Meadows, Inc.," which plat is recorded in the 22 Clerk's Office of the Circuit Court of the City of 23 Virginia Beach, Virginia in State Highway Plat Book 24 Number 9, at page 295, to which reference is made 25 for a more particular description. 26 2. Any building site created shall connect to public water and 27 sewer where available. 28 3. This ordinance shall be effective from the date of its 29 adoption. 30 Adopted by the Council of the City of Virginia Beach, Virginia, 31 on the 27 day of January, 1998. CA-6,Vtr LAWSON\7-7AC.ORD AS TO NT R-1 PREPARED: 1/8/98 z@il,s @ Works AMWVM AS TO LEGAL OfLaw c @C4 @67 6 oo 2 In LW at C) ui In ui 0 cl- > VI, ui C3 Ni P- ui C9 dK i ci 0 ui ar Go ,Y! jp 25 Item V-J.2. ORDINANCES/RESOLUTIONS ITEM # 43134 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Ordinance to APPROPRIATE $140,000 from the General Fund to provide an interest-free loan to the Davis Corner Volunteer Rescue Squad repurchase of a replacement squad truck. Voting. I I - 0 (By Consent) Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W. Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D Sessoms, Jr and Louisa M Strql,horn Council Members Voting Nqv. None Council Members Absent. None Januar .y 2 7. 1998 I AN ORDINANCE TO APPROPRIATE $140,000 FROM THE 2 GENERAL FUND FUND BALANCE FOR THE PURPOSE OF 3 PROVIDING AN INTEREST-FREE LOAN TO THE DAVIS 4 CORNER VOLUNTEER RESCUE SQUAD FOR THE PURCHASE 5 OF A REPLACEMENT SQUAD TRUCK 6 WHEREAS, the Davis Corner Volunteer Rescue Squad ("Rescue 7 Squad") has determined that their current squad truck is nearing 8 the end of its useful life in its current role, but will be 9 transitioned to serve as a Mass Casualty Incident Support 10 Vehicle; 11 WHEREAS, the Rescue Squad does not presently have adequate 12 funds to purchase a replacement squad truck, but has represented 13 that fund-raising efforts will provide sufficient funds to repay 14 an interest-free loan from the City of Virginia Beach Loans to 15 Rescue Squad program in the amount of $140,000; and 16 WHEREAS, the Rescue Squad has previously received interest- 17 free loans from the City, has repaid such loans on time or ahead 18 of schedule, and does not anticipate any deviation from their 19 past performance in the repayment of this loan. 20 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 21 VIRGINIA BEACH: That funds in the amount of $140,000 are hereby 22 appropriated from the General Fund fund balance for the purpose of 23 providing an interest-free loan to the David Corner Volunteer 24 Rescue Squad for the purchase of a replacement squad truck; with 25 the loan to be repaid in ten (10) equal annual installments of 26 $14,000 due on the 15th day of each February, beginning on February 27 15, 1999, and ending on February 15, 2008. 28 Adopted the 27 day of January, 1998, by the Council of the City 29 of Virginia Beach, Virginia. 30 APPROVED AS TO CONTENT 3 1 32 WalteZ-C, Kr@mite;, 33 Department of Management Services APPRt',IVF:T) AS T Lc-Gt,L 34 G:\DATA\ORDIN\NONCODE\EMSDAVC.ORD DEPARTMENT OF EMERGENCY MEDICAL SERV CFS 191 @ AR I[(, AVFNIJ@ IDF FICE OF THE OIRECTOR VTRGINIA BEA(,H V RC,'N @ 14' 17 5 7) 43 7 4 850 AX (757) @25 786@ DATE: January 5, 1998 TO: Mr. James K. Spore, City Manager DEPT Executive VLA: Mr. Dean Block, Director DEPT DMS FROM: Bruce W. Edwards, Director DEPT EMS SUBJ: No Interest Loan to Davis Corner Volunteer Rescue Squad Attached please find a letter from Mr. William Laws, Chief of the Davis Corner Volunteer Rescue Squad., Inc., requesting a no interest loan to assist them in the purchase of a new squad truck. The Department of EMS agrees with this request and recommends that the City grant the squad a no interest loan from the Loans To Rescue Squads Program. Their request is for $140,000.00 to be repaid over a ten year period in equal annual payments of $14,000.00. Attached please find an agenda request reflecting a summary of this request. If you have any questions please let me know. BWE/rs PC: Mr. William S. Kiley, Deputy Director Mr. Paul Harris, Budget Analyst Mr. William Laws File 97120101 BWE 18 November 1997 Mr. Bruce Edwards Director Dep,artment of Emergency Medical Services 1917 Arctic Avenue Virginia Beach, Virginia Dear Mr. Edwards, Confirming our conversation of this date, Davis Corner Volunteer Fire Department and Rescue Squad Inc., respectfully requests a City of Virginia Beach Loan in the amount of $140,000 to be paid back over a 10 year period. We have received initial estimates at $140K, and are looking at reducing this further if at all possible. This funding is being requested to purchase a new Squad Truck for Davis Corner. As you are aware, our current truck is a converted 1983 beverage vehicle and is nearing the end of its life as a frequently responded unit. It is believed that with appropriate maintenance and routine wear, this replacement vehicle could last as long as 20 years. The purchase of this vehicle will allow us to covert the current Squad 2/MCI 1 to all MCI, possibility '--ripling patient care capability. Once this conversion is complete, the MCI trailer that we have could be reallocated as another resource within the Department. We replaced the engine last year and we feel that this shift to sole MCI responsibility will further extend its life and support capability to our Community. As usual, your support in our efforts to expand our patient care capabilities within available resources is appreciated. Si.ncc t-e @i Wi 1 1 i afli I Iws ('h 1 e t 26 Item V-J.3. OPDINANCES/RESOLUTIONS ITEM # 43135 Hubert Dail, 820 North Villier Court, Phone. 340-1839, registered in OPPOSITION Upon motion by Councilman Harrison, seconded by Council Lady Parker, City Council DEFERRED until the City Council Session of February 10, 1998 Ordinance to authorize acquisition of property (Parcel A - 35,667 square feet and Parcel B 1,434 squarefeet) in fee simple from Hubert L. and Mona H. Dail re a site for Little Neck Neighborhood Park (CIP 4-950.05), either by agreement or condemnation (LYNNHAVEN BOROUGH) This deferral will enable City staff to confer with the applicant to develop a voluntary agreement. Councilman Harrison will be included in the process discussion. Voting: 11-0 (By Consent) Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W Harrivon, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Nancy K. Parker, Vice Mayor William D. Sevsoms, Jr and Louisa M Stra,Vhorn Council Members Voting Nay. None Council Members Absent None Janua 2 7, 1998 27 Item V-K.1. ORDINANCES/RESOLUTIONS ITEM # 43136 Bertha Brown, speaking in behalf of Ellen Ferber - Director and staff, expressed appreciation to City Council Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADOPTED: Resolution re support for legislation to designate real and personal property owned by Samaritan House, Inc. TAX EXEMPT from State and Local Real and Personal Property. Voting: I I - 0 (By Consent) Council Members Voting Aye, John A. Baum, Linwood 0. Branch, III, William W. Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K Parker, Vice Mayor William D. Sessoms, Jr and Louisa M. @tra.vhorn Council Members Voting Naj. None Council Members Absent. None January 27, 1998 1 A RESOLUTION SUPPORTING LEGISLATION WHICH WILL 2 DESIGNATE REAL AND PERSONAL PROPERTY OWNED BY 3 SAMARITAN HOUSE, INC., AS BEING EXEMPT FROM STATE 4 AND LOCAL REAL AND PERSONAL PROPERTY TAXATION 5 WHEREAS, Samaritan House, Inc., owns property located in the 6 City of Virginia Beach subject to ad valorem taxation; 7 WHEREAS, the property owned by Samaritan House, Inc., was 8 previously tax exempt as property owned by Virginia Beach 9 Ecumenical Housing, Inc., but that exemption is no longer effective 10 since Virginia Beach Ecumenical Housing, Inc., has changed its name 11 to Samaritan House, Inc.; 12 WHEREAS, Samaritan House, Inc., has requested the Council of 13 the City of Virginia Beach to adopt a resolution in support of its 14 request that the General Assembly act in accordance with Article X, is § 6(a)(6) of the Constitution of Virginia to designate the real and 16 personal property of Samaritan House, Inc., as being exempt from 17 state and local real and personal property taxation; 18 WHEREAS, Samaritan House, Inc., owns personal property in the 19 City of Virginia Beach with an assessed value of approximately 20 $112,117 in tax year 1997-98, and the taxes on this personal 21 property would be approximately $2,011.03; 22 WHEREAS, Samaritan House, Inc., also owns real property in the 23 City of Virginia Beach assessed at $1,642,948 in tax year 1997-98, 24 and the taxes on this real property would be approximately 25 $19,195.46; 26 WHEREAS, pursuant to § 30-19.04 (B) of the Code of Virginia, 27 the Council of the City of Virginia Beach has properly advertised 28 and conducted a public hearing prior to the adoption of this 29 resolution, giving all citizens an opportunity to be heard; 3 0 WHEREAS, the provisions of § 30-19.04(B) of the Code of 31 Virginia have been examined and considered by the Council of the 32 City of Virginia Beach; and 33 WHEREAS, the Council of the City of Virginia Beach is of the 34 opinion that Samaritan House, Inc., should be designated a 35 benevolent organization within the context of § 6(a)(6) of Article 36 X of the Constitution of Virginia; that real and personal property 37 located in the City of Virginia Beach owned by Samaritan House, 38 Inc., and used by it exclusively for benevolent purposes on a 39 nonprofit basis should be exempt from state and local real and 40 personal property taxation; and that such exemption should be 41 effective September 23, 1996; 42 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 43 VIRGINIA BEACH, VIRGINIA: 44 1. That the Council of the City of Virginia Beach supports 45 the enactment of legislation designating Samaritan House, Inc., as 46 a benevolent organization within the context of § 6(a)(6) of 47 Article X of the Constitution of Virginia and exempting from state 48 and local property taxation real and personal property owned by 49 Samaritan House, Inc., that is located within the City of Virginia 50 Beach and used exclusively for benevolent purposes on a nonprofit 51 basis; and 52 2. That the City Council of the City of Virginia Beach 53 further supports an effective date of September 23, 1996, for such 54 legislation. 55 Adopted by the Council of the City of Virginia Beach, 56 Virginia, on the 27 day of January, 1998. 57 CA-6890 58 ORDIN\NONCODE\SAMARITAN.RES 59 R-2 60 1/21/98 APPROVED AS TO LEGAL 61 SUFFICIENCY: 62 63 Department of Law APPLICATION TO CITY OF VIRGINIA BEACH FOR EXEMPTION FROM PERSONAL AND REAL PROPERTY TAXATION Applicants: Please fill out this form and submit same to the City Manager, Municipal Center, Virginia Beach, Virginia 23456. In any instance where additional space is needed to complete your answer to a particular question, please utilize a separate sheet of paper and attach it to this application Formal Name of Corporation/Organization Samaritan House, Inc. Address@ 2697 International Parkway, Parkway III Suite 108 Virginia Beach, VA 23452 Telephone Number (757) 430-2642 1, Is the Organization chartered or incorporated under the laws of the Commonwealth of Virginia9 Yes 2 For what purpose is the group chartered" The Corporation is organized as a non-profit organization, exclusively for charitable purposes within the meaning of Section 501 ( c) (3) of the Internal Revenue Code of 1986 (see attached Articles of Incorporation.) 3 Describe in detail and specify the location of all real and personal property for which exemption is sought See attached. REAL AND PERSONAL PROPERTY GPIN SUB - DIVISION ASSESSED VALUE TAXF.S '97 - '99 PROPERTY ADDRESS 0 1476 18 7820 Kempsville Lake $ 77,756 #1 $ 948.62 4623 Fern Oak Ct. w m 1476 19 7529 Kempsville Lake $ 73,099 #2 $ 891.82 4541 Greyedge Dr. > n 1477 00 1150 Kempsville take $ 72,662 #3 $ 886.48 256 Weller Blvd. pi 1478 31 5335 Bayside Villas $ 69,553 #4 $ 848.56 4693 Merrimac La. (D 1487 15 4837 Thalia Wayside Townh $ 72,980 #5 $ 890.36 3907 Wyckoff Dr 1487 06 2426 Thalia Wayside Townh $ 72,352 #6 $ 882.70 3992 Roebling La. 1486 35 4049 Townhomes at Chimney ey $ 62,037 #7 $ 756.96 3703 Chimney Creek Dr (D 1476 18 7474 Fairways $ 91,964 #8 $1121.96 509 Mulligan Dr. 1478 31 4609 Aragona Village $ 96,450 #9 No current bill 4774 N. Witchduck Rd. (S1176.70) 1487 71 6328 Princess Anne Plaza $ 79,000 #10 No current bill 241 Cassady Ave ($ 963.80) 2427 07 0146 Perry's Shores $649,095 #11 $7906.76 500 Willray Ct. 2417 97 8171 Horizons Housings $227,000 #12 No current bill 1801 Mediterranean Ave. ($2769.40) Vehicles Assessed Value Taxes '97 - '98 Tag & VIN# 94 Chevrolet Sport Van $ 11,850 #13 $ 438.45 ZVA4273 1GAFG35K3RF179381 91 Ford Taurus St Wgn $ 3,925 #14 $ 145.23 ZCS1470 1FACP57U3MA213092 4. List the present tax assessment of each parcel of real property for which this exemption is sought: Parcel #1 Parcel #2 Description 1476 19 7820 Description 1476 19 7529 Assessed Value $ 77,756 Assessed Value $ 73,099 Parcel #3 Parcel #4 Description 1477 00 1150 Oewnption 1478 31 5335 Assessed Value $ 72,662 kssessed Value $ 69,553 Parcel #5 Parcel #6 Description@ 1487 15 4837 Description 1487 06 2426 Assessed Value $ 72,980 Xssessed Value $ 72,352 Parcel #7 Parcel #8 Descfiption@ 1486 35 4049 Description 1476 18 7474 Assessed Value $ 62,037 Assessed Value $ 91,964 Parcel #9 Parcel $10 Description 1478 31 4609 1487 11 6328 Assessed Value $ 96,450 4Lssessed Value $ 79,000 Parcel #11 Parcel #12 Description@ 2427 07 0146 Description 2417 97 8171 Assessed Value $648,095 Assessed Value $227,000 5 List the present tax assessment, by tax bill, of personal property for which the exemption is sought Tax Bill # 97012002196 94 Chevrolet Spor Van Assessed Value $ 11,850 Tax Bill # No Tax Bill Done 1991 Ford Taurus Station Wagon Estimated Value $ 3,925 No tax bill on office equipment and furniture Estimated Value $94,462 6 For what purpose is the real property currently being used?, If there are several types of use for a single parcel, indicate such usages by areas of the buildings and floi)r locations 10 emergency shelters/transitional housing for homeless families Perry's Shores - 25% of units (8 units) transitional housing, 24 units low income affordable permanent housing (50% fair market rent for area Horizons Housing 7 units transitional housing 6a, Does any other individual, association it corporation OCCUPY OF use any part of the premises of any property for which exemption is sought9 If yes, give details No 6b Is any inck)jtie derived front the use of any portion of the real property by other individuals or groups, whether considered as rent or reimbursement for necessary expenses for services incurred9 If yes, give all details Yes Weller a transitional house $371/month Mulligan a transitional house $455/month Perrv's Shores 8 units transitiorw housing for previously homeless families, monthly rent 50% or fair market rent for area or $300/month per unit 24 units lo" income affordable permanent housing with a monthly rent of $450/unit Horizons Housing 7 units transitional housing for previously homeless families, rent is 20% of their adjusted monthly income. The average rent is $ 91.20 7 With regard to personal property, state the purpose for which the property is being used and whether income is derived from the use of any such property by individuals, groups or otherwise If so, give all details Van is used to transport clients to and from activities, appointments, children's program activities. support groups Taurus is used to pick up and deliver food, donated goods 8 Is the organization exempt from taxation pursuant to Section 501 (c) of the Internal Revenue Code of 1954? If so, attach documentation Yes. See attached 9 Has the ABC Board issued a current annual alcohol beverage license for the service of alcohol beverages for use on the property from which tax exemption is here sought) No VIO'D 10. Is any director or officer of the agency paid compensation in excess of a reasonable allowance for salaries or other compensation? No. Board of Directors are unpaid volunteers. 11. Does any part of the earnings, exclusive of salaries, of such organization inure to the benefit of any individual? If so, list what portion and to whom for each of the past three years. No. 12. What portion of the service provided by such organization is generated by funds received from donations, contributions, or local, state, or federal grants? Donations shall include the providing of personal services or the contribution of any in-kind or other material services. 100% 13. Does the organization provide services for the common good of the public? If so, explain in detail including in or explanation a listing of the services provided, the cost of the services to the recipient or method of determining cost of the services to the recipient, and any other details you deem pertinent. Per unit cost (cost = persons sheltered per day) as determined by persons providing shelter $13.00 per person per day. 14. What part, if any, of the activities of the organization involves carrying on propaganda, or otherwise attempts to influence legislation? None. This organization is prohibited from carrying on these activities. 15. Has the organization ever participated in, contributed to, or intervened in any political campaign on behalf of any candidate for public office? If the answer is yes, please provide any qualifying information you deem necessary. No. 16. State the organization's rule, regulation, policy, or practice concerning discrimination on the basis of religious conviction, race, color, sex or natural origin. See attached. 17. List the name, business address and business telephone of the president and secretary of the corporation/ organization as well as the managing officer. Samaritan House, Inc. 2697 International Parkway, Parkway III Suite 108 Virignia Beach, VA 23452 (757) 430-2642 Ellen C. Ferber, Executive Director (NOT an officer or director of the Board) 18 In addition to the above, please provide the following information. (a) A copy of the organization's most recent audited financial statement (i e , current balance sheet and income and expense statement for the organization's last fiscal period) See Attached. (b) A detailed listing of the current salaries and/or other compensation of the officers and directors of the organization. In addition, please specify as to each officer or director so listed, the bases of the listed salary or compensation (i e , annually, per meeting, hourly, commission, etc) None. No officers or directors of Board of Samaritan House are compensated in any way. Services are on volunteer basis only. (c) List the salary ranges of each employee position classification and list the number of full-time and part-time employees in each such classification. See attached (d) Specify what percentage of gross income of the organization was required to pay real and property taxes for each of the last three years. 0%. This organization was exempt from paying real and personal property taxes under its prior corporate name (Virginia Beach Ecumenical Housing, Inc.) (e) Explain in detail why the City Council of the City or Virginia Beach should recommend to the General Assembly of Virginia that this organization should be exempt from real and personal taxation in the City of Virginia Beach. Please include in your explanation, the services provided by the organization. See attached opinion letter from corporate council of Samaritan House, Inc. and brochures. This form was prepared by Ellen C. Ferber whose title with the organization is Executive Director (Signatureli SAMARITAN HOUSE, INC. EMPLOYEE SALARY LIST NAME TITLE SALARY Ellen Cospito Ferber Executive Director $63,190.08 FT Novella Beaver Assistant Director $44,550.00 FT Maureen Hanson Secretary $25,983.12 FT Judith Schorr Volunteer Coordinator/ $32,739.12 FT Community Liaison Carolyn Harrison Victim Advocate Assistant $18,717.12 FT Carol Winkelsas Case Manager $27,222.00 FT Beverly Tillman Case Manager $24,531.12 FT Therese Filthaut Executive Associate $25,999.92 FT Rosemary Reed Victim Advocate Assistant $19,921.92 FT Lisa Carter Williams Victim Advocate $25,000.00 FT Alexandra Martin Victim Advocate $25,000.00 FT Leonard Johnson Maintenance Supervisor $21,657.60 FT Bertha Brown Employment Coach/ $24,531.12 FT FEP Project Theresa Stewart Attorney (Project VELA) $27,000.00 FT Sondra Johnson House Manager $19,200.00 PT Joe Elliott Maintenance Assistant $20,640.00 PT Joseph Turko Accounts Payable $13,500.00 PT Felicia LaGarde Aftercare Case Manager $24,537.12 FT Trudy McClelland Victim Advocate $30,000.00 FT Kimberly Greene Victim Advocate $24,537.12 FT Lori Nichols Staff Secretary $22,999.92 FT Michele Brooks Paralegal $24,000.00 FT Tina Hood Children's Advocate $23,500.08 FT Jennifer Gagnon Children's Advocate Assistant $ 9,100.08 PT ORGANIZATION Samaritan House, Inc. By: Name Ellen C. Ferber Title Executive Director Date December 28, 1997 STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: William J. Holmes -- being duly sworn, deposes and says that he/she is the President (title) of the Board of Directors of Samaritan House, Inc. (legal name of ownership organization) named in the within entitled application; that he has read the foregoing information sheet and knows the contents thereof; and that the same is true to his own knowledge except as to the matters herein stated to be alleged upon information and belief, and as to those matters he believes it to be true. o@f Subscribed and sworn to before me this 28th day of December, 1997. My Commission @i-res 6 SAMARITAN HOUSE, INC. FINANCIAL REPORT I i JUNE 30, 1997 1 1 i I CONTENTS Page INDEPENDENT AUDITOR'S REPORT FINANCIAL STATEMENTS Statements of financial position Statements of activities 3 Statements of cash flows 4 and 5 Statements of functional expenses 6 Notes to financial statements '7 12 Frederick B. Hill & Company, P.C. Certified Public Accountants 500 E. M" Stmt, Suit4 1630 Norfolk. V@a 23510-2272 Phom (757) 640-25M Fm (767) @2529 INDEPENDENT AUDITOR'S REPORT To the Board of Directors Samaritan House, Inc. Virginia Beach, Virginia We have audited the accompanying statements of financial position and cash flows of Samaritan House, Inc. as of June 30, 1997 and 1996, and the related statement of activities and functional expenses for the year ended June 30, 1997. These financial statements are the responsibility of Samaritan House, Inc.'s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and cash flows of Samaritan House, Inc. as of June 30, 1997 and 1996, and the results of its activities for the year ended June 30, 1997, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated July 25, 1997 on our consideration of Samaritan House, Inc.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Norfolk, Virginia July 25, 1997 SAMARITAN HOUSE, INC. STATEMENTS OF FINANCIAL POSITION June 30, 1997 and 1996 ASSETS 1997 1996 Cash and cash equivalents $ 62,099 $ 77,233 Grants receivable 13,350 52,728 Other receivables 24,529 31,365 Inventories of house pins, at cost 2,597 1,289 Prepaid expenses and deposits 8,149 6,613 Grants reeivable, restricted to investment in land and buildings 0 200,000 Contributions receivable, less allowance of $5,000, restricted to investment in land and buildings 4,735 151,045 Land, buildings and equipment, net of accumulated depreciation of $139,705 (1996 $101,167) (Note 5) 2,074,551 661,911 TOTAL ASSETS $ 2,190,010 $ 1,182,184 LIABILITIES AND NET ASSETS Accounts payable and accrued expenses $ 27,139 $ 29,515 Refandable advance, program services 8,793 0 Line-of-credit (Note 8) 40,000 0 Construction-line-of-credit (Note 9) 0 159,727 Current portion of long-term debt (Note 10) 150,000 0 Long-tenn debt, less current maturities (Note 10) 550,000 0 FHLB Loan (Note 11) 39,900 39,900 TOTAL LIABILITIES 815,832 229,142 NET ASSETS Unrestricted 1,356,093 549,269 Temporarily restricted (Note 7) 18,085 403,773 TOTAL NET ASSETS 1,374,178 953,042 TOTAL LIABILITES AND NET ASSETS $ 2,190,010 $ 1,182,184 See Notes to F@cW Statements SAMARITAN HOUSE, tNC. STATEMENTS OF ACTIVITIES Year Ended June 30, 1"7, with Comparative Totals for 1"6 1997 1996 Temporarily Unrestricted Restricted Totals REVENUES, GAINS, AND OTHER SUPPORT Contributions and grants $ 997,191 $ 51,201 $ 1,048,392 $ 896,942 Royalties from the sale of consigned goods (Note 3) 261,892 0 261,892 231,614 Donated facilities and services (Note 2) 53,400 0 53,400 67,000 Rental income 79,865 0 79,865 13,382 Special events, net of direct costs of $3,023 3,351 0 3,351 5,133 Other 1,610 0 1,610 2,841 Net assets released from restrictions: Satisfaction of building acquisition restrictions 346,310 (346,310) 0 0 Satisfaction of building renovation restrictions 37,851 (37,851) 0 0 Satisfaction of program restrictions 52,728 (52,728) 0 0 TOTAL REVENUES, GAINS, AND OTHER SUPPORT 1,834,198 (385,688) 1,448,510 1,216,912 EXPENSES AND LOSSES Program services 723,960 0 723,960 611,669 Management and general 279,868 0 279,868 182,813 Fund raising 23,546 0 23,546 44,967 TOTAL EXPENSES AND LOSSES 1,027,374 0 1,027,374 839,449 CHANGE IN NET ASSETS 806,824 (385,688) 421,136 377,463 NET ASSETS at beginning of year, as previously reported 549,269 403,773 953,042 561,037 Capitalization of construction costs expensed in prior period (Note 13) 0 0 0 14,542 NET ASSETS at beginning of year, as adjusted 549,269 403,773 953,042 575,579 NET ASSETS at end of year $ 1,356,093 $ 18,085 $ 1,374,178 $ 953,042 See Notes to Financial Statements SAMARITAN HOUSE, INC. STATEMENTS OF CASH FLOWS Years Ended June 30,1997 and 1996 1997 1996 CASH FLOWS FROM OPERATING ACTIVITIES Increase in net assets $ 421,136 $ 377,463 Adjustments to reconcile increase in net assets to net cash provided by operating activities: Depreciation 43,849 25,918 Donated property 0 (6,037) Provision for uncollectible promises to give 0 5,000 Grants restricted for long-term purposes 0 (37,951) Contributions restricted for long-term purposes 0 (357,191) (Gain) loss on sale of property and equipment 1,444 (1,198) Decrease in grants receivable 39,378 2,980 (Increase) decrease in other receivables 6,936 (11,357) Increase in prepaid expenses and deposits (1,536) (1,111) Increase (decrease) in accounts payable and accrued expenses (2,376) 23,461 Increase (decrease) in refundable advances (29,058) 33,100 Other, net (1,308) (243) Net cash provided by operating activities 479,365 52,944 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (757,933) (226,837) Proceeds from sale of property and equipment 0 7,224 Proceeds from sale of investments 0 4,034 Net cash used in investing activities (757,933) (215,579) CASH FLOWS FROM FINANCING ACTIVITIES Net principal payments on lines-of-credit (119,727) (31,345) Proceeds from contributions and grants restricted for investment in property and equipment 384,161 217,070 Net cash provided by financing activities 264,434 195,725 Net increase (decrease) in cash and cash equivalents (15,134) 23,090 Cash and cash equivalents: Beginning 77,233 54,143 Ending S 62,099 $ 77,233 (continued) SAMARITAN HOUSE, tNC. STATEMEENTS OF CASH FLOWS Years Ended June 30, 1"7 and 1"6 1997 1996 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash payments for: Interest (net of $6,159 (1996 $10,362) capitalized) $ 25,510 $ 1,834 SUPPLEMENTAL SCHEDULE OF NONCASH INVESTTNG AND FINANCING ACTIVITIES Cost of real property acquired $ 850,000 $ 0 Long-term debt assumed (700,000) 0 $ 150,000 $ 0 See Notes to Financial Statements, SAMARITAN HOUSE, INC. STATEMENT OF FUNCTIONAL EXPENSES Year Ended June 30, 1997, with Comparative Totals for 1996 1997 Program Services supporting semces Totals 1996 Shelter and Management md counseimg and Gen@ R&Bing Servi@ Salaries $ 361,656 $ 76,218 $ 10,775 $ 448,649 $ 378,408 Payroll taxes 26,708 7,993 824 35,525 28,745 Group Insurance 0 25,648 0 25,648 21,762 Total salaries and related expenses 399,364 109,859 11,599 50,922 429,915 Groceries 14,623 0 0 14,623 10,599 Supplies 9,430 9,374 425 19,229 20,416 utilities 60,026 617 0 60,643 44,767 Repairs and Maintenance 24,435 0 353 24,788 27,099 Insurance 8,150 14,718 0 22,868 14,630 Interest expense 24,391 1,l19 0 25,510 1,834 Licenses and taxes 123 0 0 123 6,710 Direct assistance 52,708 0 0 52,708 48,955 Accounting and auditing 0 61,525 0 61,525 55,500 Uncollected accounts and pledges 5,699 0 235 5,924 11,936 Conferences and training 20,057 2,464 145 22,666 9,885 Dues and subscriptions 2,580 1,902 1,787 6,269 741 Property management fees 9,012 0 0 9,012 6,000 Legal fees 756 2,049 200 3,005 1,997 Rent expense 44,050 54,480 0 98,530 86,143 Printing and postage 1,260 5,867 5,935 13,062 14,329 Advertising and promotion 0 0 2,116 2,116 0 Auto expense 8,830 136 0 8,966 8,912 Moving and hauling 3,113 0 0 3,113 1,457 Storage fees 4,354 0 0 4,354 2,855 Other expenses 8,436 5,482 751 14,669 9,851 Total expenses before depreciation 690,387 269,592 23,546 993,525 813,531 Depreciation of Buildings and equipment 33,573 10,276 0 43,849 25,918 Total expenses $ 723,960 $ 279,868 S 23,546 S 1,027,374 $ 839,449 See Notes to Financial Statements. SAMARITAN HOUSE, INC. NOTES TO FINANCIAL STATEMENTS Note 1. Nature of Activities and Significant Accounting Policies Nature of Activities Samaritan House, Inc. (formerly Virginia Beach Ecumenical Housing, Inc. T/A Samaritan House) is a nonprofit corporation organized under Virginia law for the purpose of developing and operating emergency shelters to serve the citizens of the City of Virginia Beach. Samaritan House, Inc. also provides counseling and housing services to victims of domestic violence. The Corporation is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. The Corporation is a certified agency of the United Way of South Hampton Roads. Summary of Significant Accounting Policies Basis of Accounting The Corporation's financial statements have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables, and other liabilities. Financial Statement Presentation Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117 Financial Statements of Not-for-Profit Organizations. Under SFAS No. 117, the Corporation is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Cash and Cash Equivalents For purposes of the Statement of Cash Flows, the Corporation considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents NOTES TO FINANCIAL STATEMENTS Land, Buildings and Equipment and Depreciation Purchased land, buildings and equipment are recorded at cost. Donations of property and equipment are recorded as support at their estimated fair value at the date of donation. Such donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. Absent explicit donor stipulations regarding how long those donated assets must be maintained, the Corporation reports expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. The Corporation reclassifies temponuily restricted net assets to unrestricted net assets at that time. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets as follows: Buildings 30 to 40 years Building improvements 7 to 40 years Furniture and equipment 5 to 10 years Restricted and Unrestricted Revenue and Support Contributions are recognized when the donor makes a promise to give to the Corporation that is, in substance, unconditional. Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the same reporting period in which the support is recognized. All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions. Federal and state grant awards are classified as refundable advances until expended for the purpose of the grants since they are conditional promises to give. Allowance for Uncollectible Contributions Receivable The Corporation uses the allowance method to determine uncollectible promises receivable. The allowance is based on prior years' experience and management's analysis of specific promises made. NOTES TO FINANCIAL STATEMIENTS Expense Allocation The costs of providing various programs and other activities have been summarized on a functional basis in the Statement of Activities and in the Statement of Functional Expenses. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Note 2. Donated Facilities and Services Donated facilities and services meeting the requirements for recognition are reflected in the financial statements at their estimated fair market value on the date of donation. For 1997 and 1996, the estimated value of donated facilities and services recorded may be summarized as follows: 1997 1996 Auditing and tax services $ 6,000 $ 7,000 Office space 9,600 9,600 Lease value of HUD properties 37,800 50,400 S 53,400 $ 67,000 No other amounts have been recognized in the financial statements for donated services since they did not meet the criteria for recognition under SFAS No. 116. However, a substantial number of volunteers have donated significant amounts of their time in the Corporation's program services and fund raising activities. Note 3. Royalties From the Sale of Consigned Goods In 1994 the Corporation renegotiated an agreement with Thrift Store City (a Virginia general partnership) to sell its contributions of household discards and miscellaneous general merchandise on a consignment basis for 8% of the gross sales of such merchandise. The Corporation earned royalties of $261,892 from total sales of $3,273,650 of consigned goods during the year (1996 $231,614 and $2,895,000, respectively). Note 4. Support From Governmental Units The Corporation receives approximately 60% of its support from Federal, state and local governments. A significant reduction in the level of this support, if this were to occur, may have a significant effect on the Corporation's programs and activities. Included in grant income is $32,407 from the state shelter support program (SSG) (1996 $39,976). NOTES TO FINANCIAL STATEMENTS Note 5. Land, Buildings and Equipment A summary of land, buildings and equipment at June 30, 1997 and 1996 is as follows: 1997 1996 Land $ 477,638 $ 117,849 Buildings and improvements 1,617,676 532,817 Furniture and equipment 96,442 89,912 Automobiles 22,500 22,500 2,214,256 763,078 Less accumulated depreciation 139,705 101,167 $ 2,074,551 $ 661,911 Note 6. Capitalized Interest The total amount of interest capitalized during 1997 was $6,159 (1996 $20,804). Total interest charged to expense for the year was $25,510 (1996 $1,834). Note 7. Restrictions on Net Assets Temporarily restricted net assets are available for the following purposes: 1997 1996 Investment in land and buildings $ 4,735 $ 351,045 Support of program services 13,350 52,728 $ 18,085 $ 403,773 Note 8. Line-of-Credit The Corporation has a S40,000 line-of-credit with a bank with interest at prime plus 2%. The balance of this note at June 30, 1997 was $40,000. Note 9. Construction Line-of-Credit The Corporation obtained a $349,000 construction line of credit which was used to finance the acquisition and renovation of the Horizon House. At June 30, 1996, $159,727 was outstanding on this line, with an interest rate of prime plus 2%. Monthly principal payments of $2,208 were made until October 31, 1996. At that time, the balance of the note was paid in full. NOTES TO FINANCIAL STATEMENTS Note 10. Long-Term Debt Note payable to individual, $150,000 due in January 1998, monthly interest only installments at 8.25% through January 2004, secured by real property S 700,000 Less current maturities 150,000 $ 550,000 Maturities required on long-term debt as of June 30, 1997 are as follows: 1998 $ 150,000 1999 0 2000 0 2001 0 2002 0 Later years 550,000 $ 700,000 Note 11. FHLB Loan The FHLB Loan is a note payable to a bank under the Federal Home Loan Bank (FHLB) program and is secured by a deed of trust. There are no installments of principal or interest payable as long as the Corporation remains in compliance with the terms of the loan. The note matures on February 28, 2024 and will be forgiven at that time if it is determined that the loan proceeds have been used in compliance with the FHLB loan application. Note 12. Lease Commitments The Corporation is currently leasing office space and office equipment under noncancelable agreements. The future commitments for these leases are as follows: 1998 $ 76,012 1999 66,277 2000 40,459 2001 3,968 $186,616 Total rent expense paid in 1997 for all leases was $52,146 (1996 $35,730). NOTES TO FINANCLAL STATEMIENTS Note 13. Prior Period Adjustment An adjustment was made to beginning 1996 net assets for $14,542 in order to capitalize certain expenses associated with the construction/rehabilitation of a building that was placed in service during 1996. Note 14. Change in Accounting Principles In 1996, the Foundation elected to adopt Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. Under SFAS No. 117, the Corporation is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. In addition, the Corporation is required to present a Statement of Cash Flows. As permitted by this new statement, the Corporation has discontinued its use of fund accounting for financial statement purposes and has, accordingly, reclassified its financial statements to present the three classes of net assets required. This reclassification had no effect on the change in net assets for the year. The Corporation also adopted SFAS No. 116, Accounting for Contributions Received and Contributions Made, in 1996. In accordance with SFAS No. 116, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions. The adoption of this statement had no effect on the change in net assets for the year. Note 15. Comparative Amounts The amounts shown for 1996 in the accompanying statements of activities and functional expenses are included to provide a basis for comparison with 1997 and are not intended to present all information necessary for a fair presentation of these 1996 statements in conformity with generally accepted accounting principles. Samaritan House "For nine months, the infant grows inside the womb until it is cramped and quite bent over on itself. For hundreds of thousands of American children, that length represents the longest rest ever to be had, the longest stay in any one place." AFTER CARE SERVICES " ... Like a Bridge Over Troubled Waters ...." Fifty percent of all families leaving shelters across the nation will be homeless again within a year WITHOUT ADEQUATE SUPPORT SERVICES. The goal of Samaritan House's After Care Services program is to provide that needed support to families in the community. After Care support includes home visits for up to one year after discharge from shelter, to assist with crisis intervention, financial assistance, help with finding community resources, furniture, children's services, transportation and more. Most families report these Support Services are a real life-line for them. After Care support also enables staff to advocate with land- lords in the community to provide housing to families they may not have considered leasing to without that additional support. Without After Care support, we know 50% of our families will be homeless within one year of discharge. After three years of providing these essential services, we have found 75% have remained self-sufficient in their own homes. STAGE II HOUSING "I need a year or so, then YES, I can make it." - Shelter resident In 1988, Samaritan House initiated its Stage II program. Stage II Housing offers families with "removable barriers" to permanency an opportunity to rent for up to 18 months at 30 percent of their adjusted income. Given the rights and responsibilities of tenancy, families are able to establish sound credit, become upwardly mobile in the job market, or secure training for a better job. Stage II houses approximately ten families. All Stage II families discharged to date are living in permanent housing and have remained self-sufficient. FAMILY ADVOCACY "Two roads diverged in a yellow wood ... I took the one less travelled by, and that has made all the difference." Robert Frost An integral part of the Samaritan House mission is to provide services that empower a family to reach and maintain self-sufficiency. While families are in shelter, they receive supportive counseling, assistance with finances and resources, linkage to other community agencies, assistance with job skills, employment and housing. Eighty-five percent of all families leaving the shelter are placed in permanent housing. Decisions, choices, options, alternatives ... these are the core of empow- erment based services. We trust families to know what is best for them- selves, for their children, for their future. No one chooses poverty, violence, hopelessness. These are the out- comes of lack of choice, opportunities, or options. Trained family advocates assist families in identifying choices, exploring options and alternatives, and in joint problem solving. In so doing, family advocates are continually reaffirming the message "We believe in YOU!" These components such as housing, employment, training, family support, children's services, and concrete recources such as financial assistance, and sustainable income. When the service plan is complete, it becomes a "road map" of sorts. At each "fork in the road," the family advocate works in partnership with the resident to make dreams a reality. Each day, families are offered assistance with transportation, linkage with services, support groups, educational groups covering topics such as "supportive parenting," "budgets," self-defense,""employment skills," and more. The families in shelter tell the family advocacy staff what they feel they need help with, and together a community education plan is formulated. Family Advocates work closely with area churches, Social Services, Housing Department, Department of Mental Health, Substance Abuse Services, Court Services, Legal Advocates, the Public School System, as well as providers in neighboring cities to assure a successful transition to permanent housing free of domestic violence. PROJECT KIDS "65% of all homeless are children under the age of 10." Children are resilient, optimistic and flexible by nature. It is easy to overlook how profoundly homelessness and domestic violence shat- ter their young lives. But in shelter life, the fallout is evident Children become withdrawn or act out. They become ridden with fear and often regress. Project KIDS (Knowing Is Doing Something) is our attempt to reach Out To the children and provide them with love, play and laughter it offers the kids a place to be kids! Our Children's Advocate and her many volunteers offer the children recreation, tutoring, field trips, a therapeutic play group and a support group for child victims of domestic violence. We especially welcome the support of the community in serving our "KIDS". Volunteer hands and hearts have built play-gyms, provided transportation and mentoring, Volunteers have trans- formed themselves into bunny rabbits and Santa Clauses and most importantly children are embraced by loving arms at every opportunity. EMERGENCY SHELTER "Home ain't where you live. It's that place you can rest your head and not be afraid." - Shelter resident Sadly, despite the increased number of Samaritan House shelter beds, 12 people are turned away for every person sheltered. As of 1993, 610 people were sheltered for up to 45 days in one of six Samaritan House shelters. Forty-two percent of these families were victimized by domestic violence. Fifty-eight percent were displaced due to homelessness. We turned away over 5,000 people because we simply had no room to shelter them. Why is the need escalating? Families are rendered homeless as a result of unemployment, under employment, lack of affordable housing, evictions or family illness. A leading cause is also domestic violence. The alarming rate of poverty in our nation often leads to homelessness. Children lead the ranks of the homeless -- 65 percent of all homeless are children under the age of 10. Families with little income cannot find affordable housing, do not have adequate health care and are often unable to secure affordable day care if they work. The average rent for a family of four far exceeds even a full minimum wage earner's ability to pay for rent, child care and other necessities. SAMARITAN HOUSE-S.O.S. "Violence - a family tradition we can do without." During the Vietnam War 58,000 Americans were killed. During that same period of time, 51,000 women and children were vic- timized by domestic violence. One in five women is physically battered! One in three is emotionally, psychologically or verbally abused. I The American Medical Association has identified domestic vio- lence as a top priority, as has the March of Dimes. More women are admitted to Americas emergency rooms as a result of domes- tic violence than as a result of rape, muggings and all accidents combined. Domestic violence is also a leading cause of birth defects - many pregnant women are beaten throughout their pregnancy. Although divorced and separated women compose only 7% of the population in the United States, they account for 75% of all battered women and report being battered 14 times as often as women still living with their partners.(Patsy Klaus & Michael Rand, Special Report: Family Violence, Bureau of Justice, 1992) Women who leave their batterers are at a 75% greater risk of be- ing killed by the barterer than those who stay. (Barbara Hart, 1988). Currently there are 2,000 battered women in America who are serving prison time for defending their lives against their batterers. (Stacey Kabat, Remarks from presentation at Harvard School of Public Health, June 1991) FBI statistics indicate that women convicted for killing their male partners are frequently sentenced to longer prison terms than are men. (Angela Browne, When Battered Women Kill, 1987). Up to 50% of all homeless women and children in this country are fleeing domestic violence (Elizabeth Schneider, Legal Reform Efforts For Battered Women, 1990). Yet, there are nearly three times as many animal shelters in the United states as there are shelters for battered women (Senate Judiciary Committee Hearings, 1990). (over) SERVICES DIRECTORY "We are but a small part of the solution" Crisis Intervention: 24-hour Crisis Hotline, Emergency Response Program . 430-2120 Domestic Violence Services: Community Outreach (Victim Advocacy, Virginia Beach Police Department) ... ...... ..................................... . . ....427-8029 S.O.S. Emergency Shelters ................................. ......430-2120 Community Support Groups for Victims of Domestic Violence .1 ...... ......... @ I..",. ".. @@@ I ....... 430-2120 Community Education/Speakers Bureau ........ .. .. .430-2642 Emergency Shelter Services: 24--hour Hotline/Intake ... ............ .......... .... ... ...... 430-2120 Family Advocacy/Case Management Support. . ....... ....430-2642 Community Education/Speakers Bureau.. .. .... .....430-2642 Project KIDS . . . ....... ..... ....... ....... . ..... . . . ......430-2642 After Care and Transitional Housing: Stage II Housing .... . ... .... ........................ . ...........430-2642 After Care Services.. ... . ................ ........... ... ...... 430-2642 Community Education/Speakers Bureau ...... ....430-2642 Volunteer Services Call Judy Schorr .... ......... .... ... .. ....... .. ... .. ........430-2642 OUR FUNDING " ... all things work together for the good ..." Samaritan House is funded from a myriad of sources. Approximately half of our operating budget comes from you, the community. These donations come from churches, civic groups, fraternal organizations and individuals. The other half of our budget comes from the United Way, the State Department of Social Services, the State of Housing, HUD and the City of Virginia Beach. Families are provided shelter, food, toiletries, personal needs, supportive services and financial assistance at an average cost of $13 per person, per day. Office space and other overhead costs are largely donated. Administrative costs and overhead are $.19 of every dollar. Most of our shelter facilities are leased for $1.00 per year. The others are owned by Samaritan House. - - - - - - - - - - - - - - - - - - - - - - Contribution Form Please accept my tax-deductible contribution, to Samaritan House in the amount of $25 $50 $100 $ 250 $ 500 I'd like to become a pledging supporter of Samaritan House. Please bill me at: $25 $50 $100 $250 $500 per month- per quarter Name --- Address City-- State Zip Please make checks payable to: Virginia Beach Ecumenical Housing, Inc. (Samaritan House) 2697 International Parkway, Parkway Two-Suite 107, Virginia Beach, VA 23452 OUR PHILOSOPHY "I Can See Clearly Now" Families come to Samaritan House through a number of avenues. They come from hospital emergency rooms, police referrals, referrals from city agencies, other shelters, or as a result of calling our Hotline. Not one of them ever dreamed they'd be setting foot into a shelter. They enter devastated, shame-filled and terrified. It is Samaritan Houses role to empower, to believe, to affirm and to accept. We do not see ourselves as "fixers". We trust Families know how to "fix" their own situations, and simply need the tools, resources and information to move forward. Our job is to mobilize and provide those resources in a non-victimizing manner. We call this "empowerment". Empowered with resources, services and housing options, provided by Samaritan House, families can truly "see clearly" and plan for their next steps. Families also attend weekly support groups, educational groups, and participate in children's activities. Peer support, developing bonds that continue after shelter, are critical to empowering those we serve yo truly "make it" on their own. Most families remain in shelters for 45 days. During that time, an array of services is provided to assist families in becoming inde- pendent and self-sufficient. OUR BEGINNINGS "If you have faith the size of a mustard seed ..." Faith brought together caring, outraged and devoted visionaries in 1983. These men and women represented their churches or syna- gogues. They were diverse in their beliefs and faith experiences, but they were united in their mission to provide a caring and healing environment for families and children who were homeless within the City of Virginia Beach. Incorporated in 1984 as Virginia Beach Ecumenical Housing, the stage was set to put faith into action. With the support of the City of Virginia Beach, the Citizenry of Virginia Beach and the interfaith community, Samaritan House opened its doors to homeless families in a private home serving four families. Volunteers, students, a small staff and a "hands on" board of directors provided a home to 100 families in its first year of operation. Since that time, five more shelters have opened, outreach services have been established, a full time children's program has been put into place, supportive services to families have been established, and Samaritan House has extended its mission to embrace victims of domestic violence as a primary population to be served, in addition to families who are homeless. In addition, transitional housing services are provided as well as after care support. Despite the many additional shelters and support to families, the need has escalated. Internal Revenue Service Department of the Treasury District Director Date: June 18, 1985 Employer ldentification Number 54-1291021 Accounting Period Ending July 31 Foundation Status Classification 509(a)(1) & 170(b)(1)(A)(vi) Advance Ruling Period Ends: July 31, 1986 Virginia Beach Ecumenical Person to Contact. Housing, Inc. R.D. Morris 3432 Virginia Beach Blvd. Contact Telephone Number Virginia Beach, Va. 23452 461-3770 Dear Applicant: Based on information supplied, and assuming your operations will be as stated in your application for recognition of exemption, we have.determined you are exempt from Federal income tax Under section 501(c)(3) of the Internal Revenus Code. Because you are a newly created organization, we are not now making a final determination of your foundation status under section 509(a) of the Code. However, we have determined that you can reasonably be expected to be a publicly supported organization described in section 509(a)(1) and 170(b)(1)(A)(vi).* Accordingly, you will be treated as a publicly supported organization, and not as a private foundation, during an advance ruling period. This advance ruling period begins on the date of your inception and ends on the date shown above. Within 90 days after the end of your advance ruling period, you must submit to us information needed to determine whether you have met the requirements of the applicable support test during the advance ruling period. If you establish that you have been a publicly supported organization, you will be classified as a section 509 (a) (1) or 509 (a) (2) organization as long as you continue to meet the requirements of the applicable support test. If you do not meet the public support requirements during The advance ruling period, you will be classified as a private foundation for future periods. Also, if you are classified as a private foundation, you will be treated as a private foundation from the date of your inception for purposes of sections 507(d) and 4940. Grantors and donors may rely on the Determination that you are not a private foundation until 90 days after the end of your advance ruling period. If you submit the required information within the 90 days, grantors and donors may continue to rely on the advance determination until the Service makes a final determination of your foundation status. However, if notice that you will no longer be treated as a section * see above organization is published in the Internal Revenue Bulletin, grantors and donors may not rely on this determination, after the date of such publication. Also, a grantor or donor may not rely on this determination if he or she was in part responsible for, or was aware of the act or failure to act that resulted in your loss of section * see above status, or acquired knowledge that the Internal Revenue Service had given notice that you would be removed from Classification as a section * see above organization. If your sources of support, or your purposes, character, or method of operation change, please let us know so we can consider the effect of the change on your exempt status and foundation status. Also, you should inform us of all changes in your name or address. As of January 1, 1984, you are liable for taxes under the Federal Insurance Contributions Act (social security taxes) on remuneration of $100 or more you pay to each of your employees during a calendar year. You are not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA). Organizations that are not private foundations are not subject to the excise taxes under Chapter 42 of the Code. However, you are not automatically exempt from other Federal excise taxes. If you have any questions about excise, employment, or other Federal taxes, please let us know. Donors may deduct contributions to you as provided in section 170 of the Code. Bequests, legacies, devises, transfers, or gifts to you or for your use are deductible for Federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code. You are required to file Form 990, Peturn of Organization Exempt from Income Tax, only if your gross receipts each year are normally more than $25,000. If a return is required, it must be filed by the 15th day of the fifth month after the end of your annual accounting period. The law imposes a penalty of $10 a day, up to a maximum of $5,000, when a return is filed late, unless there is reasonable cause for the delay. You are not required to file Federal income tax returns unless you are subject to the tax on unrelated business income under section 511 of the Code. If you are subject to this tax, you must file an income tax return on Form 990-T, Exempt Organization Business Income Tax Return. In this letter, we are not determining whether any of your present or proposed activities are unrelated trade or business as defined in section 513 of the Code. You need an employer identification number even if you have no employees. If an employer identification number was not entered on your application, a number will be assigned to you and you will be advised of it. Please use that number on all returns you file and in all correspondence with the Internal Revenue Service. Because this letter could help resolve any questions about your exempt status and foundation status, you should keep it in your permanent records. If you have any questions, please ccntact the person whose name and telephone number are shown in the heading of this letter. SinGerely yours, District Director Commonwealth of Virginia State Corporation Commission I certify the following from the Records of the Commission: On September 23, 1996, by amendment of its articles of incorporation, the name of VIRGINIA BEACH ECUMENICAL HOUSING, INC. wns changed to SAMARITAN HOUSE, INC.. Nothing more is hereby certified. an this September 24, 1996 Alillialli @trib@le, Qllrr[t ti-f ille CIS20444 ARTICLES OF AMENDMENT AND RESTATEMENT oF SAMARITAN HOUSE, INC. A Nonstock Corporation The undersigned person, pursuant to Chapter 10 of Title 13.1 of the Code of Virginia, hereby executes the following Amended Articles of Incorporation and sets forth: ARTICLE I The name of the Corporation is SAMARITAN HOUSE, INC. ARTICLE II The corporation is organized as a non-profit organization, exclusively for charitable purposes within the meaning of Section 501 (c) (3) of the Internal Revenue Code of 1986. The further purpose of this Corporation is the transaction of any and every kind of lawful business not required to be specifically stated in these Articles. The Corporation shall not be operated for the primary purpose of carrying on a trade or business for profit. The Corporation shall neither have nor exercise any power, nor shall it directly or indirectly engage in any activity that would (1) prevent it from obtaining exemption from federal income taxation as a corporation described in Section 501 (c) (3) of the Internal Revenue Code of 1986, or (2) cause it to lose such exempt status. No substantial party of the activities of the Corporation shall consist of carrying on propaganda, or otherwise attempting to influence legislation not shall it in any manner or to any extent participate in or intervene in (including the publishing or distribution of statements) , any political campaign on behalf of any candidate for public office; nor shall the Corporation engage in any activities that are unlawful under the applicable federal, state or local laws. References to provisions of the Internal Revenue Code of 1986 shall be deemed to include corresponding provisions of any statutes which succeed such provisions. No part of the net earnings of the Corporation shall inure to the benefit of or be distributed to any private person except the Corporation shall be authorized to pay reasonable compensation for services rendered and to make payment and distributions in furtherance of the purposes set forth herein ARTICLE III The Corporation shall have no members. ARTICLE IV The affairs of the Corporation shall be managed by a Board of Directors, who shall consist of no more than 21 individual directors. Each director shall serve a three year term after which the director's term may be renewed. ARTICLE V The Corporation shall indemnify, to the fullest extent permitted and required by the Virginia Nonstock Corporation Act, as such Act exists now or may hereafter be amended, its directors and officers who are made a party to any proceeding by reason of their office for acts or omissions performed in their official capacity. There shall be no liability for the acts or omissions of any office, director, committee member of employee of the Corporation in any proceeding brought by or in the right of the Corporation unless provided by the laws of the Commonwealth of Virginia, arising out of any single transaction, occurrence, or course of conduct pursuant to Section 13.1-870.1 of the Code of Virginia, as may be amended from time to time. ARTICLE VI Upon dissolution of the Corporation, the Board of Directors shall, after paying or making provision for the payment of all the liabilities of the Corporation, distribute the remaining assets of the Corporation for one or more exempt purposes within the meaning of Section 501 (c) (3) of the Internal Revenue Code, or corresponding Section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for public purposes. Any such assets not so disposed of shall be disposed of by the Circuit Court of the city in which the principal office of the Corporation is then located, exclusively for such purposes or to such organization or organizations, as said Court shall determine, which are organized and operated exclusively for such purposes. I C)ec - 22 - 9 Z 10:26A Houso, lr,c, P.01 ARTICLES OF INCORPORATION JUN 20 IM OF VIRGINIA BEACH ECUMENICAL HOUSING, INC. We hereby undertake to form a non-stock corporation under the provisions of Chapter 2 of Title 13.1 of the Code of Virginia, otherwise known as the Virginia Non-Stock Corporation Act, and to taht end set forth the following: ARTICLE I CORPORATE NAME The name of this corporation shall be: Virginia Beach Ecumenical Housing, Inc. ARTICLE II CORPORATE PURPOSE This corporation is organized as a non profit organization, to develop and operate an emergency shelter facility which will serve citizens in need of shelter within the City of Virginia Beach, Virginia; to coordinate the efforts of churches within said City to establishj and operate an emergency shelter; to coordinate with the Virginia Beach Department of Social Services in identifying and meeting emergency shelter needs; to maintain a liason with the Virginia Beach Department of Community Development. In furtherance of those goals and purposes, this corporation shall have the power to enter into contracts of every kind and description, including those for the purchase, improvement and sale of real property, which may be CITY OF VIRGIMA if ACH DWT. OF SOCIAL SE4tVICES DQ@-;12-97 10:32A P.01 ve. II;11)1 C," k@xpedi I i.i I (:()Tli IC c I, I o II wi '-II L.11,., r OJ)C I" Li L4 oii 4@.1' [,I I iIloii..r3rofit ot,g El (I I :@ ILi oil Tt)u I'LirV.I)cr@ I.-) L.i r I)osc- c)C t.iii.; i!i Ltio@ trat)sac@iott of zitly Lind evt-.i-y It I i-id of liawfiil t-@luired to bit spocificr,)Iy !;L;;Itcci ill @lit!z;tt (,)f tli@s corporation iiii@ltjdqs, t)itt@ j!@ t)ot l@owcr,!; :ill §l ).I -'@04 . 1 Lliu (:odt@ or Virginia 1950, is LimttndL!U. TI)L- ciorf)oi-,,L.luil Sltiill of I)itvit ii@it, C-X(:C,ci.se driy powlr nk@t- directly c,r i.nclir(tc,li.l.y ill any ac.Lli.vj.'Ly wlitc:li w<)Ulci, 1) it: f i,om obt.,.iiiii.i)rj ttx@iiil,t ic)ti froni Feclerzil .,:i ri-)ot-tit:iorl 6.T, tire Illt:LI'116] RLV",Il%lt! c,l@ 1ID5,)4 or; 2 so I 1. 10@. El S@4C:@t L-XCnlj,,t@ @L@, ARTICLE III MEMBERS stiall. Con:.;L-.t. or' ttiaj c)t' i,c:., I i @l I k)t,!; dc@ri@)rcL3 n@i I. i.ons ar)d Criki r'<:Ile@ w@ t,t I I ti t.1 I, I I y L@f Vir(j,i r) I a I,)t,(jv i cl i fig are,(: rgei)<:y 1. to I- !. I-v I I I C:C) l.ori OF Soci@,l. Sorvtr;,-!;. 'rl)c Ilo@jj-(l @i' -stia'll I)c LI)e Al)iD I i.c@, I. I. (@n ro t'- in(-iiil,)L. i'-.;l I I 1) @il 1),,@ I L Cc] L.L) 1'. v I (.,:,I Or S(!I" clecl..iklc i.1-ie for m6iiiber,bliar. §3, V.0t@pg Mombetlfi.@ul);4@l, bQ. @et, .@.ri thu I>yrXAwu of Phil, qgrppr*A4QA,,. DQ@-22-97 10:26A Sama@itan H.,,,,, p@02 ARTICLE IV DISTRIBUTION OF ASSETS UPON DISSOLUTION V)@iyillg Ot' itlbl<jrig pr,@v,.isic)ti For- II,,; UL' i@ll (I,-' of tllf@ ,ti of' till, Ltxc:Ltis@ivel.y t:o @lopt@riil,.,l cxt,-Jki:;:jvc.-ly fol, 01' @f@ol (c)(3) c@i' ARTICLE V REGISTERED AGENT AND REGISTERED OFFICER i-egirL@re(i of nC t]-ik. (,'i ty or V-it'giiiia Bctiirli, J2i" 1.@istcj.n Itoc4,1, 101 '.@:S 4', 1 'II t@ ii,stri,t c>l.' i L,s i.ti i I ......I I yi I C, wt.c) I z; @i r@.s.i rion t c)f' V i, i 1.1 IA 14:: V J r'q ii I WI) 0 *i :: I,)U.@@ i II(:: i I,(:g i.L, (;Ul,ccl Of 1.@ i C:t@ @,i f I,": ARTICLE VI BOARD OF DIRECTORS :j ci L,l iL@ COr-1,I)r , I wlt')Irl -,iliuj 1. I,I,t corporation. DirecLors of Lrit iZorpordLion sli"J I U@- el Ljy the meirtber represC%it;ative-s from etich denominaklic)ri or c:l)iiilc:lk provldinil oinc:rgcncy bhclter services to serve foi- teril-@ uJ: Lwcj r D@c-22-97 lOt26A Sama@litan House, Inc- P.03 iy I) j. I: .,,y I ni, r I ARTICLE VII INITIAL BOARD OF DIRECTORS llkJlllll(-'Y' C)I' Dit,k:cLoi"@ .I I,,o (,WC I ve of 4@4'7i Otivt: A). @i '@'z4 y Lot' v VA t:.k 1.1 lo I V i Irjit'liii vi)")Irljl@ VA I I illt),L c)OC) M,I,.4 IWI II l@@ A,IOJ I i,V I L L lotil v VA Flura Fl&ynie 2212 wintjoitl IJ I iacl@ Vi.r-<Ij,nia Beach, VA Dec-2@-9Z 10:27A --,aiiiaY A(),j c,, T,le fl. OZI t 1), M,i I') 11 401., vi Wi il.i.iitii:i 4 l@ (I r@.i r,i i ty. jt V;% vi i(11,i VA [it I I..!, ]((t IV,2 V i Vi@ ttiy I)OCI(J riii,s Lgi34, iii tl)c CLK@Y cil Vil'Uirlia 4( C 7;,- If you are a victim of abuse: GET SAFE ! The Safe Harbor Know the Safe Harbor Center hotline number: 430- 2120 a Program of Samaritan House Don't get trapped in a kitchen or bathroom. Plan escape route. The Safe Harbor Center is funded by the Family Violence Prevention Take your children with Fund (Victims of Crime Act,) you. through the State Dept. of Social Know a safe place to go. Services, The Virginia Law Foun- dation, the Tidewater Children's Have extra car keys and Foundation, the United Way of cash hidden away, use South Hampton Roads, and our them now. generous donors. For more infor- mation about Safe Harbor, or to 3145 Virginia Beach Blvd. Store important papers volunteer, call 631-0710 Virginia Beach, VA. and phone numbers with a trusted friend. Tell a Neighbor about his violent behavior. Arrange a signal so police Hours of Operation can be called if needed. 8:00 a.m. - 11:00 p.m. weekdays If all else fails and you Walk-Ins Welcome cannot escape, pretend to 24 HOUR HOTLINE! faint. IT MAY STOP THE ABUSE. 430-2120 Train older children to get to a safe place (pre- arranged,) and get help. UnitedWay Teach younger children how to dial 911, memorize their address and phone number. of South Hampton Roads The Safe Harbor Center A program of Samaritan House I I @n etc wzs a safe community place for families be th;t wayiga, .n. Domestic violence has aP you, or a one aft @r offers victims of destroyed enough lives. It has ha mff@ at the hands of wm@ reached epidemic proportions one @ was supposed to 6w, closinestic violence a wealth of in our Cities, and in our c"h and nurture you. A gwred resources and services which nation. trim was bmken. validate the @'s experience, Victims come from all 0 Every 9 ftmnds a woman in and giw her options and resources. 'Mis reduces isolation, social classes, economic this country is battered. and educational 42% of all women murdered gives victims a new found sense of backgrounds. Battering in this country @ murdered @r and control over their occur, in all ages, by a own lives, which ultimately results in elimination of domestic abuse for this and ethnic and husband or boyfriend. future generations. religious cultures. 75% of di women killed n a 0 97% of all women beaten muk of domestic abuse are Servic" offered at Safe H"bor try men do not come into UW AFRER they lime tried include: an emergency shelter to team. They want the abuse to Mom women enter our n& stop, but they are tion'g emergency rooms as a unwilling or unable to get result of domestic violence in- Free out@ *" than all other causes 0 Women stay with the em@ O&m than Support groups for women abuser because it is safer. gh and @ents.) and n. Violence escalates when 95% of all victims are @en, Individual advocacy and the victim attempts to beaten lyy men short term counseling leave. be physical, A wif help resource library . Economic dependence is Psychical. Emergency shelter in another reason why llw ARA reports 33 @ 37% of all Samaritan House's SOS women stay. Wwred "@n are pregnant @ ba@ Program a Often women feel llw @ of Di@ reports dat + Crisis intervention - 24 hours powerless and like they @tic violence is me of the per day have no options. They "&ng m@ of birth defects. 4 transportation to a safe place are isolated physically 0 Other community services Question 16 2.4 NONDISCRIMINATION POLICY 21 Be it hereby resolved that the Board of Directors, Virginia Beach Ecumenical Housing, Inc., (T/A Samaritan House), has had and will continue to have as its operating policy the following: All recipients of services of said corporation, including the public at large, program beneficiaries, volunteers and personnel shall not be subjected to discrimination because of their: race, color, creed, belief or religion, sex, national origin, age, mental or physical handicap, political affiliation or past participation in the discrimination complaint process. Further, effective immediately, program beneficiaries must be notified that they shall not, o the above grounds, (a) be excluded from participation in, (b) be denied the benefits of, or (c) be otherwise subjected to discrimination under Samaritan House programs or activities. They will also be notified that no qualified individual with handicaps shall, on the basis of handicap, be subjected to discrimination in employment or volunteer service under Samaritan House programs or activities. Further, no person may be denied employment on the basis of sex in connection with Samaritan House programs or activities. Lastly, program beneficiaries, staff, and volunteers will be notified that they have a right to file a discrimination complaint, as well as what the procedures for filing such a complaint are, if they feel they have been subjected to discrimination on any of the above named grounds. This notification shall be made a) annual in a Samaritan House Newsletter and b) in the Policy and Procedures Handbook of Samaritan House (to be signed and dated by all personnel). This resolution of the Board of Directors was made and passed on the 28th day of January, in the year 1991. Signature: Date: 18 (e) Centerfor Mary Elizabeth Lynch, Esq. Mediation Cape Henry Professional Centre ,Ott L aw 2244 Smistatcs Co@L - Suite 106 - Virginia Beach, Virginia 23451,1300 Telephone 7571496,3685 - Fax 757/496,8141 November 24, 1997 Larry Spencer, Esq. City Attorney's Office Municipal Center Virginia Beach, Virginia 23456 RE: Samaritan House's Tax Exempt Status Dear Mr. Spencer: I am writing in response to our phone conversation of last Friday, November 14, 1997, at which time you informed me that you believed the Samaritan House, Inc., is not exempt from real estate taxes due to the fact that the organization changed its name from Virginia Beach Ecumenical Housing, Inc., to Samaritan House, Inc. You stated to me that although the General Assembly has exempt Virginia Beach Ecumenical Housing, Inc. from property taxation, that exemption does not extend to the Samaritan House, Inc. I disagree. I have reviewed the statute and the recent case law regarding property exempt from taxation. Virginia Code Section 58.1-3650 sets out the requirements an organization must meet in order to acquire a tax exempt status. The statute does state that the requirements for tax exempt status shall be strictly construed in accordance with the provisions of Article X, Section 6(f) of the constitution of Virginia. I believe your position is based on the statute's language of strict construction. However, case law interpretation of the statute demonstrates that the statute's directive of "strict construction" applies to the underlying requirements involved in an organization obtaining tax exempt status. That is not this case. In this case, the organization has met the strict requirements necessary to obtain tax exempt status. The only issue here is that the organization changed its name from Virginia Beach Ecumenical Housing, Inc., to the Samaritan House, Inc. Virginia Beach Ecumenical Housing, Inc. has been trading as Samaritan House, Inc., for a lengthy period of time. I have offered to provide documentation of this fact to you. The organization decided to change its name to Samaritan House, Inc., because the Board of Directors felt that the community at large was more familiar with the name, Samaritan House, Inc. The name change Family Law S Divorce Mediation o Employment Law Mediation & Commercial Dispute Mediation Question 18 (e) was contemplated for that reason only, and not for any other purpose. To use the statute's language of strict construction in this instance to deny tax exempt status to the Samaritan House, Inc. is to undermine the purpose and intent of the General Assembly in granting tax exempt status to this organization. I believe we are in agreement that the purposes and activities of the Samaritan House, Inc., qualify the organization for property tax exempt status. The General Assembly granted tax exempt status to the organization based on the fact that the organization met the statutory requirements necessary to qualify for exemption from property taxation. The only change is the name of the organization, not its activities and/or mission. As a result, a strict construction of the statute to deny the Samaritan House, Inc. exemption from property taxation would result in a great injustice. This organization has met all requirements necessary to enjoy a tax exempt status under the law. As I stated to you on the phone, the Samaritan House, Inc. is prepared to apply for a change in the designation of its name under the statute. In addition, the organization will supply documentation to show that the Virginia Beach Ecumenical Housing, Inc. traded as Samaritan House, Inc., and that both organizations are one in the same. I look forward to hearing from you at your earliest convenience with respect to your office's decision regarding this matter. sincerely yours, Lynch MEL/ cc: Ellen Ferber 28 Item V-K.2. ORDINANCES/RESOLUTIONS ITEM # 43137 Upon motion by Vice Mayor Sessoms, seconded by Councilmtln Branch, City Council ADOPTED: Resolution of endorsement to the Commonwealth Transportation Board re The Ferry Plantation House Restoration, Phase I, as a proposed project for the Federal Transportation Enhancement Program (80%-20% match), authorized by the Intermodal Surface Transportation Efficiency Act (ISTEA). Voting: II -0 (By Consent) Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W. Harrison, Jr., Harold Heischober, Barbara M Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa A4 Strayhorn Council Members Voting Nay None Council Members Absent: None Janua 27, 1998 1 RESOLUTION OF ENDORSEMENT TO THE COMMONWEALTH TRANSPORTATION 2 BOARD FOR THE FERRY PLANTATION HOUSE RESTORATION, PHASE I PROJECT 3 AS A PROPOSED TRANSPORTATION ENHANCEMENT PROJECT 4 WHEREAS, the Virginia Department of Transportation, along with the Virginia 5 Department of Rail and Public Transportation and the Federal Highway Administration, has 6 announced the availability of Transportation Enhancement Funds for qualified projects; and 7 WHEREAS, approximately 15 million dollars may be available to Virginia localities for 8 transportation enhancement projects during the 1998-99 fiscal year; and 9 WHEREAS, the City Council has been advised that projects funded by this program require I 0 a local match, either in-kind or cash, of twenty percent; and I I WHEREAS, the City Council has been further advised and acknowledges that in the event 1 2 the City elects to cancel a project funded by this program prior to its completion, the City shall 1 3 be required to reimburse the Virginia Department of Transportation for funds expended for such 1 4 project; and 15 WHEREAS, the Metropolitan Planning Organization has endorsed the City's proposed 16 transportation enhancement project; and 17 WHEREAS, in accordance with Commonwealth Transportation Board construction 18 allocation procedures, a resolution of endorsement must be received from the City Council 19 before the Virginia Department of Transportation will program an enhancement project in the 20 applicant's locality; and 21 WHEREAS, the City Council recognizes the importance of transportation enhancement 22 projects as a way of integrating transportation into our community and natural environment. 23 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 24 VIRGINIA BEACH, VIRGINIA: That the Council hereby endorses to the Commonwealth 25 Transportation Board the Ferry Plantation House Restoration, Phase I proposed transportation 26 enhancement project. 27 ADOPTED by the Council of the City of Virginia Beach, Virginia, this 27 day of 28 January 1998. APPROVED AS TO CONTENTS APPROVED AS TO FQRM STGNA !JR'[ Commonwcalth of Virginia TRANSPORTATION Enhancement P R O G R A M APPLICATION FORM FOR CANDIDATE PROJECT 1. APPLICANT (Gmup, Agency, etc.) Name and Address CITY OF VIRGINIA BEACH PLANNING DEPARTMENT, ROOM 115 2405 COURTHOUSE DRIVE, VIRGINIA BEACH, VA. 23456 2 RESPONSIBLE PERSON/TITLE Telephone Number (757) 427 - 4621 ROBERT J. SCOTT, DIRECTOR OF PLANNING 3. ENHANCEMENT ACTIVITY NUMBERS tsee instructions. Circle ail that apply).- 0 3 4 (D 7 8 10 4. PROJECT LOCATION AND DESCRIPTION Project Title: FERRY PLANTATION HOUSE RESTORATION, PHASE 1 Project Size (Size Of PrOjeCt/Acreage): 6,000 square feet (.14 acre) Project Location Project Description (Include Streets, County and Municipalities..) (attach site location map): CITY OF VIRGINIA BEACH SEE ATTACHMENT 4136 CHESWICK LANE (add additional pages as needed) 5. PRIORITY NUMBER of this project is 1 The total number of projects submitted 1 6. DATE OF PUBLIC HEARING JANUARY 27, 1998 Attach copy of public no6ce. Have the local government bodies officially supported/endorsed this project.? Yes X No Attach documentation including resolution. Also document support from any other civic Or Public interest groups or organizations. Has the MPO officially endorsed the project? Yes X No NA Attach documentation (if applicable). 7. PROJECT CONSTRUCTION/IMPLEMENTATION SCHEDULE (month and year) Begin Design 8/98 Begin Construction/Implementation 9/98 Estimate completion date of project 6/99 8. OWNERSHIP Who will own/maintain the completed project? OWNERSHIP BY CITY OF VIRGINIA BEACH, MAINTAINANCE IN PARTNERSHIP WITH THE FRIENDS OF THE FERRY PLANTATION HOUSE, INC. (F.O.F.P.H. Inc.) 9. ESTIMATED TOTAL COST OF THE PROJECT Non-federal participation (applicant match) $ 93,550 (minimum 20% of cost) Federal participation requested $ 108,450 Total project cost $ 200,000 Non-federal Funds Status List of Source(s) (confirmed/anticipated) Amount CITY OF VIRGINIA BEACH CONFIRMED $68,550 CITY OF VIRIGNIA BEACH CONFIRMED $ 2,000 VA. BEACH FOUNDATION CONFIRMED $ 1,000 F.O.F.P.H. Inc. ANTICIPATED $22,000 Project cost breakdown (sub-totals): Planning and Design $ 30,000 Land Acquisition $ 0 Utility Relocation $ 0 Construction/Implementation $170,000 Describe in detail any tangible in-kind match you propose for the match requirement. SEE ABOVE FOR CONFIRMED PARTICIPATION AND FUNDING 10. BENEFITS SEE ATTACHMENT How does the candidate project support the eligible category and satisfy the Intermodal Surface Transportation Efficiency Act definition for Transportation Enhancement Activities? Please address benefits and public use anticipated. Use additional 8½ x 11 sheets if needed. 11. SIGNATURE (Responsible Person) Date 1-9-98 MAILING ADDRESS AND TECHNICAL ASSISTANCE Please mail seven copies of your completed application package to the following address: Mr. Robert O. Cassada Programming and Scheduling Division Virginia Department of Transportation 1401 East Broad Street Richmond, Virginia 23219 Please mark all attachments with project name and location. 4. PROJECT LOCATION AND DESCRIPTION - (Attachment to application) TITLE: Ferry Plantation House Restoration, Phase 1 LOCATION: City of Virginia Beach, 4136 Cheswick Lane on the west side of the western branch of the Lynnhaven River (east of Independence Boulevard, north of Pembroke Boulevard) This project is located in the City of Virginia Beach. Funds are being requested for Phase 1 of the restoration of a estimated 175-year old house to comply with city housing codes and preserve it as an historic structure. The Ferry Plantation area was once an integral part of the colonial transportation system when a ferry operated to carry people and goods across the western branch of the Lynnhaven River. The area has seen activity relating to recorded history since the 1642. Several buildings have occupied the site, including a brick courthouse, tavern, jail, and manor house. The remaining structure, known as the Ferry Plantation Manor, was constructed circa 1830. The Plantation house has been vacant for ten years and is now boarded up after being frequently vandalized. Much work is needed, including stucco repair, porch replacement, installation of a heating and cooling system, plumbing and electrical work, and repair and restoration of the Ferry Plantation to the 1800s period. The restoration is needed to realize the main objectives of the project: 1) restore the house to period standards and 2) preserve and use the house as a home for an archival collection of Princess Anne County history, archaeological displays, and site history displays. The purpose of the Ferry Plantation House project would be to feature the contributions of historical, environmental, and transportation themes to the local, regional and statewide area. One of the main features would present the important function of the Lynnhaven River as a transportation system. The Ferry Plantation would have been the destination for commercial, legal and social life of this area as ferry packets traveled the Lynnhaven waterways in the 17th, 18th, and 19th centuries, bringing passengers, mail and cargo to its dock. A partnership between historical and environmental groups would be formed to enable the museum to display artifacts (especially those recovered on site and now in storage in Colonial Williamsburg), maintain a research library, and provide educational programs. 10. BENEFITS - (Attachment to application) TITLE: Ferry Plantation Manor Restoration, Phase 1 LOCATION: City of Virginia Beach, 4136 Cheswick Lane on the west side of the western branch of the Lynnhaven River (east of Independence Boulevard, north of Pembroke Boulevard) The Ferry Plantation Manor is located near the Western Branch of the Lynnhaven River. It is the site of the original house built in 1780 by William Walke. During that period the local government was Princess Anne County, since incorporated as the City of Virginia Beach. The present house, built on or near the same foundation, was built circa 1830. The site has a long history. With the topography of Princess Anne County, it was necessary to have ferries for travel. Known as Witchduck Point, in 1642 Savill Gaskin operated a ferry to and from this point across the Lynnhaven River. In 1730 Charles and Elizabeth Smyth deeded to the Princess Anne County "a two-acre plot at the ferry" for the site for a brick court building. Historically referred to as Ferry Farm, it was the third courthouse to serve Princess Anne County and the first to be made of brick. In 1735, 'Moore' sold to Thomas Martin the Ferry, reserving to Moore the bridge 'now building over ferry." One of the earliest duties of the Parish vestries was the maintenance of ferries. Evidence from a painting showing the Ferry Farm prior to 1830 indicates the location of the ferry that ran to Little Neck, on the opposite shore of the Western Branch of the Lynnhaven River. The only surviving structure on the property is a brick farmhouse which dates to circa 1830. It is one of the few remaining central-passage plans from the Federal period in Virginia Beach and one of the most elaborate houses remaining from this period. Because the Ferry Plantation Manor has remained vacant for ten years, it is in poor condition. It was recommended as eligible for the National Register of Historic Places by a consulting firm that completed a reconnaissance architectural survey for the City of Virginia Beach and the State Department of Historic Resources in 1992. Restoration of the house is important for its historic significance and as a reminder of the role the house, the surrounding property, and the location played in the cultural and commercial life of early Princess Anne County. With the restoration of the house, plans could be made to make the house available to the public (especially schools) for educational functions. A study room or library would be featured, presenting a collection of local historical data, with an emphasis on the significance of early transportation systems, such as the use of ferries and similar modes of transportation, in the development of local and regional lifestyles and economies. Artifacts collected from a 1987 Colonial Williamsburg Foundation salvage excavation of an 18th- century cellar located on the grounds of the Ferry Planation Manor could be displayed at the house. The archaeological materials recovered represent one of the best preserved findings of 18-century artifacts discovered in the Middle Atlantic region. Other artifacts recovered in 1997 by an Archaeological Society of Virginia will also be displayed. Emphasis would also be placed on environmental education programs in partnership with local organizations since there is a close relationship between environmental and historical preservation, The site borders on the Western Branch of the Lynnhaven River and provides an excellent opportunity to relate the significance of the city's waterways in both the historical and environmental interpretations. CCMA xz lpaitls Proj,@c@, FERRY PLANTATION MANOR, RESTORATION Loca,i)r @'RGINIA BEA(,H, VIRGLNIA EA CK EA Y in, no, side irojpct: FI:RRY PLANTia"ION MANOR RI-'.STORATION o(.,ation: @'IRGINIA Bl:,ACH, VIRGINI@ ago vow FERRY PLANTATION HOUSE RESTORATION, PHASE 1 4136 CHESWICK LANE, VIRGINIA BEACH, VA. COMMUNITY SUPPORT FOR FERRY PLANTATION HOUSE CMSS ARCHITECTS, Virginia Beach Preparing pro bono a master plan for restoration for adaptive re-use. VIRGINIA SOCIETY OF AIA - HISTORIC RESOURCES COMITTEE Will hold all-day meeting on site February 13, 1998, at Ferry to study and make recommendations for preservation and restoration. VIRGINIA WESLEYAN COLLEGE, Norfolk Spring semester 1998 history intern class is researching the history of the Ferry Plantation site. Recorded history dates to 1642. A work-study student (with career plans to be an archaeologist) will spend 1998 spring semester working at Ferry. TIDEWATER COMMUNITY COLLEGE, Chesapeake Interior design class is using Ferry Plantation House as the spring semester 1998 project to research period design and provide sketches for interior spaces. VIRGINIA BEACH FOUNDATION Has awarded Friends of the Ferry Plantation House, Inc. two grants: 1996 - $1,000 to pay in part for historical architects' report. 1997 - $1,000 to pay in part for collection of information and video footage to be used in planned video documentary of the history of the site. SHERIFF FRANK DREW'S COMMUNITY WORK FORCE, Virginia Beach In 1997 the crawl space rubble was removed as well as the foundation planting. Will provide additional manpower for coming phases of the project. ARCHEOLOGICAL SOCIETY OF VIRGINIA, Nansemond Chapter Completed two projects in 1997: 1. a 5'x5' dig uncovered part of the intact brick floor of the English basement of the Walke manor house, ca 1780 which preceded Ferry Plantation House on the site and burned in 1828. 2. Supervised screening and collection of artifacts recovered in removal of crawl space rubble. ASV plans additional archaeological work in 1998. OLD DONATION FARM HOMEOWNERS ASSOCIATION, Virginia Beach This community which surrounds Ferry Plantation House has asked the Friends to prepare a master landscaping plan to include the entrance to the community, their common open spaces, their pier and boat ramp on the Lynnhaven River, as well as the land and parking area belonging to Ferry. The association is supportive of the proposed plans for restoration of Ferry Plantation House which is the focal point of their neighborhood. HISTORIC REVIEW BOARD, Virginia Beach Passed a resolution in 1997 in support of the plans of the Friends to "maintain this historic resource." continued FERRY PLANTATION HOUSE RESTORATION, PHASE 1 4136 CHESWICK LANE, VIRGINIA BEACH, VA. COMMUNITY SUPPORT FOR FERRY PLANTATION HOUSE (continued) ARAGONA GARDEN CLUB, Virginia Beach Has made a financial commitment for $500 for landscaping. KELLAM HIGH SCHOOL, junior English class Volunteering to help with elbow grease during restoration and help with November 1997 "PUMPKIN FLING IN PUNGO" fundraiser sponsored by the Friends. FRIENDS OF THE FERRY PLANTATION HOUSE, INC. A nonprofit organization organized January 1995 for the purpose of saving and restoring to the community this historic house and site. FOFPH, Inc. signed a public-private partnership in January 1997 with the City of Virginia Beach, owner of Ferry Plantation House, for the purpose of resto- ration of the property. Many citizens and local businesses have given early help either at no or low cost for work on the house and for the first annual "PUMPKIN FLING IN PUNGO" sponsored by the Friends. This event included Hayrides into History, Pumpkin Games, Auction, Line Dancing, Flea Market, Plant Sale, etc. FERRY PLANTATION HOU@j@. 4136 CHFSWTCK F,ANF, 'R( am a Archeologists find 200-year-old remains Wm liou". LIM of plantation house has beer has the tbr @ to p as far as two BY HOLLY WMM ment of @nc dug a way down, d= &a wen few inches @ ThW found a below tht CORRESPONDENT brick floor, which they bam is 42 to 48 VIRGINIA BEACH - He didn't find part of the manor house's @ p=d. The initial obj@ was me,. gold or the way to Thin but what basement. but the finds lead to mor, @ Eckard uncovered mw the 'It really was Md@ past four days is definitely a @cL '@ is part of the eady histo- @ons. piece of the pu=le. treasure. "Xs one -"a Eckard, a local amateur archae- ry@V SaK @ pie=" olo@ s=t the weekend and part can@ Hazzard said when glass of Tues6y di@ outside the his- ftW in a arm tonc Ferry Plantation House in was n= hopes of finding artifacts, as well as A the foundation. The 167-year-old wit ra house, on Old Donation Farm, is be- du the R ing restored by Friends of the Fer- of the ry Plantation House, a nonprofit foundation. group that hlmd Eckard to look for "Now you can sm any premous pie= of history be- about rootm how the place w fore the clean-up begins. laid out," he adde& "It's @ pef He didn't find the foundation, ing back one page of the histc but Eckard did discover a toppled T=ILII bnck partition wall hand-wrought And, if any artifacts dating t nails and a c am layer that in- F4. fom 1780 could be found, the eluded melted glass, chunks of would be @de= supporting t burned bricks and mortar - proof @s @c @ which that the 1780 manor house burmed cludes co@ witch Grace Sht down wood and one of the =mtys m( "It's evidence of what I thought VP promment early residents, Anthc was there," said Eckard, 26, presi- Walke. dent of the Nansemond chapter of what comes ne= is m the hw the Archaeological Society of of Eckard and Jo Howmn. pro v@ 'ARGIKIA dent of the Friends group. nm ge= got better Tuesday, "That was just one tee when Eckard and another archaeol- SUFFOLK square," said of the 5-i ogist David Hazzard. of the Ports- hole. 'It leaves you wanting mor mouth office of the Virginia Depart lei w co DC cn -i Q) -00 cc a)0 r4 mCU 0 ai u z r co 2t .0 00 0014 co cn w r4 c0 (n Ua .. CU,Co r.0 U)0r_ rL 0)0-c 00) c0co ma0 0'a .C00) U) co zx: 4) 0) 00 U) .0 a(U r. 3t00 'T .0 rn 4) co U) 00 fi) 0) 0000 EVa (ur E.00 r=0cma) m 3c 0. 00 :> co U u0 < a)0r-0C LL3 XWCl) Wr- - 00 a)00 -C 00 cu -Hc r"Lr) 00 co M UCE = wm > 0rC.x .00<4)E u0 w 0VI -0 0) m -co .< 03t vco 0la Q) (1)C.00 u 30m co C4> r_ 00 0 a) 3:-co 000m (1)uU) 0m 0)X ,o "X0)u Cl) 043 it 29 - Item V-L. PUBLIC HEARING ITEM # 43138 PLANNING Mayor Meyera E. Oberndorf DECLARED a PUBLIC HEARING on PLANNING 1. DAVISVILLE PROPERTIES, L.L.C. NON ACTION ITEM CHANGE OF ZONING DEFERRED BY PLANNING 2a. BAYVILLE FARMS ASSOCIATES, L.C. STREET CLOSURE 2b. R. LEWIS BOGGS STREET CLOSURE 2c. POTTERS ROAD INVESTMENT GROUP STREET CLOSURE 2d THE RUNNYMEDE CORPORATION STREET CLOSURE 3. JOHN B. AND JUNE H. MYERS VARIANCE 4. ABUNDANT LIFE MINISTRIES CONDITIONAL USE PERMIT 5. FAITH MISSION C.O.C.D. CONDITIONAL USE PERMIT 6. MARTHA L. MARCEL CONDITIONAL USE PERMIT January 27, 1998 30 Item V-L. PUBLIC HEARING ITEM # 43139 PLANNING Upon motion by Vice Mayor Sessoms, seconded by Councilman Harrison, City Council APPROVED in one motion Items 2, 3, 4, and 5 of the PLANNING BY CONSENT. Item 2a. was DEFERRED until the City Council Session of February 10, 1998. Item 2b was AUTHORIZED for an additional 180 Day Deferral until the City Council Session of July 14, 1998. Item 2c was AUTHORIZED for an additional 180 Day Deferral until the City Council Session of July 14, 1998. Item 2d was AUTHORIZED for an additional 180 Day Deferral until the City Council Sevsion of July 14, 1998. Item 2e was APPROVED subject to compliance of conditions within 180 days (July 14, 1998). Voting: 11-0 Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W. Harrison, Jr., Harold Heischober, Barbara M Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louiva A4 Stra Council Members Voting Nay None Council Members Absent. None January 27, 1998 31 Item V-L.1. PUBLIC HEARING ITEM # 43140 PLANNING City Council took NO ACTION, as this application was DEFERRED BY PLANNING COMMISSION 14 January 1998. Application of DAVISVILLE PROPERTIES, L.L.C. for a Change of Zoning District Classification from R-10 Residential District and B-2 Community Business District to Conditional B-2 Community Business District at the Southwest intersection of First Colonial Road and Republic Road, containing 11.681 acres more or less (LYNNHAVEN BOROUGH). January 2 7, 1998 - 32 Item V-L.2.a. PUBLIC HEARING ITEM # 43141 PLANNING Upon motion by Vice Mayor Sessoms, seconded by Councilman Harrison, City Council DEFERRED TWO WEEKS until the City Council Session of February 10, 1998, Ordinance upon application of BAYVILLE FARMS ASSOCIATES, L.C. for the discontinuance, closure and abandonment of a portion of First Court Road, subject to compliance of conditions by January 27, 1998. Ordinance upon application of Bayville Farms Associates, L.C. for the discontinuance, closure and abandonment of a portion of First Court Road beginning at the southern boundary of Shore Drive and running in a southwesterly direction a distance of 1165.07 feet. Said parcel contains 1.42 acres. BAYSIDE BOROUGH Voting. 11-0 (By Consent) Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K Parker, Vice Mayor William D. 5evsoms, Jr and Louisa M Stravhorn Council Members Voting Nay None Council Members Absent. None Janua 27, 1998 33 Item V-L.2b. PUBLIC HEARING ITEM # 43142 PLANNING Upon motion by Vice Mayor Sessoms, seconded by Councilman Harrison, City Council AUTHORIZED AN ADDITIONAL 180-DAY DEFERRAL to the City Council Session of July 14, 1998, Ordinances re discontinuance, closure and abandonment upon application of R. LEWIS BOGGS (Harris-Teeter) (VIRGINIA BEACH BOROUGH). (Parcels 1 and 2). Parcel 1. Alleyway located between 29th and 30th Streets beginning at the Western boundary of Arctic Avenue and running in a Westerly direction to the Eastern boundary of Holly Road. Parcel 2: Alleyway located 140.15 feel North of 27th Street beginning at the Eastern boundary of Holly Road and running 49.93 feet in an Easterly direction (Parcels 1 and 2 contain 6086.45 square feet). Voting. 11-0 (By Consent) Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W. Harrison, Jr., Harold Heischober, Barbara M. Henley, Louiv R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Nancj, K Parker, Vice Mayor William D. Sessoms, Jr and Louisa Al Stravhorn Council Members Voting Nay None Council Members Absent. None January 27, 1998 34 Item V-L.2c. PUBLIC HEARING ITEM # 43143 PLANNING Upon motion by Vice Mayor Sessoms, seconded by Councilman Harrison, City Council AUTHORIZED AN ADDITIONAL 180-DAY DEFERRAL to the City Council Session of July 14, 1998, Ordinance upon application of the POTTERS ROAD INVESTMENT GROUP for the discontinuance, closure and abandonment of a portion of Potters Road. Application of Potters Road Investment Group for the discontinuance, closure and abandonment of a portion of Potters Road beginning at the southeast intersection of Potters Road and Wesley Drive and running in a easterly direction a distance of 270 feet more or less. Said parcel contains 6.577.56 Square feet. LYNNHAVEN BOROUGH Voting. 11-0 (By Consent) Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W. Harrison, Jr., Harold Heischober, Barbara M Henley, Louis R. Jones, Reba S McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M @traVhorn Council Members Voting Nay. None Council Members Absent: None January 27, 1998 35 Item V-L.2.d. PUBLIC HEARING ITEM # 43144 PLANNING Upon motion by Vice Mayor Sessoms, seconded by Councilman Harrison, City Council AUTHORIZED AN ADDITIONAL 180-DAY DEFERRAL to the City Council Session of July 14, 1998, ordinance upon application of THE RUNNYMEDE CORPORATION for the discontinuance, closure and abandonment of the following streets: Petition of The Runnymede Corporation for the discontinuance, closure and abandonment of the following streets: Pine Street: Beginning at the Southern boundary of Fourth Street and running 457.03 feet in a Southerly direction to the Northern boundary of South Boulevard. Poplar Street: Beginning at the Southern boundary of Fourth Street and running 456.99 feet in a Southerly direction to the Northern boundary of South Boulevard. Said streets contain 1.385 acres. LYNNHAVEN BOROUGH. Voting: 11-0 (By Consent) Council Members Voting Aye John A. Baum, Linwood 0. Branch, III, William W. Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McCianan, Mayor Meyera E. Oberndorf, Nancy K. Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. 5travhorn Council Members Voting Nqi@ None Council Members Absent, None Janua 27, 1998 36 Item V-L-2.e. PUBLIC HEARING ITEM # 43145 PLANNING Upon motion by Vice Mayor Sessoms, seconded by Councilman Harrison, City Council APPROVED, subject to compliance in 180 days (14 July 7998), petition of DEFORD LIMITED, a Virginia Corporation for the discontinuance, closure and abandonment of a portion of Wishart Point Court Petition of DeFord Limited, a Virginia Corporation for the discontinuance, closure and abandonment of a portion of Wishart Point Court beginning on the Eastern boundary of Battle Royal Circle and running in an easterly direction a distance of 538.18. Said parcel is 30 feet in width and contains 14.711 square feet. BAYSIDE BOROUGH The following conditions shall be required: 1. The City Attorney's Office will make the final determination regarding ownership of the underlying fee. The purchase price to be paid to the City shall be determined according to the "Policy Regarding Purchase of City's Interest in Streets Pursuant to Street Closures," approved by the City Council. Copies of the policy are available in the Planning Department. 2. The applicant is required to resubdivide the property and vacate internal lot lines to incorporate the closed area into the adjoining parcels. The plat must be submitted and approved for recordation prior to final street closure approval. 3. The applicant is required to verify that no private utilities exist within the right-of-way proposed for closure. Preliminary comments from the utility companies indicate that there are no private utilities within the right-of-way proposed for closure. If private utilities do exist, easements salisfactory to the utility company must be provided. 4. An acceptable access way for future maintenance of the lakes, and any needed impoundment easements, must be established prior to the street being closed. 5. Closure of the right-of-way shall be contingent upon compliance with the above-stated conditions within 180 days of approval by City Council (14 July 1998). Voting. 11-0 (By Consent) Council Members Voting Alve, John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M Henley, Louis R. Jones, Reba S McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr and Louisa A4 Stravhorn Council Members Voting Nali None Council Members Absent: None Januar .y 2 7, 1 998 37 Item V-L.3. PUBLIC HEARING ITEM # 43146 PLANNING Upon motion by Vice Mayor Sessoms, seconded by Councilman Harrison, City Council APPROVED Application of JOHN B. and JUNE H. MYERS for a Variance to Section 4.4(b) of the Subdivision Ordinance which requires lots created by subdivision meet all requirements of the City Zoning Ordinance. Appeal to Decisions of Administrative Officers in regard to certain elements of the Subdivision Ordinance, Subdivision for John B. & June H. Myers. Property is located at 4012 Richardson Road. BAYSIDE BOROUGH The following condition shall be required: 1. The final subdivision must identify right-of-way dedication to provide for an ultimate right-of-way of 40 feet along Richardson Road. Approximately 8 feet of additional right-of-way is needed. Voting: 11-0 (By Consent) Council Members Voting Aye John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf,' Nancy K. Parker, Vice Mayor William D Sessoms, Jr and Louisa M Stra,vhorn Council Members Voting Nal@ None Council Members Absent: None January 2 7, 1998 38 - Item V-L.4. PUBLIC HEARING ITEM # 43147 PLANNING Upon motion by Vice Mayor Sessoms, seconded by Councilman Harrison, City Council ADOPTED an Ordinance upon application of ABUNDANT LIFE MINISTRIES for a Conditional Use Permit. ORDINANCE UPON APPLICATION OF ABUNDANT LIFE MINISTRIES FOR A CONDITIONAL USF PERMIT FOR A CHURCH AND A SCHOOL RO1982165 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of Abundant Life Ministries for a Conditional Use Permit for a church and a school on the north side of Indian River Road, 150 feet more or less west of Military Highway. Said parcel is located at 6530 and 6532 Indian River Road and contains 3.636 acres. KEMPSVILLE BOROUGH. The following conditions shall be required: 1. The church is limited to the 2,916 square-foot unit indicated on the submitted site plan. 2. The church is limited to 215 seats. 3. The conditional use permit is approved for a period of one (1) year. This Ordinance shall be effective in accordance with Section 107(f) of the Zoning Ordinance. Adopted by the Council of the City of Virginia Beach, Virginia, on the Twenty-seventh of January, Nineteen Hundred and Ninety-Seven. Voting: 11-0 (By Consent) Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndor .f Nancy K, Parker, Vice Mayor William D. Sessoms, Jr and Louisa A4 Stravhorn Council Members Voting Nay, None Council Members Absent. None January 2 7, 1998 39 - Item V-L.5. PUBLIC HEARING ITEM # 43148 PLANNING Upon motion by Vice Mayor Sessoms, seconded by Councilman Harrison, City Council ADOPTED an Application of FAITH MISSION C.O.C.D. for a Conditional Use Permit: ORDINANCE UPON APPLICATION OF FAITH MISSION C.O.C.D. FOR A CONDITIONAL USE PERMIT FOR A CHURCH RO1982166 BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of Faith Mission C.O.C.D. for a Conditional Use Permit for a church on the south side of Lake Edward Drive, 134.76 feet more or less west of Newtown Road. Said parcel is located at 575 Lake Edward Drive and contains 7,370 square feet. BAYSIDE BOROUGH The following conditions shall be required: 1. Category IV landscaping shall be installed along the entire West side of the building. A planting bed consisting of shrubs and ornamental grasses not to exceed three feet (3) in height will be installed on the Northwest corner of the site, adjacent to the alley and Lake Edward Drive. 2. The maximum number of seats in the church shall be 60. This Ordinance shall be effective in accordance, with Section 107 (f) of the Zoning Ordinance. Adopted by the Council of the City of Virginia Beach, Virginia, on the Twenty-seventh of January, Nineteen Hundred and Ninety-Seven. Voting. 11 - 0 (By Consent) Council Members Voting Aye John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker Vice Mayor William D. Sessoms, Jr. and Louisa Al Stra@,horn Council Members Voting Nqy. None Council Members Absent None January 27. 1998 40 Item V-L.6. PUBLIC HEARING ITEM # 43149 PLANNING Martha Marcel, the applicant represented herself Carl Pearson, U-Haul Representative, spoke in support Upon motion by Council Lady Strayhorn, seconded by Councilman Branch, City Council DEFERRED until the City Council Session of February 10, 1998, Ordinance upon application of MARTHA L. MARCEL for a Conditional Use Permit. ORDINANCE UPON APPLICATION OF MARTHA L. MARCEL FOR A CONDITIONAL USE PERMIT FOR VEHICLE AND TRAILER RENTALS (U-HAUL) Ordinance upon application of Martha L. Marcel for a Conditional Use Permit for vehicle & trailer rentals (U-Haul) on Parcels A4 and A5, Parcel 4, Cedar Hill Section A. Said parcel is located at 5660 Indian River Road and contains 4,821 acres. KEMPSVILLE BOROUGH Voting: 10-1 Council Members Voting Aye, Linwood 0. Branch, III, William W. Harrison, fr., Harold Heischober, Barbara M Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Nancy K Parker, Vice Mayor William D Sessoms, Jr. and Louisa Al Sir(lvhorn Council Members Voting Nov. John A. Baum Council Members Absent. None January 27, 1998 41 Item V-M. APPOINTMENTS ITEM # 43150 Upon NOMINATION by Vice Mayor Sessoms, City Council REAPPOINTED: C. Max Bartholomew, Jr. J. Scottie Griffin Helen P. Shropshire Gene A. Woodard Three-year Terms 02/01/98 - 01/31/2001 HUMAN RIGHTS COMMISSION Voting: 11-0 (By Consent) Council Members Voting 4))e John A. Baum, Linwood 0. Branch, Ili, William W Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reha S McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker, Vice Mayor William D. Sessoms, Jr and Louisa A4 Stravhorn Council Members Voting Nay None Council Members Absent. None Janua 27, 1998 42 Item V-N.1a. NEW BUSINESS ITEM # 43151 Upon motion by Vice Mayor Sessoms, seconded by Councilman Branch, City Council ADDED TO THE AGENDA: Resolution of Appreciation to Virginia Beach Delegation for their support of funding and other issues in the 1998 Virginia General Assembly. Voting. 11-0 Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., I-Iarold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K Parker, Vice Mayor William D. Sessoms, Jr and Louisa M 5travhorn Council Members Voting Nay None Council Members Absent. None January 2 7, 1998 - 43 Item V-N.1b. NEW BUSINESS ITEM # 43152 Upon motion by Councilman Branch, seconded by Vice Mayor Sessoms, City Council ADOPTED: Resolution of Appreciation to Virginia Beach Delegation for their support of funding and other issues in the 1998 Virginia General Assembly. Voting.- 11-0 Council Members Voting Aye John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan Mayor Meyera E. Oberndorf Nancy K, Parker, Vice Mayor William D. Sessoms. lr. and Louiva A4 Strai@horn Council Members Voting Nay. None Council Members Absent: None Janua 2 1998 1 A RESOLUTION EXPRESSING CITY COUNCIL'S 2 APPRECIATION TO THE MEMBERS OF THE 3 CITY'S LOCAL DELEGATION TO THE GENERAL 4 ASSEMBLY FOR THEIR SUPPORT OF STATE 5 FUNDING FOR VARIOUS CITY PROJECTS AND 6 PROGRAMS 7 WHEREAS, members of the City s local delegation to the 8 General Assembly have introduced bills to amend the State's 9 proposed FY 1998-2000 Biennial Budget by the inclusion of funding 10 for a Rudee Inlet Dredging Study ($650,000); the Virginia 21 Contemporary Center for the Arts ($250,000); Operating expenditures 12 ($1,800,000) and capital expenditures ($4,000,000) for the Virginia -,3 Marine Science Museum; and the Huricane Protection Project 14 ($10,000,000); and 15 WHEREAS, all of these projects and programs are of vital 6 importance to the continued growth of the City's economy, in -7 general, and its tourism, in particular. 18 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 19 CITY OF VIRGINIA BEACH, VIRGINIA: -0 Z. That City Council hereby expresses its appreciation to 21 the members of the City's local delegation to the General Assembly 22 for their support of State funding for these important City 23 programs and projects, and for all of their other efforts on behalf 24 of the City and its citizens. 25 BE IT FURTHER RESOLVED: 26 That the City Clerk is hereby directed to transmit a 27 certified copy of this resolution to each member of the City's 28 local delegation to the General Assembly. 29 Adopted by the Council of the City of Virginia Beach, 0 Virginia, on the 27 day of January, 1998. 1 CA- 6902 32 ORDIN\DATA\NONCODE\PROJECTS.RES 33 R-4 34 PREPARED: JANUARY 27, 1998 @5 @ 6 44 Item V-N.2.a. NEW BUSINESS ITEM # 43153 Upon motion by Councilman Jones, seconded by Councilman Branch, City Council ADDED TO THE AGENDA: Ordinance authorizing the City Manager and the City Attorney to procure the services of a firm to provide lobbying services for the 1998 Virginia General Assembly; and, TRANSFER necessary funds, not to exceed $25,000. Voting: 11-0 Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, William W Harrison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancy K. Parker. Vice Mayor William D. Sessoms, Jr and Louisa A4 Stravhorn Council Members Voting Nay None Council Members Absent. None January 2 7, 1998 45 Item V-N.2.b. NEW BUSINESS ITEM # 43154 Upon motion by Councilman Jones, seconded by Councilman Branch, City Council ADOPTED: Ordinance authorizing the City Manager and the City Attorney to procure the services of a firm to provide lobbying services for the 1998 Virginia General Assembly; and, TRANSFER necessary funds, not to exceed $25,000. Voting: 9-2 Council Members Voting Aye. John A. Baum, Linwood 0. Branch, III, Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf Nancv K Parker. and Louisa M Strayhorn Council Members Voting Nay. William W Harrivon, Jr. and Vice Mayor William D .@eysoms, Jr Council Members Absent.- None January 2 7, 1998 1 AN ORDINANCE AUTHORIZING THE CITY 2 MANAGER AND THE CITY ATTORNEY TO 3 PROCURE THE SERVICES OF A FIRM TO 4 PROVIDE LOBBYING SERVICES ON BEHALF 5 OF THE CITY OF VIRGINIA BEACH DURING 6 THE 1998 SESSION OF THE GENERAL 7 ASSEMBLY 8 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA 9 BEACH, VIRGINIA: 10 That the City Manager and the City Attorney are hereby 11 authorized to procure the services of a firm to provide lobbying 12 services on behalf of the City of Virginia Beach during the 1998 13 Session of the General Assembly, provided that the cost of such 14 services shall not exceed $25,000; and 15 BE IT FURTHER ORDAINED: 16 That the City Manager is hereby authorized to transfer 17 funds in an amount not to exceed $25,000 from the General Fund 18 Reserve Contingencies for the purpose of procuring such services. 19 Adopted by the Council of the City of Virginia Beach, 20 Virginia, on the 27th day of January, 1998. 21 CA-6909 22 ORDIN\NONCODE\LOBBYING.ORD 23 R-1 24 JANUARY 27, 1997 25 26 APPROVED AS TO LEGAL 27 SUFFICIENCY: 28 29 ment of Law 46 - Item V-N.3. NEW BUSINESS ITEM # 43155 Dale Castellow, Planning, referenced his memorandum relative Paratransit Services. Approximately fifty calls have been received, not only from citizens of Virginia Beach but also Norfolk and Chesapeake. TRT has exceeded its budget in the Paratransit area by approximately $113,000. The calls have come primarily from the optional service area. As the ADA law reads at the present time, TRT is required to provide service within 3/4 of a mile of the existing fixed bus route. Outside of this 3/4 mile area, the service becomes optional. Several years ago, this City Council elected to provide additional resources to provide handi-ride services outside of that mandatory area. The Americans with Disabilities Act, in transit circles, has been described as another unfunded federal mandate. In 1993, when Congress adopted the Americans with Disabilities Act, the Federal Transit Administration, in an attempt to comply with the act, enacted new guidelines regarding the provision and operation of Fixed Route Transit and Paratransit services in metropolitan areas. The most significant changes focused on a couple of particular areas: The first being regulations that require all vehicles to be equipped with lifts and other devices intended to make them accessible for disabled riders. A second regulation, which focused more specifically on Paratransit services, prescribes minimum service levels for Paratransit services. Specifically, these regulations mandated that metropolitan transit organizations provide Paratransit services within 3/4 mile of any fixed bus route and that such services maintain the same hours of operation as fixed route bus services. One other regulation pertinent to Paratransit services continues the requirement that riders meet certain disability criteria, and meet certain geographic requirements as well. Virginia Beach and Chesapeake have a larger optional service area and there is higher demand. In Norfolk and Portsmouth, widespread bus routes translate into less optional area. Last year, City Council funded 100% of TRT's request. TRT underestimated the number, of citizens who would be utilizing this service. Council Lady Strayhorn advised TRT underestimated by an enormous amount. They included a 10% increase. The ridership was an increase of 42% in the optional areas. This is with a 39% reduction in Federal funds and a 25% reduction in State funds. TRT has a contractual obligation to balance its budget with the City's annual appropriation for services. Council Lady Strayhorn has spoken with L. A. Kimball, Executive Director, who advised the Commissioners were under the understanding a Public Hearing would be conducted relative the shortfall for Paratransit. This was not scheduled. TRT has apologized. A press release concerning an apology will be published in the newspaper advising the City Councils of Chesapeake and Virginia Beach were not responsible for this shortfall. The service offered before the interruption will be continued. Ridership will increase from 55,000 to 78,000 trips with a total cost amount from $514,000 to $730,000 in Virginia Beach. The average trip for the optional areas is 10 1/2 miles. Mr. Castellow advised he received a draft copy of a Press Release, which is expected to beforwarded within the next two days to correct this misinformation. Information has been received that many individuals utilizing handi-ride do not necessarily qualify for "handi-ride". Mr. Castellow would prefer to see a recertification program in the near future. Handi-Ride was essentially intended as a mobility of last resort. The service should be directed to the citizens who need it. The wheel chair equipped huses are available, but not being utilized. This entailed a cost of $30,000 per bus. The theory was the Paratransit service would only carry the individual to the closest bus route. This is not happening and is a problem nationally. The average subsidy is $10.31 for Paratransit services. Mr. Castellow advised information regarding the subsidy will be provided for just the optional area. It has been concluded this will be significantly higher than $10.31. Mr. Castellow advised TRT has revenue sources, i.e, advertising on wrapped buses. Fare revenues have exceeded the budget estimates, for many year. TRT is considering utilizing their retained earnings to see this Paratransit service problem through June 30, 1998. Council Lady Strayhorn advised, and Mr. Castellow reiterated, the new budget and a plan for a recertification program for Paratransit services will be presented. Mayor Oberndorf advised the TRT representative attended the Mayor's Commission for the Disabled and advised all members would be facing recertification for utilization of handi-ride. January 27, 1998 c->f 'Vii-g4ii-ii@ January 30, 1998 I ESLIE L LILLEY MUNICIPAL CENTER Cl@ ATTORNEY BUILDING 1 2401 COURTHOUSE DRIVE 'I'he Honorable Meyera E. Oberndorf, Mayor VIRGIN A BEACH VA 23456 @4 f757) 427 4@l Members of City Council FAX (757) 426 @-, Municipal Center TDD (7571 427 4305 Virginia Beach, Virginia 23456 Re: Acceptance of Proposal for Lobbying Services Dear Mayor Oberndorf & Members of Council: Subsequent to your last meeting, Bob Matthias interviewed the principals for both LeClair Ryan and Vectre Corporation with regard to their proposals for providing lobbying services. Mr. Matthias also contacted members of the City's Delegation to solicit their thoughts on which of these firms would best be suited to provide the services needed by the City at this time. Thereafter, Jim Spore, Bob and I discussed the proposals and the additional information collected and have contracted with Vectre Corporation to provide lobbying services for the City during the 1998 General Assembly Session, including the veto session. Vectre has agreed to a fixed-fee price for services, including costs, of $22,500. Vectre will provide those services requested in the City's RFP which include: I . Assist in the active promotion of the City's adopted legislative package. 2 Assist and supplement Bob Matthias' efforts in monitoring and reporting, on a timely basis, legislative activities which will impact the City and its citizens. 3. Facilitate proactive communications between the City's Delegation and the City Council and the City Administration on pending legislative issues. We anticipate that Vectre's services will begin today. Please call on Jim, Bob or me if we can provide additional information. ery trul yo rs e e L III y I ttome I.LL/awj cc: James K. Spore, City Manager Robert M. Matthias, Assistant City Manager - 47 - Item V-O.. ADJOURNMENT ITEM # 43156 Mayor Meyera E. Oberndorf DECLARED the City Council Meeting ADJOURNED at 7:25 P.M. Beverly O. Hooks, CMC/AAE Chief Deputy City Clerk -------- - - ----------- ------ Ruth Hodges Smith, CMCIAAE Me-ver(i E Oberndorf City Clerk Alavol City of Virginia Beach Virginia January 27, 1998