City Council Meeting - 08/19/2025

one. Welcome all. We're going to go ahead and get started. Thank you all.

All right. So, Mr. Mayor, um we discussed previously before the meeting that with the change in trajectory for Hurricane Aaron, it'll be good to start the city council off and the public with a quick synopsis and a quick briefing on the path of Hurricane Aaron and some of the things that we're doing to get ready for the storm. The next will be David, our director of emergency management.

He's going to give to the council a situation awareness briefing on Hurricane Aaron.

I think that is very proven. Thank you.

All right. Well, uh, good afternoon, mayor, members of the council. Uh, give you a quick rundown of, uh, what we're expecting to see with Hurricane Aaron and then what we've done to prepare and what we're looking at over the next couple days.

All right. Just The cooker is not working.

Is it on?

Is the cooker on?

Maybe not. I don't I'm not used to going first. I'm usually There you go. You're right. You're the best.

I usually Thanks.

local world.

I'm I'm real good at doing what I'm told.

All right, so uh kicking off hurricane season, we're back again. Uh so right now, uh Hurricane Aaron is a category 3 hurricane. It's located east of the Bahamas. Uh it will remain a very powerful hurricane throughout the rest of this week, somewhere between a category two or three. Um it's still forecast to curve to the northnortheast uh over the next few days. It's going to it's anticipated to start that curve

later tonight or tomorrow morning. Um and it will pass us offshore. Um however, the trajectory has changed more to a westward which means closer to our shoreline uh bringing some of those outer bands, winds and coastal flooding uh closer to closer to our shores and our communities.

We expect it to pass just offshore of us as a category 3 downgrade into a category 2 uh Thursday and then being out of the area by Friday afternoon. Um so we'll see the conditions worse uh tomorrow afternoon and then throughout the day on Thursday and then start to uh improve Friday and by Friday afternoon we should be uh back to semi-normal state. Uh this is not looking like a

rain event. Uh there might be a couple periods of rain from the outer bands.

Any rain this week and clouds are not associated with the storm that you're seeing today. Uh this looks like it's mostly going to be a coastal uh tidal event uh and possibly a wind event.

So as you can see uh from the latest models around from about 11:00 a.m. uh the outer bands will likely uh likely reach us tomorrow afternoon and then continue throughout Thursday. You know, we're looking at 25 to 30 mileph out of the northnortheast with gusts as high as 40 miles per hour. Uh and those could be much higher as especially along the coast, directly along the coast. Um once

we see where the storm curves, uh we'll determine how west it's going to track and then those numbers could possibly change in the next 24 hours depending on the actual path it takes. Uh not just the forecasted track.

Uh and then this morning they just issued a tropical storm watch for our area meaning that there is a good possibility that we'll experience tropical storm force gust. So gust over 40 miles an hour uh in the next 48 hours.

Uh tidal and coastal flooding is a concern right now. Uh we're watching the possibility of stacking building waves along the Chesake Bay that could result in tidal flooding for our bay communities and the Linhaven Bay areas.

Uh Crowan, Rudy. Um the Back Bay area does not look like it should flood right now. We've got the winds out of the northnortheast. So it should be pushing out of the Backbay but stacking those waves at the mouth of the Chesapeake Bay. So, uh, our communities along Shore Drive and Linhaven, uh, Crowatan, Lake Rudy is our primary concern right now, but we are watching everywhere. Um, we're expecting to hit

moderate to major flood levels during the high tide periods, especially Wednesday night and Thursday night. Um, so we're taking some actions which will go over there to prepare for that.

Surf is uh good for us or sorry, not good for us.

We're we're have some real concerns there, but I know the surfers are very happy. Um we're looking at 8 to 12t waves starting tomorrow and that's in the surf zone. Uh onshore break-in with 10 to 14t waves forecasted for Thursday through Friday morning. Uh Chesapeake Bay in the bay, we're looking at 6 to 8 foot waves on Thursday. Um, and then at Chicks Beach, we could be at that four

to six foot at the mouth of the Linhaven. Uh, these are all forecast based off the current westerly track of how close it is. Once it turns, if it shifts out to sea more, this would lower. If it shifts west more, uh, these could could increase. Uh, that uncertainty is really what has us in our posture of preparedness that we're in right now. On top of that, uh, it's possible we could get another 1 to three

foot of storm surge along the Atlantic coastline. Uh, so on top of those waves and the high tide mark, another 1 to three feet of water on top of that.

That's all a possibility. Again, those storm surges have not been produced yet by the National Hurricane Center. So, those are just a possibility. We're waiting for those to be released later today.

We began watching this storm last week as it developed, keeping a close eye on it, preparing over the weekend. Um, keeping um our Patrick and our our leadership updated, and then we began planning with public safety infrastructure departments uh yesterday and today. So, the emergency operations center EOC is currently activated to a level one enhanced monitoring that will remain at a level one for the remainder

of the week. uh we will elevate that to a level two partial activation if the storm tracks west more over the coast and we see worsening conditions but for now we're staying at a level one. We do not anticipate needing a local declaration based off this forecast but um over the changes in the next 24 hours we'll revisit that uh based up what what the path actually is.

We did send out a preparedness message to property managers in the Sandbridge community group uh yesterday. Uh key messages to send to their visitors and their renters for this week. We're not issuing an evacuation for Sandbridge. Uh we're in a much different position than the Outer Banks and Hatteris of why they did, but we felt it was important to get messaging out to those property

management companies so they can answer their guest questions and visitor questions with official information about how to prepare and where to get information um from us.

Uh town center parking garages will be made available to residents uh who wish to move their vehicles, especially the residents in floodprone areas. Um that will be Wednesday through Friday, an opportunity for them to move their cars uh for those higher tides and um keep them out of any water um that may impact them along the ocean front and sandbridge. uh our landscape services and EMS lifeguards have been

removing receptacles, banners, flags, um lifeguard stands and any other loose items. Uh they're securing those to prevent those from blowing away. Um, Funkfest and ECSC are what they're calling skinny down, removing the loose items, the popup tents, and they're securing their larger equipment and stages, moving them out of the flood zone and um like the bleachers and that type of band stands for for their shows

that will be secure by tomorrow morning.

And that also allows beach ops to do preparatory work uh along the ocean front.

We have high water response vehicles that are readied and uh will be staged at fire stations in the northern areas of the city uh by tomorrow morning.

Additional fire boats and marine rescue assets are already readied and will be available um to respond.

Public works is checking drains and their equipment uh throughout the city, especially in areas that are likely to flood for this event. They are exercising the Windsorwood tide gates.

I'm preparing to have those closed based off of forecast if needed.

911 and 301 will be upstaffed to handle increases in call volumes Wednesday through Friday. Uh the remainder of the public safety departments are checking equipment, having extra equipment uh available and they have plans in place to up staff if necessary. Uh we're waiting for tomorrow morning's uh forecast or this evening's forecast to decide what that could look like, but uh they are fully operational and ready uh

and prepared. And then landscape services, public works and public utilities will have additional crews on standby ready to respond to uh trees down uh power outages, pump stations are being prepared, generators, etc.

And then lastly, just resident preparedness. We have a public messaging going out. U we have more messages that'll be going out later today, but we're really uh urging residents to pay attention to this storm. There's a lot of uh uncertainty in the forecast, so we don't want to let our guard down. We don't want to panic either, but just really take a moment, get your forecast from official sources, local media, the

city, um either the city website or city social media.

You can sign up for emergency notifications uh from VB alert which is our primary notification system. Uh there's a QR code or the readyVB website up on the screen. Uh residents can also text VB alert VB er to 67283.

Um we're also urging residents and guests or visitors to sign up for beach condition alerts. Um, that's text beach to 67283.

Um, if you live in a floodplone area or coastal community where winds are likely to be greater, um, we're asking you secure lightweight objects, secure your boats vessels kayaks canoes some anything like that that could be uh dripped out and cause a search out in the middle of the large waves by the Coast Guard or our marine assets. Um, lawn furniture, garbage cans, secure those inside or bring those inside if

you can. If not, grills, propane tanks, secure those closer to the house out of like flood areas or out in the open where it could be blown away. Um, you know, if you have a generator, top it off with fuel. Consider moving your vehicle to one of the garages or to a higher ground with friends, family um to keep it out of flood waters if you know your property typically floods.

Um, and then if you are on a wellwater or another source of uh that could lose power, make sure you either have a generator that's topped off um or have extra containers of water ready just in case. We've talked to Dominion Power.

They are prepared uh in storm mode and we'll have crews available for power outages.

With the wet ground and all the rain we had, you know, and the gusty winds, you know, there's likelihood that trees could topple over or branches could fall off that could lead to isolated power outage throughout the city. uh we're not expecting widespread impacts like that, but there could be isolated uh power outages scattered throughout the city that couple hours until Dominion can get

out there in the winds and and make those repairs. So, uh we're continue to monitor. We'll send uh Patrick an update tomorrow morning for you with the latest update and and any other preparedness actions we're taking.

Now, before we take questions, I just want to say thank you very much. And Dave, your work is stellar, and it was proven when we had the tornado a couple years ago. Our rapid response and just coordination and preparation are really the keys. So, thank you very much, Rosemary.

No. Anybody? Okay, let's go. Stacy and Hutch.

Thank you very much, Fet. I you had mentioned that um you were doing preparations at the oceanfront and sand bridge. Are there any preparations being done on the shore drive area if it's city property and and city um like receptacles and stuff like that?

Yes, they'll they'll move those. Um there's not as much up there to to move typically on the beach.

What? The the high water vehicle. One of them will be over there to make sure, especially in a brush truck, to make sure for Bay Island just in case. I don't think he's thinking it's going to cut it off, but if it did, they would be there.

Bay Island's essential.

Yes, I know.

That's why I said it, buddy.

Um two Stacy.

Two things. Um, one is and we talked about it briefly before we started is and and just for messaging is a lot of us don't realize everything we say is east coast, east coast, east coast, but we are west of the storm. So when we hear it bumps west, a lot of people get a sense of relief and that's not the correct answer.

West is bad.

Yeah. So it just just for the messaging, Tiffany, I just think that might be something that we want to hit on. Uh, I know friends and family of mine are not getting that 100%. And then, um, not that they're not smart people. I'm not saying that. Um, one of them is my wife.

So, I'm just being real careful there.

Um, the other is is you might have said it, Tops, is this the time duration that we're thinking this is going to be impacting us. I might have missed that. So, we'll see conditions start to uh deteriorate or but start to move into the area tomorrow afternoon and evening. Uh that's Wednesday. Thursday is when the brunt of it will come. The outer bands, the likelihood of getting those outer bands

throughout the day on Thursday. Thursday evening, overnight Thursday into Friday morning, we'll see it start to taper off. Um with the expected turn to the north, it if you look at the models, uh it turns pretty hard out to sea. So, it should dissipate pretty quickly and by Friday afternoon being out of the area.

Um, that's all pending the forecast and what it decides to actually do. But, that's the current models for us. We're really going to prepare for the worst and then hurry up and wait um and see what it does either by tonight or most likely tomorrow morning where that shifted. But, we're prepared and have the resources available if needed if it did shift closer to the shore um to put

those in place. It's just a matter of, you know, h having the staff there.

Patrick or Mr. Cummings, Mr. Cummings, and I don't I don't know if we're going to address this later on, but there are a couple of big events scheduled in the city this weekend or this week. Uh what preparations have we made or changes?

So, they've been meeting with they met with them yesterday and this morning there was on-site walkthroughs with BOPS public works uh my staff RMO along with um the second precinct uh captain and officers. We did a good walk through yesterday. We planned on uh what they call skinny down. So removing like the inflatables, um like small 10 by10 popup tents, vendor stands, and keeping just

the core infrastructure with plans in place to remove the larger infrastructure if needed. Uh based off the 5 a.m. forecast updates where it shifted more over the coast, they had a meeting at 9:00 a.m. and they're in the process of breaking down the larger infrastructure to secure that to prevent damage. The Funkfest is waiting to see what is happening with the forecast, but um the goal is for them to get back out

on the beach, you know, Friday afternoon, set up and continue and hold their um hold their event. Uh the surfing championship is the same posture. They're obviously very happy about the uh the surf conditions for a championship. So, their event is going to continue as planned, especially with the professional levels. Um, however, their large uh like bleachers and their grandstands are being disassembled uh

over the next day, moved inland and secured, but their competition will continue. And then once it dissipates Friday, because it's expected to move out so quick, they feel like we can get that back out on the beach quick and still have uh normal events for the weekend or to the extent possible.

Obviously, forecast shifts would change that, but that's the plan.

Hey Amelia, thank you for what you've mentioned to us as you pulled up about uh town center and the residents.

Is it going to go all the way across would you think Square because we have seniors and so forth in that area?

I I think you'll they'll see gusty winds and and I don't I don't think it'll be too too bad inland like that. um which is why we selected the town center garages for people to move their vehicles to primarily based off the current forecast directly along the coast is what we're worried about mostly. Um that's where the wind gusts are going to be the strongest. Um so that's what we're looking at and then

the the flooding building up. Flooding will be the worst during the high tides is what we're seeing. So we're not seeing prolonged flooding event. We're seeing you know building floods coming in with the tide higher than average high tides and then it you know kind of receding a little bit. It'll still be there, but not as not major or moderate levels. And then for the next high tide

cycle, so we're really looking at just two high tides that could be pretty significant.

Thank you.

Okay. Anybody else at this point?

Okay. Thank Thank you very much. No problem. It's always good to be ready for these things.

So, Mr. members of the council.

Satisfaction, the council asked for some information on the city's demographic trends. So, the city worked with um at the roads alliance to put together an analysis of where we're going in terms of our populations and our demographics for the city as well as the schools.

Next question you'll hear will be Monica Crossky. She's going to lead off the presentation. Then you'll be joined by Michael Evans who works for Hampton Road Alliance and used to work for our city budget analyst. city budget analyst before he went to have the Rose Alliance.

Thank you for that, Mr. Manager, mayor, vice mayor, members of council.

Similar to what Patrick said, this really is in response to a request that we got from council. It's also just good standard practice as you're heading into a strategic planning session to do some type of environmental scanning. Ideally, we would have done this at the retreat, but the agenda just does not allow for it. Um, so we want you to kind of like place yourself in that mindset as if

this big table wasn't dividing you all and that you're at the retreat so you can really engage with uh the data. Um, I'm going to do a bio for Michael. Um, but before we get there, um, just couple of points of professional privilege. Um, we are so excited. We as in me so excited about uh this data. We really wanted to get you something a bit more substantial than the PowerPoint. So

Raven, thank you Raven passed out uh these booklets that I got to work with the communications department on and I have to tell them thank you our deputy director of communications Jason our three graphic designers in record time put this together. Um, in the back of it is a note section, but we feel as though this is the type of data that you can use over and over throughout the fiscal

year. So, we wanted something a bit more substantial. Um, as much as I love data, I do feel like it's necessary to say that no community or its future is defined by numbers alone. Um, but what this data can help is inform your strategies and our plans. And those strategies and those plans shape our future. Um, so keep that in mind as he's going through some graphs. Uh, we're not

defined by numbers alone, but we do want to have them in mind. Um, the speaker, I'm so excited that Michael agreed to work on this with us in record time.

Michael serves as the director of business intelligence for Hampton Roads Alliance. Um, there he is responsible for leading research on regional investment, competitiveness, and growth.

uh his portfolio of having um provided advisory services on is really approaching almost a billion dollars 800 million and over a thousand dollars a thousand in new jobs to our Hampton Roads area. Um prior to him joining uh the Hampton Roads Alliance like the manager said he was a policy and budget analyst. U Michael has a bachelor's in public and public policy and economics from Williams and Mary. Um, but what I'm

most excited about in his bio is that Michael is a fellow graduate of the Master of Public Administration program from the School of Government at the University of North Carolina at Chapel Hill. Uh, so with that, I will invite my fellow Tar Hill up to go through uh his presentation. Again, please engage with the data as he's going through it. Think about what it means for the services

that we provide. um how you govern um impacts on revenue things of that sort.

So with that, Michael, welcome.

Thank you.

All right.

Thank you so much, Monica, for that introduction. Uh good afternoon, Mayor Dyer, Vice Mayor Wilson, and members of council. Really appreciate the opportunity to be here today. Uh my goal with this presentation is to give you all uh a clear datadriven picture of where Virginia Beach stands today. Um including the city's population, workforce, income, housing, and the larger demographic trends that are

shaping the city's future. Uh so think of this as a snapshot of where you are right now and what it means for where you're going. I also want to stress that I've structured uh this so that way we have ample time for discussion. So, please feel free to jump in with questions as we go, not just at the end.

Uh, presentations like this always work best as conversations. So, if something sparks a question, connects with you, or anything you're seeing in your districts, um, please feel free to jump in. My goal is to not only share the data, but to make sure it's useful for your role as city leaders. So with that, we'll get started with uh population dynamics because that's really the foundation of everything else including

the economy, workforce, and housing demand. Um understanding how our population is changing helps give us insights into both opportunities and challenges for the city.

So today, Virginia Beach is home to just under 453,000 residents. That makes it the largest city in the Commonwealth. um and really a core driver of the Hampton Roads economy. As you can see here, the population for the city has remained relatively flat in recent years um and is expected to remain so and even potentially retract slightly through 2030. Uh beyond that, the Welden Cooper

Center estimates that the population will expand to about 485,000 within the next 25 years. Um but the size of the population really only tells part of the story. Another way to look at this is how fast the city is growing especially when compared to other regional localities and who we are adding or losing from the community.

So if we look at the region as a whole, population growth has been relatively modest when we compared to other localities. The city's population, which is reflected by the solid yellow line kind of in the bottom third of that graph there, shows that the population has grown about 4% over the last 20 years or yeah, 20 years. Uh that places Virginia Beach eighth among the 14 other

Hampton Roads localities. And as you can see, most of the growth within the region has been concentrated in our more rural communities with James City County, Suffach, and Isle of White County really leading the pack. Um, James City County has grown more than 47% over the last 20 years in terms of their population, followed by Suffach at 35% and Isle of White at 30. Um, it's also worth noting that Virginia Beach

did underperform the state as well. So, the state is that light gray line kind of in the middle at 117 is their index.

So, indicating about 17% growth over the last 20 years.

If we zoom out to the statewide figures, we can see that the this phenomenon is not really unique to Virginia Beach or Hampton Roads generally. Um, among all the Commonwealth's largest localities, growth has been largely flat. Um, across all the localities with a population of 250,000 or more, growth has averaged just 1% over the last 10 years. And among the largest counties, growth averaged 1%. And among the two

independent cities that are right here in Hampton Roads, um, Chesapeake and Virginia Beach, growth remained flat at 0%.

Here we go. So, what do these population figures really mean? So, when we look at Virginia Beach's population story, especially over the past decade, what we see is stability, but no real growth.

Uh, that stability has its advantages.

you're not under the same strain as fast growing communities, but it also does present challenges. Flat growth really means your tax base isn't expanding. Um, but the cost of services, think schools, public safety, those all continue to rise, which puts more pressures on the existing tax base and existing taxpayers. Uh it also means that future economic growth depends less on natural

population increases and more on how well we retain and attract our talent.

Um companies tend to follow people and without a strong pipeline of workers, business momentum tends to slow down. So the key takeaway here is that stable population does not necessarily equal sustainable growth and our competitiveness really will hinge on how well we bring people in and create a community where people want to stay.

So, let's shift gears a bit and we'll talk about migration patterns. Um, in 2022, Hampton Roads as a region lost about 2700 people overall. For Virginia Beach specifically, the city lost about 3,700 people. Uh, what's interesting though is that gross flows are rather large. Uh, over 25,000 people moved into Virginia Beach, but more than 29,000 people left. So, it's not that people

aren't moving here. It's just that just as many or slightly more are leaving. So what we'll do is over the next few slides take a little bit deeper look at to where everybody's going.

So when we look at gross migration figures, what we see uh and zoom in kind of on where people are moving to and coming from, we see a lot of regional churn. Uh the top destinations are often right here in Hampton Roads. People are moving across city lines from Norfolk, Chesapeake Portsouth Suffach Hampton and Newport News. All of which are in the top 10 for inflows for the city of Virginia Beach. But those same

localities are in the top 10 for outflows as well. Uh that tells us that residents are highly mobile within the Hampton Roads region. Uh but we're not necessarily growing the overall pie. So outside of the region, you'll see high inflows and outflows between other areas with similar workforce compositions like San Diego, Fairfax, Jacksonville, which you'll see on here is Duval County and from Honolulu.

If we look at net migration and kind of narrow the scope a little bit, we do continue to see a strong pull toward other parts of the region with five of the top 10 outflows being to other Hampton Roads localities. So looking at inflows however you see a wide variety but no real clear trend. Uh you do see moves to other military metros which which really does speak generally to the

transient nature of our community but you also see moves to to and from other markets with higher cost of living and higher cost of doing business.

When we look at net migration within Virginia alone, places like Suffach, James City County, and Isle of White are attracting former Virginia Beach residents. If you think back to that graph showing uh growth across Hampton Roads, it's really unsurprising.

Uh looking closer though, you see that of the top 10 localities the city lost population to, seven of those top 10 are right here in Hampton Roads. Uh many of these are nearby communities that potentially have more available land and in many cases more sustainable or more attainable housing options and that really reinforces the connection between population change and our housing

markets here regionally. Uh on the other hand, not the only other Hampton Roads locality Virginia Beach gained individuals from was the city of Norphick. um and many of the others came from Northern Virginia, likely a similar dynamic related to cost of living and cost of doing business.

If we look at the top localities outside of Virginia, the biggest destinations for Virginia Beach residents are other military metros. So places like Jacksonville, San Diego, Honolulu, and Gulfport. Uh really points to the role that our military population plays in driving migration patterns. uh service members and their families, it goes without saying, are highly mobile and that does shape a lot of our net flows.

So if you take Jacksonville for example, that's one of the nation's among one of the nation's largest military hubs along with us. In 2022, they actually had a net gain of 5,200 residents and 140 of those came from Virginia Beach, which actually made us their sixth largest inflow outside of the state of Florida.

Now, on the other side of the country in San Diego, another major military metro, they actually had a much larger net loss uh at they lost 25,000 people overall in 2022. Um but Virginia Beach kind of stood to gain from that and gained 131 residents from from that outflow. So, you also see some flows uh from right across the Virginia North Carolina border. Uh that's often a draw for former military due to retirement

benefits. Uh many retired service members do move across the border to take advantage of some of that tax-free retirement at the state level. Uh but it's worth noting because the most recent data we have is from 2022. Uh it will be interesting to see how this plays out in the coming years and to see how these patterns change uh with new tax laws related to military retirement pay. So, beginning in tax year 2024, uh,

retired military residents could deduct 30,000 from their Virginia taxable income, and this is going to increase to 40,000 in tax year 2025 and beyond. So, it'll be interesting over the coming years to see how that plays out.

Now, an important piece that tends to go unnoticed fairly often is international migration. So regionally, international migration is actually the only source of population growth. Uh when we look at domestic patterns, we're we've been consistently in a negative in the red in that one. International is really what's offsetting that. So in Virginia Beach, the foreignb born population grew by

more than 7% over the past decade, uh growing from about 38,500 to over 41,000 in 2023, which outpaced overall growth.

and really quietly offset some of those domestic losses that we've been seeing.

Uh, one interesting fact, over half of this population, about 56% is coming from Asian countries and another 21% of these uh, this population is coming from Latin America.

There we go. So, what does all of this mean when we're talking migration? So, first it underscores the need for regional collaboration on things like workforce planning, transportation, and housing because people move across city boundaries. Uh, second, it highlights the opportunity to build what we might call a more sticky city here in Virginia Beach, a place where service members,

veterans, and their families want to stay after their time in uniform. Um, retaining even a fraction of that talent would make a significant difference to the future workforce. We tend to have about 15,000 military separations in Hampton Roads annually. U of course many of which if they join the military right at age 18, you're talking retirement at age 38. So they're still within that prime working age category.

So So to wrap up the section on kind of population dynamics, Virginia Beach is really experiencing growth without real momentum. uh more people are leaving than arriving domestically and international migration is really the quiet growth engine, but it's not really enough to tip the scales. So, the big questions uh really are, are we prepared for a future where population growth isn't necessarily guaranteed? And how

can we better convert short-term residents, especially military families, into long-term contributors to the economy and to the community?

So, now that we've touched on population, we're going to shift into demographics. Uh, because really who makes up the city today and who will make up the city tomorrow shapes everything from the tax base to workforce and housing demand. So, demographic trends don't really just describe people. They really tell us about the city's economic future.

So, we'll start by looking briefly at age composition. So, in 2013, the median age in Virginia Beach was just under 35.

Today, it's nearly 37 12. And while that might not sound like much, it does signal a slow, steady aging trend. Uh, the share of residents in their prime working years has slipped from 44% to 41%. So, in other words, fewer people are in the age group that really drives economic activity and fills most of the jobs in the community.

If we dig into this a little bit deeper and look at age composition of prime working age individuals in the city. So prime working age is defined as individuals aged 25 to 54. Uh you can see that the trend has been slowly working its way downward. Number of prime age working prime working age individuals has fallen from a peak of just over 194,000 in 2015 to just over 189,000 um in the most recent year.

If we look at the population of individuals under the age of 18, you see a similar trend. Uh you see that over the last several years, that population has also started to edge down. So fewer younger families, fewer children in schools, things like that. And this shift can have ripple effects. Schools with flatter or declining enrollment and smaller pipeline of future workers who will one day replace today's retirees.

Now where we are seeing growth is in individuals aged 65 plus. Uh this group makes up a larger share of the city today than in than a decade ago and it looks like it will continue to rise. So this means increased demand for health and senior services while at the same time more households qualifying for tax relief programs which could potential uh potentially limit revenue growth. Uh,

one thing to note with this is it's not necessarily that the sheer number of individuals aed 65 plus is increasing, but because you're seeing outflows in the younger population, they're proportionally getting larger.

Now, if we look at this in a slightly different way and look at uh a 10-year history of the number of households with children versus the number of households with individuals aged 60 plus, you see that 10 years ago, the number of households with children slightly outnumbered the number of households with individuals aged 60 plus. And in 2015, that number flipped. And ever since then, over the last seven years,

you've continued to see those lines diverge with about 37 over over a third of households uh having individuals aged 60 plus and 28.9% of households having individuals with children or yeah, individuals with children. So, these trend lines have continued to edge down and diverge over the last seven years.

And based on current trends, it looks like that trend will also continue.

So the big picture really is that Virginia Beach is slowly aging. The prime working age and under 18 populations are falling while the senior population is rising, which creates a double challenge of higher service costs but a shrinking revenue base. Uh from an economic development standpoint, it underscores why talent retention and expan and attraction are absolutely essential components and we need to keep

bringing in younger residents in order to sustain the city's economic engine.

Now, one way that we can do that is through the veteran population, which I touched on slightly before. Uh one of Virginia Beach's defining characteristics is its large veteran population. Over 53,000 veterans call Virginia Beach home, which is the largest population in Hampton Roads. As you can see, as of 2023, veterans make up roughly 12% of the population of the city of Virginia Beach as compared to

11% regionally.

And if we zoom out to the state level, you can see that Virginia Beach has the second highest uh veteran population across the Commonwealth um and the largest among independent cities. The second closest independent city is the city of Chesapeake, which has uh just under half the number of veterans in the city of Virginia Beach. Um and they are closely followed by the city of Norphick.

So, this is a population that brings a lot of leadership skills, technical expertise, and a culture of service that really does help to strengthen the workforce. Um, but one concerning trend that we're seeing as well is that projections show that by 2040, um, and this data is from the VA uh, health system, that the veteran population could fall by as much as 16% uh, by 2040. So, we can't really take

this advantage right now for granted. Uh but it's worth noting this decline is not unique to us. It's not unique to Virginia Beach. It's not unique to Hampton Roads. Uh it's a byproduct unfortunately of a volunteer-only military service as the generations impacted by the draft unfortunately pass on. But because Virginia Beach has the second largest veteran population in Virginia, even modest declines can have

a ripple effect when it comes to things like talent retention and of course tax relief programs.

So, some of the key takeaways here when it comes to the veteran population is that veterans will remain a key demographic for Virginia Beach, but we need to be a little more intentional about supporting them, not just here, but regionally.

This means creating strong employment pathways for transitioning service members, ensuring access to affordable housing, and expanding support for veteranowned business. If we do that, we can not only help veterans thrive, but help counter some of that population stagnation and keep Virginia Beach as a competitive place to live, work, and to stay.

So, another subgroup uh in the population that we're going to talk about, of course, is the Virginia Beach school system, which is one of the largest school divisions in the Commonwealth and is an essential piece to the city's long-term economic competitiveness. So, education is a driver of both workforce and quality of life. So, these numbers give us a window into future opportunities and

challenges. Uh, it's worth noting that just recently Virginia was ranked the number one state for education in 2025 by CNBC. Uh, which really reinforces how critical our local school system is in sustaining that reputation and ensuring that we continue to attract and retain talent here in Virginia Beach.

On a per pupil basis at just over $16,000 per student, Virginia Beach has the second lowest cost per pupil in Hampton Roads. This reflects efficiency in how resources are managed. But we should also keep in mind that being lower cost doesn't necessarily mean less need. Uh student demand and service expectations are evolving and we'll look at that here in a few slides.

If we look at student enrollment, you can see that it's been relatively flat.

Comparing the 2021 uh 2020 to 2021 school year to the 2024 to25 school year, enrollment decline just about 1.2%. So, in other words, we're not seeing the kind of student growth that would indicate an expanding young population in the city. So, just yet another indicator that points to that aging a little bit.

And then if we look at student enrollment by grade level, looking at grades preK through fifth grade, they make up the largest proportion of enrolled students at 46%. It's a little hard to read, but it's that dark blue bar at the bottom. And you can see that it's remained relatively steady over the last 5 years. And this is important because elementary enrollment is really a forward indicator. It shows us what

the pipeline into middle and high schools are going to look like and what it'll look like over really the next decade. and a flat or declining base today could potentially indicate slower growth later.

Now, shifting a little bit to uh some increasing needs among the student population. Even though enrollment is flat, it's worth noting that the complexity of student needs is rising.

uh more students require special education, English lang English language learner support or gifted education which means additional staffing, additional resources and specialized programs even without growth in the total headcount.

And then if we look a little bit here at the cost of some of these increasing needs in fiscal year 2024, the school division spent 139.6 6 million on special education and related services.

About 83.5% of that funding came from state and local sources. And on top of that, the city provides additional funding for English language learners at roughly $3,200 per student and gifted learners at about $2,100 per student. So while total enrollment is flat, the cost per student is climbing uh because the profile of the student needs is changing which is a critical fiscal consideration

and it ties kind of into these overall broader themes of population change. And when you look at a lot of these different components, you can see that the per pupil expenditure varies widely from about $6,000 at the low end to pushing $62,000 for students with multiple disabilities.

So now that we've covered some of the population dynamics, we're going to shift and demographic dynamics as well.

We're going to shift into income and poverty. And this is where we'll connect wages, cost of living, and affordability. Uh Virginia Beach is a city with a relatively high household income compared to many other localities in the region. But as we'll see, those numbers can sometimes mask a deeper financial vulnerability.

So, Virginia Beach has a median household income of about $91,000 per year. Um, and that's higher than the Hampton Roads regional median, which sits closer to $80,000. And on paper, that puts Virginia Beach well ahead of most of the region. Uh, but the bigger question is how far those dollars stretch given rising costs of housing, child care, and other essentials. Um that graph below you can see shows a

comparison of the median household income in dark blue and the light blue bar shows the per capita income which as a 2023 stands at about $47,000 per year.

If we break income down by occupation, the story starts to shift just a little bit. of the top 10 most common jobs in the city of Virginia Beach, about four out of those 10 fall below the city's per capita income. Uh these are a lot of kind of the the service working service worker positions, food service, retail, and support roles, but these are really important. These are the ones that power

a lot of the daily life here in Virginia Beach and a lot of the tourism economy.

And these individuals are not earning enough to comfortably afford the cost of living in the city. And if we look at positions that we are trying to attract more of across the region and here in the city um like those in professional services and healthcare, you can see that those are comfortably above the per capita income and many of them are approaching if not exceeding that median household income.

If we look at poverty levels in Virginia Beach, the city performs relatively well with one of the lowest official poverty rates in the region. Um if you look at the dark blue line that is the poverty rate for the city of Virginia Beach sits at 8.3% as compared to 10.2 in the green line for the statewide figure. The other two lines show uh SNAP benefit recipients. So these are not only

individuals who fall below that federal poverty line but are seeking assistance from the federal government. Virginia Beach is also much lower than the state level at 6.5% as compared to 8.8% statewide. Um, but what's important to remember when we look at these figures is this only captures families below the federal poverty line. Uh, families just above that line often earn too much to

qualify for aid programs but do struggle to make ends meet. And that's where alternative figures such as the ALIS framework comes in. So ALS is a measurement used by the United Way. It stands for asset limited, income constrained, and employed. Um, Alice households all earn above the federal federal poverty line, but below what's needed to cover basic costs like housing, health care, and transportation.

Virginia Beach does have a sizable share of Alice households, just under a third of households, right about 30%, um, are classified as Alice households. And this means that many working families remain financially stretched even though they are employed. Uh this figure really illustrates kind of the the squeeze that you hear a lot of people talk about where median income is high but the

Alice threshold for a family of four is actually almost identical to the uh to the median household income in the city of Virginia Beach at right around 90,000. So many households may look middle class on paper uh but they still struggle with affordability. Uh, by this calculation and the what's referred to as the Alice household survival budget, a family of four in the city needs to

earn about $92,000 to make ends meet, which is slightly above the median wage, which means roughly half of all households earn below that threshold.

Now, the average household size is slightly smaller in Virginia Beach, so that figure is probably a bit less, but it's just an interesting fact to kind of keep in mind.

Another way to look at this is through MIT's living wage calculator. Uh this calculation estimates the local wage rates that a full-time worker requires to cover the cost of their family's basic needs where they live. So if we look up at the top there, the median non-family household income is roughly 57,000. So this is kind of used as a proxy for an individual's median income.

So we're not looking at a household. The average household here in Virginia Beach is just over two and I think it's around 2.7 individuals. Um so the non-family household income is a good capture for some of those single earner households.

Um that top row where you see it says living wage that is the income per individual in the household. So when we look at this, you can see that a single earner with no children and a dual income household with each earner making between 35 and roughly $49,000 are the only three categories that fall below the median income for a single earner in the city of Virginia Beach. Uh when you look at the other categories,

those households are the ones where we would begin to get concerned that they might be income constrained when it comes to cost of living. So even though the city's overall income numbers are strong, uh many households are still falling short of what's required to live comfortably.

So here are the key takeaways when it comes to income and poverty. Uh Virginia Beach does enjoy a high median income, but the cost of living does tend to reduce that advantage a little bit. Uh the official poverty rate is low, but Alice data shows a broader group of households that might be living paycheck to paycheck and many of the city's most common occupations simply don't provide

what we would deem a livable wage. And that brings us to the bigger question of what can the city do to address this? Uh there are two key considerations. first uh continuing the work that you're doing to attract growth in industries that attract mid to high wage jobs, mid to high skill jobs. That point is is critical. And second, as we transition into the next thing, you know, housing

costs matter just as much as wages. And if housing remains out of reach, it does undercut the ability to retain and attract the workforce we need. So the story is relatively simple. Income is strong, but affordability will determine Virginia Beach's long-term competitiveness.

So, now let's shift over to housing trends. Um, this is the last major topic that we're going to talk about today.

So, housing is one of the most critical pieces of economic infrastructure, shapes workforce attraction and retention, cost of living, and even the pace at which employers can expand here in Hampton Roads and in the city of Virginia Beach. Uh these next few slides will help us understand kind of where Virginia Beach stands in that mix. So if we start by looking at data from the real estate assessor's office, looking

at existing homes, about a quarter of all homes in Virginia Beach are now assessed at 500,000 or more. And I apologize, there's a typo on the top of this slide. It says 750,000. That should say 500,000 or more. Um and fewer than half are assessed below 350,000.

Uh this distribution does show how the market is shifting with more affordable entry points kind of shrinking in proportion and highv value properties showing a little bit more expansion.

Now when we look at new construction this picture becomes even more clear. So nearly half of all new homes are assessed above $750,000 while fewer than 20% are assessed below 350,000. So in other words, the new housing supply that's coming online is overwhelmingly at the top of the market rather than at the middle of the market.

Another way to look at this, we looked at kind of the assessed value. This graph really looks at home sale prices and what is deemed affordable. So, in 2025, as of late July, uh the median sale price in the city of Virginia Beach was $418,362.

When we compare that to what a household earning the median income could reasonably afford, we find an affordability gap of about $150,000.

Um that affordability gap is one of the widest that we've seen in years. But I will say it is not unique to Virginia Beach. This is a problem across Hampton Roads. Um I recently gave a similar presentation on housing to the uh Chesapeake Chamber board and the city of Chesapeake has a housing affordability gap of right around $120,000. So certainly not a unique problem to Virginia Beach, but one that should be

addressed. Um another way to think about this and kind of a fun but telling fact is that in 2007, the median home buyer uh was born in 1968.

Uh now nearly two decades later, as of 2024, the median home buyer was still born in 1968. So what we're seeing is the same generation is holding most of the housing market. You just see kind of churn within the individuals that have built kind of equity in their homes and you see that younger individuals have been priced out. And in Virginia Beach, that gap between the median sale price

and what a typical household can afford kind of reinforces that challenge.

If we look at housing cost by occupation, we can see that the affordability gap does have some real workforce implications, especially when we look at this on an individual earner basis when we're thinking of attracting young professionals to the city. So to afford the median sale price, an individual earner would likely need to make over $130,000 to afford the median home at $418,000.

What's notable though is that fewer than one in four non-family households earn more than $100,000 and less than 7% earn more than $150,000.

So that means most workers, even some solid middle income and highincome positions, are likely priced out of a lot of home ownership opportunities within the city. This table here kind of gives you a demonstration of that. So if we look at occupations like registered nurses, mechanical engineers, even software developers and attorneys where that income threshold does approach that

130,000, less than 40% of houses would classify as affordable for for an individual earner looking to buy a home in Virginia Beach.

Now, it's not just homeowners. Renters are feeling the squeeze as well. The median rent now sits at $1,648 in the city. And more than half of renter households in Virginia Beach are considered costburdened, meaning that they spend more than 30% of their income on rent. Now, that limits their ability to save, invest, and move up the housing ladder. And one unique factor that I always like to mention and kind of touch

on when we discuss especially rent prices in the area is the role that BAH or the basic allowance for housing plays in our market here in the city. So BAH uh essentially creates a de facto price floor when you look at rental prices which means even if the market would otherwise soften which we are seeing a little of we've become a little bit overs supplied in the multif family sector since co rental prices still

really don't fall below what the military is going to pay. So this while it does add stability to that market it does also keep rents a little elevated.

So, what does all of this mean when we're talking housing? Uh, housing in Virginia Beach is increasingly expensive and becoming more inaccessible, not just for lowincome households, but also for middle and even some highinccome earners. Affordability challenges ripple into workforce attraction, retention, and overall competitiveness. And the real opportunity exists in investing in that missing middle housing and

workforce housing. the kinds of homes that support teachers, nurses, police officers, and young single professionals who want to live in the city that they work. One final point before we close this section, because it is a question that I do get a lot when I talk on this housing uh housing piece, is whether or not the interest rates uh and a declining interest rate would help to

solve this problem. And unfortunately, while a lower interest rate would shift monthly payments at the margin, because our market here in Hampton Roads is pretty structurally under supplied, all a reduced interest rate would serve to do is kind of make our problem worse.

That's what we saw during COVID. That's why you saw a lot of those housing prices increase. So, interest rates are really good at doing one thing, and that's increasing demand. Uh but the only real long-term fix is to address the supply side, especially in middle market housing. Without it, both affordability and competitiveness will continue to erode.

All right, so we have just gone through a lot of data uh population, excuse me, migration, demographics, schools, income, and housing. Taken individually, these pieces are informative, but together they paint a more complete picture of both the challenges and opportunities for Virginia Beach. U this next section is really about connecting the dots and looking at how these trends overlap and

what they might mean for the city's future competitiveness. So the numbers are important, but it's really the story behind them where the real insights begin to emerge.

So, if we start to connect the dots here, the first theme that I want you guys to walk away with is that slow growth plus an aging population is going to lead to workforce pressures. Flat growth and an aging population mean fewer prime working age residents. That shrinks the talent pool. At the same time, housing costs are pushing younger workers and families toward other localities.

The second major theme here is that housing costs are a common constraint.

Housing affordability isn't just a quality of life issue. It's directly tied to whether we can retain talent, grow our labor force, and keep our schools full. Um, and housing is really the throughine that touches workforce, migration, and enrollment.

The third theme here is some of the city's great economic strengths do tend to mask some smaller gaps. On paper, the median income looks exceptionally strong and by many of the most common but many of the most common occupations pay wages that fall below the cost of living. Um the Alice household data shows that beneath the surface there does lie some real financial vulnerability for a

non-inssignificant portion of the population.

Kind of the fourth theme that I want you guys to consider is that migration patterns reflect a lot of competitiveness. We're losing residents domestically often to more affordable rural parts of the region. Um, but international migration is quietly offsetting some of that loss. Uh, but those gains aren't necessarily evenly distributed. So, it raises the question of how do we how do we compete to keep

and attract people. And the fifth and final theme I want you guys to take away here is that education demand is changing but without enrollment growth.

Right now, enrollment is flat, but students need more complex and more special education than ever. English language learners, gifted langu or gifted learners, uh things like that, these shift and mirror kind of some broader demographic changes that we're seeing citywide.

So, after all these numbers and all these trends, what do they really tell us? Uh when you connect the dots, these five major considerations emerge. And the important part is these aren't isolated issues. These all overlap and really reinforce one another. So strengthening housing affordability as an economic strategy. Um housing isn't just a social issue, it's an economic infrastructure

issue. Uh without affordable accessible housing, we can't continue to grow our workforce. And as we saw earlier, whether it's population stagnation or migration patterns, the availability of affordabil availability and affordability of housing uh underpins many of the other trends that we're seeing. Um target talent retention and attraction. Population growth is no longer a guarantee. Future growth

depends on whether we can keep military families here, make Virginia Beach a little bit more sticky city, and attract young professionals while supporting reskilling for mid-career workers. Uh, this ties directly back to a lot of the other trends that we're seeing when it comes to, of course, migration, housing, and the like. Diversifying job growth into mid and high wage sectors. This is

something the city is already doing uh a very good job at, and I would say continue to lean into that. Um, as cost of living pressures rise, we need to focus on sectors that create those higher wage jobs and that bridge between workforce, income, and affordability.

Um, if the jobs don't keep pace with the cost of living, we widen that income gap and risk uh to lose talent.

Fourth, we need to look more regionally to plan for mobility and quality of life. Migration patterns remind us that no city, especially here in Hampton Roads, is an island. Uh residents don't think in terms of city limits and they don't think about they they really just think about where they can live, commute, and raise families. So, transportation, workforce strategies, housing all have to be regional because

that's how people actually move through their daily lives here. Um fifth and finally, adapting services for a changing population. Uh demographic shifts are changing the profile of who the city serves. An aging population, growing student needs, and diversifying households all put new pressures on city services, which means long-term fiscal planning, but also rethinking how the city delivers services to meet those

different needs. So, these are the five key data points that that really everything points us toward. Housing, talent, job growth, regional planning, and adapting to demographic change. But the important thing is to recognize that these aren't five separate silos. They are connected. Each of these threads we've talked about today weaves into a larger story about where Virginia Beach

is headed. So, and that brings us to our closing thoughts here. So, as we've seen today, the data tells a pretty balanced story. Uh Virginia Beach has very clear strength, strong schools, a resilient economy, and an undeniable high quality of life. But it does face headwinds in terms of population growth, housing supply, and workforce retention. So the real takeaway is that these aren't isolated challenges. They are

interconnected. Population shapes workforce. Workforce shapes the economy.

And housing and schools really fall at the center of all of it. And addressing one without the other likely won't get everybody to where we need to go. So the good news is Virginia Beach does start with a position of strength. Um, and that was my hope today with this presentation to give you not just information but a framework for connecting those dots and thinking holistically about the city's long-term

competitiveness. So, as I mentioned, I've intentionally left ample time for discussion because the most important part of today isn't necessarily the data. It is the dialogue about what we can do with it. So, I want to thank you all for your time and your attention.

And I'd love to open this up for questions and discussion.

Mr. Mayor, before you open up for questions, Monica's going to come and wrap this back up into the context of preparation for the strategic retreat, which is next week. Before you go to questions, I don't even know how you put a bow on that. I mean, just amazing job to you, Michael. Um, again, I think you said it beautifully. The data is really a backdrop, a invitation for discussion as

you all head into your retreat. Many of these topics you've addressed in your focus action plan at different levels.

Some are at the emphasis, some are a bit more mature, whether it be uh the housing grant program that you all passed recently. You are hitting on many of these themes, but we wanted to provide you with facts and figures so that could be top of mind as you think about your priorities. You know that Julie's going to give you some stickers and you're going to have to vote of

where you want us to put our attention for the next 24 months. So, it's important to us that we arm you all because I like to tell people, you don't govern in a utopia, you govern in reality. So, being able to ground you in what some of that reality is, not being constrained by it because we still write our future, but being informed by it was the goal. And Michael, you did it so

beautifully. I feel as though Kevin's out there in the audience like a proud parent who just wants to cry. Um, just phenomenal job. And, uh, council, we really invite you all to have discussion. bring your booklets next week uh to the retreat if you could remember. But we really would like to invite your discussion, dialogue, thoughts on what you've been presented with. Again, Michael, I feel like

clapping, but I feel like Dr. Ross Hammond will need a clap like you did an amazing job.

I'll stand here.

Okay, let me kick it off. First of all, I think it was a very valuable presentation. You know, we got to take a, you know, a picture of oursel and, you know, see where we stand. But once again, we have that confrontation with reality. And I think it's fair to say, you know, every city is having these discussions and these these problems.

These are not unique at all, you know, to the city of Virginia Beach. Uh we are having the silver tsunami here. I pretty much joined them in my last birthday at 34 of a century. And but it's coming and uh you know, once again, we have to you know, get that affordable housing piece.

Yeah. and uh you know but but the other thing is too in terms of creating you know the wealth and everything I think you know with Rosemary and a number of us and a number of the uh mayors talking uh you know a shift in education that maybe college is not uh the place for some people but getting a skilled trade uh I know the um shipyard in Northark's been looking for five to 6,000

uh skilled employees employees coming up and they make some pretty good money.

But also in the area of uh you know welders and uh auto body repair you know there are definitely needs to fill in there and you know they make some pretty good wages doing that.

And the other thing is too uh with the confrontation of reality is the cost of housing. You know we just learned recently since 2018 the cost of building materials has gone up 99%.

Um and then also uh you know working with um you know some of the realators association we were given a figure that Wells Fargo mortgage uh calculates there's a $93,000 um regulatory uh money goes into pretty much any new building now with all the new building codes and everything. So if you're tacking pretty close to 100k onto a house. So if you buy a piece of land for 150,000 and then do the regulatory,

you're talking a quarter million before you even put the first nail on the first board. But once again, I think this is a thing in terms of we hear it from the uh military with the Hampton Rose Military Federal Facilities Alliance. Every branch of the military is begging for affordable housing for mil military readiness in terms of recruitment and retention. But once again, I think you

really highlight of what we have to focus on. It was a dynamic presentation and I thank you. And let's start with Josh.

Thank you.

And then we'll go to Stacy and work.

Thank you, Mr. Mayor. Mr. Evans. Um that was probably one of the best presentations I've seen out of the alliance or period um in a very long time um on on these types of issues and I thank you for it because as I was sitting there I was thinking it's housing. it's housing and it's schools.

And I mean, we're we're we're attracting people from places that we ordinarily compete with where we're we we often often times say we're losing residents to Northern Virginia, but people are moving here because it's more affordable, relatively speaking. But then again, people are leaving here for other more affordable places than we are. And I mean, really, the why is it's cost of living and it's quality of life.

and and we have we have really good quality of life. Um and I and I think we need to I we do a a great job shouting it from the rooftops, but I think we could do it even more.

Um because I think you could live a lot of other places in this country and then even in the region and and and get a lot less um for for what you pay. Um, that being said, I I do I do think we've got an opportunity with housing and I think we got to keep going and schools because that's what I mean schools are incredibly important for um they're an economic development tool tool. They're

uh they attract residents. I mean, we can't be afraid of growth. I mean, a lot of times in this community, we all hear it growth is kind of a bad word. Um but but growth um in terms of uh business growth and and even new residents help offset you know the the the burden that our existing taxpayers have and especially new business growth. So, um I loved um I loved your your how you you

talked about the military and how how to make it a sticky economy for them.

Um because we've got a lot of talented people coming out of out of out of service that um that, you know, dump right into cyber and tech and maritime and all of the things that translate really well. And it was the first first time I'd ever heard live, work, stay. Um, that's pretty neat because you could stay like we all want our kids to stay here, but you can also

stay and stay here on vacation. So, um, so anyway, great job.

Thank you.

Let's go Stacy Worth and Jen.

Again, I want to pile on and say what a great presentation.

Thank you.

Um, a lot of data. I'm going to ask you a few questions that may test your North Carolina education.

Um, besides the benefit of the obvious benefit of owning versus renting, when it comes to addressing the issues that you brought up about the uh affordable housing, I think a lot of that is obviously we have a shortage of inventory.

Yes.

In Virginia Beach. So, in addressing that, is there a different way to uh look at the benefits of rental units versus home ownership?

Sure.

Does it matter at all?

Um, I wouldn't say it doesn't matter. I think they they definitely serve two different functions within within the housing market. But I think when when you look at housing verse like purchasing a home versus renting in Hampton Roads largely because of that BAH dynamic that I mentioned, there's not the cost advantage that you see in, you know, non-military metros to renting versus owning a home. And often prior to

2020, it was often cheaper to own than to rent in Hampton Roads. In many cases, um you do see a lot higher prevalence of housing burden among renters uh across not only Virginia Beach, but Hampton Roads. It's largely over 50. I think every locality is just over 50% in terms of housing burden. Um so there's that kind of interesting dynamic to it. But I will say the, you know, addressing

housing and especially kind of that that missing middle housing piece of it. Um, to to the mayor's point just a minute ago, you know, it's harder and harder for deals to and and projects to pencil now. Um, so it's definitely something that's probably going to take a regional approach. I don't know that it's something that any individual city can go at alone and accomplish in total.

So, in our position on council, if we're looking at two alternative uses uh for a piece of property, one being rental units or one being home ownership type units, should a preference be given one towards the other?

We're we're chronically under supplied in terms of our housing market. So, I would say preference right now with the market dynamics would be housing for purchase or even high density for purchase. something that kind of creates that opportunity to buy into the market.

I touched on it very briefly, but ever since so we we were under supplied quite a bit when it came to multif family leading up to co there was a big surge in building multif family units 2020 2021 and into 2022. And we're kind of reached a point where we're we're meeting demand. We're a little bit overs supplied. Not by much, not enough to really drive prices down, but just enough to create a little bit of

softening in that multif family market.

Um, but what we have always been very under supplied in is housing available for purchase.

And do you have any idea um any insight as to how many units would need to come online to address this shortage of inventory?

I don't have an exact number, but that's something I could definitely look into.

Thank you very much. a worth and then general.

Thank you, Mayor D. Mr. Evans, thank you very much for this, as you say, valuable, I think, fascinating discussion and I hope this carries over to our planning retreat next week and also for the next year. It is so much food for thought here. It's got my head spinning right now. Um, but I think for overall just for in my opinion, I've got a question at the end of this, but um,

Virginia Beach, we're a victim of our own success. Uh and for a lot of reasons the housing affordability a lot of people do want to live here have bought houses to live here for vacations you know like in the north end for example on the ocean front a lot of that is tourists that have a second home here so it's very difficult to buy houses here the housing threshold there is really

high back to your point Councilman Cummings about renting versus owning I mean I think truly people make decisions to live in a house that they can own versus rent. So that's why this is so fascinating because, you know, population we're responsive to as elected officials because people vote, but people also vote with their pocketbook and where they live. And that's why I think this says a lot about

Virginia Beach cups half full and half empty uh in many regards. All that being said, I do think um and I'm making a example here in a minute, the cost government also should be in a consideration and I know you didn't put that in your matrix here probably for a variety of reasons because you have a lot of localities and I do note how how many other localities in our region are

in the same boat as we are. So I think a rising tide will lift all boats with that. But um the cost of government, how much we tax on our already expensive houses. We have the lowest tax rate in the region except for the city of Williamsburg and maybe Alive White County, but that's the rate, but the taxes generated are really high because of our high prices. And I'm very sensitive to

that. That being said, my district 6, we invest a lot of our city money in district 6 to support tourism to attract young people to live here. Atlantic Park, it's almost full. $153 million of taxpayer money for that. We're going to see great benefit from it, but that's a large amount of money of taxpayer money to support the, you know, I'm just saying the pros and the cons here. I'm not saying, well,

that's what we, you know, as a body have to consider when we have these projects coming forward because people vote with their pocketbooks. And so, I'll end this with the question, is isn't this really a national trend of a exit or flight to the exerbs? Rear suburb excerpts would be Olive White, Suffach, James City County, Fairfax County. Fairfax County has nine Fortune 500 companies, but they

have zero growth. And I think that's going to be attributable to affordable housing and the cost of living. So across the country, New York, I mean, big local, big cities are losing. And then California, a great state, I love it. Great. Facebook, um, Google, Nvidia, and Hollywood as great things come out of California, but San Diego is not growing as fast as Florida where there's

no state income tax. So, I'm throwing a lot out there, but that's why I think it's fascinating. But, uh, can you answer the question? Is this a national trend that really that we're up against?

Yes. So, with the exception of a small handful of of cities, um, Florida's recently seen a slight shift of more people moving out. um just generally but the largely speaking when you look at mar large metropolitan areas major metropolitan areas you do see that kind of broadening out of of the population base. So it's moving from the more expensive city centers out toward those more more rural communities. Um so yeah,

this is not a an issue that is in any way unique to Virginia Beach or Hampton Roads more broadly. Um, it's definitely something that you're seeing in in all the major metro areas.

Jennifer, thank you, Mayor. Yeah, this was fantastic. Thank you for Monica for setting this up and thinking to even think to do this and for this information. Um, I know I'll be bringing it to the retreat. Um, so my mind is going around I'm trying like I see an image of like buckets. So if we have an economy and the balance of the economy, who is it? Is it working evenly well for

multiple different groups or is it tilted to the benefit of one kind of group over another? So by that I mean we have an aging population that at some point will benefit or may already benefit from tax relief.

Mhm.

In that way we have a a veteran population that will benefit or that is benefiting from certain tax relief. Mhm.

We have families uh working families, working individuals and families who don't see the same kind of relief programs but need a different kind of service because they've got children in schools. And so when I think of the balance of uh revenue coming in and what we're spending it on and who's paying for it um how I think about the tourism economy, so that portion that needs a different kind of balance. So I'm

wondering as a city how we are if we're balancing it well or if there needs to be some tweaking to the inputs to get a more to help us achieve these things.

That's one question that I have. If you have thoughts and I have something else.

Yeah. And and honestly that that it's hard to say right off the bat. I mean that would require a lot deeper dive into kind of th those programs and kind of where we're seeing those benefits and those ripple through effects. Um, but I will say I think the when you talk about kind of the whether or not it it's lopsided in in one way or another, I think where that's the most prevalent is

kind of that statistic I gave on the housing market where you've got the same median age from two decades ago buying or from two decades ago buying houses that are buying houses today. you see kind of the the individuals who have who bought into a less expensive market um being able to capitalize on that and you just see that consistent churn. You don't really see a lot of new entrance

in into that market. So, I will say it's probably lopsided to individuals who have been able to build wealth through things like home ownership and investment, but it's hard to say whether like the individual tax programs are.

I'd have to do kind of a deeper dive on that.

Thank you for that. And then for housing, um, so affordability and what I've heard, um, and I wonder if you have any insight into it, um, that we're building on the higher end. So the construction, whether it's rents, their market rate as opposed to affordable overwhelmingly or the homes are at the higher end. And what I've heard is um well instead of building affordable, build more expensive and the people who

can afford it will move and then leave their properties or their units vacant for the middle to move in.

Do you see that playing out? Is that something that's actually happening in function? It's a little bit more complex than that, I think, especially in highly desirable localities like Virginia Beach because that that entry point, it's like when you look at the median sale price, it's pushing $420,000.

When you've got a median individual income of right around 90, the math becomes a little bit tricky. So you're not really seeing yes you're seeing some of that but that's why you see like right now if you look at some of the market dynamics you're seeing a little bit more slowing at the top of the market in terms of sale prices but when you look at housing sales really sub 500,000 they move really quick and

that's part of that dynamic but as you saw with you know w with the dynamics of existing homes you've still got a shifting proportion where more and more and more houses are falling into that 500 plus category. So the the math just becomes it happens but the math just becomes a little bit tricky because the supply isn't there and then you've got multiple people competing for a house and it just progressively makes it

unaffordable.

Final question then I'm done. Um, so with supply because council member Rivik mentioned it when and I don't know that there's a policy for this in the dynamic of our country but when people buy properties as part of their portfolio investment portfolio so you're taking housing offline because you're renting it for profit I have you seen anything um any municipalities any policies any places

that address that issue if it's seen as an issue at all in terms of supply is there but it's offline because it's vacant.

Yeah.

In use for something other than someone's primary residence.

Yeah. You know, it's funny. I I don't know of any localities specifically that have implemented it, but that that topic actually came up um actually forget who I was discussing it with at one point um about localities that there have been discussions in localities about limiting the number of houses that can be kind of investorowned in a particular um area.

So, there are discussions like that. I'm not aware of any specific cases, but I can I can look into that and find out.

Thank you.

Yeah.

Okay, we're gonna go. Amelia Hutch Rosemary, thank you. I really enjoyed that. I'm so glad you brought him in.

North Carolina in Denver, but we accept that. Thank you. Um I noticed and jotted down a few things straight came to my mind was about schools because even though on not having the growth you also mention that migration in of Asian group South America and the different areas you show for the challenges that's costing us more like um second language specialization and so forth. We also

have to look at that that sometimes some of these young people are misdiagnosed because they don't understand the English yet and you still have to have someone working with that. So that is a challenge. You mentioned about workforce housing. We rarely need to come to clear definition because you mentioned teachers, you mentioned nurses, we also have the veterans population and we still have

dynamic where you see a lot of the veterans end up retiring around 38.

So they're retiring around that age.

They're looking for that second job to maintain while still having a salary from the first.

Like a pension. So that again sometimes you see some people who aren't there who've never been into the veteran um into military wondering how they're going to work what is possible and sometimes when you have workforce housing some people think of it in a different definition. Yes.

So suddenly you get the nimi situation.

We're trying to put affordable housing in whatever development. We have people who are strongly against it because they're assuming there's just homeless people coming in. But these are career people. So, we really need to stress that point. The teachers, the nurses, all of those who need to be employed desire and need to have those affordable housing. This is why last time I deferred

uh uh builders because everything was market rate. I said go back and look at it and see if you can put something for affordable for those teachers and nurses because that's where our retention base is. Um you also mentioned about um transportation.

Now you know we have water everywhere.

Yes. So that is a problem that we will need to address. Um the demographics changed and I mentioned about um there was one last one jot it down.

You mentioned about four types of challenges. The other is homelessness because we still have a quite a few veterans on the street.

So those parts and understanding homelessness is not a part.

So as you go, we'll bring some of these back to you so that you can look at um what possibilities what is a good name that the whole region can use instead of just work tools. We have affordable have attainable but we don't have one that has been refined and use across the Hampton Roads. And I think it will help people better understand the value of these homes of sometimes we're running out of names.

Yeah. Absolutely.

So sometimes we have to dig into other areas to have these development and there are people who have these already. We've got to look beyond that and say, you know, for the grace of God, there goes I.

Yeah.

But thank you so much for your uh presentation. definitely use it in the retreat. So, come ready. Sharpen your pencils.

Thank you. How much Rosemary?

So, first my god, I've seen better presentation.

Thinking of one budget hearing in particular.

It was our budget for a little bit and we nicknamed it Picasso because the way he could help you paint your picture was very helpful. So, my my hat has been off tangent for a long time. Um, another uh anecdotal thing is uh there's some properties in Woodstock where I live and there's nine there were nine lots and the sign said upper 700s for like 6 months. The weekend that they dropped it

to the upper fours, they sold all nine lots. So, it goes kind of to what you were saying. Um cuz I was getting asked constantly what's going on, what's going on with the property. So, um I think it just kind of shows in a little bit of what you're talking about.

Yeah.

Could you go to that last slide that you had?

Yeah, that one. So, I I really really like this part for you. You know, how you brought it together and and I and I know um I've said it from here a lot. Um we are Virginia Beach. I do think we're supposed to set the standard. I love all the other cities. I've got family in all of them. Um, but I I think like for us and what everybody has been saying here

about our housing and our affordability and the nimi problem that we run into and any of us that have had developers in our in our in our first due, if you will, um, it comes out every time, you know, about how we're doing, what it's for, a lot of misinformation um, comes out. So, I think strengthening that housing point and it's hard to find the property as we're saying to not do

just the uh multif family, you know, to get the single family homes and to get them in that right price range.

Yeah.

So, then it goes right to like you said number two and three. I really see them all being those three in particular being very connected is is that the retention and attraction you have to pay your people. and back to me saying we're Virginia Beach and with our tourist money coming in and everything else. So, I don't mean to take away from LJ and them about pushing back a road if we

need to, but if it comes to paying a little better salary and holding off a couple years on a road, that's where I think we should be within reason. I'm not trying to say that, but with our tourist dollars and everything else and how we invest them is ultimately important. And like everybody else has said here, there's a lot of numbers going through my head right now, but paying that midlevel group and keeping

their salaries at a at a nice range, if it does happen with trickle down, then they're going to be the ones that are going to try to do it. And it's going to help us with that retention and attraction. And that's where I've seen it firsthand that Alawite Mo, we we haven't mentioned Carolina. Moyok is is gets a lot of us.

Oh yeah.

We have a lot of people going down there. So that I think that matters.

It's especially poignant today in that we have a major storm off the coast. You do not want your employees in another jurisdiction during that period. It's it's it's really important for them to be in the city. Um it just helps with everything. So I like all that that you did. My one my one question for you is when you look at Isawite and Moyok and everything else in Suffach and if you're

talking to the developers and everybody else, they talk about some of the constraints that they're finding in those outlying areas. Is that eventually going to help us keep people from going out? You know what I mean? Are they I don't want to say they're going to fill up, but is it going to become a little more cost prohibitive for them to do business there? So therefore, they'll be more inclined to stay here.

That's going to be dependent on each locality and kind of how they plan for rapid growth. Rapid growth is a really hard thing for a locality to adjust to, especially when you're seeing, you know, 30% plus population increases over, you know, a given period of time. Some of those constraints that, of course, those localities are facing are, you know, utility related. you know, they they

don't have the utility infrastructure to support all of this new housing. So, you're they're having to invest in in their CIP programs and all that kind of stuff to to keep up with that population boom. Um, and it depends on how they adjust as they go. So, it's hard to say broadly if that trend is going to hold.

um if a locality were to kind of up like real estate taxes for example as they were experiencing that population growth.

So you mean like if they're having to build schools and roads they may have to go up in taxes and therefore that's going to cause everything to Exactly. So so they'll there will be those adjustments as it as it moves along, but it just depends on how each locality plans. So it's hard to say. I don't see that happening. I don't see them hitting that wall within the next 10 years, but it it's likely that it

could.

Thank you, Rosemary.

Well excellent excellent excellent.

And also, the council's comments have been wonderful as well. And just go to there's a cycle. Everything is connected.

You know, the jobs, business, education, housing, all things are connected. You can't just take something out of context. It all has to work together. It has to have that balance. We have to create that balance. And um speaking of jobs, we're, you know, we have 61 acres of land left to bring in, you know, jobs and and new businesses. And we've got to we're going to be having some discussions on that.

And we're really going to have to focus on we've got to have some more opportunities to bring in the business.

Of course, they're going to need housing. Um, so one of the things I think the council needs to also think about, we have been doing some things like this new grant program we just passed, but also by what we did with short-term rentals and by confining that only to the resort and Sandbridge when before short-term rentals could be all over the city, that was going to take housing away from

people who need it to live in and work every day. So, please give yourselves credit also for changing how we're handling short-term rentals. So, just kind of wanted to mention that because that that is really part of that which I think other places may be grappling with.

Yes.

But this is going to be very beneficial next week when we have our discussions.

It's all connected.

Yes, very much so.

Connected. Thank you.

Okay. cash.

U thank you for the presentation. Uh just really quick just and I think this is more for when we get to um our meeting where we talk about in depth um jobs um diversifying uh job growth. the things that I kind of looked at in is vot in in the schooling portion. I didn't see vot kind of as a category.

Um and that so that's something we will probably talk about. Oh, Monica, we can get more information. I worked with the schools um on their data. Um but if that's something you all are interested in, we can definitely get you more stats um on that for sure.

Yes. Thank you.

And Mr. Manager, I know you're ready to wrap up. I know we haven't talked much about number five uh but you will start seeing that you've already started seeing that in department's budget. So I think of fire chief pravis and uh EMS chief Straoud's budget and aging in place of where they're getting more calls or folks who are aging in place at their homes and how can we proactively

help them when they're having falls um things like that. So number five is showing up in your in the manager's director's budgets. Um, so that's very much a real one. I know. And as we should talk a lot about housing, these big macro issues, but let's not lose sight of number five because that's what's showing up in your local budgets that you all um vote on that you're getting requests on from directors

because the nature of the services that our residents need um is being reflected in that, too. So, I just wanted to shine just a little light on that, sir.

Sorry.

Okay. Thank you. And uh I tell you what, that was outstanding and that was definitely food for thought. And uh you know the real ugly reality is that as we Rosemary said we're running out of land and that means opportunity and that means we got to uh improvise, adapt and overcome as the Marines would say and that we will do. Okay. Thank you very much.

All right. So Mr. Mayor, um following following the um following prior to council taking recess, council asks for a tip fund analysis as you move towards your retreat. So, this presentation will be given by Kevin Shadalier, director of budget to give city council overview of the state of the tip fund.

Thank you. Welcome.

Yes, sir. Thank you, mayor. Um members of city council, I know Michael just left. I'm not going to back up too much, but I certainly did have a proud professional moment just then seeing Michael uh in his career path and continuing to grow. Um I know it's not only me, but also my deputy Katie James who directly supervised Michael. We're both very proud. So uh anyways, as the city manager said, with no further ado,

um today's presentation is going to be update on the TIP fund, the tourism investment program. So I'll start with providing a brief history, overview, recap. Uh member members of city council have likely seen majority of this before. So I'm just going to kind of move through that, get to a quick five-year projection of it and then talk about some other influences um and factors that are impacting the tip fund.

Uh so walking down history lane. Um so the tip fund as we know it today was really the merging of two separate funds that were established back um in the 90s and early 2000s with the city. The first is was referred to as the tourism growth investment fund. So that was established in 1993 uh with the intent of funding key um specific projects. So it's actually within the establishment of that fund

that the rack or the um resort area advisory committee and the um advisory roles of that committee was established and founded. With the establishment of that special revenue fund, you can see that several tax revenues um were increased and dedicated to finance um key projects. So that came with a 2 and 12% increase in establishment of a hotel tax rate dedication, half of a percent

of the meals tax, 20% of the amusement and various fees at that point in time related to um operation of uh franchises down at the ocean front and parking fees at that point in time. Uh listing the projects that were funded through the establishment of that dedication. um quickly uh the an expansion um at the Virginia Marine Science Museum um oceanfront connector parks more specifically 31st and 24th

and then um you know the establishment of the Rudy Rudy walk and a lot of people don't know this but the establishment of the ocean front and the boardwalk itself um which was if you go back referred to as the beach erosion control um but today it's the boardwalk that we know and we advertise as a market as an amenity and a um enhancement tool of Virginia Beach at the resort area.

In 2001, city council established the first um I have it up there at the top, major projects fund. Um there were several key projects were identified as a need within the local community. And so, city council established a new dedicated fund to sustainably finance those. That came through a dedication of 80% of the amusement tax, a 2 and a.5% hotel tax rate, a 0.56% restaurant tax dedication, and a 5-cent

cigarette tax rate dedication. And the projects that that debt financed and sustainably funded was the establishment or the uh convention center and the Sandler Center. At that point in time, it was a replacement of the pavilion pavilion project um and expansion of the aquarium parking.

So in 2011, those two funds were merged to create the tip fund as we know today um with the existing dedications the tip fund has being a combination of the two previous funds. uh with the um special note there that there was an amendment within the last couple of years and now 20% of the admission or the amusement tax revenue is dedicated towards arts and humanities and cultural affairs.

So looking at this on a in a table uh compared with the other funds that receive dedications of those various tax sources and revenues you can see the tip fund um and the percentage that it shares of each of those revenue sources.

So the um hotel tax, for example, of the 8% total citywide tax, the tip fund receives 5% as well as a $1 per room night um collected. The tap fund receives 1% of the total 8% and $1 per room night. And the general fund retains the residual 2% of that tax rate. So that's how the math works, working left to right in that table. And you can see

that the uh tip fund um now has the uh change um as a result of the um restaurant meals tax. I'm sorry, misspoke. Tip fund did not change.

That's 1.06% of the restaurant tax. Um but trying to work across, you can see the establishment of the major project fund receiving 77% of that citywide 6% meals tax tax rate.

uh working down um the FY2526 operating budget when looking at the TIP fund is really broken up into two categories.

You can look at in the operating budget side, but the majority of the bulk of the TIP fund and its future obligations are with the intent of supporting the CIP um at $3.7 million. And the real thing to be mindful of is that the reserves and the residual and the fund balance that is within the tip fund today is really looked to be a sustainable future ongoing um financing tool related with the $413 million of

bonds that are programmed in the CIP to be supported by the TIP fund.

So typically I go through a spreadsheet format and kind of walk through um a line item as to the allocation of the tip fund to support operating budget in the CIP. So I've changed the format a little bit to kind of talk about it more bullet point format. So um the tip fund supports several departments operating budgets um within the city. Uh so for example, cultural affairs operating

budget receives $520,000 from the tip fund and that supports Mocha advertisement uh contribution towards the boardwalk art show as well as the vibe district investment grant that's provided. Parks and wreck receives receives a portion of the tip fund allocation to support landscape services down at the oceanfront. Public Works has several operations that utilize tip fund capacity, uh, recycling services as well

as the resort u maintenance efforts that occurred down at the resort area. Beach operations is supported within the tip fund. Um, and that's for beach cleanup, um, trash collection and the services provided. Uh, and then public works also provides enhanced street sweeping services at the resort area.

The convention and visitor bureau receives the bulk of the tip fund allocation that's supporting the operating budget as the entirety of the resort management office is funded within the tip fund. But the CVB, Convention Visitor Bureau, also is directly responsible for providing and managing the I'm going or the beach resort entertainment contract. And they also manage majority of the sponsorships

and event contributions that occur through as a direct contribution from the tip fund such as the Neptune Festival contribution.

the within the non-EP departmental um section of the operating budget, there's a tip fund allocation to support um Hampton Roads transit services to the resort area. These are for the trolley services primarily related with route I think 31 and 30 um that move up and down Atlantic, but they also go up towards the bay um and then down south a little bit. Um the FY26 allocation towards that

is ju is just under $1.2 $2 million and a recent adjustment due to the cost of um inflation and service increases in recent years. There was a need for the tip fund to begin sharing in a portion of the life services contract that supports that is funded within the EMS operating budget and provides lifeguard services at the resort area all summer long.

Switching over to the CIP. Um this is a list of various projects that are supported in the CIP through the use of TIP funding. Um I'm not going to walk through these one by one. However, they're up there for information. The bulk of the investment or allocation within TIP fund is to support the Atlantic Park development. You can see that that's provided through four different CIP projects. Um, something

else worth noting is that um, some of the there's parentheses out next to the allocation that's reflected in the operating budget. The TIP fund is primarily funding these projects.

However, some of them did receive a contribution from a different fund at one point in time. Um, so a good example of this is down to the far right, the Virginia Beach Amphitheater Capital Maintenance. couple of years ago or processes ago when city council gave direction to reduce the real estate tax rate. They also gave direction to explore sharing that cost um loss revenue with some of the dedications

where cap capacity existed. And so at that point in time, this was one of those um avenues in which that was done.

So historically, the Virginia Beach Amphitheater project receiving around $200,000 a year was supported by the general fund as an allocation of the CIP. And so for a six-year period, that funding obligations was switched over to the TIP fund to support that in the CIP as is primarily supported through the amusement tax revenue.

Um, in looking at the projection of the TIP fund over the next 5 years, this slide covers some of the some of the assumptions that went into the projection. So over on the left side looking at the revenues what we typically do is use historical growth rates associated with what actually is occurring in the revenue stream. So for example the long-term growth trend in hotels it's about 2% annually.

Restaurants is 3%. Amusement tax is about 2% but that one's boxed in for a reason um to uh highlight now that I'll be coming back to and talking a little bit later in the presentation.

Over on the expenditure side, um the base assumption is a 3% growth in normal operations and services, but there are a few that we were are able to account for that typically have a historical or his in looking back um historically have grown at a faster rate such as the HRT annual services contract and the lifeguard services contract which is tied to a 5% annual escalation. And then

for debt service, it's assumed that bonds are being issued every two years at a 5% interest rate.

So I know it's a lot of numbers on here.

Um it's not as color-coded as it typically is. So I'll just kind of take a quick moment to walk through this. So the top portion of the table is reflection of the revenues. So you can see the various revenue sources and dedications that exist within the tip fund. So, walking down FY26, for example, the hotel room tax, the 5%, that's 22.9 million. The $1 per room night's 2.7. You can see the restaurant,

80% of the amusement tax is 7.5. And then there's this one line here reflected as miscellaneous revenue. So, that $2.88 88 million or $2,88,000.

That's the revenue associated or anticipated to result as a result of the Atlantic Park project coming online. So, it's tied to the CDA and the performance grant. So from the revenue that's generated on site, this is the estimated amount that was to naturally um flow into the tip fund that was then tied up in an obligation associated with the butt for revenue that was tied to the

performance grant. And so it's reflected in there as a controlling mechanism as that's really an in and an out um that as to how that revenue will work.

Looking down at expenditures, it's simplified. And looking at the operations, you can see 20.7 million, the debt service at 26.3.

Um, looking at the debt service, oh um, looking at the debt service, kind of working left to right, you can see within the next several years, that debt service line grows from 27 million um, dollars in FY28 to 45.6 million. So whenever we're talking about all the bonds that are out there that are authorized or appropriated but not issued yet, that's when we're anticipating that increase to likely

occur and impact the tip fund. So we have that assumed in the baseline projection of the tip. The next line down looking at reserves, you'll notice that it goes from 4.9 and then it slowly lowers in the outy years. So the reason for that is there is a um revenue stabilization obligation that's potentially exists for the tip fund. So as Atlantic Park comes online per the agreement the tip fund is the fund

that's to act as a revenue stabilization tool of a maximum 3 million year 1 2 million and then 1 million and that's the reason you can see that slowly going down with the outy years being the in-n-out flow associated with the um CDA performance grant and the Atlantic Park revenue that's generated.

So looking down at the very bottom, um this is typically the row that everybody really cares about. Um so what this is a reflection of is the cumulative fund balance. So whenever you're looking year-over-year re projected revenues, less expenditures, you can see that the tip fund starting with a $54.2 $.2 million fund balance is projected to grow over the next couple of years, but

then you really start to see a draw down on that fund balance. Again, as the debt comes online, the debt, the existing fund balance that's there now is going to be needed to be used as a bill payer for that and a financing tool for that.

If you were to look beyond the 5-year period here, the fund never goes in the negative. So that's something that we try to be mindful of and we watch for.

So we've said before the tip fund's in good position. There's just a lot of moving parts in it right now that we need to be mindful in terms of what obligations or additional obligations are placed onto the tip fund.

So one of the questions that typically comes up is how much does it take to move the needle? How much does the tip fund get from enhanced or increased overnight visitation? So it's not really an easy thing to demonstrate or calculate, but information is out there where we can make an educated guess or try to create a scenario to give context to that conversation. So if you were to

look at the tourism economic report, um you would find that you have a total number of visitors and you have a known total spend for those visitors that's estimated. So if you take an average um that's what the first column represents.

So for example the spend per tourist is an average food spend of $75.30 per tourist. Um for lodging $4826 per tourist amusement 1957 an estimated sales just under $35 for a total portfolio of about $178 per tourist. So then we also know that on average um the hotel stays about 3.3 people per room.

So if you multiply each of those categories by 3.3 you can get a scenario of a overnight visitation at a hotel room um based on a average stay of 3.3 people. So in total about $587 per room night. And then with that we were able to back into an estimated tax collected and what's that actually mean? So for um context here, the food um you can see that the estimated tax collected is $14.91 for lodging $14.74.

Amusement just under $7. Sales about a dollar for a total estimation of 37.26 um tax dollars generated per overnight stay. So that's in total. That's all funds um the entire um tax rates applied. the tip for portion of that, as we just previously covered, it's a smaller portion. They only receive portion of the tax rates. So, the estimated impact or revenue generated for the tip fund for an overnight stays

just under $17.

So, to provide some level of context, um, if you were to try to keep it simple, how much would it take, how many room nights would it take to recover a million dollars or to generate a million dollars in tax revenue? So that bottom table um you can see the um first row 1 million to total tax. It would take 26,839 room nights or the equivalent of $15.7 million in tourist spend for the city

and all funds to generate an estimated $1 million. For the tip fund to receive a million dollars through its lesser amount of the dedications, you would need the equivalent of 59,652 room nights or about $35 million of overnight tourism spend.

So again, that's just trying to take the information and work off of averages.

Um, one of the things to also think about is that's just to recoup a million dollars. But another way of thinking about it is how much would it take to recoup a capital investment. So here's a scenario uh where say there's a $50 million city project. The debt service associated with that would be roughly about $5 million a year. So being that it's a city project and city um on city land and there's no other taxes

generated from it, you based on the overnight tourist tax profile of $37.26, 26 cents, you would need roughly 134,000 almost 200 room nights to recover that annually.

But another scenario to think about is if it was a city project at $50 million, um the debt service would annually be about $5 million. But say as a part of this scenario, there was a taxable component of that or there was a private investment and say that improved the land by an additional $50 million generating $485,000 a year in annual real estate tax. Again, this is just a hypothetical scenario as

if there's really that occurring there's like and there's other mixed use.

There's likely going to be additional bleed professional occupational license personal property or some other forms of direct revenue depending on the business type. So based on the overnight tourist tax portion $37, you can see that you would need a reduced number of room nights annually to recoup that total $5 million with 121 um,177.

So sometimes the things that I'm asked is, okay, are these net new room nights added or are they um are they just replacing other room nights? Sometimes we talk about that and we refer to it as displacement. It's really hard to mathematically calculate or demonstrate what displacement is or how it occurs.

However, um you can look um at some revenue streams and see how that might occur and how things change in the local market. So, what this table is or this slide is reflecting is a a historical recap of the amusement tax. So, dating all the way back to 2008 to 2026. And then it shows the budget and the actual amount collected for each of those years. And then the far right column

reflects the difference. So you can see historically leading up to the pandemic, budget to actual was very close um averaging plus or minus um about $176,000 or $168,000 a year. But in looking at these actuals year-over-year, you can typically see whenever things change in the market. So I remember being the revenue analyst in 2015 and 16 and I remember seeing this blip, right? So in 2015 we have 5.9

million in actual amusement tax revenue.

And then 2016 over $7 million, no tax rate adjustments. So does anybody recall perhaps what changed in the local market in between that time? It didn't take me long um to figure it out as a young analyst because Topgolf had opened in December um 2015. I can't say that all of that blip is associated with Top Golf directly, but it is interesting whenever you do see those things that come to

market and some of the revenue streams directly increase as a relate as a result. Um, but then you also see there's a change over the next couple of years. So there's an opening and then you'll see that the revenue went from 7 million to 6.8 and then 6.3 million.

There's a normalization that occurs, right? So this is probably the best way I can demonstrate the displacement factor. So say resources are not are not the challenge. You can't make up more time. If you're a a household um two working parents and two kids and then you only have three hours on a Saturday to go do something, you're going to pick and choose what you go do for your amusement, entertainment for that

three-hour period. And so this is just an example or an interesting way to try to think about that and demonstrate that. Um, one of the other things that's also worth noting is I wanted to come back to amusement tax here in recent years. Um, we've seen where the budget to actual amount for amusement tax um, we're trying to catch up, right? So coming out of the pandemic, uh, amusement tax certainly rebounded faster

than we were anticipating.

And then there were some key events that happened such as the return of the something in the water event. Well, okay. So, you anticipate or we saw increase in the revenues, but then you can see that there was also continued sustained growth in those revenues even when the event didn't return. So, again, it's just really hard to try to say that one event had this amount of impact as

there's other things that could be going on. Ticket prices could be going up. Um, there could be new things coming and going all the time. So again, just find this one fascinating. Try to get a sense and have that conversation about how displacement and some of those things might work.

The other thing um that we're typically asked about whenever we get overnight the overnight visitation question is yeah, but doesn't that always generate more revenue? Um it can. It's estimated to, but then it might not move all of the revenue sources. So here's a good visualization of that. Um so this is a um visualization of the hotel tax revenue of actuals dating back to 2008 to 2025.

So the bar or the red line going across is the amount of revenue generated based on the citywide 8% tax rate.

The blue bars are representation of the dollar per room night generated. So, I find this one fascinating because um it's really the telltale. You can get a sense of how many overnight visitation room nights there were by the amount of this taxes remitted each month. So, you can see here recently um the blue bar in FY 22, 23, 24, 25 has continued to grow.

So, there's certainly more overnight visitors that are staying within the city of Virginia Beach. However, the amount that's being generated in the citywide hotel tax rate of 8% is flat.

So, you have overnight visitation staying, but not necessarily resulting in an increase of the 8% hotel tax rate revenue that's being generated.

So, sometimes you'll hear this talked about um trying to capture the shoulder season. So, keeping with the hotel tax um rate and the dollar per room night that's generated or the $2 per room night that's collected, I thought this would be a good visual visualization to actually demonstrate that. So, um you can see uh this is the $2 per room night collected on a monthly basis as it's

remitted to the city. And then so for the fiscal year July to June, you can see a red box around the first three months of the fiscal year. So whenever the fiscal year starts they're we're right at the beginning um or the second half of the tourist season right so kind of following that amount collected you can see in FY25 804,442 623 and then from October to February you start to see this gradual decline in

that and a reduction of overnight room visitation but then you start seeing it in March, April, May and June ramp back up at the beginning of the next tourist season. So, this is really what they're talking about whenever the shoulder season and how um the desire and the capacity is really there to capture things and additional spending and um and tourism dollars within the shoulder

season months. But if you were I think I've even heard the city manager or members of council talk about this in the past. You know, adding a blockbuster event on the weekend of July 4th is not really going to get as much as adding it in the month of December or January where there's room nights down. All it's going to be doing is dis displacing what room nights were already going to be

occurring or occupied at the local hotels and business that was going to be flowing into the restaurants and so forth and so on. So, this is just kind of a a good visualization um to kind of help demonstrate that and hopefully as Michael was just up here doing be thoughtprovoking in the decision making ahead as it's certainly something we take into account in our revenue projections and forecasting of

the fund such as the tip.

So, with that being said, uh I'll open it up for questions and comments. Okay, Stacy.

Thank you. Great. Um, can you give a legal definition of the tip fund given giving its purposes and restrictions?

So, the tip fund um there's not a legal defining purpose that it shall be used for. Um, city council is ultimately the decision maker as to how the funds are utilized.

The rack is an advisory committee that typically once a year they provide city council with a letter or an update um as to what their recommendations are, but ultimately it resides with city council as to how the funds are allocated, utilized. I would say that um in terms of the only legal obligations of the TIP fund, I would say that there are very real debt obligations that um the TIP

fund's currently providing. But in terms of whether that's actually uh has to be the TIP fund or not, that's that's a different conversation. Can you go to page 11

and then and the 29 uh projected under the debt service is that um increase in the debt service is that due to maturing maturing debt obligations or reoccurring increase in recurring debt obligations?

That would be due to I got too many clicks. That would be due to an additional issuance of debt related to a combination of the projects reflected on on this slide here. Um so for example, the sports tourism infrastructure project. Um the allocation was made um per direction city council and those projects are really in the works with those um facilities and those groups. So that is likely going to be one of the

projects that finance picks up in the next issuance package and issues bonds for and whenever the debt service then exists that annual debt service payment would be made from the tip fund.

So that would be a part of that 45 million all new debt.

Yes sir.

Thank you.

Um there is a baseline. I'm I'm sorry whenever you say new debt the increase is the new debt. Um but the 27.1 million there would still be a portion of that that's in that. Yes sir.

Kevin, you have an amazing way of taking very complicated things and putting it. So it's very understandable. You really are the master of this and thank you for doing such a great job.

So the year that Topgolf came in, I remember so excited when it came in.

yesterday when it came in, she's talking about those polls and how excited she was. But we saw an addition in our emissions tax. So hopefully, especially u Atlantic Park coming on, we should be seeing maybe another jump this year with that. And by the way, we certainly have gotten some fantastic media exposure and a fantastic guest columnist that wrote in Sunday's paper about how brilliant it was that we put

economic development with surfing. I thought it was fantastic. Anyone that has read it, some columnist out of Richmond, it was fantastic. So anyway, I'm getting back to my question. So, have you predicted a jump by park coming on?

Um, Vice Mayor, and maybe I can go back to the tip fund, and I I should have um so there's a couple of different components with the Atlantic Park development. There's the private um side of it where there's there's the surf park and the amusement tax that's going to be generated by that. that is tied up in that performance grant. Um, and so that's not anything the city would be

able to accept and repurpose. There's a that is going to be dedicated to meet that debt obligation with the CDA. Um, in terms of the music venue, that is one um where the tip fund would be receiving the amusement tax associated with those ticket sales and venues. we have not included that or grown um the baseline and anticipation of that. I can say that um well I typically want to go over there um so

with the amusement tax something that we are trying to do is we're trying to catch up in terms of the um the annual amount that's being received to our budget estimates. So, uh, getting back to how there's been this natural trend that's occurring in more recent years where, um, as recently as last year, it's looking like amusement tax might have been $10.8 million. Uh, you can see that in FY26, we had estimated $9.5

million. Um, which is in line with what was realized in FY24. So, we are going to be getting more aggressive in the projection of the amusement tax revenue in particular um based on what we're seeing really materialize over the last couple of years. Uh what I would like to see with the um entertainment venue whenever comes on, I like to look at the amusement taxes being generated on a

monthly basis and see if we're cap capturing um what's within that shoulder season. And so it's just it's gonna be one of those things that we're going to kind of take year by year and project.

As it is right now, the tip fund's in a good position. There is capacity and I don't know that there's a need to be super aggressive in creating an obligation against that. Um what not might not materialize in the outy years um based on estimate now. So we're we're monitoring, we're reviewing, and um I do think we're going to be increasing um amusement tax based on what we've been

seeing the last couple years though. so much. And then on the slide where you had each month, month by month, how we did, it looked like we did really, really well over the years of expanding.

December seems very flat below what we were.

So I guess that's an area that we ought to be looking at what we can do for that month since that's a great job. it work.

Thank you, Mayor D. Thank you, Mr.

Shalet, for the presentation as always.

You do put it take a very complicated topic and and reduce it well for us. If you could turn to go to page nine and I want to follow up on I think what Councilman Cummings is maybe getting at and that is the definition of the tip fund. And I guess ultimately it is city council of course but you know the amphitheater the the sandwich center the sports center the convention center

those are projects that I think the tip fund really was um intended for and thanks to the tip fund those amphitheater sandwich center convention center and the sports center and more projects have been built around the city thanks to the tip fund but before you here on this page are other expenses that uh are pulling from the tip fund And I just want to bring it to everyone's attention that a lot of these

are infrastructure um would be public works um general fund costs that the tip fund is paying for. Not notably the top two uh and maybe even third items that are you know 48 $28 million another 48 that are really infrastructure and not project driven. Um but I think very worthwhile. We made a decision of course to to fund these um improvements, but I think we just want to bring it to

everyone's attention that that's tip fund is paying for these. And in addition, as I've asked you before and you've confirmed that $800,000 a year of TIP money goes to the general fund to help fund G our government. Just want to bring that to everyone's attention.

Does the tip fund get paid back for that at some point? Thank you.

Okay, Josh. in the mail.

Um, thank you Kevin and thank you council member cuz I wrote down pretty much most of the stuff you just said, but I mean when when we get a lot of these when we get these presentations about the tip fund, I I was kind of sitting here thinking about there's there's something missing to the story and what what I mean this is a good one.

It lists all the capital projects, but but it doesn't it doesn't necessarily tell the story of the amphitheater, the Sandler Center, the the um you know, the beach accessways that that were improved with tent money and are maintained and um and uh and and you know, and I've heard for a long time that you know, it's and and I think it's true that it's one of the reasons the tourism spend

here is one of the reasons why our real estate tax rate is what it is um lowest in the region and um and and why we have libraries and rec centers that are the envy of you know our our neighboring localities. So, um, so I think that's a really important piece to the puzzle.

And I remember I think I remember the hotel industry has a list of all the stuff that was paid by the the tip fund.

And it really I mean there's a lot of stuff that was paid by the tip convention center as you know too. But um but on the infrastructure piece, I mean these are these are really important also because they're they're it's resort infrastructure and it's meant to um I guess kind of uh catapult and um you know encourage investment and reinvestment in in those corridors. Um and and a lot of a lot of what we're

looking at doesn't take into account the I guess the indirect and um the multiplying effects that these investment h investments have on on the the surrounding areas as well in terms of um property property owners who choose to you know outfit their own properties based on what's going on around them. Um and and I think those are those are that's a really important story to tell as is the I mean if you go

to these revenue sources um you know what if I'm explaining or trying to trying to um you know answer a resident's question about why are we spending you know all these zeros and commas at the resort um what about my neighborhood? Um they're not wrong but but but it's but it's also uh well you got to you got to know what bucket the money's coming from. And I mean none of these tourism related investments and

reinvestments are come from real estate taxes. They don't come from residential real estate taxpayers. And um and that that that's the idea behind the tip is to make infrastructure and tourism related investments so that they don't have to be on the backs of residential taxpayers. You let tourism pay for itself, so to speak. and and I know we do we try and do a really good job approximating what that tourism spend is

and then translate it into what the tip fund generates, but has has there been is there a kind of a review of that on a periodic basis as to whether or not what we're actually collecting actually in fact matches what we think the tourist spend is here.

Um so recently at the uh Rick presentation um I was going over the tip fund and the commission of revenue um followed up after I had presented and there was a discussion about um tax revenue that's being generated within geographical boundaries and I recall one of the um slides that he had or one of the tables that he had I was trying to backmath into um the percentage of that revenue

source. that's dedicated to the tip fund and it roughly did align. I can try to recreate that and provide something to city council, but I do know that perhaps not individually by source um but in total whenever you see the total um $56 million um that's being generated there's it's roughly in line with that.

I appreciate it. I mean, the point is an important one to make because, you know, when when we're out talking to constituents and they say, "Well, we pay amusement taxes, too, or we pay meals taxes, too, when we go out to eat." Um, you I mean, we can Yeah. Yeah. That's true. But but in the whole in the totality, um what what we're what we're using as an approximation for what the tourism

spend is in order to reinvest is actually something that is a true thing.

And um and we can have confidence in that. Thank you. Hey, Amelia.

Thank you again, Kelvin. Um, what I wanted I was actually going to kind of pat uh Councilman Remick on the back for being an advocate mentioning about that fun because we recently were in a meeting where it came up that the funds for the central business was just used for tip and he was there to say it goes into the general fund. So for him saying that is important because the people

listening can now understand that. And as you saw councilwoman Wilson and I um bragging about that taco because that was in my district then I was councilwoman for Kentville and sat with them. They brought this up. We talked about it. It was brand new. was normal and um most people where you going to put this but the point was there was only one on the west coast and that year it did it became number

one over west coast but the important thing for us to know is we have a lot of military and golf was perfect for those who may not want to go through the whole thing go right there and do this and it works So it's a matter of sometimes things come to us and may sound you know strange but if we think about it from a more visionary point it brings in funds

and make an impact but thank you um you know for sharing that.

Yes ma'am.

Okay. Anyone else at this point?

Yeah I think it was uh you know very helpful and I think it you know one thing underscores one thing when we talk about the shoulder seasons. I think one of our objectives is let's get rid of the shoulder seasons and I think it really helps with the sports center uh that really help by bringing people in all year round. Um confident that a positive outcome of Atlantic Park is

that we're going to keep uh cash, you know, flow coming and we're going to have more people living down there. uh you know you know we just put in a senior's facility down there. They're going to be going to the restaurants, the shops and everything. So I think the more activities we can and if we can plan uh some of the you know the concerts going into mid to late September, October and maybe even

starting things a little earlier in April. I think the point being though uh you know having a big you know concert you know July 4th is you know like I said it's not going to do anything but once again I think as we go forward at the retreat boy wouldn't it be wonderful to get rid of the shoulder season and I think that should be an objective okay thank you next.

All right so Mr. Mayor, members of council, prior to the um retreat, staff gave a presentation on the Rudy Loop Park project and city council asked several questions that they asked for us to bring back to you all. Staff has spent some time working to address these questions and address the concerns.

We're going to give city council update on this presentation, addressing your questions, and we're going to be seeking city council's guidance as it relates to next steps with the Rudy Loop Park project. And what we're seeking from you all is really confirmation from the design and if you give us authorization to move forward with the next steps of bringing the the project to to fruition.

Welcome Michael.

Good afternoon honorable mayor, Vice Mayor Wilson, members of council, manager Duhaney, Attorney Styles, uh Michael Kershman with Parks and Recreation here to talk uh about one of the tip projects um and receive guidance on next steps as the manager said.

Uh with me is Chad Morris who you know and he's leading the department's efforts. Um also with us is Klay Dills in the audience who leads the design team.

So when we were here uh last in June and we presented the final design uh there were some questions by council. We have gone back with our consultants and we hope to answer most if not all of those questions today. I have a lot of information and I feel a little bit out of handicap because I'm following what were two excellent presentations. Uh but we'll try to get through this succinctly

and answer any more questions that you might have about the project. Uh some of the questions uh revolved around how could this park work with future beach events with logistics and setup and tearown. Uh some of the uh questions about environmental resilience of the park moving forward. What are some of the impacts parks like this has had around the world when they've been built in other cities and how could the

governance uh work for the park as well as a potential capital campaign?

So, we have spent really the last two years um on this project and we have received an immense amount of public input um regarding the project. Here are some general timelines on when the project first started. As you recall, uh, way back in May of 2022, council issued an RFI for the Rudy Loop properties on what could be the vision and future of those properties. And that really kicked off where we are today.

There were multiple designs submitted, one from parks and wreck. There was a lot of public input. Council decided to move forward with a parkonly design. Uh we then were tasked with retaining a design firm and team to really come back to you with a world-class iconic vision for the site which we presented to you just two months ago. Um since that time there's been tremendous public feedback

even since uh that final design. I'm going to run through a lot of these slides really quickly, but just for the public's information, um, thousands of responses, um, thousands of ideas for the park, a lot of excitement on it being open space. Uh, the design team, um, held cherettes and public meetings, uh, throughout the city, as you know.

Uh, in fact, one of our design firms said to their knowledge, this was the most public feedback and the most robust public input process they have seen on any project across the country. And that's saying a lot coming from these design firms.

Uh, again, I'm not going to read these slides, just a lot a lot of support for the park.

And I'll just mention that resoundingly we heard that people wanted this site to be kind of naturalized, get more green, um really tie into our culture and what we're all about and that connection with water, which down there is uh fairly easy to do because you got the Atlantic Ocean, uh the inlet, and Rudy right right all there. So really the design took all that into effect uh that we

showed two months ago and we'll show it again in just a second. Um, we also reviewed uh various options that we uh proceeded to brief council on and that was one with a parking deck and without and we'll talk about that in just a second.

Of course, there are those two designs.

Uh, of course, uh, there are pros and cons to both. Uh, a parking deck gives you a little more parking spaces. Uh the surface parking only certainly provides uh greater flexibility and also decreases the overall cost of the project by almost $28 million. So significant cost savings.

We then wanted to look at how could a surface parking only option for the new Rudy Park work in terms of future logistics with special events because we do have a few of those a year uh down at the oceanfront. Uh the good news is uh that right around this time uh the point break festival uh had just happened and our staff along with CVB event organizers really took a look at if this

park was built and finished how this could all work out um with an event of that size of magnitude which is kind of that sweet spot of 20 25,000 uh visitors for the event.

You can see how they currently have it.

And the and to make a long story short, uh the the thought process came as could we flip the entrance to where the stage is and where the residents go in, thereby really making the park the entrance point for the public.

Um everybody thought this was a really good idea. It could work. It would work.

It would add to the event. Uh it would work with logistics. It would work with setup.

uh it works with security and safety. Uh really felt that there was no major there it would be different without a doubt but there would be no major concerns or issues and certainly events of this size. You get to events bigger than this we have issues across the city when you have big big events. It doesn't matter if we have a all parking surface down there or not, but in an event of

point break or an event of this size 20 25,000 uh certainly this layout could work and the park and ask could act as actually an amenity uh to the overall event.

Next, we looked at resilience. That was one of the questions in terms of if we turn this surface acre parking lot that these acres of of concrete into the park, what are some of the environmental benefits and what would the resilience of this site be? Um, as you all know, uh, the current site drops about 4t 48 in from the boardwalk down.

We looked at uh what is anticipated for potential flooding in the future and you can see that uh there will be times in the future where the majority of this site could uh be underwater at times during the year due to certain flood events. However, under the current design of the park, um as I'll show you in a minute and as you saw previously, really what happens is the entire site is elevated 48 in up

to level with the boardwalk. uh the boardwalk bike path curves around and that whole area becomes elevated and really out of these floodprone areas with the area south of that adaption area really being designed to flood. It can be inundated and it won't impact the park.

So here's uh you've seen this image before. Uh we all know what's down there right now. There's Grommit Island playground to the left, the boardwalk and the parking to the right. you really have to step down, take a couple steps down to get to the parking lot. Uh the current design for this park raises the entire elevation up to be even with that boardwalk and extends back through the park, thereby

really helping to protect the assets of this future site.

Not only that, and we'll talk about a little bit, it really opens up the sightelines. It's really going to make this place special. Uh this will be a place to go see the ocean, uh see the surfers, see the fisherman, see the boers, and really um people watch and enjoy all that we have to offer here in Virginia Beach. And then on the back side, you can see uh there's the bike

trail. That's 48 comes down. It can flood periodically. It'll be designed that way uh to really uh mitigate the impacts of those future flooding events.

Moving on, we looked at in previous surfaces. Um, heat island effect. Uh, we all know what's there right now. It's a lot of concrete, right? Uh, so right now the site is almost 90% impervious surfaces. It's concrete and there is an average summer surface temperature down there at Rudy Loop of about 94 degrees on any given day in the summertime.

However, uh if the park is built as uh designed, uh we really decrease that impervious surface in half. We really green up the site. Uh 40% shade cover and we drop 13° off that average surface temperature, meaning it becomes a relatively pleasant place uh to spend an afternoon. As of right now, you park and immediately leave your car to get to where you're going, whether you're going

into the water or you're going on the bike trail or going somewhere else. Uh right now it's a park and leave. In the future it'll be park, stay, enjoy yourself for a couple hours.

Uh we have uh designed the park uh with a planting plan to help protect these assets to where the plants towards the Atlantic side would be the more dune species. Uh the elevation changes will protect from the salt, spray, and wind.

And when you get back on the back side of the park is when you get to your woody species in your trees, which is going to really lend yourself to most of the shade and canopy.

Uh we believe that this uh design and this park will certainly add uh to the overall impression that people have of our community. It will contribute to our VB culture. It will provide close proximity uh to the Rudy Inlet, to the ocean, to the boardwalk. I'm going to show you in a minute how parks of this magnitude drive tourism, increase stays, increase visits, and increase taxes. Um,

these things really become special places and cities become known for spaces like this.

Um, here's one of the images uh from the park design. And this is where people can really go be elevated even above uh Rudy Loop on top of one of these overlooks, see the beach, see the surfers, get a bite to eat, participate in the program, and really get a feel for what Virginia Beach is all about.

Authentic Virginia Beach.

Uh we're looking to to put into this park iconic destination places uh where people will want to go. Um there's only so many days out of a week if you come here that you want to spend time at the beach in the water. Uh you want to go other places as well. We have a lot of those here. This would be another one.

This will also be a great place for our locals to go. When I go down there, I love just people watching, walking. This would be the place that I will take company and visitors when they come visit a place like this. When I lived in other cities, it was the same way. Uh when we built Ramier Bearden Park downtown Charlotte, I'd come I'd be like, "You got to go see Ramier Bearden

Park. Let's go down there, get a bite to eat, hang out in that park. Uh these places have that impact.

So, let's talk about the impact of world-class parks around the park. Uh we had we had this amazing design team uh with firms from around the country uh that both design and run these parks.

I'm going to run through just a few examples. Um I'm not going to say everything that's on these slides.

Uh the first example is Los Olas Park in Fort Lauderdale. It's about two and a half acres. It's a $65 million cost.

Opened about uh six years ago. You can read the impacts there. Increased visitation of the hotels by 30%. Added 2 million tourists per year.

Property sales for redevelopment uh included $250 million around the park uh for two years following the park and hotels within walking distance added 60% to their rates. People wanted to stay close to the park. They wanted to come back and stay near the park.

Again, I'm not going to read all this.

The the statistics are out there, though. We'll move on to Tom Lee Park in Memphis. a little larger size, 31 acres, but it's a waterfront urban location, $61 million project that's one by run by a nonprofit, which we'll talk about in a little bit. Um, raised $28 million in private and corporate donations for the park and addedund almost $150 million in economic activity since opening.

uh this I've seen case studies of this park at my national conferences and of course uh parks like this really help to spur private development around them once they're put in.

Uh here's Kerry Park, North Carolina. Uh Kerry is population 200,000ish.

um 7 acres, $68 million project. Um built just about two years ago, annual revenue of 12 million. Um 750 programs in a year. It's drawing over 1 million people per year. I'm going to show you a couple pictures of it. It's an amazing design that they've done there. Uh surrounding property values have gone up nearly 30%.

uh in a town of about 200,000, they're seeing an additional 500,000 new visitors per year as a result of the park opening.

Here's Clyde Warren Park in Dallas. 5.2 acre site, $40 million cost.

Rents, rents have increased, rates have increased. Uh 10 million visitors per year to the park.

an increase of $123 million in hotel revenues from the added visits due to the park.

And just some quotes um from people in Dallas from the chairman of Dallas Tourism Improvement Program.

And finally, Detroit parks.

Um there's uh two or three parks here that uh were reinvested in. You can see uh some of the comments from the hotel years there.

We believe that Rudy could have a similar effect here in Virginia Beach.

Um talking about financials, uh we have had uh Beerman is on our team from Beerman Reinvestments. Uh he runs Brian Park. They also run a couple of the parks in these examples. They have a very good handle on estimating visitation of parks such as this, estimating costs and estimating revenues. Uh we believe with fairly high confidence uh that a park of this magnitude uh can bring in anywhere from

2.5 to $3.5 million in earned revenues per year on site. Uh so that's sponsorships, that's some paid for programs, uh that's share of concession sales within the park, uh you any type of activations, uh farmers markets, you know, anything like that can earn around $3 million per year.

And they estimate that this park will cost to run $2 to $3 million per year for all operations. Uh that's security on site, that is landscaping, that is maintenance, uh that is management of the site. And so really a park of this size um and significance can really be operationally budget neutral over time.

That's what they see in their other parks as well. when it comes to managing the park, the governance of the park, uh we do believe uh that going towards a 501c3 conservancy model would be the best aspect for this. Um here's an example that comes from Beerman. Less effective, more effective. I like to call it more or less efficient versus more or less flexible. As you get to the conservancy models, they are certainly

more efficient at running these sites uh than perhaps a municipality. Um we believe that uh once built uh the best way to run this park would be to set up a 501c3 3 conservancy.

That conservancy uh board of directors uh would have representatives from throughout the city. Certainly a couple city departments, CVB, parks and wreck, uh uh some private folks uh probably from down the resort area. They would then hire the chairman and CEO of the park who would hire the staff. They run the park as a nonprofit organization.

um really with uh no operational support needed by the city.

They would plan the programs, they get the sponsorships, they do the movie nights, they do the yoga in the park, they do the big events, uh they they they run the whole site just as if we just like outsourcing operations um of the sports center only this time to a nonprofit.

We have also uh been talking to our national consultants and they feel relatively confident that $20 million could be raised in the capital campaign to offset and defay the capital costs of this project. Uh this would be through local contributors, national contributors. Uh we would really like to if we move forward develop a three team approach have a national consultant along with a local nonprofit fundraiser

and city staff of course and amongst the three of them on that team raise this $20 million um over a 5-year period. Take about a year and a half to get this set up and then over five years shoot for a $20 million capital campaign. Um there has been significant interest already in the community and that's why we're saying we can hopefully hit this and if not hit this come come pretty close. If not some

people think we should we can beat this but we think it's a it's a reasonable target to shoot for. However uh the project would stay fully funded through construction through the tip fund. So really how this works is you can't go out to bid and go out construction with having full funding in place. But as you raise capital funds, those replace the tip funds and the tip is paid back

through the capital campaign. So I just want to make that caveat. You can eliminate $20 million from the project and then still go out to bid uh in a year and a half, two years with the project.

Uh that team of fundraisers uh would really go out there and this is a once in a lifetime opportunity for anybody who wants their name um on something of this magnitude and this significance at the oceanfront. Uh we would develop full presentations, donor maps, um all the different amenities that could be sponsored. Um if if you're a business owner and you want to sponsor uh the

overlook or the water plaza, we'll have a number for you on what that's going to cost. Uh and then you can say brought to you by so and so at Rudy Park.

Uh this is the way it's done um throughout major projects like this.

Additionally, uh moving forward, we'd be seeking sponsorships for the ongoing programs on site. So, if if a a vendor out there wanted to sponsor movies in the park or yoga in the park, uh there would be plenty of sponsorship opportunities for the programming of the site.

So, all that being said, um we're seeking council's direction. Our recommendations are to move forward with the park design uh with the surface parking only option uh and to go forward with construction drawings. So you got to go take this design to construction drawings so that you can go to bid to construct. That is about a year and a half long process uh and probably cost around $4 million.

Um as you know there's $50 million already appropriated for this project from the tip fund. Um we would then at the same time uh start forming uh both the conservancy model as well as form the capital campaign committee uh that would go out and begin starting to raise the $20 million uh in capital campaigns and as I said also during this time uh start forming together the governance model or the conservancy board.

That was a lot and I'll open up for questions. Rosemary, what do you think about this?

Well, I know you were worried about the other two presentations, but you knocked this one out of the park.

Thank you. No pun intended.

Absolutely pun intended. It was abs. You covered everything from the environmental of of sea level rise and the temperature and the the impervious surface. I mean, anybody's been down there. I mean, it's just wallto-wall asphalt and it's cracked and it's terrible and it does not do the site justice. But what it's going to mean for this community and n and nationwide and you all those

examples shows how amazing and what good business a fantastic drop dead gorgeous park will do.

We had a lot of other examples. We cut a lot of them out there. There were too many to list. And when you look at the cost of those around the country, I mean, this one really is, especially with this capital campaign. I mean, it's fantastic. And I would like to say I think the $20 million is going to be a very conservative number. It's my understanding that Norfick Botanical just raised $50 million.

Yep.

So, I think we can do better than they can. Uh there was lots of talk on that and yes people believe it's higher for the purpose of presenting to the council on any kind of promises. I wanted to keep it very conservative.

We always tend to be conservative.

Yes. Yes. I'd rather over the number I will tell my colleagues that we are getting national sponsors who are very interested in this. I mean think about it. We get 14 and a half million visitors a year. that's all outdoors and then that and then another almost half a million dollars uh half a million people in our own city. So the exposure is going to be phenomenal because it's just going to be such a

beautiful wonderful park and we talked about uh having young families here in that very first presentation. These are the kind of things that bring young families to our city because they want to have a really nice park to take their children.

So, I think we're going to get more visitation from our own folks coming down as well as people are going to want to come here and see Indie Park. So, I'm very very excited. I think surface parking is the way to go. Um, for 100 place spaces more in a parking garage, it just doesn't the $30 million.

I don't think that's really worth it.

So, I think let's go with the surface parking. And you really answered all the questions like this. I know Dave had those questions about the staging for for events down there, which was important and and the surface parking really addresses that problem. So, I I think it's a wonderful thing. I'm very excited if you can't tell.

Okay. and Jen and don't forget we we have an ambitious uh you know close session coming up but this is important Jen thank you mayor yeah so to clarify I have two questions one will you um go over again the staging plan so for the current use of Reloop we've extended all the programming for festivals in that site what are what are you thinking I'll actually have Chad was in those

meetings Chad you want to take that I'll go back to the uh design how we how we the intent is to flip the entrance.

Yeah, it's a long way.

Yeah.

Almost.

This is the flip. This is the flip version. Great. Uh so we had the fortunate opportunity when we were uh exploring this got um the opportunity to go check out the Point Break Festival setup and really get out there on the beach um in a in a golf cart and and check that out and um talking with some folks out there and seeing this operation in action, how it gets put

together and um you know explaining how the uh Rudy Park kind of works and then how would would this work with the surface parking and option as well as you know what the park would provide.

side as well as how would the guest experience potentially be improved or how could it work? How does the park work together with the beach? And um it was really neat how this kind of came forward. We were out there on the boardwalk looking and you seeing the stage getting you know actually put up at that time and and and seeing it down there and like you know what if you were

able to come through the park as as your entry into the guest experience. So you you know you have all your operations and stuff in the in the the parking lot.

You come through, you come into the park, you could have some pregest things in the park before you get down to the to the event and work your way down the beach up to the beach if you flip the stage from near Second Street, move it up closer to Fifth Street and you have this progression of an experience that way. And we're like, well, that seems to work really well um in in theory and and

talking about it in general terms. Also, that was kind of the experience that we have heard um occurs in other uh settings like this for events where you have this area where you can, you know, kind of pre-queue in the park area, work your way through up through and then up up the beach. So, by flipping that is where we we kind of got that aha moment like this this is something that that could work.

And there would be no public parking here for the event. Although there's no public parking now for an event center, they take up the whole thing. We would put the ops on the surface lot and people would walk through and there could be uh vendor sales, there could be activations here where you actually enter the footprint of the concert or the event and everybody thought that that would work uh very well.

Do some festivals have multiple points of entry? Like would there be an o I'm just thinking about congestion?

It it absolutely we don't want to create like a funnel point or a congestion point. So the park would obviously be the the main point but you have access points at you know second third fourth.

So, you know, in the logistics thing and formulating and figure all that out and um I'm sure the people that are that really know how these events are set up um would would think about those opportunities and um kind of have some other opportunities to get into the area.

I'm not an event specialist, but we run plenty of my parks career. There's a big difference though between a free event open to public versus ticket. So ticketed, you're always going to have a limited number of entrance points because you got site control. Uh whereas open access, something free, that's 20,000 people.

You go in anywhere. But that's a great question. More designed for CPV to answer other than they have reviewed all this. We worked with them on this.

Um final question for folks who are concerned that surfers will be displaced. How do you envision locals or visitors, but people who want to, you know, bring their surfboards and they drive up to a Rudy Loop and they can just access the ocean? Can you paint a picture of how they fit into this design in terms of what they're accustomed to parking and then accessing?

Yeah, it might.

Sure. Yep.

So, yeah. So the park obviously will be different and taking all the opportunities we have here to create this cultural experience not only for surfers, fishermen and others who want to experience the park and create this iconic destination. There's a lot of uh things that will be different, but a lot of things that we hope to uh that this park will improve the the surfer's experience um by creating the overlooks,

the checking out um parking would there's still available parking close to um the the schooner. Um there'sund and some parking spaces there. Um, we know it's not all 300 spaces jammed jammed over around Rudy Loop, but um, there are, you know, taking that in consideration, you know, location of opportunities um, for for surfers to park um, and experiencing that. Um, you know, the Beach Village is a is an

add-on kind of amenity. um whether there's you know coffee shops there or a place to um maybe purchase gear that they may have forgot or need to go get in showers and things like that to help you know make that experience even better for the surfers. Um so we've really taken that in consideration whether it's for for surfing, fishing, uh checking out on the overlooks, um the experience that you're going to have on

the jetty walk. We think the jetty walk is is a great thing that enhances the, you know, um maybe not this weekend, but if you had the ECSC out there and you you would be able to have people go out onto the jetty and and watch the event from the jetty, what an experience that that could be. So, um we're looking at, you know, things there that really enhance the experience for surfers and

those who are watching those the types of events.

So, there is parking right at the ocean, right at the boardwalk. There's less.

The only way you get the park is by shrinking all the parking and putting it in one corner and making it more formalized and so that you can free up the space for the park. So, will there be times when somebody goes out on a surf and in the past they may have gotten a spot closer?

Probably, but they will still have spaces on site or nearby if not right on the boardwalk right across the street.

Um, so it's one of those to Chad's point, there'll be nice showers down there. There'll be other amenities that that they will want. Uh, but sometimes will they have walk a little further. In all honesty, of of course, but not always.

Okay. Josh, if we can be succinct.

Yes, sir. Um, I just wanted to chime in and say thank you. Great presentation.

Um, and u I I agree with the recommendations and um I know at least firsthand this uh the campus marshes park in Detroit. I mean, Detroit has had a rebirth and renaissance uh and and it and it is because of these public spaces. So, um, even though part of it it kills me not to use this unique site to its highest and best economic development potential, if we're not doing that, then we might we we really

ought to build a a wonderful park. And that's exactly what you Thank you.

Okay. At this point, uh, you know, let's come to a decision. Does anybody object to us at least going forward with this now?

No.

98% approval from the public who fits that. Amazing.

Well, that' be good. And listen, for 21 years, I've been hearing as a former district guy, you know, we want people in Virginia Beach coming to Dirt Beach and that'll do it. Okay, we're okay to move forward.

Thank you.

Okay.

Okay. At this time, discussions initiatives and comments. Anybody?

Yeah. Yeah. cash and then Josh, please be please be safe.

This weekend we had the EF Classics which is uh youth tackle football. Um it took place at the Sportslex and also the Princess Anne Athletic um field. It was packed and they traveled from all around the different cities and states and they came here to stay in our hotels, ate at our restaurants. It was a a weekend event and I just want to tell you the park uh the sports flex was teaming. So

again that name is EF Classics and I really would like for us to um we take a look at what they're doing with youth football and youth sports. We also um I went and supported the girls flag football, right, which was gaining some traction. So, I was grateful to see the community to come out and to support our girls playing flag football.

Thank you, Josh Rose. Hurry, mayor. Um, members of council, I about a week ago, I think you've received a email from the clerk circulating a a resolution that was passed by the school board last week um relative to uh the Bayside 6 campus um which is located off Jericho Road. Um, Virginia Beach City Public Schools uh determined the campus will no longer be needed for school use starting in September of this year. And

discussions around the future of this property had had been um ongoing since as early as 2016 um with local community members um voicing a strong um you know preference that the property be uh given to the community for park or open space use. Um the site um the site needs to be re-ubdivided um and base 6 needs to actually the building needs to be demolished in order for that to happen. Um and uh last year

a joint ad hoc committee was established to explore options for the site's future. Um, Councilwoman Amir Ross Hammond and I and um members from the school board and public works, city public works and um schools legal um we we met for probably almost a year, eight months um and we briefed council about this late last year, but the ad hoc committee met um eventually recommended um that the uh the property be

transferred um to the city for open space or park use. Um and and the the school board voted unanimously last week, which I which is amazing. Um just to be honest, after 98% Yeah. Yeah. It is it is it is after decades of this neighborhood that doesn't have sidewalks or a park of its own to um be able to be able to um have have this kind of kickoff to this um um

this initiative. But anyway, the the school board um erected this superintendent and their legal department to coordinate with the city manager and our legal department because there's some things that need to happen.

Um there's some decision points that need to come before both the council and the school board. Um the you know, in order to make this happen and so that we can properly evaluate it. Um, but I I would just um like to maybe turn it over to you if you don't mind, Patrick, to let us know what conceivably next steps might be and if there's concurrence um to go ahead and proceed.

So, Mr. Mayor, members of council, upon um the school board adopting the resolution um suggesting the transfer to the city for for the buildout for a future park, Mark and I talked and in essence, this is really a real estate transaction. So my team and his team are going to meet with the school board um the school leadership probably Dr.

Robertson and members of his staff and get a sense of what the terms are and then once we get a sense of those terms we'll brief council in a closed session to see if you all accept the terms or would like us to counter in any particular kind of way or any any particular kind of way. I would also note that any acceptance of this would have to be done typically with any real

estate in terms of a public vote. Right?

So ultimately there'll be a public briefing on the terms that we ultimately decide to accept and then council will give a public concurrence on that and then vote to accept it.

Thank you. Um I just want to give a shout out to Lorraine Samco, the civic chief president from Marona Village um who's been working on this for decades and um and her her community uh really came together around this. Um, shout out to Councilwoman Ross Hammond and, um, school board members, uh, Alvita Green and particularly Carolyn Williams who been working on this for a very, very long time. Um, and Chair Brown was

extremely helpful to everybody kind of work collabor collaboratively together and um, I think this hopefully will be a good outcome for the community. Okay, thank you Rosemary War and then Ameilia.

Two things and just to uh first to chime in with Councilman Schulvin.

This comes back to us for a vote. I would also think you should recognize the Arizona family. They John Aragon donated all that acreage, you know, to the schools, but eventually this is going to all go to the community, we hope. So, just kind of keep that in mind to recognize the uh Arizona family. Um, the other thing I want to bring up, and Councilman Cummings brought this up a couple months ago, is the ebikes.

Uh, it continues to be a huge problem, and I think around the city, but particularly on the boardwalk and the ocean front. It's they go really, really fast on the boardwalk where there's old people, young people, pets, small children, and they weave in and out and then they go so fast. It's really really dangerous when at least they could be on the bike path and if we can sort of and I know our our police

officers have a lot to do if we can somehow get them to enforce especially when they down there and they actually you know see these things happening get these bikes on the bike path because it's so dangerous and we haven't written about anything being anyone being hurt that doesn't mean nobody has and that doesn't mean somebody won't. But the other thing is we're going to be talking

about a legislative package a little bit next week and I think we ought to put something in our legislative package to have some kind of controls over because it's a motorized vehicle. It really is.

So thank you.

Okay. Worth and Amelia.

Thanks mayor. Just as a follow up on that I believe Mr. City manager that we have a staff task force that's looking into ebikes right now and how we are addressing current situation.

Yes sir. I believe um we'll send the city council a report to give them an update on where we are on it and vice mayor probably does make sense to see if we need additional legislative approval from the general assembly when the task force is complete.

Thank you. Just real quickly, um incredibly busy weekend last weekend at the resort. Brooke Johnson broke uh the world's I guess it's the world's record because crossing the United States on a skateboard that she ended up here diving into our waters here at Rudy Park.

Really cool.

Yeah. and just a lot of other things at the resort this weekend. But I want to say say special congratulations to Venture Waves LLC, the developer of Atlantic Park. Uh the Wave Park did open, but I also want to and also WM Jordan, the contractor and investors, but that is a public private partnership with us, the city of Virginia Beach. I especially also want to recognize and thank Amanda Jarrett, Kathy Warren, and

Emily Archer of our staff and planning department, the folks who granted the permits and approvals. A lot of effort to open this wave park this weekend. So, thank you staff for that.

Yeah. Well, a lot of effort by a lot of people and uh you know, kudos to our management.

Kudos.

Uh yes. Before going on, let's give them a round of applause. is the late um again I had written down John Aragon and saw his picture and they are excited about having that opportunity for that both are um I wanted to remind people that on Monday August 25th we're going to have District 4 uh community meeting from 6 to 8 at Williams Farms and we'll be covering public safety, um the Virginia Beach City Public

Schools, a little bit about Burton Station and what's going on their new buildings and so forth. Will so please be there and also the Virginia West University that's our citywide university and um so president um Dr.

Cart Miller will be there to say something to the uh and then we'll end with the referendum. I know people have mentioned you going to have that on.

Yes, I am because people's voice matter and this opportunity to one more time educate as we get closer is important.

So that is why I'm including that as well.

Thank you. Okay. Anybody else? Okay.

Agenda review.

Um we have speakers on many one, two, and three, but number two.

Well, I have to pull one speaker.

So, on um ordinances, is everybody okay with everything on ordinances?

So I'm planning uh number two is district six.

Okay with me.

And then number four district three Bradley and Eddie K.

Vice Mayor, what I would like to do here is is um is just share uh the list of recommended conditions that you all have at your table and that I emailed this weekend.

Um the home I just and also provide this update. The the applicant has advised me that they are in the process of moving and so it's unlikely the cup will be necessary for their purposes. Um but the house hasn't closed. Uh they did agree to um voluntarily begin adhering to the uh recommendations that are contained on the papers that that have been distributed um starting now. And um so

I'm going to recommend a 60-day deferral um just to ensure that um in case their situation changes, we have the opportunity to come back and to review um with the understanding that they have begun to voluntarily adhere to the conditions that have been recommended that we work through with them as well as some of the other neighbors. And then if they move um their application will

be withdrawn. If they don't move, then we'll revisit this in 60 days.

I think that's a very prudent and very good way to do it.

October 21st.

Yes.

Nice job, Mark.

And then the last one is number six, George Lo, and that's in district four.

Yes. I will move to um app proof that and in fact say a few words about um this uh specific uh developer that he made a great impact on um some of our commissioners like Walter Camp and also Katherine Ber and what he said about investing back. I think that's important to share.

Thank you.

Okay. Thank you.

Yes. So, just a quick comment because we have a public hearing tonight on the sale of excess city property at 333 Alaskan Road. I know we're not voting on it tonight, but I think it's going to be on the schedule to be voted on soon, and I will be asking for a deferral of that vote until October 21st. We all are seeing our emails and our inboxes from concerned citizens. I'm getting a lot of

um communication from folks who have uh want to help those businesses there stay. We're in communication with the developer, the owner of the property.

So, um, anyhow, we'll hear the have the hearing tonight, but then at the appropriate time, I'll be asking for a deferral of that vote.

Yeah, I think that would be September.

The actual votes already scheduled for September 2nd. So, yeah, that won't be a problem at all. I think that's a good strategy. Thank you.

Okay. At this point, the chair will entertain a motion to recess into a closed session pursuant to the exemptions from open meeting of laws allowed by section 2.2 uh 3711A code of Virginia as amended for the following purposes. Legal matters consultation of legal uh council and briefings by staff members or consultants pertaining to actual probable litigation. where such consultation or briefing and open

meeting would adversely affect the negotiating or litigating posture of the body percent pursuant to section 2.23711 2 3711 A7 and that is opioid NAS torque litigation. Then publicly held property discussions or considerations of the acquisition of real property for the public purpose or disposition of publicly held property where discussions in an open meeting would adversely affect the bargaining position or the

negotiation strategy of the public body pursuant to section 2.2 2 3711 A3 and that uh both items are in district 6. Uh public contract uh discussions or award of a public contract involving the expenditure of public funds and discussion of the terms or scope of such contract where discussion in open session would adversely affect a bargaining position or negotiating strategy of the public body pursuant to

section 2.23711A29. through 3711A29 and that would be uh the the SIPA use and support agreement and JNA racing.

And then security matters. Uh discussion of plans to protect public safety as it relates to terrorist activity or specific cyber security threats of our vulnerabilities and meetings uh briefings by staff members, legal counsel, oral or law enforcement or emergency service officials concerning actions taken to respond to such matters or related uh threat to public safety.

discussion of information excluded from this uh chapter pursuant to sub uh subdivision three or four of of section 2.237 uh05.2 into where discussions in an open meeting would jeopardize the the safety of any person or the security of any facility building structure information, technology system, or software program. or discussion of reports or plans related to the security of any governmental facility, building

or structure or safety of persons using the facility, building or structure pursuant to two uh section 2.23711A through 3711 A19 and that would be uh you know germanine to city council security briefing and yes they had me read everything um personnel matters discussions consider or interviews prospective candidates for employment assignment appointment promotion performance demotion salaries discipline

or resignation of specific public officers appointees or employees of any public body pursuant to section 2.236 2371A1 and that would be uh council boards, commissions committees authorities agencies and appointees. So I have a motion move.

Second.

Okay.

Council member I counci Henley.

Hi.

Councor Hutcherson.

Hi.

Counc. Hi.

Counc. Hi. Counc.

Hi.

Councor.

Hi.

Councelor Schman.

Hi.

Vice Wilson.

Hi.

Okay. Thank you all. We are into rec

one. Welcome all. Wow. Wow. What a wonderful gallery we have tonight. But we got some real special things that we're going to be doing. Calling this meeting to order and I'm going to ask Captain Keith E. Burke of the Virginia Beach Police Department First Precinct to do the invocation. If you are able and willing, please rise.

Let us pray.

Father God, we thank you Lord for this city of Virginia Beach. We thank you for its residents. We thank you for its leadership.

We thank you for this council.

We pray God that you will bless the efforts, the collaborative efforts. And we pray father that because of the work done tonight that you will continue to move this city forward and faster. In your son's name we pray. Amen.

Amen.

And if we may take a moment of silence to honor all of those who have p paid the ultimate price in keeping our great city safe.

Okay, thank you. If we can do the pledge of allegiance. I pledge algiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

Okay. Thank you all very much.

Okay, Madame Clerk, do we have the roll call?

Yes, your honor. All present.

Okay. Could I have a motion to certify the close session?

Second.

Okay. We'll open a vote on that.

One second, please.

The vote is open.

Okay, there we go.

Um, Vice Mayor Wilson, may I have your vote please?

Yes.

Thank you. By vote of 11 to zero, you certify the close session and be in accordance with a motion to recess.

Okay. This is a time of we on city council really enjoy and is presenting and honoring those who deserve to be honored. And our first one is going to be a resolution and recognition. And today is deputy fire chief Richard Vance Cooper III to come up.

And we asked former Chief Hutchinson if he would actually be honored to do the reading.

No, you got to you got to make comments after. So, just get ready. I don't want you to be nervous now. Okay.

It was good. It gave me a second to catch my breath there cuz pretty much all of us in blue are going to know I'm not going to make it all the way through this. So, uh we'll get started here.

First thing I did though was is I made a couple of notes um before the resolution um that that we put together for uh Vance. Um first I wanted to recognize uh his wonderful family. Uh his wife Aaron, we should we should be applauding her as well. Um 30 years, right, Aaron?

not uh not applauding because she made it as Vance's wife, but as far as uh she spent 30 years as a speech pathologist in our school system, so uh my hats off to her for that. Um next, beside her, could Tegan, could you stand for a second, buddy? I know you're not really wanting to do this, but you you'll understand here in a minute. Um, Tegan uh just graduated from Old

Dominion and he's took a job with our DoD department working at the oldest naval uh shipyard in the country and the largest. Um, so that's that's pretty cool, buddy. Thank you for that.

And Ellis, not to be outdone, is getting ready to graduate from Old Dominion with a business marketing degree. So, we're proud of everybody there. So Vance and I both started at uh Kimville.

He was a couple years behind me. He graduated with my sister, but uh he started at Kimville as a volunteer not not long after me. But um we had the funny thing with Vance is he's got we all have nicknames in the fire department, but uh Vance had several more than others. And one of the reasons I wanted you to see um Tegan, it'll make sense here in a second. Um when he when

he started the nicknames was there was a bunch of them. He had uh some called him Vin, Vinnie, Coupe, Chief and of course Deputy. Um but my favorite of all time was and this is for us that are a little older is Doogie Howser. And again, if you think about what Tegan looks like right now, that's that's what Vance looked like up until about two years ago. So, uh, that was, uh, that was just

I just wanted this to be fun, buddy. Um, yeah, bet you do.

Vance is a very, uh, that's pretty good. I didn't think about that. Uh, Vance, uh, of all things and anybody in the back back there and, um, some of our some of our city directors as well can speak to this. Um

he has uh very strong moral compass. Um his integrity uh has set the tone for our department for a lot of years. um whether it was uh all the way back to Chief Dazelle, Chief Carter, Chief Cade, Chief Cover, or myself, or now Chief Pravitz. Um Vance's moral compass has always set the direction for us. We always knew, and believe me, I've had my time to try to stray. Um that would not

happen with Vance. He was not going to not be heard when it came to stuff like that. and um as as everybody knows and the other directors that he's worked with in the city um everybody knows that he's a true servant leader. So I'm very proud of Yeah, I'm just very proud of you.

This is really long so it's going to take me a second. Uh where is Richard Vance Cooper III is a lifelong resident of Virginia Beach who began his distinguished career in public service as a firefighter with the city of Virginia Beach on July 16th, 1990.

Whereas Vance rose steadily through the ranks of the Virginia Beach Fire Department, serving as captain, battalion chief, district chief, and in June 16th was promoted to deputy fire chief, a position he held with distinction for the past nine years.

Whereas Vance joined the Federal Emergency Management Association urban search and rescue team in 1994 as one of its first hazmat responders specialist.

And it's inaugural. Um this is important. Uh he was he was the inaugural program manager at the time.

It's a million dollar grant that we get every year. It's the longest grant the city has ever received, continuous grant. And uh Vance set the standard for what that program manager position was going to be. Um, and so we're very proud of him for doing that. He grew the program and set the highest standard and has served as sponsoring agency chief task force representative since 2021.

Vance deployed globally with Virginia task force 2 and and I've already stated served as a program manager. Um, he went to the Salt Lake Winter Olympics, hurricanes Francis and Ivan, hurricane Katrina, tropical storm Omar, hur hurricanes, and and many others. Um, Vance has served on the board of the Virginia Fire Chiefs Association and on February 21st 21st, 2024, he was sworn in as president

of EFCA. During his tenure, he significantly elevated the EFCA's role as a trusted voice for fire service and emergency medical services, leading legislative advocacy efforts, uh, securing critical funding, and implementing key reforms in transparency, strategic planning, and governance. He also strengthened emergency medical services policy, workforce stability, and expanded leadership de development and member

engagement initiatives. And he now serves as the past president. And he was involved in a JARG study. And that anybody that knows those over the years, they're they're not an easy thing to do through the state of of Virginia. And it sets precedents for for how new programs and stuff are brought on.

Vance achieved numerous educational milestones, earning a bachelor's degree in fire administration from Hampton University and a master's degree in public administration from Old Dominion University. He's a graduate of the National Fire Academy executive fire officer program and holds a chief's fire officer's accreditation.

He furthered his leader leadership education at Harvard's Kennedy School of Government, the West Point School of Leadership, and the Hampton Roads Chamber Lead program, class of 2013.

Vance recognized that the mission of fire service is one part of a a broader public safety ecosystem. He valued the collaboration of all professionals, regardless of uniform or title, working together as a safe to safeguard the city, its residents, and its visitors.

Whereas known for his unwavering integrity and strong moral compass, Vance earned the deep respect of city employees, residents, and every member of the Virginia Beach Fire Department.

Through his v visionary leadership and profound institutional knowledge, he helped transform the VBFD into a model of excellence and resilience, inspiring others to reach their highest potential.

As a key steward of the fire department's budget, I got to pause here for a second. For the longest time, that guy standing right there in front of you handed millions and millions of dollars for the city of Virginia Beach Fire Department and did it very well to the penny. Drove us crazy. And I would have said he was a subject matter expert until we got very smart and hired Miss

Jen Whitley in the back who then took over the reigns.

Oh, agree with you.

So, thank you, Jen.

Anyway, as a key steward of the fire department's budget, Vance built strong inter agency relationships and was instrumental in securing the inclusion of the Burton Station fire station in the and it's a lot of Burton stations in the city's Burton Station SGA master plan.

Part of that was the the deed for a piece of property that we couldn't get from the city was written so far back it was in the Queen's English and Vance recognized that we could put a public safety building there and oh by the way the lot that we had chosen before the sign fell over. We had waited so long to get the Burden Station fire station in a much needed area. So we seized upon it

and we uh we made it happen. So that's just another feather in your cap there, buddy.

Anyway, he secured the money and much needed infrastructure and apparatus for the building. Vance provided steady leadership during countless emergency operations center activations and emergency weather briefings, guiding teams with a calm and and decisive and empathetic approach.

While Virginia Beach remains one of the safest and most desirable places to live, Vance never lost sight of the unpredictable dangers that public safety professionals face. He worked diligently to ensure personnel were well trained, well equipped, and ready to respond to the most complex and hazardous incidents. I promise this last time I'll stop. Um, the Cavalier, we we did live

fire training in the Cavalier. We're one of only two departments in the country.

Clark County out in Las Vegas is the only other one that has done live fire training and and thing in large part was due to Chief Cooper's uh diligence in making that that's no easy task. There was lots of people involved, some of them standing in the back, but Vance was a spearhead of all that.

Vance was a tireless advocate of responder safety, advancing initiatives including securing a second set of turnout gear for the health and well-being of firefighters, improve healthc care access, cancer screenings, and safety measures to protect all firefighters at all levels. As he transitions into a new chapter as a private citizen, Vance leaves behind a powerful legacy. He will be remembered

not only by public safety leadership, but also by frontline personnel firefighters officers deputies dispatchers EMTs forensic technicians, emergency managers, and and others who saw in him a leader who never forgot what it means to serve at every level. Now, now therefore, be it resolved that on this day, Tuesday, octo October August 19th, 2025, the Virginia Beach City Council honors a public

servants whose leadership, dedication, and integrity have profoundly impacted the city of Virginia Beach. As Richard Vance Cooper III or Vinnie begin his next chapter, he does so with an enduring respect and gratitude to this council, our citizens, and public safety he so faithfully served for 35 years.

All right. Thank you.

right now.

Words there.

I don't know that

of paparazzi.

So, I have 10 minutes. Is that what that means?

Let me adjust that timer one second.

I don't blame you, man.

I'm just I'd make that thing go off about 30 seconds from now.

Well, um, wow, what a what an evening.

Um, Chief Hutch, thanks a bunch, buddy.

Appreciate it. Mayor, vice mayor, rest of council, everybody else here, all my friends, co-workers. This is this is my family. This is too much. Um, I guess I got some of the trait that Hutch has. Um, I'm a little disappointed. I think after all that I should have a Game of Thrones kind of wooden chair back here I'm sitting in.

All these people could sit with me because I didn't get here by myself, right? It sounded like I did, but I didn't. Uh, my family. Uh, I got in at 19 years old. I mean, uh, I got father figures in this fire department that are still here and some that have retired.

I mean, it's everything. Um, I'm happy I'm retiring. It might not look like it and sound like it right now, but I'm very happy I'm retiring.

Um, there's other things to life, right?

There is. And, uh, I'm going to go experience them. My wife has now retired. My kids are doing well. I'm going to go experience what some of that's all about. Um, I have grown enormously as a person and a professional by being a firefighter with the VBFD.

Um, I think probably to sum it up and the best way to put it is that if you told me I was going to be 19 years old tomorrow like I was in 1990, I'm telling you, I would go stand in that same two-hour line that I stood in just to get an application to fill it out and turn it in with the other 2200 people that applied that year. That's

how much this place means to me. what is given to me. It's service.

Society needs it. It needs people like us. Um, and I'm glad I got to participate just a little bit in the history of the VBFD and the city of Virginia Beach. Thank you all very much. I appreciate it as it's a real honor. Thanks a bunch.

Thank you.

Virginia Beach is a magnificent city, considered one of the best places in this country to live. And what makes us great are the people that live here, work here, have their businesses here, give their time, talent, and treasure to make us the city we are.

Such a legacy is the Neptune Festival.

And it's my honor that we have uh Congress Congress. Oh Lord. Uh congratulations, Stacy. Uh but Stacy Cummings uh former King Neptune to make a marvelous historic introduction.

Thank you, Mr. Mayor. Uh this is a historic uh occasion. The Neptune Festival is in its 51st year.

It uh was started to celebrate Virginia Beach life. And every year a king Neptune has been chosen to represent the city along with eight Tritons and a court of princesses and recently added a prince.

So this year, what makes this year so historic is that for the first time ever, the title of Neptune was not a King Neptune, but actually a Queen Neptune.

I was actually on the board of uh the Neptune Festival several years back when it was decided that uh that position would be opened up for uh the women of Virginia Beach. And at that time, several years ago, there was no question in anyone's mind in that room who the first queen would be. And it took a few years, but finally they got it right.

Buffy Barefoot is without question one of the leaders of this city and has done more uh for the business community and the philanthropic community and for the Neptune Festival than any woman uh outside of Nancy Greech.

and no one is more deserving of that honor and will do a better job of representing uh the city. It the culmination of the Neptune Festival ends in the uh last week of September when it's a take back the beach weekend down at uh the boardwalk and throughout the entire oceanfront. So, I encourage everyone to go and enjoy the festivities. It's a great time. Uh bring your family. It's a tremendous family

event. And if I could, I'd like to have uh Queen Buffy Barefoot, her husband Jason, and her court to come down front so that we can get a good look at this entire court and recognize you all and get a few pictures.

Come on down, Buffy.

First, Mr. Mayor.

Okay, Amanda, thank you for putting me on after Deputy Chief Cooper and State Councilman Cummings. So, thanks a bunch for that. Um, Mr. Mayor, members of council, good afternoon or good evening.

I'm Kit Chop, the president and CEO of the Neptune Festival. Councilman, thank you very much for the segue into that.

So, my my point's completely moved, but it's this city's official celebration, and we're very proud of that. We celebrate our 51st year uh with a huge milestone, and it and it's about darn time, I would say. And so, we are very proud here to celebrate with Queen Buffy Barefoot and the 51st Court of Neptune.

As you all know, our mission is to celebrate the spirit of Virginia Beach through authentic experiences that foster joy, community, and connection for all. We value the strong relationships with you, the numerous city departments. Thank you, Mr.

Dehaney, on behalf of the entire city staff. Um, and you know, all the firefighters ran away. They're having they're drinking out there, I think.

And, uh, and the countless professional staff members that we're fortunate enough to work with every year long. And we could not produce those more than 40 events without all that dedication, teamwork, and financial support. So now I'm honored to present the 51st Court of Neptune. Representing eight schools from across our city are Princess Marin Baxley, Princess London Coleman, Princess Beverly Cuffy,

Princess Carson Gaddy, Prince Aditia Jan, Princess Veta Ni, Princess Hattie Navario, Princess Lily Rouse, Princess Satie Ruane, Princess Sammy Sager, and Princess Aubrey Swain.

Ladies and gentlemen, this is the future of our city right here. These are the folks we need to keep here and stop the brain drain. And now, the Tritons and their partners, Triton, Dave Bellis, and Lady Kelly.

Triton Barton Dexter and Lady Amanda.

Triton Melinda Hancock and gentlemen Jason Triton Dan Heatwool and Lady Lindsay Triton Jason Kais and Lady Lauren Triton Tim Pace and Lady Jennifer Triton Jack Stifler and Lady Austin Triton Anthony Walters and Lady Tasha this year's celebration Chairs are George and Kristen Fates.

Mr. Mayor, I'm proud to present Queen Neptune the 51st, Buffy Barefoot, and Gentleman Jason.

Stacy, thank you very much for those kind and warm remarks. Um, greatly appreciate it. Thank you to um the council women and men for having us this evening and on behalf of myself u my husband Jason here who was a Triton from court 40 in 2013 and the first city of Virginia Beach public educator to serve as a Neptune Triton. It's an honor for us to be here. Um, I it's an honor for

me to be on the Neptune Court with the folks that are to my right and to my left. Um, amazing individuals, great leaders in the Hampton Roads Market and the city of Virginia Beach. And, um, we're just grateful to have the support for 51 years of the city of Virginia Beach. It's been a wonderful partnership that we've had together. We're looking forward to the next 51 years. I'm not

sure I'll see that. Um, it would might take a miracle. um for any of us. Maybe some some of these folks will see it.

Yeah, definitely these ladies. Um but in any event, thank you for having us this evening. We're looking forward to a wonderful boardwalk weekend. Please join us at the end of September when we take back the beach.

Welcome and thank you for everything you all do. You do help make Virginia Beach great. Thank you. God bless you.

Thank you.

Yeah, we're all going to turn around.

Adults in the back. Princess is on this side.

That's okay.

I was going to make a joke about Mark.

I think these folks practiced everything. That was good.

Only 200 more to go.

Thank you very much.

Thank you all.

Thank you all.

Hey, way to go.

Good stuff.

Okay, thank you all and I'll tell you what, that was very special and welcome to the rest of the guests that are here for the rest of the meeting. Um, okay. At this point, we're going to have a public hearing. The first one will be on transportation alternatives set aside program applications to VOTE, community improvements, pedestrian single enhancements. Do we have any speakers?

There are no speakers, sir.

Okay. The next one is declaration and conveyance of excess property approximately 0.327 acres of real estate property at 333 Alaskan Road.

We have two speakers. The first speaker is Wayne Jones.

And after Mr. Jones will be Patricia Abernathy.

Good evening, sir.

Good evening to each of you, honorable mayor and members of city council. Um, I'm very thankful to be here. Um, I've had the joy of being in business 53 years on Alaskan Road. And um, as I look at each of you and that wonderful group that just passed, I've had a part of that, too. From the very first Neptune Festival to planning this one coming up.

I'd like to stay in business.

And um there's there's so many things going on right now in our city with so many wonderful places coming along. I'd like to say I just like to stay where I am as long as I can. I have wonderful neighbors and um we all work hard to bring a certain charm to our part of the city. Each of us has a different gift which we bring and I just want to stay in the business of happiness

because nobody buys flowers except to make someone else happy.

Thank you.

Thank you for coming sir. Really appreciate it.

The next speaker is Patricia Abernathy.

Good evening.

Hi there. Good evening. Before I start, could I get clarification on the hearing for this parcel of land? I initially thought it was that I was opposing the strip of businesses to be torn down. And then today I spent time talking with business owners, landlords, and developers, and they told me that it was more about who is going to be permitted to buy the Papa John's property and what

they're going to do with it. Is that what we're talking about? Not so much save these businesses, but more so this corner lot.

Yep, that's basically it.

Okay.

Yes.

Okay, great. I wrote a really great speech yesterday about the businesses, but I'll pivot and talk about just that parcel and maybe I'll email it to y'all because it was good. Um, Mr. Mayor, Mr. Mayor.

Yes, Mr. Mayor. Um, is it okay for me to clarify?

Yes, please do.

Um, Trisha you're Trisha. Um, Patrick Hy, city manager, you what you are speaking about is if the person if we if the city does transfer the Papa John's to the person that's seeking to buy it, it would possibly have the impact that you're talking about. So, I think you probably do want to talk about your speech hybrid.

Okay.

They need the Papa John's to build out the development. So, this you probably do want to use the speech that you we're planning to use.

Okay. Well, then we're going to do a hybrid.

Thank you.

I just put together. Okay. So, when my husband and I were planning to move um out of Raleigh three-ish years ago, we had just had a baby and we knew we wanted to live on the coast. We spent years traveling Acadia down to Maine to find our beach town. We didn't want to move to our hometown. We thought it was like throwing in the towel. Um but Virginia Beach checked all the boxes and

so we bought a house and we've been back for 3 years. Um we promised to dive into the community to treat it like it was a new city to us. We were both born and raised Virginia Beach. Um, our biggest hesitation was the lack of diversity that we felt was intentionally being woven into the culture of Virginia Beach. Um, but anyways, so I unknowingly was actually supporting the artery district

before moving back. I had been buying flowers for friends going through tough seasons from Wayne for years and didn't realize it until a friend recommended a dinner spot next to him, love song. And I was sitting there and realized this is who I've been ordering flowers from for all these years. And it wasn't long before we noticed other small businesses within this block. And that's where my

family spends most of their time. I go to the gym there. We do date nights. We go to pop-up events. It's our favorite spot to be. There are wide sidewalks, the patios spilling into the street. The doors are often with music. Um, more importantly, our time spent there is very intentional. We know that we're supporting womenowned businesses, people of color owned businesses, businesses

who open their doors to everyone. It's a community within a community, and it is the the future of Virginia Beach. Um, if we allow the strip of businesses to disappear, even temporarily, we risk losing that heartbeat of the artery district. Right now, the district leadership doesn't reflect the community that I just described. I was on the board for a short amount of time, and now the board consists of white male

generational wealth and the good old boy culture. And I think it's time that Virginia Beach move past that. I think we're ready to. And I think that the people who've been making decisions um for decades have been part of that club.

But I think it's time to embrace the diversity that this block of businesses blatantly I mean it's just so vibrant.

I'm sure we've all spent time there. But so that now brings me to my concern about the Papa John's parcel. Um it was told to me that it came with city requirements mandating a certain amount of affordable housing, market rate housing, and retail. And truthfully, I wish there was space to reconsider leaving the building as is because it's funky, it's quirky, and it has a lot of potential for a successful patio and a

little small business. Um, but if redevelopment is non-negotiable, then I urge you to reconsider the terms. VB has plenty of other opportunities to prioritize affordable housing, and this tiny part parcel isn't going to really move the scale in that regard. If we add more apartments, I think we should also have a conversation about the existing ones. Gold Key Building and Pinnacle.

Why are they sitting empty? Um, is it the lack of quality? Is it the lack of amenities? Shouldn't we solve that issue before throwing in more apartments? Um, instead of prioritizing housing here, how about we focus on affordable retail?

Could we choose a developer who has margins that allow for reasonably priced um spaces that allow businesses owned by women and people of color?

Thank you. Appreciate it.

Thank you.

Yeah. Thank you. But you we got the message. Thank you.

Okay.

U Mr. Ramik, did you want to make a comment?

Was that Is that all the speakers?

Yes, sir. Okay. Thank you, Trisha, for the for the speech. Um, so tonight's a public hearing. I think that's all the we hear tonight. We've also, as members of city council have received emails over the past week, but especially the last three days, we get the the message loud and clear that the community does not want these shops to to leave. And what would cause them to leave, just to

clarify, um, for your speech, would be the transfer of this property to Papa John's to the owner of this of this property.

So, we're going to have to work through this. Um, it's my strong belief to support these businesses. Uh, thank you, Mr. Jones, for your service and your business for 53 years. Uh, it's not an easy solution at this point. So, I'm we're not voting tonight. we would be slated to be voting on this uh next on September 2nd. So at that point I will be asking then to defer this until

October 21st when we can have some more conversations with the owner and this whole conver the whole business of what the owner would like to do at this property.

Okay. Could I Okay. Thank Thank you.

Could I ask a question?

No. You just had three minutes. We got to go by the rules. My apologies.

No, it's okay.

Okay. Okay. Thank you.

Okay. Um, you know, at this point, uh, we'll get ready for the consent agenda.

Do we have any, uh, consent agenda speakers?

Would you like to read the speaker policy first?

Okay. We got some other speakers later, so I'll go ahead and read the script.

Um, I want to remind everyone that the city council speaker policy that allows certain representatives of groups to speak for 10 minutes applies only to planning items. All other speakers, whether speaking individually or on behalf of a group, will have up to three minutes to speak on a single item.

Speakers are reminded that comments during the formal session of the meeting must be limited to the subject of the item that is being considered by the council at the time you are called. For items placed on the consent agenda, a speaker will have up to three minutes to address any single item. If a speaker wishes to address multiple consent uh agenda items, the speaker will have a cumulative total of six minutes to

address those items. Again, the speaker must limit his or her comments to the subject matter of the items they signed up to address. And finally, I call upon all speakers and all persons in the chamber to be civil in their discussion and decorum. Whatever views you hold and wish to express, the city council wants to hear from you and to ensure that all viewpoints and all persons are

respected. The best way to do this is for all of us to strive for civility and respect. Madame vice mayor, if you would be so kind.

Well, we do have one speaker for one item.

Okay. Oh, we do have one. Okay.

Yes. Um Channing Tuttle is is uh signed up to speak on K2.

Miss Tedle.

Good evening.

Good evening.

My name is Channing Tuttle, District 1.

Good evening, mayor, vice mayor, and members of council. When I attended planning commission, I presented testimony and evidence showing that staff and management knowingly allowed illegal STR permitting as well as closing and dismissal of complaints against illegally operating STRs, including YPB LLC managed properties.

City attorney's office had full knowledge of these violations and continued those cases out for months. A priv a privilege never extended to the citizens I was forced to endorse.

In the end, these cases were dismissed.

That was not a failure of enforcement.

It was a deliberate decision to operate outside of the ordinance that this council adopted.

Council adopted ordinance 241.2, which went into effect on November 7th, 2021.

I was the only inspector who remained in the STR department from the adoption of that ordinance forward. During that time, I witnessed the rest of the STR team and management consistently act unethically, unlawfully, and without accountability. The ordinance this body approved was not applied equally across citizens, developers, and property managers. And if it happened in the STR

department while I was working there for years, this is still continuing. And is all of zoning and planning operating in the same fashion?

When I raised these concerns and issues in an effort to protect this city from liability, thoughting thinking it was only an honest mistake by new staff, I was met with harassment and ADA violations and a toxic works workplace that left me with PTSD and final financial devastation. That experience makes me question why the public should trust that this proposal will not simply result into more ille

given the lack of accountability and the history of selective enforcement. My concern is that this is yet another case of allegedly protecting developers at the expense of both employees and neighborhoods. I respectfully urge council to demand full transparency and real accountability and enforcement before advocating this proposal that must include proof of cancellations which can be provided by all STR

platforms yet is never confirmed by staff before closing a complaint of illegal STR activity. I personally recommended the safeguard. Management rejected it, reinforcing my belief that the department is more concerned with the illusion of compliance than with actual compliance. Please reject or defer this agenda item until compliance can be obtained and end the psychological abuse against employees

within your workforce. Thank you.

Thank you.

That's all, sir.

You referring to J2.

No J2.

No, she was speaking on K2 planning item.

That's all the one speaker items, sir.

Thank you, Mr. Mayor. Uh under ordinances uh J1, the ordinance to amend to the city code ra um change the polling location for precinct 0093 to Good Samaritan Episcopal Church at 848 Baker Road. Number two is the ordinance to amend the terms of the conveyance of excise city property at 2656 L shell place to the Virginia Beach Development Authority and authorize execution of the lease and option agreement with Vid Var

Inc.

Number three is the ordinance to approve modifications to the summary of terms to the acquisition of structured parking at 35th Street and authorize the transfer of $13,350,000 from central from capital project 100059 resort parking district to purchase of 200 parking spaces in the proposed garage. Number four is the ordinance to amend the appendix E, no, excuse me, F of the city code to Chesapeake Bay

preservation area ordinance.

Open a public hearing on planning.

Okay. Number two, YPB LLC for conditional change of zoning form of O Oceanfront Resort District A12, A24 and A36 apartment district to conditional A24 apartment district rate demolishing dis existing multifamily buildings. vacate interior property lines and construct a 20 unit multifamily condominium development at 309, 311, 313, 315, 317, and 319 34th Street. And that's in district 6.

Number four is Bradley and Netty Kaine for conditional use permit Ray residential kennel kennel at 405 Kings Point Corn District 3 and that's going to be deferred until October 21st.

And number five is George Luzo uh 213 232 Jersey LLC for conditional use permit I mean bulk storage yard at 5033 Ammer Wright Road and that is in district 4. Move for approval.

Do I have a second?

Second.

Okay. Any discussion?

Yes.

Yes.

Yes. Is um George Luso here?

Yes.

Okay. If you please stand, I'm sorry. Mayor, can we just finish the vote because we have We got to finish the vote. We call If you don't mind, that would be great.

Just because we have it open.

Open it. I thought it was open. Sorry.

Okay.

Council member Ros. Thank you. By vote of 11 to zero, you've approved the consent agenda as read by Vice Mayor Wilson.

Okay.

Okay.

Okay. Mr. Lo.

Yeah. Yes. War.

Thank you, Mayor. I just want to make a quick shout out to the Food Bank of South Eastern Virginia for making this decision and this investment in our city. Best of luck. It's a huge project for you and our region.

That's That's not Was it part of consent?

We didn't call that yet. That's being pulled.

Yeah.

It's not consent.

Okay.

Congratulations.

Preemptive.

Whoops.

Third time is the charm.

Okay, we're ready to move forward. And okay, you go right ahead.

Yes. was just asking you to stand and I wanted to mention to you I was pleased you've been in that area for 15 years you're willing to go along with the planning with the wood fence with the buffer and with the vision that we have for that Cleveland uh penro uh strategic plan. So I just wanted to say thank you.

We appreciate you.

Okay. Thank you. Very good. Thank you Amelia. Okay. Now we'll move on uh to the planning uh planning items and the first one is K1 Food Bank of Southeastern Virginia in Eastern Shore Incorporated for conditional zoning from AG1 to AG2 agricultural distance to condition I1 light industrial with Ray develop a warehouse distribution center for the food bank at 3325 Damne Neck Road parcel directly southwest of 3325

Damne Neck Road and 3357 Dan Knack Road District 2. Do we have speakers?

The first speaker, Eddie Berdon, representing the applicant.

Good evening, ma'am. Mr. Mayor, madame vice mayor, members of the council. For the record, Eddie Bdon, Virginia Beach attorney, and it is certainly my privilege to come before the council this evening um representing the Food Bank of South Eastern Virginia and the Eastern Shore on this conditional reszoning application of a 24 acre assemblage of three predominantly wooden parcels zoned agriculture on the

southeast side of Damneck Road in the developed part of the city of Virginia Beach. uh this property or these assembled properties are located in the greater than 75 dBN noise zone, the 70 to 75 dBN uh noise zone and a small part in uh accident potential zone 2.

The development of this area cannot be approved by the city uh for residential based on article 18 of our CCO adopted in 2004.

Uh the food bank is proposing a conditional I1 light industrial zoning district subject to six very detailed profers. Uh, and it sounds as though this item uh was probably going to be on the consent agenda, but there are, as I understand it, a speaker or two. Um, I would note that the two families who are generational, multi-generational owners of these three parcels, um, from whom the development potential of these

properties was significantly limited, uh, in 2004 by the city's adoption of article 18 of the CCO to protect NAS Oceanana, a very worthy cause. um they were and basically limit their uses to light industrial uses. Um unlike a lot of property owners and similarly situated back in the 70s and 80s when the Navy paid for removing those development potentials um these folks were not so compensated. uh their only

utilization and the utilization for which the food bank not only contracted to purchase the property but has actually completed the purchase before they proceeded with this application. Um that's that's why we're here. And there are lots of properties similarly situated that the city doesn't own that are not zoned in light industrial but that's really all they can be used for.

And this is uh this is one example. The um use is essentially a warehouse distribution center use. The Navy and the city joint review committee has approved this. It's compatible with NAS Oceanana. It replaces the food bank's current distribution facility in Norfol.

It's been there for over a quarter of a century. Their operating hours are Monday through Friday uh 7 to 5 and Saturday 8 to 1. And this is not a public uh distribution center. That's what all their partners do. They just collect the food here and package it.

and the distribution partners come and take it to the churches or other um locations where the food is distributed.

The storm water requirements in our ordinance are met with this proposal. Uh and we are providing over 6 acres of fully treed buffer existing that'll be preserved with this application including 140 plus feet of buffer to the homes on Glastonbury on the south side of the property or southeast side of the property. The public outre outreach was held. Hundreds of invitations sent back

in February. 12 residents showed showed up, none of whom were in were in opposition. And Chris Tan, who is the director, is here and he's he'll be happy to answer any questions should you all have any. Uh the um but he offered to come back if they wanted him to come back and and speak again. Um staff has recommended this for approval. Your planning commission overwhelmingly recommended it for approval and we hope

that the council will see fit to do the same.

Okay. Any uh comments or questions?

Okay. Thanks, Eddie. Thank you.

The next speaker is Ben Jackson.

And after Mr. Jackson is Greg Panza.

Good evening.

Good evening. Sorry, I'm not used to standing in front of people and talking, but good evening, mayor, uh, vice mayor, city council members. Uh, my name is Ben Jackson. I reside at 3092 Glassenbury Drive. I'm here to discuss my opposition to the food bank being built behind my home at 3325 and 3357 Damn Neck Road. Uh I have the following concerns that should be discussed before decision

decision is made about reszoning the property. The request is to build 110,000 foot roughly building 140 ft away from my property taking away a wooded uh land that is home to multiple wildlife and other forms of uh animals that live back there. We already have jet noise that comes over. We are in the flight path. Um, we don't need the additional noise from tractor trailers idling behind our homes at all hours of

the night. We just don't need to listen to that. Um, I know there was something in in previous discussions that they would only idle for 15 minutes, but at the end of the day, you know, truckers are going to do what they want to do if they want to stay comfortable in their rigs. They're going to run those things all night long and we don't need to hear it. Um, this facility will also have an

increase in traffic on a quarter that is already heavily trafficked with two bases, uh, an amphitheater and Amazon trucks. There is currently no turn lane for trucks coming from London Bridge Road. So vehicles will either have to make a U-turn or use Monae Drive from Holland Road as a cut through uh increasing traffic and already dense neighborhood. I'm not sure if you know about the area right there, but where

they're proposing the food bank to come into, there's not a turn lane. So vehicles um at the planning commission meeting, they discussed that the corridor would be coming from London Bridge Road and not from Princess Anne.

So that would increase traffic coming from London Bridge where people would either make that lefthand turn onto Holland Road and cut through Monet to come back around and come back in through the neighborhood to get through there. We also have Lansboro Road which is a cut through. It's a small culde-sac in the neighborhood that I would have concerns about them pushing that through

for trucks and traffic to get through. I know it was discussed that they would not put that through. Um but we haven't heard anything about that happening yet.

Um the again the hours of operation they said 7 am to 5:00 pm Monday through Friday and 8 am to 1 pm. Is there really a need for this facility to op to be operational that early in the morning?

Um despite statements about a community outreach, there is very little information in regards to the food bank given to the homes that would be directly affected by this building. I know they like to tout that they said they 5,000 flyers went out. Um I was on medical leave during that time, so I was home for 3 months. Um I never saw anybody come to my door. no discussions about anything about food bank coming

in. So, there's been no really outreach other than what the city has sent out for the uh little postcards that we got from our neighbors that are directly affected um for this building security.

Looking at the current plans, there's only a 20ft buffer between the parking lot and the neighborhood park. Will there be security patrolling after hours or will the driveway be gated to stop people from coming in during those times? Um it's a small buffer from a neighborhood park that is frequently by kids, uh parents, families. uh some youth sports teams also participate and practice in there and then if the food

bank doesn't have enough funds to build this project they turn around and sell it a few years down the road to someone who wants to build the industrial park.

There needs to be more conversations with the community and among city council before decision.

Thank you very much sir.

Appreciate you coming.

Thank you.

The next speaker is Greg Panza.

Good evening, Mr. Mayor, Vice Mayor, distinguished council members. My name is Greg Panza. I live at 3088 Glass Mary Drive. I'm Ben's neighbor. Uh, I have lived there for 17 years. Reason why I bought that house is because of serenity, the quietness, the neighborhood. Okay. You have woods behind you with a great ecosystem of animals that live back there. Okay. Am I against the food bank? No. Am I against

Am I against small industry? No. Where you put it, I am against it. Virginia, the city of Virginia Beach and fellow council members have done a great job of putting small industry in industry parks all up and down Dam Neck Road. I have lived here since 1983 where I came here from the Navy from Cleveland, Ohio, Northeast Ohio, where I lived in suburbs and never in my life have I seen a a

city grow like this has and it's great.

It's wonderful. I have watched it from a country road at Damneck Damn Neck going to Damn Neck Naval Base when I first got here in ' 83. a two-lane country road and nothing else but woods and trees and everything else. It was beautiful. I wasn't used to that being a city boy up there from the uh city of Cleveland. But what I'm I'm not against small industry, but what I am for is putting small

industry where it belongs in industrial parks as you have done so greatly in this city. You have kept large buildings and neighborhoods away from having trees destroyed to put industrial buildings there. Okay. I saw what happened to Damn Neck in Virginia and and and u I'm sorry, General Booth Boulevard. All those trees, all that property. You got enough room there to put a football

stadium in, but yet you want to destroy a whole ecosystem and and a force behind my house to put a small industrious building there. It's a food bank for transferring food. Why do we as neighbors have to have that? I don't understand it. I have talked to some of my neighbors and unfortunately they have not come to talk to you all. I can't make them come. you know, he can lead a

horse to water and all that, but it just doesn't seem right.

Neighborhoods are for what they are. Our neighbors, they they talk about putting a nice little park up front there, put a lake there, a walking path. Okay? Our neighbors don't do that. In our neighborhood, they go for walks in their neighborhood. Why? Because they feel safe. They're not worried about being accosted because if they are, they can yell and scream and somebody will come

out their door and help them if they can. The park that they propose to put there is nice. I get it. I understand it. But it's secluded. You're going to put a buffer of trees around those park, that lake, that walking path, and anybody can come out of that was at any time, and it cost somebody. There's no guarantee it won't happen. Okay? Not to mention the crash zone. I know what the

crash zones are. I'm retired Navy. I've worked in many squadrons at NAS Oceanana, so I know where the crash zones are. I know where the flight paths are. I am right on runway five, right, the main runway going into Oceanana. Do I mind it? No, I do not. It's a price of freedom.

Thank you very much, sir. Appreciate your comment.

Thank you very much, Mayor.

Mr. Verdon, do you have rebuttal?

That's all the speakers. And mayor, members, council, I'll be brief.

Um, as for the comments from Mr.

Jackson, the the lots that abut this piece of property on Glass and Berry um are 100 ft deep. Um I've been doing this for 40 years. I've never ever had an applicant and I don't think we have any in any industrial park where you have 140 foot deep preserved forested buffer.

Okay. The the forested buffer is 40% larger than their properties are.

It's three and a half acres alone. The buffer behind the homes on Glastonbury.

The property owned agricult and and that's three and a half acres of habitat that's not being touched.

The property owned agriculture. The owners could have at any point in time and the food bank could they're not going to taken every tree off of this piece of property. The owners on Glastonbury, the majority of which are not here opposing this um ha have to appreciate the fact that we needed to save Oceanana. The building on this property is not in a crash zone. It's just a small portion of the property

that is not being developed at all is in a crash zone and the Navy completely has no objection to this. It's compatible with NAS Oceanana. That's why your planning commission recommended approval and why your staff recommended approval and this property has only industrial use available. Light industrial is essentially it that is compatible with NAS Oceanana. The um the park has a 25-

foot tree buffer adjacent to it. Perfect park, you know, um scenario. And again, this is not a facility where the public is invited to come here. All right. This is not a situation where there going to be hundreds and hundreds of people coming to pick up food and who needed food insecurity and need food. That is not what this is. is a warehouse. And that is a and with these hours of

operation and there is is very limited and there is no tractor trailer truck traffic behind this building whatsoever.

And we have we've never been able to figure out how anyone believes that truck traffic coming to this facility, which there are just a handful in the course of a week, um are going to go through that neighborhood to get here.

Don't don't have any clue. We can't figure out how that ever would happen.

You happy to answer any questions?

Okay. Any questions at all? Oh, Josh.

Thank you, Mr. Mayor. Um any um I saw this this property in the site layout originally a while back and it it had been oriented differently at that time with truck I guess parking area to the rear.

And now the one that I see up here that has so this has changed over time is what I'm That is absolutely correct. the the food bank had a consultant come in and do two or three different layouts.

And when I was retained and we started going through them and then going through them with staff, it was our advice, my advice and staff's advice that we wanted to make certain that we didn't have any activity between the building and the neighborhood. And that's exactly what this plan pro, you know, provides. There's nothing going on behind the building. It'll all stay the way it is today. I think it's a

significant improvement. The site layout is um and and I I remember another aspect of the site layout that I saw previously. I think a different use, maybe some sort of like a passing a passive farming or garden use was contemplated in the front area, but now I see that there's been tons of trees preserved instead and you're using it for That's correct. There's a small community garden space that's located up

on the Dam Neck Road side. And there's also 100 foot preserved buffer along Dam Neck Road as well with the exception of the entrance to the to the property.

I think you do a good job saving trees and and flipping that site layout to where you're, you know, disturbing the the neighbors in the least amount possible. And I do understand the concerns, but 140 ft is essentially a 14story building between the we we we we believe that this has balanced the concerns of all of the stakeholders, if you will, around around the property as well as the the property

itself. And it's a you an accountable organization.

Very accountable organization. It's not just a out ofstate, you know, corporation coming in and building a warehouse.

Okay. Thank you, Eddie. Barbara. Uh, no.

St. uh, no, let's go Stacy and then Barbara will make the motion.

Um, M. Berdon, can you uh address the idea of a turn lane, the need for one, or why there's a lack of a turn lane into the facility?

If the city requires, if the traffic engineering department indicated that we needed one, they they don't believe so.

And that again the the truck track traffic we're talking about here is very limited and as there's a profer in here that covers the fact that um it's not terribly unusual for that traffic which is you know never more than as I understand it one or two and that's an oddball situation in a day when you'd have a tractor trailer come in. They come in early in the morning and that's

why they're they're not allowed to um idle their engine or you know stay in the parking lot for more than a short period of time which is in the proper agreement and there the current facility which they've operated for 25 years they you know we've gone through all this with with staff and there there just doesn't the concern is not justified by the facts of how this operates. Now, there are a good

number of cars that come for the 60 employees during the course of the day, but they're not tractor trailer trucks.

And there are 60 65 employees average salary just under $60,000. And there are volunteers that come with the groups that distribute the food elsewhere to help package and what have you in the course of a day. But as far and and as far as those folks, they're not using tractor trailer trucks to take the food to their church or their other um distribution centers outside of which this is not

outside of in this region and on the Eastern Shore. So there there really is not going to be the this is not this is this is the opposite of Amazon. Okay?

This is not going to be the fulfillment center on the other end of Dan Road by any stretch of the imagination. Not even, you know, it's the light years in terms of how little truck tractor trailer truck uh traffic this will generate. It's, you know, maybe, you know, maybe five, eight trucks a week.

Thank you.

Okay Barbara.

Hang on. Well, I I've been worried about this one since the first day I saw the application because it is a a very large industrial use adjoining a residential property.

Uh, and I was very concerned because the food bank purchased this property without the proper zoning and would have to come in and get the resoning.

And I've been really worried about whether or not it was going to be able to um overcome what I see as a lot of issues, which of course is the fact that it abuts a an existing residential neighborhood.

But because the property has so much uh timberland, they're able to do that. And I think they have been able to um overcome a lot of the issues that that I was seeing at the start. And it's because they are a cooperative organization that I think they're willing to do that. Someone else with this property may not have been willing to do that. So, but there are a number of profers here

that make this work without doing extreme damage to these properties that are residential. Of course, this cannot be residential because of the Navy restrictions. So, it has to be something else.

And the property is zoned agricultural simply because back in the day when the zoning ordinance was first developed and the planning the U board of supervisors didn't have a lot of experience.

If it didn't have a use they just zoned it agricultural whether it was in farming or not. This property has never been nor would ever be farmed I don't think because it would have to be totally cleared. The only way it could be a crop would be is if you're using silver culture and you're timbering. So you've got a lot of trees here on agricultural land.

May I read a statement you made at the planning commission which I agree with totally. Um, since there seems to be a lot of conversation going around lately and I think it's been kind of kicked off by the Economic Development Authority that they don't have much industrial land.

Well, the reality of it is we have quite a bit that isn't zoned industrial because the owners of the property aren't the government and the owners of the property prefer to be taxed on land use on their agricultural zone property until such time as there is actually a user for their property and they want to just be paying out the nose waiting for somebody to come along.

No, no fewer words have ever been spoken. That is 100% the case. There is a significant amount of agriculturally zoned land along Damneck Road and south of the base and even wrapping around a little bit towards the southeast side of the base that in those cases most of them the Navy actually purchased the development rights. But that's that's why we had the Sega areas and they're not zoned industrial because they're

they're not owned by the city. So the the property owners um have they're not going to reszone it until there is someone who comes along and wants to buy it and develop it that way. And and that's that's and this is this is one of the fewer few ones that is somewhat um potentially problematic as you've indicated Miss Henley and fortunately we have a user that and it's a big big

piece of propert willing to do go above and beyond which is this represents above and beyond as far as protecting residential that's in an area that is that if those houses hadn't been built when they were built, they wouldn't be able to be built. today, right?

Yeah. But we're not No one's trying to say they shouldn't be there. That's not the case. But you got to work together and that's what we we look at what is zoned industrial and say we don't have much left.

But we've got a heck of a lot of property that is still zoned agricultural that is potential industrial such as this.

And correct that is another thing that worries me a little bit.

I don't want this to set a precedent for somebody else to come in and put industrial here that is not compatible with this residential. And that's my worry. Uh just because this development was able to overcome these issues, somebody else that really wanted to put in something that is heavy that is industrial and wouldn't be compatible could. I don't want them using this as an example, but I'm sure they will. Uh,

but this is 24 acres total, but the project itself is 12 acres and the impervious surface will actually be less than 8 acres. That's right.

If I've read everything right, I believe those numbers are correct.

What we've got is that this property is going to be retaining half of the undisturbed property.

pretty close.

Maybe not not in one contiguous spot, but it would be so we are retaining a lot of this timberland that will make it compatible with the residential that's there.

I think I I would I would simply say that if you count the stormwater retention ponds and the areas that are treated, it's it's certainly I think well over half. But the timber may not timber alone may not be quite well. It won't be half of it timber, but it's still a good a good Yes, ma'am. The timber the timber is well over the is more than the six over six acres that's in the preservation

area. So that you're absolutely correct and and I would take the half full half empty. I think this is an excellent um what's what's the word that you you used sets an example or precedent if if if other properties that are that are directly adjacent to residential elsewhere that have the same scenario as this if they provide a a 3 acre plus 140 foot wide preservation buffer hadn't hasn't been done anywhere else.

Well, I I think that this could be a a good example of what could be done and um so I I appreciate the residents that are there, but I think with the buffers that we have here assured that it's it's going to be far better than something else could might come in later and and want to do something. But this gives me a lot of is an example of what I'm very much concerned about with where

our direction with this speaking about industrial uh goes. Another one of the speakers at the planning commission made another comment and I kind of uh agree with him too. He says um he's talking about light industrial and he says there ain't nothing light about 108,000 square feet. All right. This is a 108,000 ft building. I don't know what we call light industrial and what we

call heavy industrial. Some of the stuff we've been getting in light industrial I consider heavy. And I think we're really going to have to get this definition.

But when you've got a a building that's over 100,000 square feet, that's getting to be a little bit more than what I would consider light. I agree with the person who spoke and I don't he didn't speak tonight. But anyway, uh I think that's something we're going to have to deal with because we are having to deal with this issue of industrial property and what are we going to call light industrial?

Well, I think our zoning ordinance divi divides it basically manufacturing and things that we don't have a whole lot of in Virginia Beach are if you if you look at I2 that's that's what's considered heavy. what go what's going on in the building more so than the size of the building because I mean a a a warehouse isn't they're not they're not manufacturing they're not bringing in raw materials they're not you know

heating them up and changing their their character and they're not dealing with chemicals and things of that nature.

They're just bringing in food that's already you know ready for market from agricultural users and also from you know different suppliers and and they're packaging it and sending it out. So there there's not a it's I don't think there's any heavy in use of the building. It's just it's a warehouse primarily.

Well, I I think given the fact that you all have got your hours down to such a a level that you're not interfering, someone else with a light industrial could be going all night long and I just don't want to see a heavier use as a precedent for something that's going to come in to that point. This one has got is light in your use.

But someone else would say, "I want I want also and they could have a much different operation." So, I I just am making these statements to let everybody know, but I I don't agree with some of the stuff that we've been getting and y'all are going to be hearing a lot more about that uh later on, I guess, because I think we are going to have to address this whole question of industrial in the

transition area, which is coming to us.

Um, and we've got to answer some of these questions. But I I think an issue like this one when you look at this neighborhood that's back there fully developed and only because you have the ability to do it is this I1 compatible with that. If it weren't for that I would never be making this motion to approve. But given these profers and uh what is with this application I will make the motion to approve it.

Okay. Do we have a second?

Second.

Okay. Any discussion? Okay. Let's open the vote.

One second. The vote is open.

Vice Mayor Wilson. May have your vote, please.

Thank you. By a vote of 11 to zero, you approve the application of Food Bank of Southeastern Virginia and Eastern Shore.

Okay. Thank you all. Appreciate it.

Okay, moving on to item number three.

Virginia Beach Community Development Corp, City of Virginia Beach for conditional use of zoning from B2 Community Business to B4 mixed use um develop 60 residential units and small space of parcel north of 3792 Princess Road District 10.

So we have three speakers. The first speaker is Max Wy first.

Hey, one at a time, folks. One at a time please.

One at a time.

He's the first.

Okay. Have a seat and I'll call the rest up.

They'll call you.

Okay.

Okay. Uh good evening, uh Mr. Mayor, uh members of the council, Mr. Manager, and members of the public. Uh my name is Quincy White. I'm the president and CEO of the Virginia Beach Community Development Corporation. Uh tonight I'm asking for your continued support for a project that represents what we all believe in, a Virginia beach that is inclusive, compassionate, and prepared

to meet the moment. In partnership with NAMI, Coastal Virginia, we proposed 60 units of affordable housing with a portion dedicated to people with diagnosed mental illness. Alongside a new regional headquarters for NAMI, this project is more than just housing. It's a place where people can build stable lives, access meaningful support, and feel a true sense of belonging. This initiative directly aligns with the

Virginia Beach housing study and the comprehensive plan which call for deeper affordability, mixed income neighborhoods, innovative partnerships, and strategic land use. We are delivering on that vision right now. The city council has already taken a bold and commendable step by unanimously voting to donate city-owned land for this project. The action sent a message, Virginia Beach is ready to lead. The

location near transit, employment, health care, and community services was chosen intentionally. It reflects both resident input and best practices. It positions this project to succeed in delivering long-term people centered outcomes. Delaying reszoning now will jeopardize critical funding and setback progress at a time when this community needs us to move forward and we are ready. This is what smart, compassionate

growth looks like and it's the kind of legacy we all want to leave. Uh, thank you for your time and your trust. I now yield the remainder of my time to our chief strategic officer, Ashley Jarvis.

I'm sorry. Let me stop. I need you to come over and give me your name. You didn't sign up, so I don't have you signed up either. So, I need cards from you all to come over and fill out cards.

We have speakers signed up that I'll call and then Yeah, if you can come over and fill your card out, though.

The first Well, the speakers that are signed up are Max Wy, Willie. Willie, come on up.

And then Clay K. Flora.

Excuse me, Miss Barnes. Mr. Mayor, I just want to clarify the speaker we just heard from is the applicant. So, I I thought they didn't sign up with me, so I didn't know who who they were. I just needed their information. But go ahead, sir.

You can go speak. Okay.

Yeah, that's the only thing. I just need their information.

Go ahead, sir. Oh, I'm sorry. I'll reset the timer.

Greetings, Mr. Mayor, Madame Vice Mayor, and Virginia Beach City Council members.

My name is Max Willie, and I currently serve as the vice president, and chair of the advocacy committee for the National Alliance on Mental Illness, Coastal Virginia. I ask for all the supporters uh and constituents of this effort in person and virtually to please stand and to remain standing until the conclusion of my talk.

We are truly honored to be here again in your presence this evening. My last talk with you before city council was on December 10th, 2024. And I stressed the benefits of releasing that 3.18 acres parcel of land by Princess Anne Road near Tidewater Community College for the 60 multifamily units and the NAMI Coastal Virginia office. This site will serve as a testament to Virginia Beach

dedication to prioritizing attainable housing and it will also enable your local NAMI affiliate to broaden its impact within the community by providing greater access and support for individuals in need of mental health services free of charge. That's right.

All of NAMI support services are provided to the community free of charge. We applaud the comments tonight that will be made by Mr. Quincy White and Ashley Jarvis of the Virginia Beach uh Community Development Corporation and the positive remarks that you made, Mayor Dyer, uh this past July 31st at the VBCDC Community Forum. It is evident that you have clearly heard from the residents of Virginia Beach about the

need for more affordable and attainable housing. Our ask is simple.

Unanimously approve the planning commission's resouring resoning application.

We want to thank you for your visible courage and leadership with us throughout this journey for the last three years and we look forward to better serving the Virginia Beach and the entire coastal communities. Thank you so much.

Thank you sir.

The next speaker is K. Flora.

After Miss Flora is Eugene Coward.

Hello, Mayor Dyer and Vice Mayor Wilson, members of city council. I'm Kay Flory.

I've been here before. I'm a dedicated citizen of Virginia Beach and the advocacy chair of the Interfaith Alliance at the beach. Additionally, I'm a proactive member of the Tidewater source of justice. Our organizations collaboratively address social justice and human rights issues within our community guided by compassion and nonpartisan advocacy.

We strongly support the NAMI CDC project located at Princess Anne Road and Community College Place. We walked the way for the last four and a half years with them. This site is ideal for the development of affordable housing and supportive housing for individuals with mental health challenges as envisioned by the partnership between V Virginia Beach CDC and NAMI. The property's ample acreage and proximity to medical

facilities make it a suitable location for this project. We urge you to expedite the process to facilitate the development of these 60 apartments which include nine units dedicated to the individuals living with mental health issues. Thank you for your consideration of this important issue of affordable housing for citizens of Virginia Beach.

Thank you.

The next speaker is um Eugene Cowan and then Ashley Jarvis.

Good evening council.

Hello. we meet again.

Um, I just came here in support of this awesome, wonderful, and amazing project for our city. Um, so my support is that you uh partner with NAMI and Virginia Beach CDC affordable housing project.

And this initiative is more than just housing. It's a lifeline. is stable, affordable homes paired with wraparound service for mental health, giving families and individuals the foundation they need to thrive. Without housing, recovery and wellness are nearly impossible. With housing and support, people move from crisis to stability.

The benefits extend beyond our entire city because affordable housing stops emergency room visits. It makes sure that those who are dealing with illness and sickness has have an opportunity to get that help before it becomes a crisis and has to come to the hospital. It strengthens our workforce. It keeps our families in community. When residents spend less time on rent, they spend more

time in local business fueling our economy. And most importantly, this project reflects the values of Virginia Beach. And it shows even with your initial investment of the land that it's about helping families and supporting our community. So this is not just a building project. It's an investment in dignity, stability, and the long-term health of Virginia Beach. So mayor and wonderful council members, let me share

with you. It's about hope and health, about pairing safe and stable homes with mental services, giving the families and neighbors the tools they need to thrive.

So again, I give my vote of support. I'm Eugene Cowin, pastor at the New Lifeful Gospel Baptist Church. God bless you.

God bless you. Good seeing you.

The next speaker is Ashley Jar. The last speaker is Ashley Jarvis.

All right. Good evening, Mayor, Vice Mayor, members of council. Um, tonight I just want to take a minute to recap the community engagement strategy for this project. We strive to have an informatory, participatory, and active community engagement strategy. After we began working on this parcel in 2023, we uh went out at the invitation of Councilwoman Rouse and met with the Buckner Woods community. Um, identified

concerns that they had and and took those back and worked on solutions and ways to mitigate those over the next several months. In May of 2024, we held a community design chet where we had received input on design elements um and addressed concerns with the neighborhood as best as we could. In November 2024, we held an additional community meeting we where we presented the um conceptual

site layout. After working through the resoning process in the spring, in July of 2024, we held two additional community engagement meetings. On July 24th, we met with the Buckner Woods Homeowners Association, talked through the current site layout, um any additional concerns they had, and um invited them to the um design reveal that was held on July 31st. On July 31st, we invited stakeholders, the

neighbors um and supporters of this project to come see the renderings for the project, vote on the project name, and and you know, give us feedback on this project. We also had door hangers hung on all of the Buckner Woods Homeowners Association doors to invite them to those meetings to ensure that we were doing our best to invite them to the table and work with us to be great neighbors. Um we're excited about the

opportunity for this project and welcome uh any questions that you may have tonight and look forward to moving forward on this project. Thank you.

Okay. Thank you, Mayor. That's all the speakers.

All the speakers. Okay, Jen.

Thank you, mayor, and thank you to everyone who came out. This is one of the projects when I was uh newly elected to council. It was one of the first ones kind of when I got to the table and it was, hey, this thing is coming. And I remember thinking, wait, what? This is district 10. This is my district. So I remember for me my goal was to make sure

that at every step of the way the project and the residents were talking and communicating and that this is something that involved the people of Buckner Woods who are it's a small but mighty community of neighbors who know each other and care about each other.

And so, um, I want to thank, um, BBCDC and NAMI for your efforts to engage the community and to respond to the concerns and to make adjustments as much as you could. Um, I know that when we first heard about the project and sometimes when I still hear about it, it's the NAMI headquarters. So, I do want to clarify in our conversations that this is first and foremost a residential

site. So this is 60 units of um 60 units 100% are um affordable housing. Nine units are set aside for households uh with individuals with mental health diagnosis. Um as we talked about today during our session with our uh demographic overview, it's a necessary it's meeting a need um more than one need. And so, um, I, um, appreciate all the effort that you've made and, um, I appreciate

the the residents of Buckner Woods for their engagement with the project and I'd like to go ahead and move for approval.

Do I have a second? And Michael second.

Okay.

May I make a comment?

Yes.

I would just like to thank the folks from NAMI for persisting.

I know a few years ago we had an application that you weren't pleased with the outcome because we had to deny it because it just wasn't in the right place.

And I I appreciate so much that you all took the uh effort to keep moving forward and find the place that was the right place. I didn't like voting against it before, but it just was not in the right place for you or the community that it would have been in.

So, I really appreciate your persistence and your willing to uh continue. And please know that the council even then, I'm sure I would be speaking for those who had to vote no that night. They weren't comfortable with that, but it was what they really had to do to conform to our comp plan and policies.

So, thank you so much and you found the right place and I know it's going to be great and I really appreciate all of your commitment. Thank you, Michael.

Thank you, Mayor. Well, it's a joyous day and um and I'm so pleased for NAMI, but I just have to say that not everything you just heard is accurate.

We never took a vote on a on a a previous site that no vote ever occurred and I'll just leave it at that. Thank you.

Okay. Well, we turned it down. It didn't work.

Okay, Amelia.

Yes. I want to say just what I heard tonight. The importance of investing in humanity.

This is what this is about. the inclusion and persistent and determination to where we are today. So this is a celebration about hope.

Hope for people in those situations.

You overcame the nimi. All of you know what nimi is. Not in my backyard. And we're so happy to hear Councilwoman Rouse and so many and also the speakers realize the value that this will bring to our city that our city is for everyone is for inclusion. So thank you.

Okay. Anybody else? Okay. Let's go ahead and vote on this.

The vote is open by a vote of 11 to zero. you to approve approve the application of Virginia Beach Community Development Corporation.

Okay, I think that's it. Are we ready for appointments?

We are, Mr. Mayor. Uh there's two appointments. Uh one is for the community organization grant review program uh committee, excuse me, Tiffany Arguello, and the second is for the development authority and it's Lisa Murphy. Move for approval.

Okay.

Okay. Vote.

Oh, one more.

Oh, one more. I'm sorry. And for the VA250, Bill Curtis.

Okay.

Yes, you can.

U. I am going to abstain on the vote for appointments to the development authority. Uh, and I I just want to offer my explanation. I've been working on coming up with a proposal that in the development authority we do interviews as we do for another major commission because I've had the experience over and over now with um folks wondering just what the development authority is, who they are, and what

their responsibilities are. The development authority is an extremely important board. As a matter of fact, we just conveyed property to them tonight.

They own a tremendous amount of property. And I had one of the things that I had asked for in in doing this preparation that I've been doing uh was a listing of the properties that they own. And I would have brought it tonight had I realized this was going to come up.

But the development authority has a lot of responsibility and they do own and control a lot of property in the city and I think it's important that they be given uh additional uh uh review because of their accountability. They're an appointed group and um I I think it's important that we make the appointments in a fashion that uh recognizes the authority and the the power that they have as an appointed

body and I would like to be bringing that forward but if we make these appointments tonight then that sort of won't um have any impact for quite some time but I do want to talk about this uh this uh board that we do have that we do appoint and I I don't want to be confrontational to the development authority at all but I would not be representing my residents who have been questioning the development authority

and what they are doing and some of the actions they have taken if I had not done this and I do feel like I have to represent what I'm hearing from the people that I'm elected to represent in district 2. So I will abstain on those votes.

Okay. This point the votes open.

Council member Henley, are you So you are voting yes for the rest of the appointments and just abstaining on Miss Murphy. Is that correct?

Are you abstaining on Murphy?

I'm abstaining on the development authority.

Okay. If you could go ahead and vote then please.

Yeah. vote and then I'll just note for the record that you abstained for that one item.

Okay.

Thank you. By a vote of 11 to zero noting council member Henley's abstension for the appointment for the development authority. You have appointed those as read by Vice Mayor Wilson.

Okay. Any unfinished business? No business.

Mayor, you have a boy scout in the audience.

Oh yeah, come on down. You didn't miss them.

Oh my goodness. You stayed through everything.

Come on down.

Come up there. Tell everybody your names.

Um, my name is My name is Alexander Hamilton.

And what troop you?

Uh 378.

Hey, welcome. Come on up here. Get a pen.

Future of America, folks.

Hey, but listen. Thank you. We are ajourned.