City Council Meeting, 6/16/2026

I'm going to call uh the meeting to order and Mr. Dehaney, I understand we have a couple items to discuss today.

Yes, we do. Mr. Mayor, the first item will be a briefing from our economic development director, Emily Archer.

She's going to brief city council on the results from the Virginia Beach National RFP. Emily, the floor is yours. Good afternoon, mayor, vice mayor, members of city council. Thank you for having me.

As the manager just mentioned, we'll provide an overview of the golf course.

Um, a little bit of the history and the background. We'll review the RFP process to date, examine the selected proposal for Virginia Beach National Golf Course, review the purchase terms negotiated, and seek your direction on next steps.

The clubhouse of the golf course is pictured on the screen on the right.

Currently, the city owns the land. is leased to the Virginia Beach Development Authority, VBDA, and has a management agreement with the operator Virginia Beach Golf Club LLC for operations. The current operator's term expires at the end of this year.

Uh just for orientation, this is located at 2500 Tournament Drive off of Princess Anne Road. Uh it's about everything in yellow is 350 acres. It's used as an 18hole 7,432 yard course designed by golf architect Pete Dye for both tournament play and public play. It also contains the YMCA in green on the image on the upper left, 50 acres of the YMC's first T 9-hole youth golf course. In February, you all

heard this item uh to be transferred to the YMCA and directed that we uh move forward with that transfer. that subdivision process is underway and the transfer is pending at this time. Uh it's zoned aggra district 2. You can see the assessed value at 4.8 million and the market value estimate at 6.5 million. The red box on the right hand side of the image is about 42 acres I wanted to point out that are outside of

the ITA and APZ noise regulations.

Some bit of history in the background of the course. The city um originally leased this property to the Virginia Beach Development Authority in 1997 for the development of tournament players club TPC. The V City of Virginia Beach then went on to purchase the course from TPC for about 4.6 million in 2006. VBDA and Virginia Beach Golf Corp LLC, the current operator, entered into management agreement in 2007. That is

the one I mentioned that expires at the end of this year. In October of 2023, an audit was completed for the golf course and detailed numerous items of disre player, including storm water facilities that inspections that were giving serious integrated ratings. The clubhouse had rotting eaves and fascia board along the roof line. There was mold and the restaurant and the rotted baseboards, deteriorated um ceiling

caused by leaks and a non-functioning HVAC unit in the kitchen that had not been working for quite some time.

Following that audit, the VBDA conducted uh uh comprehensive facility condition assessments of both the course and the building facilities and identified about $7.7 million in capital repairs that were needed. VBDA appropriated about 1.8 million of Innovation Park land cells that they had available to address some of the capital maintenance needs. Since that time, they've invested um uh in a new HBA system for the

clubhouse, a whole new roof, and about um uh lake one was recently com um completed uh for improvement to help the overflow of the drainage from the golf course. It is the um outfall for the drainage system of the golf course.

And long story short, you can see kind of a comparison of the two aerials from 2005 to 2025 on the screen. Um although it was designed by a pre-minent golf course architect, it's not what it once was. You can see where the sand traps or the waste areas are overgrown now.

Erosion is destabil destabilizing the lake banks. Cart paths are deteriorating. The overall golf course has been diluted, lessening the challenge for players and reducing the overall golf experience.

It is a popular golf course still um and it is generating revenue. This is a financial summary showing uh the current uh revenue coming in from the golf course to the city. Uh so there's currently the operations agreement has a profit sharing of the net income over $100,000 per year and then there's operation payments that's split between the city and VBDA at 5%. Um you can kind of see that average annual over this

18-year period at the on the top row of this uh table. Um the total operation and taxes remitted annually averaged over that 18-year period about $217,000 per year. Um but for capital maintenance needs only that one 5% that comes to VBD is appropriated for capital maintenance. Um as VBD is responsible for everything over $5,000 at the course. Um, and the red numbers that you see show that VBD's

portion of the capital maintenance receipts is not adequate for the current level of maintenance needed.

The audit also attracted attention from the development community and city received unsolicited proposals from several entities. So following the mounting capital expenditures and the unsolicited proposals received in September of 2025, city council authorized the release of an RFP for sale of the golf course, retaining an 18hole public course. It was widely advertised for 45 days. We received nine

responses in November 2025.

Five of those responses had new golf course operations and four of those responses had new golf course operations with the housing component with them.

Uh we shortlisted four of the respondents, two with the housing component and two with just new golf course operations and went through our series of interviews between January and February 2026.

And then in February 2026, city council authorized the negotiation of a term sheet with a top ranking respondent.

That is the draggas companies. You can see their disclosures on the screen. Um, they are have a 58-year track record of building uh a manodized golf communities, enduring quality here in Virginia Beach for 58 years. You may know them, but they have also had a um this proposal really rose to the top not only because of um the greatest fiscal impact that you'll hear about, but the

team credentials and experience. Century Golf Partners has been um is on the team to manage the golf course. They um managed 62 golf courses uh including PJ West and Walt Disney's World um golf course in Florida. Um and then Timothy Lydian and Associates on the right. Um has redesigned over 53 golf courses uh including three Pete Dye original golf courses. Um Timothy Litty was actually a

protege of Pete Dye and worked with him for almost three decades.

Um, before I go into the specifics, we kind of want to summarize the bullet points up front for you for the proposal. It maintains Virginia Beach as a public course, restoring the course to this worldclass status, increasing sports tourism opportunities. A public course will remain and no changes could be made to the use of the course without city council action. The project provides a positive real estate tax

benefits to the city and provides additional diverse housing types m at mixed incomes and achieves a key city priority.

Um the master plan is kind of shown to the right. Um a vastly improved public golf course will be provided. An estimated $ 38 million is going to be invested in the golf course. worldclass operations by Century Golf Management, as I mentioned, and that redesign will retain the style of Pete Dai, by his protege, uh, Timothy Litty. The there is a 99-year repurchase option retained by

the city should the use of this course ever change.

Um, in the southern area outside of the off of Nema Parkway at the very southern bottom image on the right, there's 659 mixed forcell housing units with over half at or below 120% area median income.

There's a little orange dot on the right off of Tournament Drive. That's a new child care facility that's proposed to serve this area of the city.

F in the green area to the left of the image are woodlands and environmental preservation areas that exist today and will not be disturbed. That's 45 acres.

Um and then I mentioned the positive fiscal impact. An estimated 3.4 million in new annual taxes are estimated by generated are estimated to be generated by this proposal. Um not listed up there, but there are a lot of new um lakes and ponds being proposed approximately 16.5 acres of them. Um the the new ponds will address the storm water deficiencies identified in the audits and are oversized almost 40% more

of the new net impervious area to address the city's strict storm water standards.

A little bit more about the golf course renovations. Um the image on the right shows that there will be existing uh holes retained including the front nine in the signature 18th hole in the navy blue colors. And the orange colors are eight new or modified golf holes um including a relocation onto adjacent city-owned land an 45acre expansion to accommodate the golf course redesign.

As we mentioned this will be a redesign by Timothy Litty. Uh there will be no impact to first t and no homes will be located on the fairways or greens.

Um this is a little bit about the projected pricing of the golf course. Um there will be a robust loyalty card program to keep golf affordable and locals engaged proposed. Unlike now Virginia Beach residents will pay no initiation fees or annual dues.

Currently for membership of the course, uh membership is about $4,000 annually and then there's a $3,375 initiation fee. That will be zero under this new um proposal.

And Virginia non Virginia and Players Club card offerings, there's a little chart on the right that describes that.

Um there are non-membership rates. You don't have to be a member to play at the course. Um those will start about $69 in season and $49 offseason. Currently, non-member rates are $99 in season and $67 offseason.

A little bit more about the proposed housing types. They're not single family homes proposed, but they're not all multif family either. There's that missing middle that we are it's needed in the market from everything from garden flats to town homes, terrace homes, and golf verandas.

Um this does meet the housing types and diversity uh and attainability goals outlined for the courthouse area in the comprehensive plan. Um I mentioned before that we anticipate over half of them to be um under 120% AMI. Um the developer uh owns the nearby um Guilford at Spence Crossing community up Princess Anne Road and feel like this is totally achievable because more than 90% of

those homeowners earn at or below 100% AMI. The diagram, the chart on the right shows the developer current residential occupations. You'll notice professional services, military, healthcare. This is workforce housing.

Um there the residential proposal will require conditional reszoning through planning commission and city council and is a contingent upon them closing and executing this uh proposal. They are experienced with that resoning process and prepared to undertake that during their due diligence period.

This is kind of showing the timeline for the improvements in the estimated tax projections. As I mentioned, there's 3.4 4 million in estimated real estate taxes to be generated once stabilized or once it's up and operating fully. Um this kind of shows that FY29, you can see some of that first um uh first of the construction completed and being being built. Um, there's a teal line at the

bottom though that shows if the city were to invest in $7.7 million needed in the golf course now, it would take a lot longer to make up that in taxes based on what the golf course is currently bringing into the city.

Um, a little bit more about the purchase terms proposed. The developer is to purchase the property for 17.9 million.

Those funds plus VBD's contribution of 1.8 8 million will be utilized for golf course improvements in addition to $18.4 million in private investment. That's that $38 million that's going to be invested into the golf course. The 99-year repurchase option I mentioned specifically uh will be subject to a one-time market rate repurchase should the golf course cease being used for public course for more than for a period

more than two years. Additionally, in the term sheet, the city has the right to enter and maintain the course if it's closed for more than six months at any time other than for renovations.

The um city contribution is estimated is being requested at 4.3 million. There are needed roadway and turn lanes, tournament drive improvement improvements, utility relocation and a sewer line to make the project feasible.

Uh there are various unknowns at this time uh such as related to storm water and subsurface conditions and traffic impact. And for that reason, a contingency is being requested with an upfront risk being shared between the city and the developer with the developer contribution at 10.2 million and cities capped for contingency at 3.6 million.

Should these overages occur, it's up to if they need them. Um, future realized but for taxes would be provided in the form of a performance grant for the taxes that are generated by the development, not to exceed that $10.2 million cap.

So the cap city investment in this table on the top right 7.9 million. That's the 4.3 for the public infrastructure and the 3.6 for the contingency cap. Um you can see the reimbursement grant. That's um the 10.2 million for the future but for um taxes. That's a cumulative fiscal impact over 20 years of 43.2 million and net present value at 18 million. It is a healthy positive rate of return for the city

and a little bit about the time that rate of return rec recuperation on the public investment. Should all those contingency needed ended up being needed in the worst case scenario, it's estimated that we would recoup that that investment between 2032 and 2037 assuming 8-year construction period that's under 10 years.

um due to additional private investment um in new but for revenue, the city's estimated recover uh in a longer period of time, should they make those improvements, that 7.7 million by themselves to the golf course, it would take almost 20 years to recoup that investment.

So, for your consideration today, um, accepting the terms proposed, proceeding to a public hearing and proposed sale of the property, there's some potential dates up there. Um, we can maintain the status quo, uh, with a new operator come next year. Uh, we did issue a short-term RFP in the spring of 2026 for, um, we have three viable proposals that are ready to step in, operate, operate the golf course no

matter what, come next January. Um we could and deferred the cap capital maintenance until funds become available or other as directed.

Um and we know this will generate some discussion. There is a Virginia Beach National Golf Club hot topics page established on our website for more information and a QR code that would take you there.

Thank you. Hey, Rosemary.

As stewards of the taxpayers investments and funds, this checks so many boxes.

It's absolutely amazing. I think it's going to be a real legacy project. And we're taking something that is going to cost, she says 8 million, but it's going to be probably more than that. 8 to10 million of taxpayer dollars to bring this just to maintain it to get it up to where it should be not to really improve it just to maintain it of taxpayer funds. This is going to be private person

Pete Dye legacy. How many times have you hear Pete Dye Pete Dye? This is a Pete Dye course. Well, this was Pete Dyy's protetéé in Century Golf. I'm not a golfer, but I mean they do the Walt Disney courses out in Pebble Beach, the golf courses. I mean, it's just an amazing partner. American Express. This is going to could be one of the top golf courses on the entire East Coast coast.

And what an affordable price. If you're a Virginia resident, you're going to be able to play for a great price. And it's it's just amazing.

There's not going to be any housing on the fairways.

And we've made housing one of our top four um goals that we've got because we're underwater with meeting housing and this is going to cluster them all and it's going to be um at all different price points. So it's going to help people and a daycare center. That's something else that we're really short on. And beyond that, it's going to bring in $3.4 million a year in tax revenue. So, if

you figure instead of spending $10 million on this course in 20 years, um $60 million for the city and it's going to give our citizens a great golf course that people are going to drive and come here as a destination. This is going to be an amazing opportunity. $ 38 million are going to invest in this golf course.

It's absolutely incredible. We couldn't as as a as a city, we couldn't compete with that and give our our citizens something this good if it was up to us.

I think it's very exciting that uh have this proposal to to look at.

Josh and Amelia. Um thank you mayor.

Thank you Emily for the presentation. Um just a couple questions. Uh if we we can go to slide 18 and then 19.

So, um, just so just so we can understand, the public can understand, um, the the city's public infrastructure investment is $4.3 million. Okay.

Um, proposed um that those are those are for public infrastructure facilities, not um not not infrastructure serving their uh proposed private residential development directly. Correct.

Correct. It will remain within the city's right ofway primarily along Tournament Drive.

Um the contingency cap of 3.6.

Yes.

Um that's if if needed.

If needed.

And then the contingency reimbursement grant of up to $10.2 million.

That is out of project revenues, right?

So that's not new. That's not that's not exist out of the existing PI. that is by virtue of creating the additional taxable value a portion of those monies if required would would would serve to fill whatever gap is is necessary. So that's not that's not today money. It's it's it's but for money that wouldn't have been available had this not happened. Correct.

Correct.

Um, and you know, just generally speaking, I mean, I I know um I I just, you know, and we've we've all talked about this, but but but I think uh the community needs to know that this is not something that we were actively looking to go about do doing.

Um we were faced with the um infrastructure reinvestment challenges and the capital reinvestment challenges that the vice mayor just discussed. Um and then some, you know, we we had a couple of proposals come to us. Um we evaluated those and then we decided you we had questions, concerns, and just like anybody would. Um and then and then we came back and and and scheduled a time

to talk about it. Um but in the interim period, there were several other proposals that came our way. Um, and because we all realized how um sensitive uh and and unique this this particular property is and and especially the area that it's in, um the only mechanism that we really had to get it out into the public eye and in into the public discourse was through an RFP mechanism.

Um so that's that's why we issued the RFP was was so that um we could take this conversation out from behind closed doors and get it out into the open. Um, I know me personally, um, and I'm sure several of you shared these guard rails.

Um, number one, um, Virginia Beach National is is is a unique golf course in the city of Virginia Beach and in the in the region in that it doesn't have houses on homes. It has a true golf experience. You are on the golf course.

You look around and if you're like me, you get you get to go in the woods and say somebody's backyard. Um, and and so that that experience is an important one to preserve. Um and and so so no no houses on fairways, no houses on greens was was something that was really important to us. Um and certainly important to me. Um you know, uh keeping it a publicly accessible and affordable

golf course was also something that was important to me and I know to probably everybody here. Um making sure that first te was protected forever um was something that we ensured that we did out of the gate. Um, so that what I thought that was was a signal to the community that we understand um the value of that amenity and and it serves our children and and all of the the

school programming that it does. So um so we we we gifted voted to gift that property to the YMCA so that they could further leverage that asset and make their own improvements. Um and um to and again to the extent there was housing, it wasn't going to interfere with the golf experience. So, so for me, what I see here is um this keeps golf public.

Um we're not closing or privatizing the course. Um we're leveraging significant public investment in order in order to restore it. Um it protects what matters most. Uh it protects first TE. Um, it provides for us uh to have a 99-year uh repurchase option um so that we can retain long-term control over the use and make sure that it remains um an you know a public amenity that it is. Um it

it it addresses the deferred maintenance um by um you know putting that onto the private sector as opposed to taking it on ourselves. Um, Virginia Beach is uh Virginia Beach Astral is an amazing golf course. Um, but I don't know that somebody would get on a plane to come down here on purpose to go play that course right now as it is. Um, I think somebody would come to get on a plane to

come visit Virginia Beach and look up where they could play golf and um, this may may or may not be the second or third option that they have, but um, this would create a like a a destination draw in and of itself. their stay and play units that complement very well with our sports tourism investments uh in the pack. Um because if you're sitting there watching your your your son or daughter play baseball or

softball all day, you might you might want to stay somewhere where you could play golf. Um and um you know, and this is really just only the beginning of a public process. Um you know, any residential component still has to come back to us. Um it's got to go through resoning and public input. Um and I I to me it's about responsible stewardship um pres preserving a public asset preserving first attracting private

investment and uh instead of at the public expense uh and keeping um you know every future land use decision with regard to this property um out in the open and subject to public scrutiny.

Okay. Ameilia than Jennifer than work.

Well, first thing I have to say, Councilman Shen covered most of everything, but this is important to realize who we have.

The draggers are experienced on doing what they do. They've won awards from the Virginia Beachification of the layout and it's very thoughtfully done. If you notice, they're keeping the legacy of the die in there. I was pleased to see the child care, keeping again of the first team and also um reserving some sports amenities. So, I will just leave it at that, but I think this is a winwin situation for our city.

Thank you, Jennifer Cash Barber.

Um I keep going back to slides five and 15 and we go to slide five please.

Sure.

So um looking at the state of the course over 20 years. Um and then will you go to slide 15 please?

Thank you. um Council Member Schulman spoke to a little bit that we've gotten a lot of um emails and there's a lot of um adoration of this course in the public. There's a lot of value and um a desire for preservation of this course and so I take that input very seriously when people want to preserve something that's really important to them. Um but as we've been getting these updates and

these presentations, I want to be sure that I'm understanding this correctly as we're making decisions about this. So the issue as I understand it at the root of it is that the invest the revenue that the current course is generating it's not producing enough to maintain and sustain the course which is why we're seeing that deterioration over time the sand and overgrown trees it looks like I don't know if those are

trees in that shot and so there's a there's a funding there's a gap in funding and so please correct me if I'm wrong slide 15 it shows that for about the same investment, if we invest um 7.9 million, so that's the 4.3ish um upfront and then potential contingencies, we could get an updated golf course, workforce housing, child care, and projected 3.4 4 million in return to our general fund

or to in revenue that we can use for and then the teal line at the bottom is status quo. So that's if we did the 7.7 million to do repairs that's what we will get in return.

Correct. It would take a lot longer to recoup that return.

So for me I'm looking at the projections that for about the same investment it's just a matter of which track are we taking? 7.9 million and we could anticipate 3.4 in return or 7.7 million and thank you.

Okay, we're going to go cash barber and work.

So, I'm grateful that I've received tons of emails as well, but I I like this proposal. It highlights um affordable rates starting at 69 in season 49 offseason. Not just that, it highlights the need for child care, right? And so it checks the box for our identity and who we are and our purpose and our con our concept of letting the world know that we are a tourist destination spot. And I think these are

key points that we have to keep in mind that we are trying to make sure everyone understands our identity. This checks the box. Next stage is public input.

Thank you.

Okay, Barbara then.

Well, you're right. Public input is what we're lacking.

We really should have had public input at the very beginning, which is what I say about everything. Public input is best when you start. So you've got the public as a part of it because we never did address whether or not we thought it was a good idea to sell the golf course.

So that is a beginning point. But when we get to the end and I hear 659 residential units on 40 acres, it blows my mind. And I don't see a word in here anywhere about what that traffic impact is going to be, what the impact on our city services will be. Uh it's as if we're not even talking about it. 659 housing units is twothirds of the West Neck community. That's big. That's a

lot. And I think we have to talk about that. We can't ignore it. Plus the fact that we know this is in a very highly impacted drainage area.

The water from up north, the silo project has to come through here in order to get to the Albamarl to the Northlanding River. This is very poorly drained soil.

Historically, if you go back a time, this was a series of swamps from the Dismal Swamp to the Holland swamp. A whole series of swamps. It's terrible soil. Is this really the right place to put 659 housing units and what's going to happen? We talk about storm water being one of our main goals dealing with it and we haven't even fact that this is one of our worst spots in the city for

soil types as far as drainage goes. So yes, when you're only looking at these numbers, they sound fantastic and it's going to be a wonderful golf course, but we're not looking at these other factors that I think we really have to look at now. We can't ignore these things and uh of course we won't even talk about where it is. It does happen to be below the green line.

I guess this is why we had to call it courthouse instead of green line area because we're forgetting all of that. it it doesn't seem to fit with what we have been saying is our um plan land use plan uh for that area. So I think talking about all of these numbers is fine but we can't forget these other factors too and I just can't get past that 659 housing units. I think when we talked

about housing being a part of it we were thinking maybe one house per acre or something like that.

Never in my mind did I think of 659 housing units as a part of this this area. And so I'm I'm a long ways away, but I'm really anxious to hear what the public is going to say.

Worth.

Thank you, mayor. Thank you, Mrs.

Archer, for the u presentation. Just a couple of questions and a comment or comments plural. When you say we interviewed or we issued the RFP is just be clear to the public at the direction of council staff interviewed and issued the RFP and did all the interviews and evaluations.

Correct. We had a review committee um with representatives from city attorneys, economic development, planning, community development, public works um that all are subject matter experts and reviewed and brought their recommendation for to council's consideration.

And the other proposals are foyable.

Um I believe so. once you take a vote.

Okay. Um on page 16, just to be clear, the repurchase the 99-year repurchase option because the public is concerned about selling the golf course and this is a sale of a golf course, but we still have control because if it ceases to be a golf course, then we have the option to purchase for 99 years. Correct. Thank you, Mr. Styles. Um, and then page 18, the contingencies. And this is really

important along with my last statement, and that is the contingencies. We have two areas here. So, we're capped. We as a city are capped here. Uh, and then we have some the reimbursement grant. So, the risk really is, and I think the developers done a lot of due diligence on this. This is a big project, and I hope the public will be able to see all the numbers here and get educated on

this proposal. This is a big time proposal and a lot of numbers are thrown out today. We've seen them. The public has not yet, but this is important to understand that we're covering our downside any future risk at some at some point when we'll this will come about.

So that the contingency cap and the reimbursement grants are are really important and that leads to I agree with what everyone said here. I'm looking forward to the public input once they understand it and it's going to take them some time to understand it. But the company that we're about to go, if we go this route, is a very well-known, respected uh Virginia Beach company that's done this type of housing. This

is their hallmark is workforce housing.

Look around the city. Harbor Point, it's all around the city and they do great work. I don't think they've ever lost any uh projects and they're they're very just very good stewards to our city.

Okay, Jennifer. Um, council member Henley's point that so Spence Crossing is in my district. It's in district 10.

I'm wondering if we can get information about how kind of what that number of units can look like in a physical space.

How many um units for purchase are in crossing and how many acres is that just for scale for a sense of like space and place?

We can get that.

Thank you. There you go.

Um just a a quick question on the on some of the concerns that were raised on this archer. So um looking at traffic impacts, impacts to schools, roads, um and and storm water.

Those are all be like those are all part of the the development review process.

So, so I'm just I'm trying to make sure that it's not it's not a foregone conclusion what we see here today because it still has to go through all of that inter departmental review. Um and and we we may not end up getting that many units or out of that, you know. I mean, so so I think I think a lot of that a lot of the public discussion um should come in connection

with the ordinary planning and resoning process and there'll be public hearings and there'll be um notices and and hearings before the planning commission and and city council and all the way up to that. So this is what this is is really just an idea and and and and then we we we would move what from this to a a a term sheet and then we would work um we would work into an agreement that

that would be potentially contingent on all of those things and resoning and acceptable um site plan review. Is is is that how the process would play out?

Yes, sir. So first of all, the reasoning would have to take place. They'd have to do traffic impact analysis, preliminary storm water analysis. is in the Southern Rivers wershed to meet those standards or show that they can meet them. Um, and then as far as these are the terms proposed, um, if you're agreeable, if you vote on them, we would work towards a full development agreement to flesh

out the details and then they wouldn't even close till they've achieved site plan approval, resoning, um, all the things, their permits in hand, and then they would close on the property to start. So, this is a year process about to play out should you choose to move forward.

Okay. Anybody else at this point? You know, let me just say this. Uh, once again, I use the term confrontation with reality.

And, you know, housing is a national crisis.

It's happening everywhere. And, you know, Virginia Beach itself right now stands at a crossroad. Which direction are we going to go?

We at a um retreat number of years ago said that housing is our fourth highest priority after storm water, after public safety, after schools. And we are at a crisis point. And I can tell you that we are uh told by some folks anecdotally that we're about 2,000 units short in the city of Virginia Beach that we need.

And the cost of high um home purchases and rents are due to the fact that there's not availability. There's not enough capacity to do this. And you know, so going forward and the other thing which is a very motivating factor for me, um, being on a military advocacy group that went to the Pentagon and being told by the under secretary or assistant secretary of defense of every branch between here and Fort Muses

Langley that housing and daycare are critical to mission effectiveness for the military with recruitment and retention. And the fact is that the silo project was backed by the Navy. We would not be doing this bringing this forward uh project forward if it were not with the blessing of the Navy. You know, we just got to think not only internally, but we got to think externally in ter of

what the value is. But once again, as we look at our future obligations, um you know, our $567 million storm water project is now 1.6 billion, and we're going to be looking at significant infrastructure demands in the future.

And by getting a the golf course off our tax roles in but in generating profit of it is kind of a model of the thing that we're going to have to do to confront our future needs. And so once again, I think, you know, let's have the public hearing. Let's hear what the people have to say. But once again, you know, what we want to do is get into a situation

that is a win-win. All of this all decisions on housing is emotional these days. And but once again, if we can put forward to the uh public a plan that is a win-win for everybody, but once again, we got to think about we have 460,000 people in this city and we have to do what is best for everybody. Barbara, I do have a question if somebody could get the information for me.

All right. This is just a small sliver that is not in the AUS pack correct?

Uh so of this area that is definitely in the AU's concern we have this little sliver that happens to be on the other side of the line.

Now, those planes don't fly right on a line.

And one side of that line has got to have some high noise as much as the other side because it was the noise factor that got us in trouble with Oceanana.

So, if we're going to come in and take this little bitty sliver that's just barely across the AUS line and put 659 houses in there, what is going to be their noise level in comparison to the other side of the line? How much difference is there actually?

because we don't want to turn around and put a very large housing project, which we kind of did with Silo, but we said, "Okay, maybe that's not too bad, but this one's even higher." That we're going to have in this little little corner that's a very high noise zone a lot of people who are going to complain to Oceanana with the noise. So, we really have to remember what got us in

trouble with Oceanana and whether we're going to be back there again because if the jets change or anything else changes to change that line, it could make a lot of difference. So, I want to know what the AUS factor is and what the noise levels are on both sides of that line.

Yes, ma'am.

Okay. Anybody else at this point? Okay.

Thank you. And once again, we will welcome public input.

So, Mr. Mayor, we're moving forward a public hearing on July 7th. Then thereafter with council's consideration, we'll take it on the 14th for council's consideration for a vote.

Okay, that would be great. Thank you.

Thanks.

Hi, Kathy. How you doing?

Hello.

All right. So, Mr. Mayor, members of council, the next presentation will be a briefing on the ITA master pass plan update. And in this briefing, we're going to see council guidance as it relates to next steps in terms of taking it forward for consideration by the planning commission.

Excuse me, please.

All right. Good afternoon, mayor, vice mayor, members of council. Thank you for having us here today. You will recall the city council gave staff direction at last year's retreat to work on a plan showing how sports tourism, the potential expansion of Innovation Park, and municipal services can all work together as land uses within the inner facility traffic area or the ITA.

This has been a partnership of three departments, parks and recreation, economic development, and planning. We then contracted with Dell's architects to help us with this task and we've spent the last several months presenting to civic groups the conceptual layouts as well as the public to seek their feedback.

The city has a unique opportunity here based on the thousands of acres we assembled in the ITA in response to the 2005 Brack all in an effort to ensure compatible development in this area.

This is not an overhaul of the ITA plan.

It is an update and potential expand expansion of uses already existing.

At the end of the presentation, we will be looking for city council to provide direction on next steps. And as a reminder, we can pursue some of the proposed land uses, all of them, or do nothing at this time. So, I will now turn it over to Clay Dills who's going to walk you through the concepts and the financial data.

Welcome, Clay.

Thank you.

Uh good afternoon, uh Mayor Dyer, Vice Mayor Olsen, um Council Manager Duhaney.

Um we set out on this um with two primary goals. The first being to develop a strategic 10 and 25 year update to the master plan um that's really about economic and cultural vibrancy in the ITA and about guiding city investment in the ITA.

Our study um were primarily focused on um light industrial market assessment and economic projections with our partner SB Friedman. uh sports tourism.

Um our partner Victus did a market assessment and economic projections across those and across um options for those. And then of course we studied prior master plans um prior studies of the ITA land use patterns that exist now. Of course the AUS and IT regulatory overlays that are there utility easements which there are many of ecological features um and active transportation out there.

Um and really what we want to do is build on what the ITA does well now. Um great public destinations like the amphitheater, the public institutions that are there now with Centara Medical and Health. Um the sports facilities out there now that are part of sports tourism already. It's the Y. Um the sports plex, the fieldhouse. Um and then the connection to commerce um light industrial and the connection to

industry there that is that has started to take place um mainly off of Hudom Way um for sports out there which has a real stronghold in the ITA in the northern portion of it. Um it's a way to create open space but also bolster tourism.

We talked about VB National um the sports and how open space out there really connects to the southern areas of the ITA and those areas connect to our communities surrounding that ITA and build on the character that's out there already.

agriculture being a big part of that and being a big part of the southern part of the ITA um in the character of Virginia Beach and one of our primary industries.

At right there you see this is the overall ITA study area and master plan.

Um the area in red is our focused area for proposed improvements. All the areas outside of that red area we are not um proposing any alterations or improvements to. So at the north there you see Damneck Road, Princess Anne Road running along along the right hand side and down to Northlanding Road in the south.

So here is that enlarged area again Damneck Road in the north, Princess Anne Road in your upper right running diagonally along there and North Landing Road in the south.

You look at these industries and areas out there in color blocks. Sports industry in the north in green. Um light industrial that started at Hudome is and in our master plan will push into that northeast area. Um ecological agriculture and open space in blue in the south and the west. And then carving out some area for future municipal facilities and municipal services. And that hatched area indicates that that

whole area through there could be flexible between industrial development andor municipal facilities in the future.

It's an aerial overview of the master plan. So this is Lanstown Road bisecting the image you see there. This is looking south. That's PAC at the right hand side. Um you see off in the distance agriculture, natural recreation, open space. and then it left the fieldhouse uh the stadium sports um and then bolstering that sports tourism area and then industrial and facilities u municipal facility development beyond that.

So that northern area that's dedicated to sports and sports tourism. Um right now there are a ton of existing destinations and things in pack and both across the street. Lancetown Road you see there through the middle. Um we're adding to that in the north really in this area. Um, if there's a goal for the northern area for sports tourism there, it's to create a destinationoriented district for sports tourism. It's

increase visitation, increase revenue and room nights from that. Um, Victus, our study adviser on this said, you need to lean into these things here. If you really want tourism and sports to take hold and run out there, you need reliable and cohesive tournament sports offerings. That means there's less rain outs out there. Um, you need a real tournament baseball complex that can

host softball and baseball. Um, you need a multi-use championship field, which there's one in the making already. Um, and then the existing fields at pack.

Um, all of those need to be converted to turf so that we don't have uh rain outs.

And then we we stitch those together with recreation amenities much like the parks and recck master plan. pull all those things together so it's really a destination in the northwest side of that. This is pack primarily. You see Lancetown Road at the right hand side. Um we in the bottom right we're converting the baseball fields and four remaining rectangular fields to turf. Um we're

adding a action sports outdoor action sports for BMX and mountain biking.

Bottom left extending the parking for 150 spaces. um adding two additional fields to the pack, baseball fields and softball fields. And then in the upper left you see we're providing a connection between parking at the amphitheater and the Hampton Road soccer complex. Right now they are looking for parking all the time out there. They are maxed out. This is an easy connection.

It will increase visitation for them and for this area. And then in the north, um, also per the parks and recck plan, we're showing disc golf in and around parks and reccks building and out on that corner. And in the very top there, outside of the ITA restricted area, we're showing a potential hotel um with a footprint of 150 keys.

on the northeast side of Cross Landstown Road. You see in the middle there, we add that 11 field tournament complex that does all ages seven to 18 to college level um softball and baseball.

Um that's we're also in addition to that adding 350 parking spaces as as an overall parking plan out there. We're converting the existing sports flex on two more sides into a multi-use championship field so that we can host four sports on game day, championship day there for soccer, football, baseball, and lacrosse in that. And then in the north you see the hotel there again. Um and then Hudome Way in the

upper right and its extension which goes into the southern area of the ITA.

So, a little bit closer view of the aerial of that. You see PAC at the bottom right. Bottom left is that multi-use championship stadium that we add seating on two more sides and extend that field. Um, baseball complex beyond that with its parking. You see Lanstown Road there. That's an extension of Lanstown Road towards the south um as a roadway extension and then uh future development in the upper left.

There are great precedents for action sports, mountain biking combined, both as recreational and championship tourism amenities. This is in Rock Hill, South Carolina. So, they have a regional BMX course there. This is like a pump and jump track course there. As you can see, it's been wildly popular for them. They also have woods adjacent to them that um interconnect mountain bike fields,

biking, all those sports together in one place.

There's great examples across the country actually of colllocating light industrial uses with sports tourism um and tournament fields. So this is Wind Trust in Illinois. Um this is colllocating a baseball complex, light industrial and medical healthcare land uses which you see a on the left hand side there.

You notice all the fields are both rectangular and diamond. So you can you can play any sport across these fields.

This is Lake Point um in Georgia.

Similar light industrial and commercial.

Um you see off in the distance there behind the tournament fields um roughly a similar parking spot and then baseball tournament soccer tournament fields up front. All artificial turf and then there's a very successful multi-use championship field that's in High Point, North Carolina. Um been wildly successful. Um you see this is lacrosse we believe playing there. How they pull in the baseball stadium on one

side. You turn the stadium on two sides so you can get spectator around for all of these events. Um, and then you can you can uh host four sports in one championship stadium.

Victus, our sports adviser on this did uh several proformas and models um for the tournament complex in conjunction with the multi-use championship field.

Um the model they landed on as uh highest and best especially as it goes to tourism um was a stay-at-play model.

That means the operator um books packages for tournaments and for teams.

They stay in Virginia Beach. They play in Virginia Beach. It's all part of a package. Um so and we're recommending this as part of phase one for sports tourism in there. So that would be 11 adaptable fields. development cost is 44.5 million. That generates 83,000 annual room nights um and 2.4 million in annual taxes. The multi-use championship stadium, which adds to that, um would cost 12.5 million

to develop um the additional seating and amenities around that field, but it adds 26,000 annual hotel room nights. um and an additional um 820,000 um annual taxes.

This is a closer view of the baseball complex.

Um coming through the middle of it as part of the master plan, we're showing the Southeastern Parkway greenway coming through there as a multimodal path. Um this interconnects sports tourism all the way through the ITA. It also interconnects communities to to the sports and amenities that are in the ITA. Then upper left you see the multi-use stadium.

So for the southern area of our plan, so this is below the hard turn on Lanstown Road below where Hudome has gone to now.

Um, it's really a problem of how do we align development and land use out there and that has a lot and everything to do with where current development patterns have started now and where they want to go and where they want to go is really based on land quality, land suitability to develop. Um, the infrastructure investment efficiency, how much roadway do we need to build? How much infrastructure do we need to develop

those land that land? Um and then how do we maintain natural buffers and character out there? How do we maintain the viewsheds, the character, the agricultural character in the south of the ITA? Um while doing this, just a note about storm water and land suitabil suitability out there. Um as you move south and west in the ITA, storm water becomes a a premium out there. So in the north in the northeast

storm water is already given to about 25% of the land to develop. You give away 25% to storm water out there which is already a fairly significant impact.

As you move south and west it can be up to 35 to 40%. Meaning as the water migrates towards the river down there the suitability to build on becomes tougher and tougher to do.

So, in the southwest area, and you see Lancetown Road extended through the middle there, um we're setting up a regional storm water facility. That would be a phase storm water pond, which is naturally where the water wants to to go from development in the north and the northeast. Um along with that, we're adding a cross-country course. So, we're that that's a 100 parking spaces, a

small changing bathrooms pavilion that you see in the north there. Um, and then a course that will host up to NCAA regional um potentially national championship level courses there for two, five, six, eight, and 10k runs. Um those trails, you see them in the lighter color, come down, they can run through the woods, along this pond, through the farm fields like cross country has always done, and then back

again. Um interwoven with those, you see the brown network of trails there. They are um spectator trails so that you're at the start and finish, but you can shortcut on cross country and see your runner come by and then beat them to the next point. Those are recreational trails that that eventually the pond for paddle sports and fishing and anything on the water as well as the trails. All

this it becomes a public amenity as well as a stormwater feature and you see the agriculture that's remaining um in the bottom.

It's a view of that storm water park um fully phased, fully built. You see the crossc country trails around it there at left. That's pack in the upper left there. A baseball complex in the upper right. And then industrial municipal landstown road extended to the south through the middle. And then light industrial or any other develop in the northeast there.

There's a great uh cross country course Georgia Premiere in Georgia. um you run through uh farm fields, active farm fields just like in the ITA. There's tons of overhead lines just like the ITA. Um and then they have a storm water pond there that does the same storm water work for them that you run around and interlink into the mature woods that are there as well.

So for uh as part of phase one as well, we're recommending cross country be part of that. Again, those are 25,68 and 10k courses. Um the um along with that, the trails become public amenities along with storm water. Um this is roughly a 5.8 million development cost that includes the parking, includes the pavilion. Um this generates um roughly 24 annual events, 9,000 visitors, 7,800

annual hotel nights, and around 385,000 in annual taxes.

Here's a broader view of the master plan, that storm water park. and see the trails across country, how they'd interconnect agriculture to the outdoor amenities there on the Lanstown Road extended with development um off into the northeast and then pack and sports in the north.

On the southeast side um you see in the top of the image Hudome way extended. So this is a natural extension of Hudome way up there um into light industrial flex type of development. So those parcels are um open for development with that extension. And then we're extending Lanstown as you saw in the previous images as well for that flexible area in there between municipal and industrial opportunity off of those.

It's overview from BB National. Bottom right you see Hudome Way extended. That roadway is extended. It's buffered but below the new tournament baseball complex there. You see the types of development that would come through. Um and then you see the stormwater pond.

Lanstown Road would be extended along where it says industrial municipal there on the right hand side. um through down to uh Northlanding Road eventually.

SP Freriedman who does national work like this um and looked at a ton of other markets as well as took a hard look at ours um you know they they defined what um our future trends are very likely for development especially in the ITA one is industrial the I1 that that is currently happening out there but also a flex type development flex is a co-star definition that's a smaller form uh building usually these are

hybrid buildings um they're most often associated with tech R&D. Many of them are happening countrywide right now um in relationship to defense contracting um into um support of major contractors or contractors themselves.

We did some research along with the Hampton Roads playbook um and alliance um and their new deal and the defense um and what they're saying for Virginia Beach and very similar findings on those two market studies.

Here's some uh precedent for this in Sun Valley, Texas and St. Louis, Missouri.

These are flex small form buildings.

Many of them, if you can imagine, they would have um administrative functions or almost like small headquarter buildings. They do research and development. They do prototyping. Um they do some assembly, some manufacture in these buildings. Um but they really act almost like tech or advanced manufacturing facilities on a smaller scale.

And again, this is a this is a trend that they believe is happening in markets just like ours, especially ones where we have the installations, defense installations that we do. Um, and then they took a hard look at industrial absorption for the city. So, this is um not only the ITA study area, but across Virginia Beach absorption of these type of facilities, industrial and flex.

Citywide they estimate in 10 years we would need roughly 90 acres or a million square feet of industrial or flex use and citywide in 25 years 275 acres or 3 million square ft for the ITA study area in its market 10 years we would need 54 acres or 660,000 added square feet in 25 years 175 acres or 1.9 million in square feet for development opportunity. Um we're following roadway and roadway

development phasing really trying to figure out what is the most efficient way to invest in infrastructure to open up areas to develop. Um we've broken it into four primary phases. Phase one has two phases, one A, one B. Um 1a being a small southern extension of Lanstown Road that gets you to a cross-country location. It gets you to a potential municipal services location on the other

side. Um it allows you to start stop uh sorry start storm water there um and do that in a very small extension of the roadway. the 1B which is a future extension of Hudome way that opens up those properties along it. Phase two you see in yellow there is a southern connector um that opens up those properties for development when needed and then phase three is really extending Lancetown Road further for either m

municipal or industrial development along that length. Phase four is really a connection of those two. Closing the loop on the roadway and connecting in the south.

Uh total development acreage here for industrial andor municipal um is 366 acres in total. So and that includes roadway that includes the storm water required. Um it's 85 acres you see in red there for phase one, 135 for phase two. Um and municipal or industrial 58 in phase three.

Phase 1 A and 1B. Hudum uh ways extension as well as the small extension of Lanstown Road. Again, it's 85 acres.

Um we are showing a test fit here of 820,000 square ft. Um costs here to develop are 15.9 million in roadway and 10.5 in stormwater improvements. Um this nets um 1,148 jobs um or 1.2 million in direct annual tax revenue.

Phase two they are in yellow which is 135 acres. It's 1.4 4 million square ft of test fit square footage that we're showing um to a cost of 9.6 million in roadway and 14.6 million in stormwater improvements. This this yields 1,757 jobs and a little over 2 million in annual revenue from taxes.

Phase three, which is really industrial or municipal services. This is 58 acres or 600,000 square feet. The cost of that extension um and infrastructure there is 10 million on the roadway and 6.8 million for storm water.

Again, there's an overview. You see bottom right is the tournament baseball complex HDM way extended. Um we're trying to be somewhat accurate in the the form of these buildings in uh a mix of industrial uses and flex uses in there. And then you see along the stormwater park, the extension of Lanstown Road, the industrial municipal areas that can be can be flexible for those uses.

To date, public brief briefings, stakeholder meetings that we've held up until now, and they've seen this slide deck. Um we've met with uh the public presented to the public on April 29th had a full information session there with presentation as well as um work in the room. Um after that we met with the resort investment committee um parks and recreation commission open space advisory active transportation. May 7th,

we went to the transition area and the ITA citizens advisory committee um and the agricultural advisory committee. May 12th, we met with Virginia Beach Development Authority. May 13th, planning commission um which was cut short. We postponed so that we could give them the full briefing. We met with Green Ribbon on May 28th and then came back to planning commission on June 1st.

Some key takeaways from that engagement.

Number one, it was stressed to maintain character and identity. That that really has to do with the natural mature buffers of trees out there, those viewheds that they afford that are there now. Um how do we maintain that and maintain some of the agricultural identity that certainly exists um in the southern part of the ITA? to refine industrial uses and facility types and facility quality. Um this means

identifying what industrial uses are allowed out there. Right now it's currently zoned as I um and then um refining what architectural quality of facilities are allowed in this area. Um number three was a broad statement about transparency about public investment for development. Number four, um limiting industrial traffic from areas that serve sports, that serve recreation, and

connect to pedestrian um walkability and bike pathways through that area. Uh number five, integrating tournament facilities um along with phase in of recreation amenities in the sports area. Uh six, allow for potential the for the potential need for larger development parcels.

So in our plan you'll see smaller form buildings. Um many of those could be you can do one instead of two parcels. These can be doubled up. Um number seven provide flexible phasing based on development land needs. So again that's that has to do with roadway alignments and what goes first, how we phase those.

Last but not least, which essentially brings us back to our first goals, how do we create jobs, which is really on the development side, um add to city tourism, um and generate taxes. How do we do this in a balanced way for the ITA?

Just some plan and economic data. you'll be interested in the top um phase one for both of these um sports, tourism, and recreation. Phase one, we're recommending the tournament complex, the stadium work, and the cross country.

That's 62.8 million. Um that yields 125,000 annual room nights, uh 1435 jobs, 3.36 million in annual taxes.

On the industrial side, phase 1 A and 1B, um, which are together 26.4 million, it's roadway and storm water, um, adds 1,148 jobs, um, and 3.25 million in annual taxes.

Just a note about agriculture and open space. Total open space out there, including the mature stands of trees, is a little over 2200 acres. Um existing farmland that is active farmed now is 650 acres. Remaining after this plan is 304 acres.

The other recreational improvements here um if there were priorities in those I would say it's the conversion of to artificial turf for the pack fields. You see those as items number two and three.

Those total recreation improvements are 80.75 million for that entire list. And then just a summary, these are broken out from from all of this data. The roads and pathways. So in total across the entire ITA, we're proposing recreational soft trails, just purely natural recreation of 28.8 miles. Um the multimodal path through the ITA along the southeastern greenway, that's two miles. Um all together all the roadways

um is approximately three miles of new roadway out there and then extension connection of existing pathways for pedestrian use is 3.4 miles in total.

So next steps um as Kathy said early on um we'd like to receive your feedback.

You know, as she as Kathy said, you can consider pursuing all, some or none of these proposed improvements. Um, we are here to revise and make changes to the master plan or answer questions certainly if needed. Three, to create recommendations, um, further recommendations and breakdown of phasing based on that direction for 10 and 25 year phased plans and investment. Um if pursuing this plan um we would need to go to

planning consideration planning commission for consideration and then back to you for council consideration.

Okay Rosemary and then Barbara.

Well Clay as always you put a together very complete and beautiful presentation.

Thank you. you really need to be complimented on what you've done.

And uh I I do have a question because I I couldn't quite follow it. So at one point the innovation part two which is the newer piece was not connected with our innovation part one. Did did you move it so that they're two are closer together now?

We did. We're we are trying to interconnect all of those so that they work together and actually becomes more efficient that way from a Yeah, that was a concern when I saw this before that they they were disjointed and I remember asking you can't you move things around.

Yes, we can.

So, it looked like you had done that but I just wanted to to make sure u but it's a very totally complete u plan and and you really deserve a lot of credit. Thank you, Barbara.

Well, there's a lot to talk about with this plan and with this area. And of course, I think it's important that we keep in mind this is a 10 to 25 year plan. So, we've got time to mess with it. And I think it's kind of ironic that we're talking about this the same day that we talked about what we did before because the ITA of course was created by

B. And the reason it was created, ITA stands for inter facility traffic area.

It's the flyway between Oceanana and Fentress. And the bottom line with the ITA is there can be no residential in that area because of the noise. And uh so no no residential or anything else that people are sleeping in. That's why when you mentioned that hotel, you specifically said it's out of the ITA.

It's in that little spot.

Yes, ma'am.

Because nothing in the ITA is supposed to happen for people sleeping in because of the noise.

That's the whole purpose of of this area to protect Oceanana from noise. So, no residential.

And so when we did the first ITA plan in 2010, the purpose was to tell people what they could do with their property since we had told them what they couldn't do. And so I think the whole thing with the sports is just so fantastic because it gives us so many wins uh with the economic uh with the tourism aspect of it. Uh with what we have with our families and all of those

opportunities with sports are just just fantastic. And they work they work with the with the noise factor, but it also works with the quality of the land out there because ball fields are a good place. If it doesn't if it rains, you just don't play ball. You don't worry about it flooding. So, this whole thing just has so many opportunities that tie together so many different aspects of

what we're trying to do. And I think it's so exciting that we've got all of these opportunities here, particularly with all those opportunities as far as the sports tourism go. And we can really do everything we're talking about doing except the industrial without this addition because we've got the agricultural, we've got the preservation, we've got the conservation, we've got the sports

tourism. So everything is fine. It's the industrial that we're trying to shove in here. And I'm not sure we're not trying to put a square peg in a pe a square peg in a round hole because maybe the industrial is what's going to give us trouble because we've got to extend who don't. We've already spent something like $26 million on a road that wasn't even in our master transportation plan

when we can't even build Indian River Road. Now we're talking about having to extend Hudome Way and Lanstown Road when we can't even build our basic roads. So I I think this is this is creating some issues that we don't really need right now. Plus, when it talks about the fact that you're going to be using 25 to 40% of your land for storm water factors, kind of tells you that that's a waste of your land.

Anytime you're using 25 to 40% of your land to build a storm water park, yeah, it makes a nice place there to do something with, but it it doesn't do what we usually think of doing with our very precious land. So, there are a lot of issues with this. I think it's very exciting. I think we've got a lot of opportunities and I'm glad we've got 10 to 25 years to resolve it in because

it's going to it's going to it's going to be a factor of going step by step as we do. But one thing I would like to know right now as soon as we can is a little bit more about corporate landing.

We talk about needing industrial land.

Well, we've got a lot of industrial land sitting over there that's not being developed because corporate landing has a lot of area that is still yet to be developed. And I know that uh some individual or some companies have got commitments on some parts of the land. I'm I want to know what that is. Have they put down a have they purchased it? Are they just sitting on it and not doing anything with it or

what is with corporate landing? Because corporate landing is really in a much better place for industry. It's over by OMF. It's in an area where we've got the infrastructure. It's in an area that doesn't flood so much, but it's not developing. So, if we're so hurting for industrial land, why is our industrial park sitting there with so much unused land? Uh, I think we really need to look

at that. But I I think we need to really be careful as we are thinking about this area because I see this as one of our greatest opportunity areas and we can do things in this area that just are any other locality would would die to be able to do. We've got so many opportunities here to do the right thing. And I I think um when we're looking at the trails, when we're looking at the um

well, just looking at that cross country track, what what that would do for us from a tourism standpoint is fantastic.

Plus, our kids need it uh to to just practice track. So, I would like to see us and I think at one point two years ago when we started talking about this, we said we were going to look at some of the lowhanging fruit. I think that cross country track is a is very low hanging.

I wish we would get on with that, but I hope we can really plot out a a course of action here that that can move us along. Uh but in a very careful fashion because if we do the wrong thing here, we can really mess up some opportunities.

Okay, before I get to Hutch, you know, if I could just address Barbara real quick. You know, first of all, nothing will ever happen in this area unless the Navy blesses it. And the other thing is consider you know a major consideration that the region with the tax you brought up the playbook you know we are trying to create in the region a new pillar of defense industry because once again if

we take a look we have the largest naval base in the region. We have Oceanana. We we have tremendous military assets right here. And right now we are in economic development trying to develop you know you know defense industries and they're coming here uh you know um you know when I went to uh London we met with a group and now we we have a major contract you know coming here for you know small

submarines and things of that nature.

this area, the entire region is going to be an epicenter of defense contractors.

Um, you know, I was with BDS the other day and they're uh, you know, they manufacture a lot of uh, you know, they started off selling oxygen tanks on Great Neck Road and now they're a multi-million dollar defense contractor and they're also getting into uh, building uh, preformed barracks and hangers for people. You know, these industries are clamoring to come to our region and especially Virginia Beach.

You know, be assured that nothing would ever happen, you know, without the blessing of the Navy. Let's go with Hutch and then work.

You were up first.

I'd rather go ahead. I look a little better. If I have to follow you, I'm in trouble.

Anyway, um, first question. Can you go to Let's go to slide five. That's where I'm going to base most of my stuff off of.

Clay, also thanks for making it very educational and easy to understand.

Appreciate it.

Uh, okay. So my first question and I said this I don't know when we first started or my first time being on the seed here two years ago now or I said there's a like few thousand acres and it didn't make sense to me why we can't get some co-mingling of all sorts of things whether it's lita farmlands sports some economic development to me it seems like when I hear thousands that's what my

brain says is let's let's work together and make something very dynamic and I think you've got a a really good start here or finish. I don't know exactly how it works, but you know, I appreciate that. So my first question is when we talk about acreage of what we're trying to do here um do you happen to know what the total and is that one of the slides in the very back I saw was

you don't have to go to it if you can just I'm not asking for exact numbers but so we are and I'm talking total you know so total open space other than where we're showing development is 2,200 acres. That's what's still going to be left after this development.

Yeah. So, it's it's um in totality of what you see colored there is probably 3500.

Okay. So, if you could just say that one more time, the open spaces, how many acres that we're leaving after our proposed improvements are 221 acres.

That matters like a like a marathon, huh? So, okay. So that's a lot of acreage. I mean I think everybody would agree to that. Okay. Um the roads, you know, the way we were stitching the roads together there, you know, the way you were doing it. And my terminology would be again that you're saying we're trying to make it complimentary so that we get more bang for the buck is what you're Yeah.

is what you're trying to do there, right?

Minimize the investment on roadway and infrastructure but open up as much possible to development. Um, and that goes for sports as well as it doesn't matter for any of those things.

Yeah. It doesn't matter which color code we're going with. You put the roads in, the more use we can get out of it, the better it is for the taxpayers and everything else. So, again, you're trying to maximize that. That's right.

Right. Okay.

Yes, sir.

And then, um, the one the the one thing I thought was like the hotels. I'm going to go back to something else I want to say here, but the it seems like to me, and maybe I'm wrong, but we're talking about you had you know the one little spot for the hotel, which that's not really my my point, but when we start talking about all the things that we

want to do because in 10 years it'd be enough to be substantial. you know, I know it's not next next month, but in 10 years, those those folks, you know, they're that's that hotel and the one down by TCC is not going to be enough to handle this kind of and and our uh market assessment tells us that.

Yeah. There's no way that if these improvements were made, that would be needed immediately and then another would be needed in three to five years.

Okay. And that's what I was going to say was is so that would then have to come from somewhere else or that's right.

What are we saying in 15 20 minutes to the ocean front something like that is what you're hoping they would do and not go the other direction.

Yeah. Not go south.

Really that that state of play model I was talking about that that's what's used most often. Um and it's for touris tourism reasons right for that very reason you're talking about.

Okay. And then and I I said it and I guess at this point I'm asking for some for u let's let's find out what it does mean if it is doable. And I I it's kind of like uh council member Beluchcci's overpass from the from Trashmore to as I've said three or four times about uh camping.

You know next week I'm going to Pocahontas to go for three days while I go mountain bike riding. So and it'll be full not just with the campground. They got a pool. I mean, not just for the mountain biking, but it's 34 acres, you know, that you can ride on. So, it's a lot.

Um, is is there anywhere in this thing that's feasible to put a nice campground? So, that does that fall into the same numbers?

Sleeping is sleeping. Is that what that is? And can you get outside of it somewhere to do this?

It would be a it would have to be a check with the Navy on that, I think.

Yeah, we have and I mean even get outside their per like go to where they they're not worried. You know, I'm not saying that is we keep saying that part, but is if it's not I'm talking about down Salem Road like getting getting out of the area, you know. Um I think it would be a major hit for all that we're talking about putting here.

Um a lot of the family softball, all the they're active. the water stuff we're talking about.

I wouldn't minimize the the last slide that I showed that had the recreation and natural recreation amenities on there, right?

Um even our sports tourism guy who's who said do the baseball tournament. It's a no-brainer right?

They also said do those items because you will boost all your visitation numbers. I mean, it's what other places call ecoourism, which is what you're about to go to.

Well, yeah. And my close friend was at the wave was at the wave park the other day riding waves and he had a guy sitting beside him who was here for an event with his daughter, but he had three hours. So he went and booked a session and said he would do it every time he came. So that's what we're talking about here, right?

That's the synergy, right? I think we can do that. And I also think though that we can put in some light industrial. I've said it here a few times. when I ride in Newport News, I can put my hand on the parking garage at at Riverside Hospital. So, and it doesn't bother me as long as I turn before I hit it. So, you know, it's one of those things that I think can be made

uh very possible. Okay. Um the the one thing that and Miss Henley hit on it as well I want to I want to ask about. So, we start talking about going I think you said south and west.

Okay. Um, that's where we go from 25% to over 35% that has to be held as wetlands, right? Because it's wet, I guess, for storm water.

But is it is it forced on us or is that like why is it going from 25 to 35 or what?

The nature of the soils because water's coming down.

Yeah. The geology that's out there.

Yeah.

Just as something that I've never heard of before and just trying to get clarity for anybody else. Is it what's a number that we worry like is that getting into a range where it's like okay we don't we don't mess with this land.

No, it's not a so I wouldn't say it's a worry for flooding. This is an engineered facility, right? So really what what this diagram tells us is that you're better to keep light industrial up in the north and the east because it will cost less to develop. It will cost more to develop and and if we do a regional facility like this all of the small like 1 acre 2acre ponds that you

have to have in the northeast would spread industrial across the ITA. you would end up with less opportunity, more infrastructure investment to build roadways to get there. And so, so this way is maximizing again, you're doing what we just the most efficient way to do it. And it's also the most efficient for private investment.

Okay, cool. And then just just two more um quick questions. The the with the baseball go will you go back to five, please? Yes, sir.

um when you're looking at when you're looking at the green there and then the purple around it. Um I go back again to personal experience and I've been to a couple of the places that you were talking about for soccer tournaments and all and I'm just saying for me and I and I think this is still just lines on a page. If if you took the purple that's hanging down beside we might as well say where

the yellow is where Lita is where we're looking. If you went more up with that, um, wouldn't you minimize the the contact between the sports and the and the industrial and lita and everything else? Wouldn't it would that not help with that section just to get all of that up into that right hand side of the green area?

Let me zoom in here.

It is if you see there, we're trying to keep a significant buffer there. You're talking about between like the baseball fields.

I was saying like reverse it so that you had all the light industrial up at the top and more out of the way and had the baseball and stuff down at the bottom to me then then you've got then once you because once you clear once you clear the light industrial whatever we're calling it you're into you're into more of the promised land. You know you've got the fun stuff the baseball then you get into

agriculture and the water. That that was just my thought. I think the only and we can look at it because I don't think we really studied that we're what we heard from our market assessment from Victus and and is kind of intuitive in this is right now pack and all those destinations out there are fairly widespread. It's not really cohesive out there and so you know their recommendation was like you need more

density. People need to be able to walk from here to there.

So would we be increasing that is what you're saying? I thought we'd be I thought I was suggesting to make it better, but maybe I'm not.

It may disconnect the baseball fields, but I'm happy to study it though because I hadn't I hadn't really thought about it flip-flopping.

Well, I was in the fire department, not this part, so I trust you on that. You you you know, you take a look at it and see look at it now.

Okay.

Yeah. Sorry, buddy. And then the last thing is because Miss Henley said it, it was the kind of the first time that I've ever uh heard it this way of all my time here in the city with the um with the base and everything else. Um noise is one thing, but I also thought it was survivability profile and everything else that the Navy looks at is you don't want to put housing and stuff like that.

You want density underneath fly zones and stuff. So is it a noise? Is it is it danger? Is it both?

Yeah. I just didn't know. I've never Does anybody We'll definitely get a clarification from the Navy as well.

Yeah. Yeah. I just had never I'd never been brought I always thought it and maybe because it's what I did. We were worried about the planes going down more than the noise.

Right. I mean have that happen. I'm not saying that.

Right. And there's some component, but it's really the noise contours that you're worried about. However, I would say the Navy has been at several of these presentations and so far doesn't have any issue with the way the layout.

Thank you for clar I really was not even get Of course, we're going to follow what the Navy tells us, but I was more just the definition of it. Thank you.

I'm done, sir.

Thank you. We're going work and drive.

Thank you, mayor. Thank you, Mr. Dills, for the uh the work here. It's really well laid out. And as I think Councilman Schulman said a way back, this is truly and I think council member Henley as well, this is truly aspirational and but it is a roadmap and it's can be staged over time and it is a five to 20 I have no crystal ball on this but and there is potentially low lowhanging fruit. Um

just a quick question about the because a minute ago Councilman Hutch here said about 25% to 35% Clay what's or Mr.

What's the average like for a 1acre or whatever size in the storm water about 25% 20 depends on it in the ITA in the northern area just in general.

Yeah, in general it's probably a little bit less than that.

Right.

So the ITA is already somewhat encumbered by storm water and sort of lowlying you know a lot of water tries to migrate through there down to the rivers. Um, and so it, you know, I know at, um, the soccer complex up there, you know, they were in the 25% range and they're well into the north.

Just a couple more. So, you mentioned the soccer HRSC, Hampton Roads Soccer Complex. Just a plug, they really do need the 1.6 million for the parking to connect over to the amphitheater parking lot. It's really, really crucial. And I we're not going to decide on that today, but I just want to make a plug. But back to the industrial um corporate landing, you know, really was designed as an

office park, corporate office park, corporate landing. And over time, it's we've needed less office and more flex and industrial. And so, two comments.

The last couple of uses that have closed there or soon to be closed there are a existing Virginia Beach businesses, not new to market. So expansion opportunities for our existing businesses and we can get a list of those maybe they're flex users and probably get maybe a list also what like I think Dominion Energy wants an option for 30 acres is a fair amount of land for a long time and that's another

uh issue for another day but um we have very few places in our city corporate landing being an office park where we're putting flex right now. Innovation Park again another the two businesses there uh architectural graphics which is a flex type of use corporate headquarters um that's an existing that was an expansion from Ocean Corporate Park again another existing business that could expand in our city and again

acoustical sheet metal which is their third or fourth I think third or fourth building that they're building in innovation park again another local business advanced manufacturing in our city not going somewhere else. So with 14 million square feet under roof in our city for industrial we need space for our existing businesses much less any new businesses ads I mean defense contractors steel advanced manufacturing

we have a big base now that I think I don't know where else in the city maybe by the airport but that's been looking at that for 40 years so that's my comment on industrial okay um thank you mayor and Mr. Jills, uh, thank you very much for your presentation and all the thought and effort that you and your team put into this along with our staff um, planning parks and rec development. Um, and and I

know this was a a result of a desire to reconcile two competing views for this area.

Um, and in reality, those views don't have to compete with one another because they can coexist and that that's what that's what you're showing us.

Um you know that an important thing to note and and Councilman um Ramik said it just now is that this is really about updating a planning framework.

Um it's not about approving any specific project.

Um and every future proposal involving this land would also come before the planning commission. the council be subject to publicity um would have to satisfy all of the site review and um site plan requirements, storm water traffic, all of those things.

Um, and and I and I think and you know, slides 31 and 32 are probably the most important slides I think you put in here is because because slide 31 says exactly what what we were just talking about is is take the take take what you have um and align the development and land use with the the the characteristics of the property.

um the natural characteristics of the property and and I was actually really surprised and and pleasantly surprised because I'm sure I'm sure the um the folks who who I'm sure there were a lot of folks that thought that there would be a whole lot more contemplated in terms of economic development period. Um when in reality um I I think it was only what um three 36 366 acres.

Um and and then on slide 32, that arrow really tells a a a very descriptive story about how how it doesn't make sense to to build impervious surface the the the further southwest you get because it makes no economic sense to do so and it's not the right thing to do for the environment. Um, and you know, considering, you know, I know we've talked about sports uses, and I know um certainly they're they're less

intense than economic development and industrial uses, but um if we're going to if we're going to build or if someone is going to build um a sports facility, um those facilities would constitute impervious surface. the parking lots that serve those facilities, would it constitute impervious surface? Um, per fields are impervious surface.

Yeah, we said in other presentations, it's all treated as development. So, there are ponds and storm water associated with them as well.

And and so so I think I think that even as we go about trying to um incorporate sports uses down there, we we we can't be delusional in in our in our analysis because because all of those uses have kind of similar impacts.

Um and you know, you you move to the the very end where you where where you've got these proposed um figures for investment.

And you know, I look at these numbers and and these these are these are notional. I mean, they're they're run down and and and uh you know, investigated and and these are best guesses, but um but they don't take into account the potential for private investment to come alongside public investment.

Yeah, those are the asterisks on there actually.

And those are important asterisks. Yep.

Um and and then the other thing that kind of screamed out loud at me was just phase one cost. If you compare sports, tourism, and industrial, um there's a 63 $62.8 million notional cost of phase one that would then result in um three what is it? Uh $3.36 million. So So from a $62.8 $8 million investment, we would we would get $3.36 million um in annual tax revenue as opposed to the industrial where we're

investing uh or the investment not we uh the investment is $26.4 million and and phase one phase one jobs are almost you know 1150 uh phase one taxes are $1.2 million. So, so I think I think you know it it it it's pretty clear to me that um you know dollar for dollar there's a difference there. However, that doesn't speak to the indirect benefits that the the sports tourism uh provides

and the recreational amenities provide because those those those are generative of of other tax revenues that that jump into other buckets. So um you have to watch the room nights on the tourism side.

Absolutely. I mean on the development side, restaurant and meals taxes. I mean all of those things. So um and then and then finally I think um you know it is worth noting that that we we have made significant investments um over the last three years in particular on sports tourism initiatives um including I believe 19.5 million uh that we we we added to uh the budget in 2023 uh 2024

uh to to help um with the yeah the the Hampshire Road soccer uh facility, the sports plex and field hacking.

Um so so it's really important that that people do understand and and that it is spoken aloud that we we do um we do make those investments um and we do value uh sports tourism as a as a means of growing our economy. Thank you.

Hey, anything else? Rosemary, I really brief um very good comments from around the table. I just want to say this is a large track of land. I think 4,400 acres with 2,200 to be developed and and it's like something there for everybody that a great compromise to have the sports tourism and the agriculture and only a little over 300 acres for economic development.

Uh I I think it's just a really wonderful compromise and corporate landing is it's my understanding that there's only about north maybe you can remember there's only like 11 acres left that are not committed. for corporate landing. So, there's really no other place to go for future growth. And I know that to get state grants for economic development, you have to have larger parcels that can be put together,

50 acres or more. So, this I think this will be a really good compromise and and I'm so happy that you you moved it so that they're all contiguous there. But uh it's a great compromise and you've laid it out and it's really nice to see the dollars and the cents and whether you're having sports tourism you have to have roads to go to those places as well as roads to go to the um

businesses and as I said before you play you got to work. Everybody has to have a job and make some money before they can start playing. But thank you so very much.

Okay, Barbara.

Yeah. Uh, I did have a question from one of my constituents who's been asking through a a Freedom of Information Act request about what constitutes a commitment in corporate landing and he's not been able to get an answer. I mean, what is it that people do to commit the land? I mean, do they have some kind of down payment that they've put on it or just what? So could somebody look at

corporate landing and let me know option agreement just what the situation is out there.

Mr. Mayor Emily Archer the director for do it at another time. We've been Let's go ahead and get an answer for you.

Yeah. So typically there's a a down payment of 25 to 15,000 50,000 depending on what they're proposing uh for that 25 25 to 50,000 depending on the development um to encumber that land in a purchase agreement or option payment of some kind. But we will get you a full report.

So it just holds the land for a time because I mean we've got people that I've been hearing were going to build in there since the day the place opened and they haven't built yet. So there's something that they do to commit the land and that doesn't mean there's not land available. It's just that it's not being used. So I think we've got a real problem out there. I would kind of like

to look at our way of operating.

Yes, ma'am. There's contracts with terms that we make sure they adhere to or they ask for extensions. We we'll get that information to you.

That doesn't give us jobs if they've got a contract. Someone that does it.

And I'm sorry, just a correlary. Are they paying the real estate taxes in the property? Are they paying additional amount of the real estate tax?

Um, not at that time, but the option payment is I haven't heard this one.

Okay. Uh, Clay, thank you for a great presentation. And, uh, let me just say I think the ultimate goal of our council and, you know, me in particular, was to come to a win-win on this. I think Josh had it when he said we do competing ideas and somehow you know trying to find you know a middle that accomp accomplishes things and let me just say this and you know once again you know

one of the situations are Virginia Beach we're running out of land for use and we're not saying we're not using that as an excuse we're using that as a reality and then once again the idea is that we're playing chess not checkers and looking ahead and the future obligations that we're going to have for storm water infrastructure up updates, repair, you know, just running a se a city during uh

tough times uh is going to be there. But once again, we got it out there and we got a we got a decade or two to work on this. And the thing is though, uh you know, we have to have a plan. It'll be incremental and uh it you know let's see if we can get to a win-win. Patrick, so Mr. Mayor, is council okay with moving forward with bringing this to planning commission for consideration or

should we take no action at this time?

I tell you what, let's bring it to planning commission and it it but you know what I was really delighted about the uh the public engagement that we had to date. Yes, sir. So, nobody's going to be surprised by anything. But, you know, once again, we got building, we got a bunch of other questions that I think uh, you know, planning commission could help us answer.

Thank you.

Okay.

Okay. And let's, uh, go into council discussion, initi initiatives, and comments. Anybody?

Barbara, I just mentioned that Thursday night the 18th, there's a public meeting at Creeds Elementary School about the Pungo Ferry Road projects. That's one of our storm water projects and uh I'm not sure that there's been a lot of public information that's gotten around to the folks down there. I hope that they do know to come.

I think it's from 5 to 7 at school.

Okay. Anybody else? Cash.

I know this uh week we are planning for Junth and so we've got two events that are happening. We've got one uh jazz team that's happening and also um Junth at Mount Fashmore. So exciting times for us coming up and we're grateful for that opportunity. So I just want to let everyone know, check your social media, be engaged with Junth and Jazz this week.

And good. And just remember that the city of Virginia Beach was the first one to recognize June.

That's right.

Okay.

Virginia. Um the resourve best in the resource area as a primary destination.

Seal 250 Virginia taking place June 19th to 23rd, 2026 in Norolk will feature the parade of sales as its signature event.

The raid will depart the Linhaven Anchorage Offshore Drive in Virginia Beach at approximately 7:30 a.m. on June 19th and arrive at designated docking locations in downtown Norolk and Portsmouth beginning at noon.

Uh the first landing state park will serve as a premier public viewing location for the parade of sales on Friday, June 19th. This is very important because lots of times I've been over at other regional and they're talking about what's happening in North what's happening in but we are the first landing. So that is important on that 19th to have public viewing locations.

Um, the gates will open at 7 o'clock a.m. Ships begin departing Anchorage at 7:35 a.m. The final ship expected to cross the Chesapeake Bay Bridge Tunnel, approximately 10:15. Amen. Parking $7 per vehicle. Additional fees apply for oversized vehicles. ADA beach access is available including two beach wheelchairs offered on a come first come full serve basics. The location is First Landing State Park, 2500 Shore Drive,

Virginia Beach, Virginia 23451, and visitor center is located at the Chesapeake Bay Beach entrance.

Throughout the event weekend, Norolk Fest event will operate shuttle services for visiting tall ship crew members between Town Point Park, Virginia Beach Town Center around Bank Street and Sandor Center and the Virginia Beach Ocean Friend, Atlantic Avenue between 21st and 22nd Street.

The Central Business District Association and Atlantic Avenue Association have coordinated efforts to welcome visiting crews.

The Convention and Visitors Bureau will staff visitors services tents at both the oceanfront and town center locations daily from 9:30 a.m. to 6:00 p.m. In addition, visitor services will maintain an information booth at Townpoint Park from June 19th to 22nd. The shuttles for the cruise will run Saturday, June 20th, have six buses from 10:00 to 8:00 p.m.

The last return pickup at Ocean Front is 700 p.m. Last return pickup at Town Center is 7:30 p.m. And on Sunday, June 21st, again, six buses 10 to 8:00 p.m.

Last return pickup at Oceanfront is 700 p.m. and last return at Town Center is 7:30 p.m. Monday, June 22nd, there will be four buses 10:00 a.m. to 8:00 p.m.

Last return pickup at Ocean is 700 p.m.

Last return pickup at Town Center is 7:30 p.m. If you have any further questions, contact our deputy city manager, Amanda Jarrett, or department director, Nancy Helman. So, we are very involved in this and this, if you notice, involve the town center area and councilman Schman's across the short drive. So, this is important information that you can ask as needed. Also the buses the um transit system all areas

whether it's ferry or um the buses will be free during Junth and then at the Sandler Center besides what uh Councilman Cash Green spoke about from 12:00 to 1:30 at the Sandless Center in front of the plaza we're going to have a Junth Homish to the entire situation. We're going to have some performers. We're bringing in Skinny and Greg Garrett. We're bringing in from SeaTac, the Gregory, the Gregory brothers from

historic SeaTac. And we're also bringing a saxoponist and that is sponsored to the VACC in collaboration with Jazz Fest and the Sandler Center. So lots of things are going on. We invite some of the children to come out and adults because it's important this time. It's not just about events but telling the history. So we'll have someone and we'll have a little program so people can understand its

significance because a lot of people think why it took so long but you can imagine in those days they had to go by horses starting from the emancipation area in Hampton once it learned to get across. And the unusual thing was in Gabston where the ships were, they started going one way and the wind blew them another way which helped end up the way they were in Gabston to bring

the story. And most important, a lot of people thought these people just um that we're free and go. No. A lot of them stayed and said, "Wait a minute.

You've had us this long. Where's our land? Where's our reconciliation for having gone through this process? So, that's quite an interesting story. And yes, um our mayor was the first for this area to announce that making it a holiday before it became federal. And that was during we had the pandemic. How do I know? I had to come here, get the memorandum, ticket quiet with my mask on

to Sandler Center and to honor the lady who you wanted to for that time. So, we we have a major play in what happens throughout the nation. Thank you.

Thank you. Anybody else? Josh, just um a point of pride. Uh, council lady, I I I'm privileged to share the bayfront uh in representation with council member uh Ramik and council member Co.

Okay, more cash.

Last thing, sorry everyone, if you want more information on Jazz, uh, visit virginia beach.com. That's amazing. from June 20th. Um, and uh, it's going to carry from Friday, Saturday, Sunday, and I'm sure different events throughout uh, the rest of the month. Anyway, so visit uh, virginia beach.com. Thank you.

Thank you. All right, we ready for the agenda, Rosemary.

So, u, Madam Clerk says we don't have any speakers. I'm sorry. We have a speaker.

All right.

Okay. Um, excuse me.

Oh, Mark. Uh just as you're going through the uh agenda, vice mayor, there is that your places an amended um um term sheet for item 8. It just corrects a typographical error and makes the um makes the outline terms match the language in the actual ordinance. So, um I I if we could just note that item eight is as amended, that would be great.

Amended.

What's amended? Term sheet.

Uh yes. Attachment A.

Okay. So, on ordinances and resolutions, is everybody okay? Uh, I would just say on the resolutions 12 and 13, I did have some confusion and I appreciate the city attorney uh clearing it up. Uh, these are two grants from the Commonwealth Opportunity Fund and the way they operate, they give to the locality to administer. And so both of these are coming to the development of Virginia Beach Development Authority

which will administer these grants. Uh item 12 was the award for the acoustical sheet metal company and this is the first money that they this isn't new money I think as Mr. Styles said this is that first money that they had received from the state. This is the money for phase two that was discussed I think 18 months or so ago, right? And so this isn't a new grant.

This is the one that they had used to begin with.

And I think when you look at that acoustical sheet metal um development, we see several different pots of money.

Some coming from the state, some from I think maybe from the federal, and then some from the local, too. and it's been very confusing for people to try to figure out just what has built that facility. So, I did want to mention this because I was concerned. The other one was the Zim American Shipping Company also with a Commonwealth opportunity fund and and it will also be administered by the development authority.

Okay.

Okay. work.

Just clarification because we we the city have to match the the governor's or the commonwealth opportunity fund as a clarification and that most of the time comes with land by the way.

Yeah, that's our contribution is the land usually is in kind, right? In kind.

Okay. All right. Is everybody okay with ordinance and resolutions planning? Um District two.

I'm sorry. I was looking at something else.

Okay. Number two, BHC district three. I think that's fine. I talked to Councilman Paluchi earlier today. Um, number three, DS Investors District 5. I'm okay with that.

Um, number four, Wyinners Properties.

Um, Council Member Luchi said he was okay with that.

Number five, SMF Corporate Stores, District 6.

Please.

Uh, number six, uh, Vepco.

I'm going to be abstaining. Anybody?

That's District 8. I guess it's okay.

Number seven, um, Holly Vber, District 2.

Uh, yes, they, uh, have been working very well with the community on that.

So, that one is good.

Number eight, April Smith, District Five.

I haven't heard anything, so Number nine, uh, Debbiey's Daycare, District Six. Consent, please.

Number 10, First Colonial Development District 6.

Consent, please.

Number 11, uh, Susan Black, District 6.

Consent, please.

District 6 day.

Ordinance City Code um about hauling of sand. And that's everybody. Everybody okay with that?

Yeah.

All right. Everything's on consent. We have one speaker. Oops.

I'm sorry. I'm finished.

13. Ordinance to amend uh city code section subdivision regulations on plans and specifications for general improvements.

Is that okay with that?

14 is amended ordinance to amend sitica section four of the site plan for the appendix uh C for formation regulation u top site development plan that 15 ordinance to recommend uh city code chapter 19 regarding mobile homes.

Uh 16 is the ordinance to amend city code section 5.9 of the erosion and storm water management and the consent agenda.

Okay, here we go. Uh the chair will enterain a motion to ret recess into a close session pursuant to the exemptions for open meeting allowed by section 2.2 3711A code of Virginia is amended for the following purposes. Security matters. Discussion of plans to protect our public safety as it relates to terrorist activities or specific cyber security threats or vulnerabilities and briefings by staff members, legal

counsel or law enforcement or emergency service officials concerning actions taken to respond to such matters or the related threat to the public safety.

where discussion in an open meeting would jeopardize the safety of a person of the security of any facility, building structure, information, technology, systems or softwell work programs. Uh pursuant to section 222371A19 and city council cyber security briefing. Uh public contract discussions award a public contract involving the expenditures of public funds and discussion or terms from uh terms of

scope of such contract and discussion in an open session would adversely affect bargaining position negotiating strategy of the public body pursuant to section 2.2 to 3711829 and that is project repurposed in publicly held property discussion or consideration of the acquisition of real property for public purpose or discussion of publicly held property where discussions and an open meeting

would adversely affect a bargaining position or negotiating strategy of the public body uh pursuant to section 2.2371183 2371183 and that's in district 6. And finally, personnel matters, discussions, considerations for interviews, candidates for employment, assignment, appointment promotion performance demotion, salaries, uh, disciplining or resignation of public safety officers,

appointees or employees of a public body pursuant to section 2.237181 2371181 and the city council appointments for boards commissions committees authorities, agencies and appointees and also council employee employee evaluation. I have a motion.

So moved.

Second.

Council.

Hi.

Councelor Hutcherson.

Hi.

Jackson.

Hi. Council.

Hi.

Hi.

Council.

Hi. Councilman.

Hi.

Wilson.

Hi.

Mayor D.

Hi.

We are to close.

Okay, welcome one. Welcome all. I call this meeting to order. And if you if you are willing and able to stand for the invocation, I would appreciate it.

Heavenly Father, you are always with us and beside us. Be with us this evening as we consider the affairs of our great city. Give us the patience to listen, the wisdom to decide, and the strength to act. Amen. And if I may ask for a moment of silence for all of those who have paid the ultimate price to save our city and our great nation.

And now, the pledge of allegiance.

I pledge allegiance 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, Madame Clerk. Do we have a roll call?

Yes, sir. All present, excluding council members Beluchcci and Cummings.

Okay. Thank you. And may I have a motion for the certification of the close session? So moved.

Okie dokie.

The vote is open.

Council member Hutcherson and Vice Mayor Wilson, may I have your vote, please?

Just give a verbal yay or nay.

Thank you.

By of 9 to zero, you have certified the close session be in accordance with a motion to recess.

Okay. Do we have minutes to appro motion to approve the minutes of the informal and formal session of June 2nd, 2026 and the special formal session of June 9th, 2026?

So move. second.

Just one second.

Sorry, we're having technical difficulties as well. So, we're going to do a verbal vote, please. Um, okay.

Just send me a whole sheet of I don't care.

Council member Beluchcci is absent.

Council Cummings is absent. Council Henley, verbal. Yes.

No, we're doing verbal votes.

Yes.

Yes. Thank you, Council Hutcherson.

I stop. Council Jackson Green.

Um, Madame Clerk, um, last week I was not here.

Okay. So, you'll abstain from the June 9th meeting. And do you vote I for June 2nd?

And I vote I for June 2nd.

Okay. Thank you. Council member Remick.

Hi.

Council Ross Hammond.

I.

Council member Rouse.

Hi.

Council member Schulman. I Vice Mayor Wilson I Mayor Dyer I by a vote of 9 to zero for you've approved amendments for June 2nd by a vote of um 8 to zero with council member Jackson crane abstaining you have approved the June 9th amendments.

Okay thank you. Uh moving on to public hearings. Number one to modify the boundary of special service district SSD old donation neighborhood dredging.

There are no speakers.

Okay. The next one is acquisition by agreement or condemnation of Virginia Beach Boulevard sidewalk highway safety improvement uh project CIP 1000423.025.

There are no speakers.

Okay. Uh we do have speakers.

Yes.

Okay. I'm going to read the uh script for speakers then. I want to remind everyone that the city council speaker policy that allows certain representatives of group to speak for 10 minutes applies only to planning items.

All other speakers whether speaking individually or on behalf of the 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 which is being considered by the council at the time you are called. For items spaced on the consent agenda, any speaker will have up

to three minutes to address any single item. If a speaker wishes to address multiple consent items, speaker will have a cumin 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 have signed up to to address. And finally, I call upon all speakers and all persons in the chamber to be civil in their

discussion and decor. 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 for all of us to strive for uh for civility and respect. Okay.

So, um madame clerk, so we have multiple speakers on J3 and K4 with one speaker on J8. Is that correct?

No, ma'am. So, we have um the one speaker for K4.

So, that can remain on consent. I can call them up.

So we just need to pull then um J3 J3 and then and then we'll we'll hear from the other speakers first and then we'll do the consent. Correct.

Okay. Yes. So Rodney Bradford is there Rodney Bradford.

He's not responding so you can move forward with the consent agenda.

Okay.

Is it okay to do the consent agenda?

Yeah.

Okay.

Yeah. The speaker is not here.

All right.

An ordinance and resolutions. Uh number one is the ordinance to amend the FY202627 capital improvement program for storm water rate chamom hall water quality improvement CIP566 and Southern Rivers wershed CIP 10720.

Number two is a resolution to renew permits to allow certain emergency medical services EMS agencies to operate in the city uh Ray American Medical Response Mid-Atlant Mid-Atlantic Inc.

Children's Hospital of the King's Daughters um Life Care Medical Transport Inc. uh MB Solutions LLC, Nightingale Regional Air Ambulance, Reliance Medical Transport, Robbiey's Ambulance Service, and Special Event Providers of Emergency Medicine, Inc., and Tidewater Medical Transport, Inc. Number four is the ordinance to grant the franchise agreement to Pinky's LLC Ray the pedal uh pedal cab service in

the resort area. Number five is the ordinance to read the policy Ray remote participation by city council members and council meetings. Number six is the ordinance to appoint three viewers for one-year uh terms beginning July 1st, 2026 to view each uh street and alley um proposed to be closed. Number seven is the ordinance to extend the date for satisfying the conditions in the matter of Sterling

Sterling Best Energy LLC rate closure of approximately 29,61 square ft of an approved right ofway known as Wendy Willow Court.

Number eight has the ordinance to authorize the Virginia Beach Development Authority VBDA to utilize up to 1 million 1.9 million of existing appropriations within CIP 1,59 resort planning parking district to fund the predevelopment uh phase red development of a structural public parking facility at 19th Street and Parks Avenue. Uh, and there are some amended term sheets.

Number nine is the ordinance to authorize temporary encroachments into city-owned property known as Treasure Canal in the rear of 2204 Windward Shore Drive where I maintain an existing vinyl bulkhead. a return wall orf overhead beam boat lift with four piles and electrical cable and to construct and to maintain a PWC lift PWC electrical cable gangway floating dock open open-sided timber framed asphalt single roof and

four additional support piles and that is in district Eight. By the way, 10 is the ordinance to authorize temporary encroachments into a portion of city-owned property known as Bass Inlet, aka Mill Pond and Mill Creek, and into a city-owned 5- foot drainage and utility easement at 344 Back Bay Crescent. Ray maintain an existing vinyl bulkhead with returns and concrete patio and to construct and

maintain a timber floating pier and two personal watercraft floats, aluminum gang way and timber pier. four timber pile aluminum boat lift, timber open residential roof structure and two personal watercraft and that lies in district 2.

Number 12 is the ordinance to appro appropriate $240,000 from the sale of equipment to capital project 10075 uh fire apparatus 4 within FY 2526 capital improvement program uh rather fund future uh fire apparatus number 12 is the ordinance to accept and appropriate 1.75 million from the community commonwealth opportunity grant fund to the Virginia Beach Development Authority um reward for the uh

acoustical sheet metal company project.

The 13 is the ordinance to accept and appropriate1,497,300 from the Commonwealth Opportunity Fund to the Virginia Department to for the Virginia Development Authority to award for Zim American uh integrated shipping and company project. Number 14 is the ordinance to accept and appropriate funding totaling $429,7960 from the Virginia Opio Abatement Authority to the Health Department operating budget $229,29.60

60 cents rate contracted two community engagement specialties to oversee a teento team social media company and provide outreach police department operating budget $530,000 rate implement the law enforcement against drug program within Virginia Beach City Public Schools to provide drug education and prevention activities throughout the community human services operating budget $100,500.

Ray continued full-time certificate certified peer support specialist FTE to work with youth with in with substance use disorders to include operating expenses at Virginia Beach City Public Schools. operating budget for Virginia Beach City Public Schools, $70,000.

Ray purchased an online evidence-based curriculum to provide proactive education as well as intervention from residential from students have a substance abuse related offense.

That was a long one.

It was 15 is the ordinance to accept and appropriate $18,714 from the Department of Community Criminal Justice throughout the Edward Byron Justice uh DIS assistance grant program to the FY202627 Police Department operating budget Ray uh law enforcement equipment. Number 16 is the ordinance to transfer $83,00060 $83,63 from vacancy savings to the general fund to the FY226 voter registration and

election system budget to operate uh normal uh operational expenses for the August 4th, 2026 primary elections.

Number 17 is the ordinance to transfer $350,000 within the Department of Emergency Medical Services from the uh EMS cost recovery fund to the FY2526 opinion medical services operating budget personnel expenses.

Open a public hearing on planning.

Number one is Kelco Incorporated for a uh variance to uh section 4.4B that is in district 2. Uh BHC LLC, Philip H. Seafford that is in district three.

Number three is um DS Investors Inc. and Virginia Corporation for a variance and that is in district five.

Let's see. Number number four is Winter's Properties LLC and that is in district three. Number five is SMF Corporate Stores LLC and that is in district six. Number six is Virginia Electrical and Power Company and that is in district 8 and I will be abstaining on that.

Number seven is Holly Verber and Daniel E and Marilyn E Verber and that is in district two.

Number eight is April A. Smith uh and that is dis uh Gregory S. Smith and April A. Smith for conditional use permit and that is in district five.

Number nine is Debbie's daycare, uh Deborah and Norton for a conditional use permit that is in district six.

Number 10 is First Colonial Development LLC for conditional use permit and that is in district six. Number 11 is Susan E. Black Merge Trust for a conditional use permit and that is short-term rental in District 6. And number 12 is the ordinance to amend city code section 33-119.

Uh and that is not for this.

Number 13 is the ordinance to amend city code section 7.1. Uh number 14 is ordinance to amend city code section of the site plan ordinance appendix C.

Number 15 is the ordinance to amend city council chapter 3, let me see, chapter 19 regarding mobile homes. And the last one is 16 is the ordinance to amend city council section 5.9 appendix D of the erosion and storm water management. Move for approval.

Have a second. Second.

Okay. Any discussion? Let's open the vote.

The vote is open.

That worked good. By a vote of nine to zero, um, except for council, including coun vice mayor Wilson's abstension, you have approved the consent agenda as read by Vice Mayor Wilson.

And thank you, Madame Vice Mayor. I want to commend you for getting through all that, not feeling well, and uh, you did a great job. Thank you very much, Mr. Mayor.

Okay. Uh, we're going to go back to ordinances. Number three, ordinance to endorse a proposed tourism project.

Authorize other actions consistent with the state tourism gap financing program at Hotel Indigo.

The first speaker is Lindell Stone.

After Mr. Stone will be Holly Martier, welcome.

Thank you. Um, good evening. Good evening, Mayor Dwire, Vice Mayor Wilson, and members of council. My name is Lindel Stone with Commonwealth Lodging on behalf of the development team. Um, and I'm here in strong support of the ordinance endorsing the Hotel Indigo project at 2809 Atlantic Avenue. Um, this project does exactly what the city's plans call for. Um the resort area strategic action plan 2030

identifies a need for transitioning older hotels along the oceanfront to higher quality accommodations. Um that is precisely what this project delivers.

It takes an aging oceanfront hotel and reinvests roughly $19 million of private capital to transform it into a hotel indigo, an upper upscale nationally branded property that elevates the resort area and supports the year-round visitation that the plan prioritizes.

Um, I want to be clear about what's being asked of the city tonight because the structure matters. The developer is carrying 100% of the cost through private debt and equity and the developer remains responsible for repaying and servicing this debt including if the project does not perform as projected. There is no recourse to the city, the authority or the commonwealth. But this investment

would not be possible without the support of the tourism development financing program. The city's participation is repaid solely from 1% of the new sales and use tax. This project itself generates revenue that does not exist today and would not exist but for this investment and no obligation beyond what is appropriated.

TDFP or the tourism development financing program is entirely performancedriven and requires no upfront capital from the city. In return, the city gains a higher quality oceanfront hotel, roughly two roughly $10 million in new annual taxable sales, and approximately 45 year round jobs, rising to about 75 in peak season. I'd like to thank Emily Archer with the Virginia Beach Economic Development

Authority for her support throughout this process, and I'd be happy to answer any questions. Thank you. Okay, any questions? Okay, thanks a bunch. The next speaker is Holly Martier.

And after Miss Martier is Vinc Ellis Wapru.

Good evening.

Good evening. I don't have much to say.

I just want to know with this project, is it going to cost us any extra money?

Like are you going to tax the citizens of Virginia Beach any extra or we just, you know, I just need to know how it's being paid for?

Can anyone answer?

Yeah. Worth. Yeah. Thank you, Mr. Mayor, good question because a lot of taxpayers uh around citizens around the city have asked that question. It is no out-ofpocket money from the city of Virginia Beach at all, nor the state of Virginia. It's generated through new income uh sales tax and the increase in the taxes is what pays for this.

All right. So, we won't be taxed anymore.

Right. And and we'll be making more money through more additional revenue generated from the project.

So, then you can lower the real estate taxes once you start.

We'll definitely consider that. Please that.

Thank you.

Thank you.

The next speaker is Vanc Elwaru.

Good evening. Um I failed to understand how this proposed Hotel Indigo is a good deal for the taxpayers of Virginia Beach. Let us unpack this deal. At least the way I understand it. The city/VBDA will provide a $5 million loan to this private private developer building this luxury hotel. This so-called loan is repaid from the expected annual sales revenue of $15 million. The city will

forego its share of one person's sales tax revenue or $150,000 annually.

Similarly, the state will forego one person's sales tax revenue. In effect, the developer will only repay $150,000 each year. That means $300,000 quote unquote loan repayment comes from the foregone sales tax revenue from the city and the state. This foregone tax revenue is used for the loan repayment. In simple terms, the VBDA grants $5 million now and the city never gets anything in

sales tax revenue from this high-end hotel. Put another way, the city currently gets 1% of $5 million in sales tax revenue from the existing hotel, but we'll get 0% of the $15 million sales revenue from the new upscale hotel. To add insult to injury, the city will give $5 million of taxpayers money to the developers to renovate the hotel as a quote unquote loan. Can someone please

explain to me how this is a good deal for the taxpayers?

Mayor, that's all the speakers.

Okay. Um, do we have a motion?

Yeah.

Move for approval and have a comment.

Okay.

Second.

Second. We have approve. Okay. Work.

So, just to reiterate what I just said.

So, the VBDA is not making a loan. The city of Virginia Beach is not making a loan, nor is the state of Virginia, Commonwealth Virginia. It is um $5 million. It is for it is future tax increase that's paying the loan back. So this we'll get additional tax increases uh additional sales tax increases. So we'll be making money without any money out of pocket. So I move for approval.

Anybody else? Let's open the vote.

The vote is open.

By a vote of 9 to zero, I've approved the resolution.

Okay, now we're going to move over to the planning item and that was number two. BHC LLC, sir. That mayor, that was approved on consent.

Okay, that was okay.

Oh, we're all good.

Okay, I guess we're all done.

appointments and vice mayor before you begin appointments um because we're having technical difficulties with broadcast if each of you before you adjourn mayor can mute your mics that's will be helpful to our broadcast team.

Thank you.

Okay. Thank you. Okay. Um we have appointments.

We have appointments.

You are a trooper hanging in there.

I know. I just see.

Okay.

Um, arts and humanities. We want to appoint um Kimberly Hammer.

Hammer. Hammer. Uh, the clean community.

Uh, we want to appoint Althia Graves. Uh, she's a high school student.

The, uh, COG review committee. Uh, we want to appoint Steve Rockefeller.

The flood prevention uh, bond referendum.

uh oversight board uh Sophia Richardson as a high school student, human rights commission to appoint Liam uh Whitehead, high school student, and Quinn Encow, high school student. Uh Parks and Recreation Commission to appoint Alexander Moore, high school student. Public Library Board appointed, high school student.

U resort advisory commission to appoint Daniela Andreads high school student and Isabella Thompson high school student Tidewater uh community college board to appoint Dr. Tama Singleary uh Johnson and the transition area interim uh facility traffic uh to appoint Ryan Blake, a high school student and the Virginia Beach Towing and Advisory Board uh to appoint Parkerson Hey is a citizen. Move to approve.

You want to second it? The vote is open.

Are you saying are you abstaining on the tidewater one?

The vote is open.

Uh you just vote yes and then you can just ver do a verbal abstension for that one by a vote. I'm sorry. Uh council member Shman, may I have your vote? Thank you.

By a vote of nine to zero. You have appointed those read by Vice Mayor Wilson.

Okay. Thank you all. Or Mr. Mayor.

One second. Just briefly on the uh TCC board, I'm abstaining from that vote.

Perfect. Thank you. We'll note that in the minutes. And again, if before you adjurnn, mayor, if everybody can mute their mics, that will be helpful to the broadcast team.

Okay. Thank you.

Thank you.

Okay. At this point, is there any unfinished business?

Vice Mayor Mic is on there.

Any new business? Okay. Thank you all.

We are