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ALL RIGHT. GOOD AFTERNOON, EVERYONE. ALL RIGHT. WE'RE READY TO GET STARTED WITH THE SPECIAL CITY COUNCIL MEETING FOR NOVEMBER. 3RD 2021. AT THIS TIME, ADAM, CLICK. PLEASE CALL
[1. Roll Call]
THE ROLL. COUNCIL MEMBER COMFORT. YEAH. COUNCIL MEMBER WILSON SMOOTH HERE. COUNCIL MEMBER MYERS COUNCIL MEMBER HEART COUNCIL MEMBER HILL. VICE MAYOR SMITH LEE PRESIDENT,[2. Official Public Hearings]
MAYOR PERN HERE. NEXT MOVE ON THE ITEM TO WHICH IS OFFICIAL PUBLIC HEARINGS ITEM. A PUBLIC HEARING ON AN ORDINANCE TO AMEND THE RE ADOPT CHAPTER 38 OF THE PETERSBURG CITY CODE TO INCLUDE. ARTICLE SIX SECTION 38-120. THROUGH 38. THAT'S 1 TO 5. FOR THE ESTABLISHMENT OF THE CITY OF PETERSBURG TOURISM FINANCING PROGRAM. GOOD AFTERNOON. GOOD AFTERNOON. MANY OF HER BASICALLY, HOW ARE YOU? GOOD AFTERNOON MEMBERS. THE CITY COUNCIL. UM GARY, I'M READY FOR THE PRESENTATION THAT'S GOING TO GIVE YOU A QUICK OVERVIEW AGAIN OF THE.PETERSBURG TOURISM FINANCING PROGRAM. THE INCENTIVE THAT THE DEPARTMENT OF ECONOMIC DEVELOPMENT WOULD LIKE TO PUT IN PLACE FOR THE TOURISM ZONE, AND AFTER THAT, I'M GONNA TURN IT OVER TO, UM, SURROGATE, AND HE'S GOING TO GIVE YOU, UM. HIS COMMENTS AND AN EXAMPLE OF HOW HE IMPLEMENTED SUCH A PROGRAM BEFORE. SO AGAIN. WE DID THIS PRESENTATION TWO WEEKS AGO, SO WE'RE GOING TO GO PRETTY QUICKLY THROUGH THIS. AGAIN. THAT'S JUST THE ORDINANCE THAT AUTHORIZES US. I MEAN, THIS IS THE VIRGINIA CODE AUTHORIZED US TO ESTABLISH THE LOCAL TOURISM ZONE. THIS IS AN OVERVIEW OF THE ORGANIST THERE WAS ESTABLISHED ON FEBRUARY 16 2016 BY THE CITY COUNCIL THAT ALLOWS THE CITY OF PETERSBURG TO ESTABLISH THE TOURISM ZONE, WHICH OVERLAYS OUR ENTERPRISE ZONE. JUST THE HIGHLIGHTED AREAS THE CITY OF PETERSBURG TOURISM DEVELOPMENT FINANCING PROGRAM IS A GAP FINANCING PROGRAM USED TO FEEL A SIGNIFICANT LOCAL DEFICIENCY AND TOURISM PRODUCT. VISIT EXPERIENCING AND SPENDING. THE DEVICES SHE USED SHALL BE IDENTIFIED IN THE CITY'S CURRENT TOURISM PLAN OR COMPREHENSIVE DEVELOPMENT PLAN. IN ORDER FOR, UM, A DEVELOPER TO QUALIFY FOR THE TOURISM DEVELOPMENT FINANCING PROGRAM. THERE MUST BE A FULLY EXECUTED PERFORMANCE AGREEMENT FOR EACH PROJECT BETWEEN THE DEVELOPER AND THE CITY, AND WE HAVE EDIT THE ECONOMIC DEVELOPMENT AUTHORITY BECAUSE THE CODE OF VIRGINIA ONLY ALLOWS FOR THOSE PAYMENTS TO RUN THROUGH THE E D. A. SO THEY WILL HAVE TO BE ON A PART OF OUR PERFORMANCE AGREEMENT SO THEY WOULD BE PART OF THIS ORDINANCE. DEFINITION QUALIFIED TOURISM BUSINESS AGAIN. IT ESTABLISHES THE CAPITAL INVESTMENT FOR DIFFERENT PROJECTS AND THE AMOUNT OF JOBS AND NEEDS TO BE CREATED. THESE WILL BE PART OF THE PERFORMANCE AGREEMENT FOR EACH DEVELOPER HERE IN THE CITY AND AGAIN JUST TO HIGHLIGHT OF THE TOURISM ZONE OVER LAID THE ENTERPRISE ZONE. THE GAP FINANCING TOUR, THE TOURISM DEVELOPMENT FINANCING PROGRAM, PETERSBURG TOURISM DEVELOPMENT FINANCING PROGRAM IS A GAP FINANCING PROGRAM USED THIS IN A VISE DEVELOPMENT IN THE CITY OF PETERSBURG TOURISM ZONE. THEY GOT FINANCING MAY TOTAL UP TO 20% OF THE TOTAL PROJECT COSTS NOT TO EXCEED THREE MILLION. GAP FINANCING PAYMENTS ARE TO BE MADE FROM THE CITY OF PETERSBURG MEALS, TAX REVENUE AND LARGER TAX REVENUE RECEIVED FROM THE PROJECT AND PRAYED THROUGH THE ECONOMIC DEVELOPMENT AUTHORITY TO THE GAP FINANCING DEPTH SERVICE PROVIDER DETERMINE THE GAP FINANCES SHOULD NOT EXCEED A PERIOD OF 10 YEARS. SO THIS IS THE THREE MAIN, UM. IMPORTANT THINGS THAT WE NEED CITY COUNCIL TO UNDERSTAND ABOUT THIS, UM INCENTIVE AGAIN. IT'S NOT GOING TO COVER NO MORE THAN 20% OF THE PROJECT. TOTAL COST IS NOT GOING TO SEE THREE MILLION THAT IT WOULD BE HALF OF THE MIRRORS AND LARGE AND RECEIVED FROM THE DEVELOPER FROM THE PROJECT FROM THE BUSINESS AND THAT THOSE PAYMENTS WOULD BE LIKE A GRANT. AND THE GRANT WILL BE GIVEN TO THE 88 88 WOULD BE ABLE TO DISPERSE IT TO THE DEPTH SERVICE PROVIDER AGAIN BECAUSE THE CODE WOULD NOT ALLOW FOR THE CITY TO MAKE PAYMENTS TO THE GAP TO THE DEPTH SERVICE PROVIDER AND IT WOULD NOT EXCEED A PERIOD OF 10 YEARS. AGAIN THE BUSINESS MUST BE A CERTIFIED AND QUALIFIED TOURISM BUSINESS. THEY WOULD RECEIVE THAT APPLICATION FROM THE DEPARTMENT OF ECONOMIC DEVELOPMENT. WE WILL MAKE SURE THEY ARE LOCATED WITHIN THE TOURISM ZONE, AND WE'LL MAKE SURE THEY, UM, REACH THOSE THREATS SHOWS. OF INVESTMENT AND JOBS CREATED TO BE CONSIDERED QUALIFIED TOURISM BUSINESS. AGAIN THAT'S JUST ALL OF YOU AGAIN. ONCE AGAIN, THAT
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IS ONLY 50% OF THE MEALS AND LODGING TAXES AGAIN WOULD BE A PART OF MY PERFORMANCE AGREEMENT IN ANY OUTSTANDING BALANCE OLD AFTER THAT QUARTER DUE TO LACK OF REVENUE GENERATED BY THE MEALS AND LODGING TAXES WILL BE THE SOLE RESPONSIBILITY OF THE BORROWER AND WILL ENSURE THIS INSIDE OF EACH PERFORMANCE AGREEMENT, SO THERE'LL BE NO MISUNDERSTANDING THAT AT EACH QUARTER. THOSE PAYMENTS ARE DUE. WE WILL PAY WHATEVER PART THAT CAME FROM YOUR MEALS AND LODGING, BUT ANY OUTSTANDING BALANCE WILL BE OLD BY THAT DEVELOPER BY THAT BUSINESS. AGAIN IF ANY TIME TO THE BUSINESS DEFAULTS OR ANY MEASUREMENT INCLUDED INSIDE OF THE PERFORMANCE AGREEMENT, THE CITY AND THE MEDIA MAY EXERCISE THE RIGHT TO END THE GAP FINANCING AND AT THAT TIME. UM THAT BUSINESS AND THE DEVELOPER WOULD BE RESPONSIBLE FOR ANY AMOUNT OF THE LOAN THAT IS OLD. AND IT IS TIME WE'RE GOING TO TURN IT OVER TO SERGEI SO HE CAN GIVE YOU AN EXAMPLE. UM LAST TIME I GAVE YOU A SAMPLE OF FREDERICKSBURG, WHERE THEY DID A, UM, A SIMILAR INCENTIVE WHERE THEY USE 50% OF ALL OF THEIR TAX REVENUE TO HELP.ESTABLISHED THE HYATT HOTEL IN THEIR LOCALITY. BUT AGAIN, SURROGATE HAS AN EXAMPLE OF WHERE HE DID IT IN ANOTHER LOCALITY. THANK YOU, MR MAYOR, MEMBERS OF COUNCIL. UH THIS IS, I THINK A TRANSFORMATIVE PROJECT FOR PETERSBURG. NOT JUST FOR TOURISM, BUT FOR ECONOMIC DEVELOPMENT IN GENERAL, AND I'VE BEEN INVOLVED IN MULTIPLE COMMUNITIES WHERE THEY HAVE. PROVIDED GAP FUNDING TO MAKE HOTEL PROJECTS WORK. AND THE FIRST ONE WAS IN STANTON.
UM AND THAT PROJECT WAS. HUGE PROJECT THAT INVOLVED NOT ONLY THE RESTORATION OF HISTORIC HOTEL THAT HAD BEEN CLOSED AS A AS A HOTEL FOR MANY, MANY YEARS. BUT IT WAS LOCATED IN AND PART OF DOWNTOWN. THAT WAS NOT DOING WELL AT ALL. A LOT OF BOARDED UP BUILDINGS, BUILDINGS THAT WERE NOT BEING FULLY UTILIZED. AND WHAT THAT HOTEL PROJECT DID IS IT TRANSFORMED THAT ENTIRE SURROUNDING NEIGHBORHOOD? IT HELPED THE SHOPS AND THE RESTAURANTS. ALL SO MANY OF THOSE SHOPS AND RESTAURANTS THAT ARE NEAR THE HOTEL OPENED BECAUSE OF THE HOTEL. IN LYNCHBURG. UM WE HAD A SIMILAR SITUATION. BEFORE I GOT THERE. THERE WAS AN OLD SHOE FACTORY. CRADDICK TERRY SHOE COMPANY. AND THAT BUILDING WAS EMPTY. IT WAS SURROUNDING A PART OF DOWNTOWN. WHERE ALL THE BUILDINGS PRETTY MUCH EMPTY OR UNDERUTILIZED. AND THE CITY. UH LUCKILY HAD THE FORESIGHT TO HELP PROVIDE THE GAP FINANCING TO MAKE THAT HOTEL WORK. THERE WAS A LOT OF OPPOSITION LOTTE HOTELS AND OTHER PARTS OF THE CITY. THEY HAPPEN TO HAVE A LOT OF HOTELS, WHICH WE DON'T UM. THOSE HOTELS FOUGHT THE PROJECT, BUT LUCKILY THE CITY WENT AHEAD. AND. NOT ONLY DID IT BECOME ENORMOUSLY SUCCESSFUL FOR LYNCHBURG. BUT IT BROUGHT BACK THAT WHOLE SECTION OF DOWNTOWN LYNCHBURG. TO THE POINT THAT WHEN THE HOTEL DECIDED THEY WANTED TO REVITALIZE ONE OF SEVERAL SURROUNDING HIS START PROPERTIES AROUND THE HOTEL. THEY COULDN'T AFFORD THEM ANYMORE BECAUSE THE PROPERTY VALUES HAD RISEN BECAUSE OF THEIR PROJECT. SO THEY WERE UNABLE TO EXPAND. SO WHILE I WAS DIRECTOR OF TOURISM IN LYNCHBURG, WE HAD ANOTHER HOTEL PROJECT. IT HAD BEEN A BUILDING THAT WAS BUILT ALMOST THE SAME TIME AS THE HOTEL PETERSBURG. UM BUT IT HAD NOT BEEN A HOTEL FOR MANY YEARS IT BECAME LOW. INCOME HOUSING. AND THE SURROUNDING AREA OF AROUND THAT OLD BUILDING. WAS THE LAST PART OF DOWNTOWN LYNCHBURG. THAT HAD NOT BEEN REDEVELOPED. LOT OF EMPTY BUILDINGS, UM, THAT WERE A REAL DRAIN ON THE ECONOMIC VITALITY UP DOWNTOWN LYNCHBURG.
SO UM, DEVELOPER ACQUIRED THE BUILDING TO TURN IT INTO APARTMENTS. WENT ONCE THEY TOOK A BETTER LOOK AT THE BUILDING. THEY THOUGHT THIS PROBABLY. MIGHT BE BETTER USED AS A HOTEL. IT WAS BUILT AS A HOTEL. AND SO THEY AGAIN THERE WAS A LOT OF OPPOSITION. FROM AREA HOTELS TO DO THIS. IT'S A DIFFERENT MARKET. PEOPLE WHO STAY IN A BOUTIQUE HOTEL ARE NOT GOING TO STAY IN THE MODERN HOTEL IS THAT TOTALLY DIFFERENT MARKET? IN THE CASE OF PETERSBURG, WE'LL HAVE MANY OTHER HOTELS OF ANY KIND. SO WHAT THAT DID IS IT THAT ENTIRE PART OF DOWNTOWN THE LAST PART OF DOWNTOWN THAT HAD NOT BEEN REDEVELOPED. IT'S BEEN
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REDEVELOPED. AND THOSE PROPERTY VALUES HAVE RISEN DRAMATICALLY. AND SO THIS WILL BE. THE HOTEL PETERSBURG PROJECT, I BELIEVE WILL BE A HUGE BENEFIT NOT JUST FOR TOURISM BUT FOR ECONOMIC DEVELOPMENT IN THE ENTIRE DOWNTOWN AREA. ANY QUESTIONS? THANK YOU SO MUCH, MR RISK OR ANY QUESTION. LISTEN TO REAL. AT THE LAST MEETING. I MADE A PRESENTATION AND RECOMMENDATION OF THIS PROGRAM. I CAN GO BACK THROUGH THAT IF YOU WISH, OR I OR MY STAFF COULD ANSWER QUESTIONS, AND THEN WE SHOULD HAVE THE PUBLIC HEARING. UM. I THINK WE'RE GOOD. WE'VE SEEN THE PROPOSAL AGAIN. OKAY AND AT THIS TIME, THIS IS THE OFFICIAL PUBLIC HEARINGS RIGHT NOW. I JUST WOULD LIKE TO OPEN THE FLOOR FOR ANYONE WHO WANTS TO COMMENT ON THE ORDINANCE TO AMEND RE ADAPT CHAPTER 38. OF THE PS. VERY CITY CODE INCLUDE ARTICLES SIX SECTION 38 1 20.THROUGH 38 1 25 FOR THE ESTABLISHMENT OF CITY OF PETERSBURG TO ARREST AND FINANCING PROGRAM. MR ROOF. GOOD AFTERNOON MAYOR, PART AFTERNOON MEMBERS OF COUNCIL CITY MANAGER AND CITY ATTORNEY. THIS PROGRAM HERE. IS AN FEDERAL PART. OF WHAT WE'RE TRYING TO ACCOMPLISH WITH THE ECONOMIC DEVELOPMENT AUTHORITY. I'M SAYING ROUTE 1952 SOUTH WEST CHESTER DRIVE WAR, TOO. IN ORDER FOR US TO STRENGTHEN THE TAX BASE, WHICH IS OUR PRIMARY MISSION. PROMOTE INDUSTRY, WHICH TIES DIRECTLY INTO YOUR STRATEGIC PLAN. ESPECIALLY IN A TAX BASE OF THE CITY. THIS IS A COMMUNITY PROGRAM THAT'S GONNA PROVIDE GAP FINANCING NOT ONLY TO EXISTING BUSINESS BUT THE NEW BUSINESS, SO WE URGE YOU TO SUPPORT THIS SO WE CAN MOVE FORWARD. WITHOUT PRIMARY OBJECTIVE, STRENGTHEN THE TAX BASE FOR THE CITY OF PETERSBURG. THANK YOU. THANK YOU. CASING NO OTHER HANDS FOR THIS PUBLIC HEARING. THIS PUBLIC HEARING IS NOW CLOSE. UM, NEXT, UM, COUNCILMAN HILL. MR MAYOR, MEMBERS OF COUNCIL MOVED THAT WE ADOPT AUDIENCE. THEY WERE MOTION. UM COUNCILOR MYERS. ALL RIGHT. MOST OF MY COUNSELOR HERE SECOND BACKHAUS MARS IN THE DISCUSSION BY MEMBERS OF COUNCIL. ALL RIGHT, SEEING NINE. MADAM CLERK, COULD YOU PLEASE CALL THE ROLL? CAST MEMBER COMFORT OF STAIN. PATH NUMBER WILSON SMITH. BYE. GAS MEMBER MYERS, UH, KATHY MARIE HILL. VICE MAYOR SMOOTHLY.
MAYOR PERM HIGH MOTIONS FAIR. ALL RIGHT. THANK YOU. NEXT WE'LL MOVE ON TO ITEM B CONSIDERATION AND DISCUSSION OF THE AMERICAN RESCUE PLAN ACT APPROPRIATION. MR DERAIL. WE COULD BRING UP THE ORDINANCE, PLEASE.
WHAT WELL, THAT'S HAPPENING. LET ME JUST ADD SOME BACKGROUND. THESE ARE ALL ITEMS APPROVED BY RESOLUTION. TECHNICALLY, THIS IS A BUDGET. AMENDMENT TO FUND TO 14 FOR THE AARP, A FUN APPROPRIATING. THE PROJECTS AND AMOUNTS OR APPROVED ALREADY BY RESOLUTION, SO IT'S REALLY A TECHNICALITY. TECHNICALITY. BECAUSE WE'VE ALREADY APPROVED PROJECTS IN THE AMOUNTS BY RESOLUTION. THIS SIMPLY ALLOWS US TO PUT IT IN THE BUDGET. AND THEN WRITE CHECKS OFF OF IT FOR THE URGENT PROJECTS WE DISCUSSED THANK YOU. TO ME. YEAH. CAUSE ME HERE. I MOVE THAT WE. UM COUNCILOR HERE BEFORE YOU HAVE EMOTION. LET ME OPEN THE FLOOR FOR THE PUBLIC HEARING. OKAY WE DID PUT MY HAND. OKAY. OKAY. WE'RE GOOD. ALL RIGHT. NEXT COUNCILMAN HERE. MOVE THAT WE ARE APPROVED THE APPROPRIATIONS THAT HAS ALREADY BEEN STATED.
NO. FOR THE OPERA FUND. OKAY? MOST OF MY COUNCILMAN HERE. VICE MAYOR SMITH LEE SECOND I
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WANT TO DISCUSSION. SEEING THAT, MADAM CLERK. COULD YOU PLEASE CALL THE ROOM? 1001 BECAUSE BERT STRAIN REMEMBER WILSON SMITH. I HAVE SOME OF THE MYERS. COUNCIL MEMBER HILL I. VICE MAYOR SMITH FLEE. MAYOR PERN HIGH. THIS MOTION FAST. OKAY, THAT WAS ITEM THREE B. TO BE NEXT, UM THERE'S 90 THING ELSE. BUT ESPECIALLY MEETING WELL ADJOURN THIS MEETING.THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.