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HomeMy WebLinkAboutMarch 02, 2005 Work Session 368 A Worksession of the Frederick County Board of Supervisors was held on Wednesday, March 2,2005, at 12:00 P.M., in the Board of Supervisors' Meeting Room, County Administration Building, 107 North Kent Street, Winchester, Virginia. BOARD MEMBERS PRESENT Chairman Richard C. Shickle; Vice-Chairman Gary W. Dove; Bill M. Ewing; Gene E. Fisher; Gina A. Forrester; Lynda J. Tyler; and Barbara E. Van Osten. CALL TO ORDER Vice-Chairman Dove called the worksession to order. ADOPTION OF THE AGENDA Administrator Riley advised that he had one addition to the agenda. He advised that the Board needs to set a budget worksession following the March 9, 2005 reassessment public hearing in order to finalize the budget for advertisement. He asked that the scheduling of this worksession be added to the agenda. Supervisor Tyler asked if the meeting with the ad hoc citizen committee regarding the alternate Rural Areas proposal could also take place on that day. Administrator Riley advised that the Board could set the date for both meetings if they desired. Upon a motion by Supervisor Forrester, seconded by Supervisor Ewing, the Board approved the agenda as amended by the following recorded vote: Richard C. Shickle Gary W. Dove Bill M. Ewing Gene E. Fishcr Gina A. Forrester Lynda J. Tyler Barbara E. Van Osten Absent Aye Aye Aye Aye Aye Aye ITEMS REOUlRING BOARD ACTION RESOLUTION (#038-05) RE: NOTICE TO PROCEED WITH CONSTRUCTION OF 204 BED COMMUNITY CORRECTIONS FACILITY - APPROVED Upon a motion by Supervisor Forrester, seconded by Supervisor Ewing, the Board approved the Resolution to Provide Howard Shockey & Sons, Inc. Notice to Proceed with the Construction of a 204-Bed Community Corrections Facility. Minute Book Number 30 Board of Supervisors Worksession on Commuuity Development Autbority and Public Safety FaeiIity - 03/02/05 369 WHEREAS, the Clarke-Fauquier-Frederick- Winchester Regional Adult Detention Center is overcrowded, and public safety and efficient operations are deleteriously impacted by the inmate populations that exceed the design capacity; and WHEREAS, affected jurisdictions have approved a Comprehensive Agreement to develop, design and construct a community corrections center and the City of Winchester, acting as the responsible public entity for the affected jurisdictions, has executed the Comprehensive Agreement in accordance with the Public-Private Education Facilities Act of 2002; and WHEREAS, the jurisdictions that own and operate the Clarke-Fauquier-Frederick- Winchester Regional Adult Detention Center have requested state funding to reimburse 50% ofthe cost of construction; and WHEREAS, on November 17, 2004, the Virginia Bureau of Corrections approved the Community Based Corrections Plan submitted by the affected jurisdictions; and approved reimbursement funding in the amount of $9,607,303 for a 204-bed community corrections center and 96-bed addition to the existing detention facilities, contingent upon completion of both projects and certification that the construction complies with State Standards; and WHEREAS, Howard Shockey & Sons, Inc. has provided a 35% design cost estimate for the proposed community corrections center in the amount of$8,752,554, excluding the cots of project financing; and WHEREAS, commencement of construction for the community corrections center is scheduled for the first full week of May 2005; NOW, THEREFORE, BE IT RESOLVED by the Frederick County Board of Supervisors that Howard Shockey and Sons, Inc., is hereby given notice to proceed with the construction of a 204-bed community corrections center, provided that the negotiated cost does not exceed $8,752,554. The above resolution was approved by the following recorded vote: Richard C. Shickle Gary W. Dove Bill M. Ewing Gene E. Fisher Gina A. Forrester Lynda J. Tyler Barbara E. Van Osten Absent Aye Aye Aye Aye Aye Ayc DISCUSSION ITEMS PROPOSED CREATION OF COMMUNITY DEVELOPMENT AUTHORITY Administrator Riley advised that the County was proceeding with the creation of this Community Development Authority (CDA) now because it would be a major financing component for the proposed rezoning of the Russell property located across from the Winchester Airport on Route 522. The CDA would also be part of the proffer package for the rezoning. Administrator Riley went on to say that if the rezoning fails then the CDA would be moot. He stated that the CDA would servc as a financing mechanism, which would supplement issues such as timing and Minute Book Number 30 Board of Supervisors Worksession on Community Development Authority and Public Safety Facility - 03/02/05 370 infrastructure improvements. Following the adoption of the CDA, a memorandum of understanding would be prepared to outline the duties of all ofthe affected parties. He went on to say that today's meeting was not to prcdetermine any outcomes, but only to provide information. Administrator Riley stated that the purpose of the CDA would be to issue bonds to finance infrastructure improvements; however, the taxpayers ofFredcrick County would not have to pay for these bonds. Administrator Riley then reviewed the procedure for forming the CDA and collecting the special assessment on those properties within the boundaries ofthe CDA. He concluded by saying that the Board would see the rezoning application for this property in April. (Chairman Richard Shickle arrived 12:20 P.M.) Denver Quinnelly, applicant, introduced the following individuals who had been involved in preparing the creation of the CDA. They were: Bonnie France, McGuireWoods, LP, Ned Smither, Morgan, Keegan, Mark Smith, and Attorney Ben Butler. Mr. Quinnelly briefly reviewed the proposed project. He advised that this would be a mixcd usc development with 37 acres of residential and the remainder to be commercial and office uses. He advised that he proposed to build all of the infrastructure, including a bridge over Interstate 81 to connect to Papermill Road. The project included approximately 400,000 square feet of commercial and 358,000 square feet of office. Ned Smither, Morgan Keegan Financial Advisors, informed that seven CDA's have been done in the state. He advised that the CDA would allow the developer to tie into tax exempt monies. He stated that the CDA would engage a representative to assist the County with updating the parcel information within the project area and would also help pay for software, etc. to facilitate the collection ofthe special assessment. He went on to say that the project bonds are sold in increments of$100,000 and no bonds could be issued until the Board reviewed the proposed assessments. Treasurer Orndoff stated that he had a number of questions concerning the proposed CDA, but most could be worked out within the terms of the MOD. Some of the areas of concern included: powers of collection; recovery of costs associated with the program, and compensation for the County's efforts. Bonnie France, McGuireWoods, LP, advised that every CDA that she is awarc of has used the locality to collect the taxes. She stated that there was a two step process involved in the CDA Minute Book Number 30 Board of Supervisors Worksession on Community Development Autbority and Public Safety Facility - 03/02/0S 371 creation. Step one was the actual creation ofthe CDA and step two was a request from the CDA to levy a special assessment on property within the district. She went on to say that the memorandum of understanding was the document that worked out all of the details and would be approved as part of step two. Ms. France went on to say that the levy was a one-time assessment and would be collected over time. The CDA administrator would prepare a report for both the County and the CDA regarding the pre-paid and paid assessments. She stated that the applicant has presented a petition to the County and all of the property within the proposed district was owned by the individual submitting the petition. In response to a question about how long the CDA exists, Ms. France responded that the usual term for the CDA is 50 years, but they typically go away after the debt has been paid off; however, if the CDA owns some improvements, such as storm drainage, then they might want to remain in existence longer. Ms. France advised that the preliminary cost estimate for this project is $10 million, but the bond issuance would be for $13 million, which includes debt service. Ms. France reiterated that the bonds are not debt of the County and if there is a default the bond company can only go after the defaulted property owner and not the others within the district. Chairman Shiekle asked who would be the CDA administrator. Ms. France responded that Keenan Rice with Municap would serve as CDA administrator. Supervisor Van Osten asked whether the homes would be rental property or owner occupied. Ms. France responded that it was her understanding that they would be owner occupied. Viee-Chairman Dove asked if the prepayment requirement would be established in the memorandum of understanding or would it be the owner's choice. Ms. France responded that those details are probably not addressed in the memorandum of understanding. Supervisor Ewing stated that he wanted to make sure the County had no liability in the event a property owner defaulted on the bonds. Ms. France responded that the County would be responsible for foreclosing on the special assessment lien, similar to the procedure for delinquent taxes. Supervisor Forrester asked at what point the public improvement standards were determined. Ms. France responded that they would be done outside of the CDA through the zoning or Minute Book Number 30 Board of Supervisors W orksession on Community Development Authority and Public Safety Facility - 03/02/05 372 dcvelopment process. Ms. France advised the Board that they would also be responsible for appointing the CDA board members. She stated that Mr. Quinnelly has recommended five individuals. She advised that people could not be appointed who had a conflict of interest. She went on to say that creation ofthe CDA is not endorsement of the project. Chairman Shickle asked what the CDA board member responsibilities were. Ms. France responded that this board was similar to the Industrial Development Authority, except that it pertained to that particular area only. The board is limited by the Code of Virginia and the terms of the memorandum of understanding. She went on to say that the Board of Supervisors would have to appropriate the CDA assessment amount each year in order to pay offthe bonds. The CDA administrator would determine and provide the Board with the assessment amounts. She concluded by saying that the Board would not have to approve the bond issue. Chairman Shickle summarized the Board's responsibilities in this process: Create the CDA. Levy the special assessment. Appropriate the annual assessment amount. Reappoint the CDA members every four years. Ms. France reviewed the names of the five CDA board members: John S. Scully, IV, President Colony Realty Dale Fritts, Sr. Vice-President, Bank of Clarke County Charles (Chuck) M. Maddox, PE, Vice-President, Patton Harris Rust & Associates John Marker, Marker-Miller Alan Hudson, President, Ominex, Inc. She concluded by saying that CDA board's do not have a residency requirement. Chairn1an Shickle asked if a tax exempt CDA funded improvement was a proffer issue. Ms. France responded that it could be. Supervisor Forrester asked iflegal counsel had reviewed these documents. Administrator Riley advised that bond counsel, the applicant's attorney, and the County Attorney would review them. Chairman Shickle thanked the applicant and his representatives for attending. BUDGET WORKSESSION SET The Board set a budget worksession and a meeting with the ad hoc citizen committee Minute Book Number 30 Board of Supervisors Worksession on Community Development Authority and Public Safety Facility - 03/02/05 373 regarding the alternate Rural Areas proposal for Friday, March 11,2005 at 12:00 P.M. CLOSED SESSION CLOSED SESSION PURSUANT TO VIRGINIA CODE &2.2-3711 A (30) TO REVIEW PROPOSED COMPREHENSIVE AGREEMENT FOR THE NEW PUBLIC SAFETY BUILDING Members of the Public Works and Public Safety Committees attended the closed session to discuss the proposed Comprehensive Agreement for the new public safety building. Upon a motion by Vice-Chairman Dove, seconded by Supervisor Forrester, the Board convened in closed session pursuant to Virginia Code S2.2-3711 A (30) to review the proposed Comprehensive Agreement for the new Public Safety Building. The above motion was approved by the following recorded vote: Richard C. Shickle Aye Gary W. Dove Aye Bill M. Ewing Aye Gene E. Fisher Aye Gina A. Forrester Aye Lynda J. Tyler Aye Barbara E. Van Osten Aye Upon a motion by Vice-Chairman Dove, seconded by Supervisor Ewing, the Board withdrew from closed session. The above motion was approved by the following recorded vote: Richard C. Shickle Aye Gary W. Dove Aye Bill M. Ewing Aye Gene E. Fisher Aye Gina A. Forrester Aye Lynda J. Tyler Aye Barbara E. Van Osten Aye Upon a motion by Vice-Chairman Dove, seconded by Supervisor Ewing, the Board reconvened into Regular Session. The above motion was approved by the following recorded vote: Richard C. Shickle Aye Gary W. Dove Aye Bill M. Ewing Aye Gene E. Fisher Aye Gina A. Forrester Aye Lynda J. Tyler Aye Barbara E. Van Osten Aye Upon a motion by Vice-Chairman Dove, seconded by Supervisor Van Osten, the Board Minute Book Number 30 Board of Supervisors Worksession on Community Devclopmcnt Authority and Public Safety Facility - 03/02/05 374 certified that to the best of each board member's knowledge only Code of Virgin ia S2.2-3711 A (30) were discussed. The above motion was approved by the following recorded vote: Richard C. Shickle Aye Gary W. Dove Aye Bill M. Ewing Aye Gene E. Fisher Aye Gina A. Forrester Aye Lynda J. Tyler Aye Barbara E. Van Osten Aye There being no further business, the work session was adjourned at 1 :45 P.M. , ~~ Clerk, Board of Supervisors ~. .., C' 5>-- Q t, --L"---' Richard C. Shickle Chairman, Board of Supervisors Minu'" P"pmd By' ~--r::.(/ L '-i/J!. Jay E. ib Deputy Clerk, Board of Supervisors Minute Book Number 30 Board of Supervisors Worksessioll on Commllnity Developmellt Authority and Public Safety Facility - 03/02/05