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.
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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
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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
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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
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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
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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
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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.
,
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Clerk, Board of Supervisors
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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