At the time of this post, no contact has been received from any Council Member, VBED, VBDA or City Staff.

Follow-up email sent May 24, 2022

Dear Mayor Dyer and City Council Members,

I wanted to send this follow up email to confirm someone in the City is actively working on providing answers to the questions submitted last week.  To date, we haven’t received any reply to the request.  Excluding a blank email from Council Member Wilson, which I took to be a notification that she can’t discuss this issue due to her conflict of interest.

The community is aware that this 2^nd round of Pass-Through Bonds was approved on consent with a 7-0 vote (2 COI, 2 Not Present), however, answers to the questions would go a long way to clearing up confusion that may be present in the community on this subject.

I assume the VBED department would be the ones to answer and if so, maybe Mr. Adams can send me the point of contact.  I will be happy to follow up with them rather than reply via these large distribution emails.

Thank you for consideration and action,

Todd Solomon

Shore Drive Community Coalition President

Original email request sent May 17, 2022

From: Todd Solomon [mailto:todd@sdcc.info]
Sent: Tuesday, May 17, 2022 1:20 PM
Subject: City Council Agenda – May 17, 2022 Item J(7) – Resolution to Approve $164mil Bond for WCCB
Importance: High

Dear Mayor Dyer and City Council Members,

I am passing on some concerns and questions that have been raised by the Shore Drive community regarding today’s upcoming agenda item J(7) -Resolution to APPROVE the issuance of Residential Care Facility Revenue Bonds up to $164-Million re Westminster-Canterbury on Chesapeake Bay.

We would greatly appreciate replies to the items below to help us better understand the details behind this resolution request. 

1. Will WCCB be exempt from property taxes or will they still be required to pay taxes during the bond period?  It is my understanding that with Industrial Revenue Bonds/Passive Activity Bonds (IRB/PAB), the City becomes the deed holder until the bond is paid off.  Bonds of this type usually exempt the developer from property taxes.  WCCCB has stated it needs no help with this project, waving property taxes would be considered help. 
2. What are the VBDA’s rates/structure and what are the fees associated with this bond issuance?  Most municipalities charge a fee or have a fee structure to manage these types of bonds.  Example, Alexandria VA charges 25 basis points per bond amount and Loudoun has a structure Bond Financing Fee Schedule – Loudoun County Economic Development, VA  
3. Doesn’t the City hold some risk albeit very small?  The City has stated that there is no risk to its bond rating for this request. If WCCB defaults on the bond payment and the bank covering the request isn’t able to sell the property or if the bank is no longer in existence, wouldn’t the City via the VBDA be next in line to cover the bond requirement? 
4. How can the VBDA/CC justify approving an additional $164mil bond pass through request for the Independent Living (IL) tower until several key issues are resolved? The previously approved $110mil bond issuance supported WCCB’s Memory Unit construction.  This current request supports the IL tower which is still in litigation at the State Supreme Court.  The designs for the tower also require the relocation of the existing beach access which needs a super majority Council approval.
5. Will the City/VBDA be asked to supply an additional bond for the remaining $140mil in the future?  The Fitch Bond Rating review below states that WCCB will need $400mil in debt service to complete the full campus expansion.  The previous $110mil approval plus this $164mil request still leaves $140mil.  https://www.fitchratings.com/research/us-public-finance/fitch-downgrades-westminster-canterbury-on-chesapeake-bay-va-rev-bonds-to-bb-outlook-stable-18-02-2022
6. Where can I obtain a copy of the Bond Application submitted for this request?

Thank you for taking the time to educate us on this somewhat confusing method of financing development projects.

Sincerely,

Todd Solomon Shore Drive Community Coalition President

Email sent May 25, 2022

Dear Mayor Dyer and City Council Members,

I recently read on the City’s website that City facilities will light up blue in remembrance of the victims of the May 31, 2019 tragedy. 

“Love For VB” Around Town

• The Love For VB symbol is displayed in the “Love” sign at the Virginia Beach Animal Care and Adoption Center.
• The forget-me-not flower will again be painted at Mount Trashmore on the front façade of the hill below the City seal. Weather permitting, it is scheduled to be completed around mid-May.
• Remembrance flags, featuring the Love For VB forget-me-not flower, will be flown at more than 40 locations throughout the city.
• City facilities including Building 30, the Virginia Beach Convention Center and Virginia Aquarium and Marine Science Center will light up blue in remembrance, May 23-31.

However, I would argue that one of the City’s signature structures was left off the list, the Lesner Bridge.  The $100 million signature structure was designed to be a beacon of welcome to residents and visitors.  The LED lighting was one of the few upgrades added to put the “Signature” in signature bridge.  The first year after completion, the lights followed a well thought out schedule.  After this time, the schedule was scrapped and the lights were set to permanent blue/white scheme. 

Recently it took a City Council resolution to have the lights changed to a Blue/Yellow scheme in support of Ukraine.  So it is possible to have the lighting colors changed, although it doesn’t seem easy to get approval.

I would like to pass on two requests that have been mentioned by Shore Drive residents and hope you will be able to take action on both.

1. Can the Lesner Bridge lights be changed to all blue (matching the blue on City facilities) on May 31^st in remembrance of the victims of the May 31, 2019 tragedy?
2. Can the original lighting schedule be approved and reinstated for year round celebrations?  The first opportunity would be the Red/White/Blue scheme for Memorial Day, which I know may be too quick a turn around, so maybe July 4^th?

I have attached a link to the previous lighting schedule for information if needed.  What’s up with the fancy lighting on Lesner? Check out the plan. | #WeLoveShoreDrive

Thank you for consideration of this request.  I look forward to your reply.

Sincerely,

Todd Solomon

Shore Drive Community Coalition President