Central Beach Entertainment District. Public Engagement Workshop March 15, 2018
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1 Central Beach Entertainment District Public Engagement Workshop March 15, 2018
2 Resolution Adopted by City Council 2/20/18 hold a public input session in the coming weeks at the Convention Center, similar in format to the Dome Site public engagement and planning workshop held on January 31, Addressing the 15 th Street Pier Project, the Dome Site, the proposed Sports Center, and potential parking solutions 2
3 January 31, 2018 Dome Site Public Engagement Workshop 3
4 Agenda 6:15 Welcome and Entertainment District Overview Background Tourism Entertainment District Projects Sports Center ViBe District Dome Site The Wave Pier Project Central Beach and Convention Center Parking Funding and Tourism Investment Program 6:40 Workshop Activity 4
5 Resort Strategic Action Plan (Adopted 2008) Development Strategies Create great districts with distinctive identities Improve transit and pedestrian connections between destinations Create a transition from the resort area to the neighborhoods Enhance visual access to the Oceanfront Grow residential Provide additional higher-quality hotels Concentrate retail Cluster office uses near Convention Center and Birdneck Continue to focus on achieving a "YearRound Resort" 5
6 Resort Area Strategic Action Plan (Adopted 2008) DOME SITE 3
7 Tourism Activity in Virginia Beach $1.49 billion visitor spending $132.1 million state and local taxes $60 million in Virginia Beach Image credit:
8 Demand in Millions Tourism Demand CITY OF VIRGINIA BEACH CONVENTION & VISITORS BUREAU Growth in Hotel Demand 1987 to Demand Calendar Year
9 2017 Annual Average Occupancy United States 65.9% Virginia Beach 63.7% Image credit:
10 Think of an ocean beach destination What comes to mind? (unaided) 1. Florida 2. Hawaii 3. Myrtle Beach 4. California 5. Bahamas 6. Ocean City, MD 7. Outer Banks 8. Miami 9. Mexico 10. Ocean City (unspecified state) 11. Aruba 12. Jamaica 13. Virginia Beach 14. Caribbean 15. Rehoboth
11 Look for Virginia Beach within a few years to be considered a primo American beach destination, a jewel on one of the country s most underrated stretches of coast. 11 4
12 Council TOP Priorities from February 2018 Retreat 1. Public Safety Salary Compression 2. Sports Center: Agreement/Construction 3. Dome Site: Development Agreement 4. Central Resort Area Parking Plan 5. Pier Place 6. Opioids Initiative Reduction Strategy 7. Mental Health Initiatives 8. ODU Health Sciences School Nursing Program: Relocation 9. Flooding/Stormwater Projects: Additional Funding 12
13 13 5
14 Convention & Sports Center 14
15 15 7
16 Growing Destination Competition 16
17 PPEA Process Overview Solicitation of Conceptual Proposals Receive, Post & Evaluate Proposals Decision to Proceed to Detailed Phase Receive and Evaluate Detailed Proposals Selection of Preferred Proposers Public Hearing Interim Agreements Approval By City Council Comprehensive Agreements Approval by City Council Conceptual Phase Detailed Phase August 2017 October 2017 October 2017 November 2017 December 2017 February 2018 February - March 2018 July
18 Selected Design - Build and Operator Teams Selected Design Builder Recommended Operator 18
19 19
20
21 Sports Center Overview An indoor sports facility to attract out-of-market tournament business; and jointly be used, during nontournament use, by residents for sports league play and training activities Competition elements include: 12 Basketball Courts convertible to 24 Volleyball Courts Column-Free/Clear-Span floor space An indoor articulated track Support elements include: Elevated Mezzanine Viewing & Walkway Concessions/Vending Food Service Site considerations: Adjacency to VA Beach Convention Center (VBCC) Complimentary design to VBCC Design allowing for expansion of VBCC 21
22
23 ViBe District 23
24 24
25 25
26 19 th Street Improvements Design complete and advertised Construction commences May 2018 Construction completion May
27 Dome Site 27
28 28
29 Dome Site Selection Process Review and Interview Select Qualified Developer / Operator Public Engagement & Concept Refinement Negotiate Public Cost Participation & Term Sheet Approve Development Agreement Real Estate / Financing Closing Construction Selection Phase Pre-Development Phase Development May 2017 November 2017 January 2018 Spring 2018 Fall 2018 TBD TBD 29
30 30
31 31
32 Highlights of Survey Responses (Over 2500) 32
33 Highlights of Survey Written Responses (Over 1400) 33
34 Highlights of Survey Written Responses (Over 1400) 34
35 Next Steps March - May Exclusive Dealing Period Feasibility Studies 1. Entertainment Feasibility Study Validate market demand and affirm recommendations for size of venue 2. Retail Feasibility Study Validate market demand and affirm recommendations for retail mix 3. Overall Economic Impact Analysis Forecast overall economic impact of entire mixed use development, the entertainment district and the impact of the uses to the Oceanfront 4. Parking Feasibility Study Validate parking demand and recommend total # of spaces 5. Construction Cost Verification Verify estimated construction costs and provide market comparisons 35
36 Pier Development 36
37 37
38 Pier Solicitation Bidders may make proposals either as a direct tenant or may propose a structure in which the City of Virginia Beach Development Authority (VBDA) is the tenant and the bidder is a sub-tenant. A connection from the new pier to Atlantic Avenue, coordinated with adjacent landowners, sufficient to allow pedestrian access from Atlantic Avenue, across the boardwalk and onto the new pier. A new pier of at least 880 feet in length (measured from the boardwalk) designed to accommodate fishing and pedestrian use. The City will consider paying up to $21.5 million for the pier structure. At a minimum, the City expects private development of entertainment, restaurants and retail amenities as part of the overall project sufficient to justify the public investment. A plan to operate the new pier in a manner to provide free public access to the end of the pier and fishing from the pier for a fee. New parking spaces within three (3) blocks of the new pier sufficient for the uses on the new pier and any associated development proposed. The City will consider paying up to $3.5 million for the construction of public parking, in addition to that provided by developer. The City will consider a request for TDFP ("Gap") financing. The City expects associated private development adjacent to the new pier sufficient to maximize and justify the public investment. Favorable consideration will be given to proposals demonstrating a return on the City's investment within eight years. The ability of the bidder and its team to successfully deliver on the elements of its proposal. Past development experience will be favorably considered. 38
39 Central Beach Parking 39
40
41 Resort Area Parking Strategy Districts Building on the Resort Strategic Action Plan, the 2013 Resort Area Parking Strategy identified seven parking districts in the Resort Area and the Convention Area. Each parking district was identified by considering the parking challenges unique to each district.
42 Park + Baseline Scenario
43 Walk Distances Highlighted Projects
44 Park + No Build Scenario New Uses
45 45
46 CIP Funding to Support the Projects 46
47 Central Beach Entertainment District Proposed Capital Funding Project Amount Source Central Beach and Convention Parking $55,000,000 TIP Sports Center $55,000,000 TIP Dome Site Entertainment Venue $30,000,000 TIP Dome Site Streetscapes $7,500,000 TIP Pier Replacement $21,500,000 TIP ViBe District 19 th Street $15,000,000 TIP ViBe District (17 th, 18 th & Cypress) 8,800,000 GF Total $192,800,000 GF = General Fund CIP TIP = Tourism Investment Fund CIP 47
48 Potential Leveraged Private Investment Project Public Private Central Beach and Convention Parking $55,000,000 Sports Center $55,000,000 $2,000,000 Dome Site Entertainment Venue $30,000,000 Dome Site Streetscapes $7,500,000 Dome Development The Wave $200,000,000 Pier Replacement $21,500,000 Pier Development $200,000,000 ViBe District 19 th Street $15,000,000 ViBe District (17 th, 18 th & Cypress) 8,800,000 Total $192,800,000 $402,000,000 48
49 49
50 50
51 Workshop Activity 51
52
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