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HomeMy Public PortalAbout1981_04_22 76 MINUTES OF REGULAR MEETING OF LEESBURG TOWN COUNCIL, APRIL 22 , 1981 . I regular meeting of the Leesburg Town Council was held in the Ccuncil Chambers, 10 West Loudoun Street, Leesburg, Virginia on Aptil 22 , 1981 at 7 : 30 p.m. The meeting was called to order by the Mayor, with the invocation by Mr. Tolbert, and followed with the Salute to the Flag led by Mr. Bos . Present were: Mayor Ken- neth E . Rollins, Councilmembers Charles A. Bos, Stanley D. Herrell, Jr. , C . Dewey Hill, Jr. , Marylou Hill, John W. Tolbert, Jr. and Howarc M. Willis, Jr. ; also Assistant Manager Jeffrey H. Minor and Tcwn Attorney George M. Martin. ': he minutes of the regular meeting of March. 25, 1981 were ap- provec as written. STATU5 REPORT FROM CATOCTIN CABLE COMMUNICATIONS ? r. Grant Saunders, project manager, said the tower, earth station and headend building have been located next to McDonald ' s. Construction is coming along, but it has slowed a little due to the utility companies having to make clearance on their poles. There is a problem with underground utilities - they have to follow the routing of the power company' s rights-of-way. They are getting permission from the homeowners to use the private easements. Mrs. Hill asked how large the dish is? Mr. Saunders said there are three different dishes - one is a 3-meter dish - about 10 feet wide, and the o .her is about 15 feet wide. Mr. Minor asked when they expect to start construction on the headend and earth station? Mr. Saunders said in about 15 to 20 days. Mayor Rollins asked what probl@m the private utilities present? Mr. Saunders said the utili :y companies will not allow them to use their underground righto-of-way. They have informed them that, if they can get indiv .dual private easements, they can use the same rights-of-way they are using. They won ' t allow it in writing, so to speak. Mayor Rollins asked what the difference is in that and a pole? Mr. Siunders said they only have a pole agreement with the utility compalies (this is nationwide) - they have a right to use the exist- ing piles but the air space in between creates a problem. If some- one doesn ' t want them to use that right-of-way, they have to find an al :ernative route. Mr. Minor said usually the poles are on _pub- lic p :operty as opposed to the underground - it is not dedicated to cable because the cable companies are not a public utility. Mr. Saund=_rs said they are in the process of getting individual private easemants from the homeowners. So far the response has not been overwhelming - if at all possible, they would like to stay away from using the town easements because they are out front. They have to place a green pedestal box about 18 inches tall for every second home. They would prefer to be in the rear because it is unobtrusive and iF is a straight shot through the back yards instead of having to go on driveways and sidewalks. The people haven ' t really ob- jecte3, but they haven ' t signed an agreement with them. Mayor Rol- lins said they probably "want a dollar . " Mr. Tolbert said he sees men ©ming and going in people ' s yards putting down tapes for guide- lines , but he doesn ' t see them going door to door. Mr. Saunders said they had a problem when they first started - they had one com- plairt out of 240 some anchors. The crew was not knocking first and belling them this was what would happen, so he personally paid a visit to the complaining person. They have had no problems since. Mr . Tolbert said he noticed . .they..put..one.. in front of a neighbor and then left, but he hasn ' t talked to the neighbor. Mr. Saunders said they have been informed that they must get permission first. Mr. Ferrell asked if that is a permanent location for the earth station? Mr. Saunders said it is - it is in the process of being purcFased (about half an acre) and assumed they would have to get a bu_ lding permit to build the concrete building that will house the Electronic equipment and any other permits they would need. He d: d not think any permit is required for the earth station - it is required only for the height of the tower if they have to go over 200 feet. They expect the system to be ready by mid-summer - it shou: d be ready by the deadline. PUBL .0 HEARING ON COMMUNITY DEVELOPMENT APPLICATION The second public hearing on the Community Development Appli- cation for a grant from the Department of Housing and Urban Develop- ment for the rehabilitation and revitalization project for the Souti Harrison Street area was opened with the reading of the No- tice of Public Hearing by the Clerk. MINUTE' OF APRIL 22 , 1981 MEETING. ( Ii M. yor Rollins said two public hearings are required on-this- 77 Federa grant of almost . $1 , 400, 000 over a three-year period to redeye op and rehabilitate this area which lies to the north of the VEtCO right-of-way roughly up to Loudoun Street. The purpose is to . 11ow these interested people to say and to give the town the 'I benefi of their thoughts and comments concerning what they think should be done in that area with these funds insofar as the rede- ' _ velopm nt and rehabilitation of that area is concerned. He asked Mr. Mi or to give a brief statement of just what the town proposes to do here. This can then be used to agree or disagree and make other .uggestions. M . Minor reviewed the activities to be included in the project as fol ows : 1 H 'using rehabilitation - Basically, this provides outright grants and loins for improvements to houses in the area - primarily, East Royal ;rid East South Streets . This could be used for new heating units, storm windows, siding, plumbing - it is limited to low and modera e income persons earning under approximately $20, 500 for a family of four. N .wnhouse site development - The town will advertise for bids Q for a .eveloper to come in and build ten (10) townhouses. The town will t-sentially give the developer a site, pay_ the availability . -7 fees .r utilities, and put in a parking area, etc . The builder will prese a design to be approved by the Council . These houses will Q be ay- liable for approximately $35 , 000 to $38 , 000 . Hopefully, there Q will . Iso be some Virginia Housing Development Authority loan assist- ance ' th this project as well, which will get the mortgages to an affor.i.ble range for those persons making in the $20, 000 range. These ill be owner-occupied homes . • reet improvements - The Northern Virginia Regional Park Au- thorisi has acquired the old W & OD right-of-way from VEPCO - this will .e a linear park and bike-way - it is already constructed to 11 Hernd.n and we have a piece of it here in the South King Street area. Basic- 11y, the Park Authority was going to eliminate the access that Blank:nship Oil , Leesburg Iron and Metal and Perry Engineering has - it is not a public road. This will develop a good road, sidewalk, etc . n the area - it will provide permanent access. utility improvements will go along with water and sewer extension. ' ecreation facilities - This would be around $100 , 000 for a small park to serve the area. listoric preservation - This includes the relocation of the old freight station on the VEPCO property. This will assist a private developer to come in and renovate that structure probably for a res- taura .t or other use and it will be turned over and owned by the pri- vate .ntrepreneur. armer ' s market - This will be on a much smaller scale than the v -ry successful project they had in Virginia Beach. They will build stalls and sell baked goods, crafts, produce, etc . ommercial building development - The town will build two very small industrial commercial parks that will either be leased or sold at a educed below-market cost to a private business - hopefully, I/ busi -sses that will be an employer of low and moderate income peo- ple ( .elow the $21, 000 figure) . The purpose of this is not to re- loca .- people already in Leesburg - it is to develop new businesses in Lo--sburg. :usiness relocation means that McKimmey ' s Feed Store will be relo.-ted - the buildings would be essentially demolished and the stor: will be relocated to a new structure in that area - a safer and i .re economical structure. Commercial/industrial park site development assistance - The town would purchase land with HUD funds and sell it at a below-market rate to potential business and industrial clients. MINUTES OF APRIL 22 , 1981 MEETING. 78 Mr. Eugene Barber, a resident of East South Street, said he was present at the November hearing on the preapplication. He was and is interested in this project as it pertains to his sec- tion of town. Mayor Rollins said that, in order that those people affected by this project may have a say, there will be a citizens committee, thereby giving them an opportunity to comment and make suggestions as this project progresses. He asked those who would be willing to serve on such a committee to volunteer at this time. Council has decided that this shall be a five-member committee. Those volunteer- ing were: Mrs. Robbie Taylor - 107 East South Street Mr. Eugene Barber - 133 East South Street Mrs . Laura Powell - 104 East South Street Mrs. Ruth Bishop - 104 East Royal Street Mrs. Melvie Savopoulos - 105 East Royal Street Mrs . Betty Lemarr asked if new drainfields will be included in this project? When it rains, water backs up in her house and she has to call the town. Mr. Minor said there will be no replacement of water and sewer lines in this project. Mayor Rollins asked that the town check into this. Mr. Max Mellott, representing Perry Engineering Company, is in favor of this project. He and Jason Cohen of Leesburg Iron and Metal represent the people at the very end of what is a so=called navigable road in this area. They have been and are interested in the resi- dential areas proposed and what will happen to them. They have the heavy road use in that area and ask that this be kept in mind when they consider the location of the residential area. This is the only way they have in at this time . Mr. Bos asked what procedure those people interested in the rehabilitation funds will have to go through in order to qualify? Mr. Minor said there will be a contract with Loudoun County - they have a housing office and a housing rehabilitation specialist - the administrative procedures'atready in place. Basically, there will be a very preliminary survey done in the next three weeks of a few of the places that obviously have some problems. For example, if Mrs. Lemarr ' s problem is related to her home, this is one of the projects that would be funded 100 percent. The County has the ap- plications - they will handle it all the way - from helping select a contractor to inspecting the project as it goes along. These peo- ple will have a lot of information on it and they will have a hear- ing later on to discuss the rehabilitation program. It is not a difficult process. Mr. Jason Cohen of Leesburg Iron and Metal said he and Mr. Mel- lott have been led to believe there will be some input from the busi- ness people in that area. Will this be set up separately or what? Mr. Minor said it would be appropriate for the business people and the residents all to have input in this - being a member of this com- mittee would be. the way to do it. This is for any business or resi- dent in the area. Mr. Cohen also asked if this road goes through to Catoctin Circle, would it be made possibly 40 feet wide? Mayor Rollins said it would be built according to Town standards - prob- ably a 50 to 70 foot right-of-way. Mr. Cohen said they also have a drainage problem through their property from the trailer park. Mr. Minor said this project will include drainage facilities for this roadway. Mayor Rollins said this advisory committee should include businesses and invited Mr. Cohen or others interested to call the town office before the appointments are made. Mrs. Laura Powell asked if these renovations, etc . would result in putting these properties in a higher tax bracket? Mayor Rollins said it very well could - if you don ' t do anything you will be in a higher tax bracket with an increased tax rate. MINUTES OF APRIL 22 , 1981 MEETING 79 Mrs. Van Sickles asked if anyone has projected how much real estate values will increase as a result of this project? Mr. Hill felt they would certainly start from "0" and go up. Anything we do will certainly help property values in this area - it would be to everyone ' s advantage to have it when you are starting from a "0" base. Mayor Rollins said there is so much open vacant unpro- ductive land in this area. Mr. Tunis Campbell, not a resident of the area but an owner of rental property, said there will be a lot more traffic in this area as a result of this project. Mayor Rollins said this will take a lot of traffic out of that area too and bring it off of Catoctin Circle and not down South Street. Mr . Campbell felt this is some- thing for the homeowners to think about. Mr. Hill felt this project will improve the residential area - he did not feel traffic would deteriorate what is there now. Mayor Rollins said it will not be "a rural retreat. " Mr. Hill said it disturbs him that the public notice reflects "low income" . Mr. Campbell pointed out that "low income" now is $22 , 000 . Mr. Hill said he certainly does not look at these people as "low" people. He feels this project will help everyone in the area - there will be some traffic, but the other benefits will be greater. Mrs. VanSickles asked if the application will be approved with everything in it or can they take certain things out and put others in? Mr. Minor said the application will contain all the projects mentioned. You can amend the project throughout the project years. However, to do this requires several hearings and approval of HUD officials. Mayor Rollins said if you have an idea this is the pur- pose of this hearing. Mr. Minor said the application has very little detail - it is very conceptional . One of the first things they will do is to hire a professional architect - planner firm that will come in and look at the land use and try to develop some alternative plans with some architectural schemes - where the roads will go, where the residential, industrial, park area, etc. will be so they have some different options to look at. This will be done very care- ' fully over about four and a half years. There is a lot of flexi- bility in this project. Mrs. Van Sickles was particularly inter- ested in the industrial aspect - what type of businesses could go in there. Mr. Herrell said there would be no junk yards on Main Street. Mr. Cohen ' s business is a recycling business. Mr. VanSickles asked if, once the plans have been drawn up, will the individuals living in the area on the committee have in- put at that time as to the location of residential, industrial, etc . ? Mr. Minor said the design, implementation and decisions ultimately rest with the Town Council (this is a HUD requirement) . The purpose of the committee is to have input at every stage of the project - when they get the first draft from the planner, it will be taken to the advisory committee as well as to the Council. Ob- viously they will not go to every homeowner. This committee will be involved with all of the plans and will reflect the community ' s views on the project. They may say they don ' t want something and the Council will say yes and it will go. Mr. Cohen asked if the committee will have the right to over- rule or advise against a particular plan or have input into it? Mayor Rollins said it will have a chance to see it, to review it, to have input into it and to make recommendations to this body, but this body has the final say. They will certainly listen to the com- mittee, within reason. Mr. Cohen asked if this is a necessity to get the loan - is the loan secured yet? Mr. Minor said all HUD tells them, and they monitor this as very important to them, is that the people that live there have input somehow. This advisory committee is the way we have used in the past and it is the way most jurisdic- tions do. The funding is there - the only way they could turn down the application is if the scope of the project is changed materially or they find out we have lied in the preapplication. Mr. Cohen asked if the townhouse development is one of the prerequisites? Mayor Rollins said there has to be a certain amount of housing - there has to be new construction. This will be ownership property - not leased property. Mrs. VanSickles asked what could stop some invest- ment company from buying up all ten of these houses? Mayor Rollins said the Council will set the terms and conditions. 80 MINUTES OF APRIL 22 , 1981 MEETING. Mr. Cohen asked if there is any particular thing they will start first? Mayor Rollins said No. He would think the first thing would be to plan it; second, to acquire the property and third, to develop it . Mr. Cohen said his business generates 50 to 100 customers per day and they complain about the road. He wondered if he should take some action on this road or will it be sometime in the near future where he could put it off? Mayor Rollins thought he could look at perhaps two years before the road will be constructed. Mr. VanSickles asked, assuming the application is processed without any problems, how soon could the residents have an over- view as to what is going to go where? Mayor Rollins thought with- in a year - perhaps sooner than that. This will be the first thing that is done. Mr. Powell asked Mr. Minor to differentiate between a loan and a grant? Mr. Minor said they have not really developed the final rules of eligibility, etc. related to this project. Basically, what is done conventionally on these kinds of projects is the grants are available to persons of lower income (people that make probably in the neighborhood of $14 , 000 to $15, 000) . These would be essentially grants. The only time you would ever pay that money back would be if you sold it to someone in a high income bracket or someone who was going to speculate it. We are doing this to help the quality of the people living there now. Loans are longer than usual term loans with well below market interest rates. The interest rate is subsidized by HUD - this is a cheaper way to go than to give outright grants . You could end up with a 10 or 15- year loan at 2 percent. Mrs. VanSickles asked if any of the town or county funds go toward this project, or is it strictly federal money? Mr. Minor said the only town funds going to this project are, over the four years, maybe $40, 000 to $50, 000 to help with the administrative side of the project. There will also be project income - we may buy and sell some land and we may have some rental income. We have $1, 300, 000 from HUD, plus we project another $1 , 000, 000 in income. HUD will actually pay the town for the availability fees for water and sewer. Out of approximately $2 , 300 , 000 , it would probably be less than $50 , 000 to $60, 000 of town funds spent over the four years. The public hearing was closed. Mayor Rollins said the committee will be appointed at the next meeting. PETITIONERS Mr . Douglas Kelchner, Pastor of the Full Gospel Assembly of God Church on North Harrison Street, the subject of a rezoning request by Mr. John A. Stowers (ZM-31), addressed Council at this time in favor of the proposed rezoning. This rezoning is important to their church as a whole. The propeKty for their new location was pur- chased in January of 1980 an gan construction this past fall. They signed a contract with Mr. Stowers at that time on the Harri- son Street property and are looking forward to settlement on April 5. The parsonage is almost complete and the church walls are up to the first floor . All of this has been done with the cash offer- ings from the people with no loan. This settlement is the means of continuing their new building - without it their construction has and will come. to a halt. This rezoning request is not unreasonable as the property is already bordered on the west by B-1 and on the south by B-2 . The present structure will not be altered so as to greatly change the appearance of the street and the location is ideal in meeting the growing need for office space in the imme- diate downtown area. The present fourteen parking spaces are more than most businesses and offices in the downtown area have. He has observed that the nearby Vinegar Hill parking lot is being used far less than its capacity could easily bear. It has been noted that they, as the present owners, have not spoken at pre- vious hearings because they felt their quiet and respectful sup- port would better serve both of their purposes. However, they are deeply concerned about the passage of this rezoning issue and many of their members are at the church tonight praying about the outcome of this meeting . He asked Council to please support this MINUTES OF APRIL 22 , 1981 MEETING. 81 rezoning because it is reasonable and, most of all , because of the disaster its failure would cause the citizens of Leesburg who at- tend their church. Possible sales without rezoning to B-1 clas- sification would be greatly reduced as it would leave it in mostly church use. Money is not only tight to everyone, but it is es- pecially tight to churches of the size that would be interested in the use of their church facility. Their building program is in Council ' s hands tonight and they respectfully await its deci- sion. Mr. Herrell asked if he is aware of what would be allowed under this rezoning to B-1? Mr. Kelchner said they are and they are aware of what has been proffered out. Mr. Hill complimented 11 Mr. Kelchner and his congregation for their accomplishments on their new property, and particularly with no additional funds . MANAGER' S REPORT: Mr. Minor commented on several items in the Activity Report: (1) They are going forward with recruitment for Assistant to the Manager for Community Development - they have already received several applications. In other personnel actions, they should have a new police recruit in the next week or two - they will be giving tests on Friday and Monday. 0 NT (2) The Public Works Department is making progress on the work on East Market Street. Q (3) They have met twice this week with Mr. Stark of Earth Q Design on the Plaza Street Park plans and hope to put this project out for bids very shortly. (4) He passed around some photographs of the Potomac River Plant - they are making a lot of progress out there. COUNCILMEMBER INQUIRIES AND COMMENTS : Mr. Herrell asked if they have heard anything on the light at Plaza Street - it is dangerous without any light? Mr. Minor said a left hand signal will be included with the new. road - they will not fund or participate in any change right now. Mr. Hill asked if they have heard anything on progress on this project? Mr. Minor assumed they have not. Mr. Hill said Mr. Bell said they have just about wiped out everything else for Leesburg - if they come through, it will be a "plus" for the Council . MAYOR' S REPORT: Mayor Rollins asked for suggested dates for Council ' s Budget session. After some discussion, it was decided to meet on Tuesday, May 5th at 7 : 30 p.m. in the Virginia National Bank Board Room for this purpose. 81-0-10 - ORDINANCE - AMENDING THE ZONING MAP . On motion of Mrs. Hill , seconded by Mr. Tolbert, the following ordinance was proposed: WHEREAS, rezoning application #ZM-31 by John A. Stowers was referred by this Council to the Planning Commission on January 14 , 1981; and WHEREAS, the Planning Commission on February 19 , 1981 held a public hearing on the application for rezoning; and WHEREAS , the Planning Commission on March 5, 1981 recom- mended to this Council that the proposed rezoning be fa- vorably considered contingent upon certain proffered con- ditions; and WHEREAS, this Council on April 8 , 1981 held a public hear- ing on the proposed rezoning and received a proffer in 82 MINUTES OF APRIL 22, 1981 MEETING. writing from Robert F. East, agent for the applicant, set- ting forth certain conditions which would become a part of the rezoning request; THEREFORE, ORDAINED by the Council of the Town of Leesburg, Virginia as follows : SECTION I . The Leesburg Zoning Ordinance is amended to re- vise the Zoning District Map to change from R-2 to B=1 0. 45 acres of land located on the west side of North Harrison . Street, bounded by the property of J. Blakely and Eva R. Simpson on the north, Harrison Street on the east, the prop- erty of Maphis and Lydia Lunsford on the south and Colonial Square on the west, subject, however, to the following prof- fered conditions submitted in accordance with the provisions of Section 11-8-4 of the Leesburg Zoning Ordinance: A. Eliminate or waive the following uses in the B-1 zone: 1. Section 5-1-3 : Hotels, motels, multi-family dwellings and tourist homes. 2 . Section 5-1-4 : Poles, wires , transformers and other facilities necessary for the provision and maintenance of public utilities. Public utility buildings and related structures neces- sary to the furnishing of proper service in the area upon prior approval by the Planning Commis- sion. 3 . Sections 5-2 and 5-2-1 : Service stations and public parking lots complying with the provi- sions of Sections 2-7-2-1 and 2-7-2-2 . 4 . Section 5-1-2 : Drug store, food store. SECTION II . This ordinance shall be in effect upon its pas- sage. Mr. Herrell said the Finance and Administration Committee looked into this as to what the change in zoning would allow and then at what was proffered. It was the unanimous opinion of the committee that, even with the proffer, it was too broad. It was, therefore, recommended that it be denied with the proffer as it stands. Mrs. Hill said she has changed her vote on this. Mr. Bos asked if any- one has a list of the allowable uses? Mrs. Hill read Section 5-1-2 of the Zoning Ordinance which included the list of items not proffered out. They could have a two-lane bowling alley or a laundromat but it was not felt that this would be done - not with the present price of land. Mr. Herrell said it was the committee ' s opinion that the best use for the property would be for office space, especially since the surrounding area is zoned for that purpose and is being used as offices. Of course, he could sell it tomorrow. Mrs. Hill felt there were certain uses the owners would not consider, but Mr. Herrell said he could not make that judgment and would vote on the facts. Mr. Bos said there is. B-2 zoning surrounding about three-quarters of this land now. Mrs. Hill said there are two letters from neighbors who felt they could live with the things that were proffered out. Mr. Herrell said there was only one person at the meeting who said he couldn 't live with all the things that weren ' t proffered out. There is residential all around it and we have gone through this many, many times. The townhouses will be there for many years. He felt it is good to have a residential-commercial mix in town but you have to be careful as to what kind of mix there might be. They have rezoned one house to commercial in town and sooner or later everybody on the street wants to go commercial as well. Mr. Bos felt you can 't speak to what the applicant might do "down the road. " Mrs. Hill said you have to use some logic. Mr. Herrell said he would have no problem if they use it for office buildings. Mr. Hill said he is not an advocate of spot zoning and he was certainly against using a house on Loudoun Street for purposes other than a private dwelling, but there was a strong outcry against that. In MINUTES OF APRIL 22 , 1981 MEETING. Q9 this particular rezoning, he saw no-one who really objected to it. He feels they should vote for what the people want in the area in which they live. Mr. Herrell felt the only way the Council would get an outcry would be if we wanted to put another Loudoun House on the other end of town. Mr . Hill was more concerned about the proffer - whether a new owner would know what has been proffered out. He asked how strong a proffer really is? Mayor Rollins said a proffer goes with the zoning - a restrictive covenant goes with the property and is recorded. He felt that a proffer should be re- corded as well. The zoning map should be marked with an asterisk to show that proffer and all proffers are on file in the town office. How many people will do this he did not know, but it is their prob- lem. Mr. Martin felt it is, in a sense, the same for both. If you could get the restrictive covenant from the church or the prospective buyer, it would be in the nature of restricting this property against the following uses. The only difference is what we found from the State Code - it is on record in the zoning office. He felt it is a very strong weapon against the buyer. If he buys a piece of prop- erty assuming the zoning will allow him to do anything allowed by that zoning and then finds out there is a proffer on the property, he would be in real trouble. Mr. Hill said this is the real prob- lem he has with the proffer. Mr. Herrell asked if he felt this N would be a proper location for a laundromat? Would the residents Q of the area object? Mr. Hill said if Lawrence Muse had been here and voiced objection, he would have listened to him. Mr. Herrell -3 felt the voters put them here for that purpose. Mrs. Hill said Mr. Q Muse said he did not object to this rezoning, even though he was not here. Q Mr. Stowers said, in good faith to the people living in the area, before they entered into an agreement with the church, they talked with the landowners in the area. Mr. Muse was one of them and he was very much in favor of their application. Last week he said he would come to Council meeting if we wanted him to. Prob- ably in the neighborhood of 100 people have told him the same thing. They have tried to proffer out the things Council thought ' most objectionable. At the last meeting, it was parking that was a problem and they may have to go to BZA for a variance concerning it. It would be absolutely "the last straw" to think about a laundro- mat and he certainly would not put in a bowling alley. They cer- tainly want to do something that will benefit the taxpayers of Lees- burg - they don ' t want to do anything that would detract from the area or devalue anyone ' s property. They want to increase the value of the property - this would be almost required or the bank will have nothing to do with this project. Mr. Herrell felt the proffer is not strong enough - once the property is rezoned, he could do almost anything he wants to. Mr. Bos said the predicament the church is in is not our fault but, if this building is not re- zoned, it will have to be either a church or a residence of some sort. Mr. Herrell said the proffer is too broad - this was the opinion of the committee. Mr. Bos said he has changed his mind - he feels the applicant has made the application in good faith. Considering the imperfect zoning in town, he has come in where there is existing zoning in that use or a higher use and proffered down to a lower level than exists in the area, except for resi- dences. Mr. Herrell believed Mr. Stowers and felt he would do what he says, but doesn ' t know whether he will keep that property. Mrs. Hill said when the Planning Commission finishes working on the new Zoning Ordinance, they will go into the new zone. Mr. Tolbert called for the question. The ordinance was adopted by a roll call vote of 6 to 1 : Aye : Councilmembers Bos, D. Hill , M. Hill, Tolbert, Willis and Mayor Rollins . Nay: Councilmember Herrell . 81-55 - RESOLUTION - AUTHORIZING A MANAGEMENT AGREEMENT FOR LEESBURG MUNICIPAL AIRPORT BY AND BETWEEN THE TOWN AND JANELLE AVIATION, INC . On motion of Mr. Tolbert, seconded by Mr. Herrell , the follow- ing resolution was proposed: MINUTES OF APRIL 22 , 1981 MEETING . 84 WHEREAS, Janelle Aviation, Inc. submitted a Management Agreement Proposal on April 1 , 1981 in line with the town ' s specifications issued March 5, 1981 ; and WHEREAS, Janelle Aviation, Inc . amended its Management Agreement Proposal to incorporate a revised net monthly rent schedule acceptable to the Leesburg Airport Commis- sion; and WHEREAS, the Management Proposal submitted by Janelle Avia- tion, Inc . was one of the two approved by the Leesburg Air- port Commission; and WHEREAS, Janelle Aviation, Inc. offered the highest quali- fied bid in the amount of $21, 500 for the Century Aviation, Inc. lease at the public auction conducted by Stanley J. Samorajczyk, Trustee in Bankruptcy, on April 14 , 1981; THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows : The Mayor is authorized and directed to execute a Manage- ment Agreement, on behalf of the town, with Janelle Avia- tion, Inc . at the time it closes the purchase of the Cen- tury Aviation, Inc . lease at the airport. The Management Agreement form and terms shall be the same as published in the document "Request for Proposal and Application for Man- agement Agreement, Leesburg Municipal Airport" and in ac- cordance with the aforementioned negotiated bid submitted by Janelle Aviation, Inc. Mayor Rollins asked who had the authority to change the amount of the rent under the lease? Mr. Minor said the rental amount is in- tact in the lease - what Century did three years ago is still there. All they have done is allow the applicants for the management agree- ment to bid a management fee that the town pays to the fixed base operator for their operation of Unicom, their control and manage- ment of the new apron, the operation and administration, etc . - it is a mechanism, basically, to reduce the rent to an economical fee. Mayor Rollins said it is a change in the amount of rent being paid under the new agreement. Mr . Minor said technically no, because the rent is still there - if they wanted to, Mr. Haynes could pay $1800 a month rent and the town would pay him $1, 000, at a net rent of $800 . The management agreement is up for adoption tonight - the rent schedule is a part of this agreement - it is $750. 00 net per month for the first year. They bid this amount. Mayor Rollins asked who authorized the method of the bidding? Mr. Minor said the Airport Commission put out the management agreement package. Mayor Rollins asked by what authority they did this? They have no au- thority to do that. Mr. Minor said they have solicited bids before. It is still the Council ' s decision to reject or accept what they have done. The Code sets out their responsibilities . Mayor Rollins said, basically, this Council never authorized this . This is the only body that could authorize it. Mr. Minor said they have done nothing to obligate the town to anything. In fact, in their let- ter to Mr. Haynes, they indicated that they would simply recommend to the Council . Mayor Rollins said he would not vote against it now, but this is a very bad procedure to do it this way. Council should have adopted or rejected that recommendation from the Air- port Commission and then put it out for bid. The Airport Commis- sion is an advisory body to the Council . Mr. Minor said they have some other authorities though. Mayor Rollins said the only au- thority they have is what has been granted to them by this body, . and one of them is28hat has just happened. His question is whether or not the Trustee in Bankruptcy has usurped the town ' s authority? Mr. Minor said he and the Airport Commission will take full re- sponsibility for whatever errors there were. They encouraged the Trustee to allow them to do this because they believed they had a non-asset if they did not do this - it would not have been worth putting out for bids. Mayor Rollins ' point was that the success- ful bidder bid on a package that Council never approved. Mr. Minor said Council has no approval over the Trustee ' s sale. Mayor Rol- lins said this was his question, but Council does have some say over the amount of the rent to be paid - this is what they never approved. There was further discussion concerning the method by MINUTES OF APRIL 22 , 1981 MEETING. 85 which the bids were received. Mr. Minor said Council could have approved the bid package before it went out. Mr. Bos understood the lease is useless without the management agreement. Mr. Minor said that is the opinion of our counsel; Mr. Lewis, the Trustee and the Airport Commission - he agrees. There were only two bid- ders out of 40 some people who were originally interested in this. This is the only way the town will get the $15, 000 back that Cen- tury owes the town. Mr. Bos asked how this compares with what Century was supposed to be paying? Mr. Minor said it is about 40 percent less. This is a realistic amount - we will have posi- tive cash flow in the Airport Fund - it will meet all the town' s obligations and have a reasonable surplus at the end of each fis- cal year. They feel this is a pretty good deal. The proceeds from this sale go to cure Century ' s default, which is around $15, 000 to the town (we get the first $15, 000 out of the $21 , 500 bid by Mr. Haynes. ) If the Trustee had rejected this lease, the airport would have been immediately turned over to the town to operate and we would never have seen that money. Mayor Rollins instructed that the Town Office staff not send out proposals on such things - be it sanitary consultants, garbage collection, airport or whatever - untit/iody has authorized it. The decision to send out proposals is one to be made by this Council . Mr. Hill asked what the Bankruptcy Court demanded of the town, or did we have any election at all? Mr. Minor said there was a lot of discussion with Mr. Lewis and Mr. Martin about a year ago - they have known this bankruptcy was probably coming so were sort of pre- pared for it. Basically, the Court appoints a Trustee - he is re- sponsible for the liquidation of their assets when they file for bankruptcy. One of their assets was their lease with the town. The Trustee had two options: (1) he could have said the lease is un- economic, it is not an asset, I reject it, it ' s your airport; or (2) he could use the management agreement to reduce the rents lo- cally. He said he would assume and assign the lease under this op- tion. This has to be approved by the Bankruptcy Court, but we anticipate no problems with that. Under this procedure, when it is assigned they have to cure the financial defaults. These in- cluded FBO fee payments and rent, totalling close to $15, 000. Had the bid been only $10, 000, we could have said .this was not enough but, because this amount totally cures our defaults insofar as the options are concerned, basically we have to accept the high bidder. Mr. Hill asked if we are locked into this? Mr. Minor said not le- gally, but the bottom line is that we have an excellent proposal - a very high bid - and he thinks we are in an excellent position at the airport. Mr . Herrell asked if Council is going to see all bid documents before they go out in the future? Mayor Rollins said we will au- thorize the bids to go out - authorize the manager to seek bids. He was not advocating Council approval of the bid document itself, but before the town requests bids on a particular project, we must authorize it to go out. This can be broadened or restricted. Mr. Herrell felt they could not vote on something if they have not seen the document. There followed lengthy discussion on this and other matters relating to bids. Mr. Tom Nalls, representing Mr. Haynes, the successful bidder, understood that, when the bankruptcy proceeding was initiated, the Trustee ' s initial determination was that the lease had no marketable value. The town would have then started all over, where they were two or three years ago, with a franchise proceeding starting from zero. Through consultation with the town ' s attorney, this mechanism of a management agreement was constructed whereby the lease could be bought more in line with economic reality of airports. That is the basis on which the proposals went out. Mr . Haynes reviewed the lease in its initial stage and came to the conclusion that it was not feasible, but through the management agreement mechanism it might be made that way. Forty some people asked for the proposal package and only two people went to the trouble of actually docu- menting proposals. They appeared before the Airport Commission and were interviewed by them. Subsequent to that, numbers were changed 86 MINUTES OF APRIL 22 , 1981 MEETING. and, as a result of that vote, the proposals as amended were then qualified to bid. They bid $21 , 500 at that auction, which was more than they thought they would have to pay. By the same token, they did find the management agreement and the bid were going hand in hand. The Trustee is happy about this and sees no problem with it being approved by the Bankruptcy Court. Mr. Haynes talked with the Trustee today and still does not have a date for that hearing, He indicated that he was expecting to settle on or before the 28th of April . He indicated at the auction on the 14th of April that the hearing would take some time (within 20 days) and could run be- yond the 28th of April . However, he will not settle on that unless he has assurances from the Council that he has a management con- tract under the terms he proposed. Mr. Hill asked if, under this agreement, Mr. Haynes will be taking over the lease as well? Will the revenues come to the town? Mr. Minor said the revenues will come to him, just like Century. All you look at is the net - it is just a mechanism to reduce the net rent. Mr. Hill said we are paying him to manage it - why are we doing this? Mr. Minor said he is paying us more. Mr. Hill asked why we don ' t get all the revenue and then pay him a fee to manage it? Mr. Bos said this is to keep the IRS off our back. Mr. Minor said this complies with the Virginia franchise act. It would have been a lot more simple to take that lease and revise it and put it out for bids, but we couldn ' t do that because of the franchise laws . Also, they would have lost the $15, 000, would have had to take over the airport, advertise it and go through a whole new franchise proc- ess. The rent was the real problem in that lease. Mrs . Hill asked when the lease could be changed? Mr. Minor said when the lease is over - about 17 years. Mayor Rollins asked if this arrangement is for the duration of the lease? Mr. Minor said there are options involved - if Mr. Haynes does not elect to pick up an option at some point or if he is in default and the town will not extend an option to him, it is over. Mr. Haynes gave a brief sketch of his background, stating that he grew up close to Leesburg, leaving the area to go to college and on to five years in the Navy as an aviator. He worked for 10 years as an investment banker in the Washington area, during which time he helped finance several businesses starting from scratch. For the last seven or eight years, he has been in the savings and loan business. He has been involved during that period of time with aviation, including the purchase of an airport in Fairfield, Pennsyl- vania. He has had some experience with bankruptcies, having bought that mortgage from a bankrupt corporation and foreclosing on it. It has been a very successful operation. He is no longer involved in the management of it. He is excited and optimistic about this and understands the risks. He has put a great deal of time into the planning, etc . and. thinks it can be a profitable operation. He lives in Chevy' Chase, Maryland now. Mayor Rollins asked if he has some things he would like to see done at the airport? Mr. Haynes said basically the first thing he intends to do is to provide the very basic services that the people operating at the airport need; provide some organization to the tie-down situation and to provide fuel services. He also plans to put in a first class maintenance operation for the aircraft based there and for others; also, as quickly as possible, develop a flight school operation. All of this could happen within the first two or three months. He will hire a manager - he has interviewed several people and expects to have an answer from one of them next week. Mr. Bos asked if he views aviation pretty high now in spite of fuel prices, shortages, etc. ? Mr. Haynes said No, it is a very difficult industry, but he feels fairly confident that the way he has structured this he can go for a number of months and even a number of years and show a small profit. Mr. Tolbert said he would like to see a nice terminal out there and something to eat. Mr. Hill asked Mr. Minor if he got financial statements when he requested bids? Mr. Minor said he did. Mr. Herrell said, in looking at the management of other FBO' s, it is quite obvious why they were not successful. Mr. Haynes said he does not in any way intend to be an absentee landlord just because he will be hiring a manager - he will be very active in it. The first six months to a year in any business is critical and he expects to MINUTES OF APRIL 22, 1981 MEETING. o 7 take no salary out of this for at least the first six months. O The resolution was unanimously adopted: Aye: Councilmembers Bos, Herrell, D. Hill, M. Hill, Tolbert, Willis and Mayor Rollins. Nay : None. 81-56 - RESOLUTION - AUTHORIZING NOTICE OF PUBLICATION OF PUBLIC HEARING ON TAX REVENUE INCREASE. On motion of Mr. Bos, seconded by Mr. Willis, the following resolution was proposed: ' WHEREAS , Section 58-785. 1 of the Virginia Code requires a public notice and public hearing whenever reassessments of real estate within the town would result in an increase of one percent or more in the total real property tax levied; and WHEREAS, reassessments within the town between FY1981 and FY1982 will result in a tax revenue increase of 1 . 6 per- cent if the proposed $0. 17 per $100. 00 assessed value tax rate is approved by this Council : CD THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows : Q A notice of public hearing to consider a tax revenue in- Q crease shall be published in the Loudoun Times-Mirror on May 7 and May 14 , 1981 for public hearing on June 10 , 1981 at 7 : 30 p.m. in the Council Chambers, 10 West Loudoun Street, Leesburg, Virginia. It was explained that this has to do with increased revenue - it has to be advertised if we take in more money even though we have de- creased the rate. This is the real tax increase adjusted for reas- sessments, etc. The resolution was unanimously adopted: Aye: Councilmembers Bos, Herrell , D. Hill, M. Hill , Tolbert, Willis and Mayor Rollins. Nay: None. 81-57 - RESOLUTION - AUTHORIZING NOTICE OF PUBLICATION OF PUBLIC HEARING ON APPLICATION #ZM-32 BY INTERNATIONAL PAVILION. . On motion of Mrs. Hill, seconded by Mr. Tolbert, the following resolution was proposed: RESOLVED by the Council of the Town of Leesburg, Virginia, as follows: A Notice of Public Hearing to consider Application Number ZM-32 by International Pavilion Company to have rezoned from R-1 to B-2 , - 63 acres of land located in the newly annexed area shall be published in the Loudoun Times- Mirror on May 7 , 1981 and May 14 , 1981 for public hear- ing on May 27 , 1981 at 7 : 30 p.m. in the Council Chambers, 10 West Loudoun Street, Leesburg, Virginia. Mrs. Hill explained and exhibited on a map the area in question and what the Planning Commission is recommending. The Commission has recommended giving them R-4 for 33 acres - this would still give them the commercial area they had when they came into town. A good many citizens from both Carrvale and Heritage Square were present and wanted the entire area to be R-1 , so they were really not happy with this. The Commission tried to give them what they had. The resolution was unanimously adopted: Aye: Councilmembers Bos, Herrell, D. Hill, M. Hill, Tolbert, Willis and Mayor Rollins. Nay: None. p MINUTES OF APRIL 22 , 1981 MEETING. S s Mrs. Hill said she attended her first Loudoun Museum board meeting recently. Mr. Chatelain, architect, presented plans for what they want to do (about $150, 000 worth of work) . They will try to get both public and federal funds . He is proposing chang- ing the entire inside of the present Museum building, as well as the Odd Fellows building. The proposal includes a glass wall for the Odd Fellows building facing the parking lot. She asked if Council does not have to approve any plans before any changes are made? Mr. Minor said it is the town ' s building. Mr. Herrell said he did not think a glass building is appropriate in the Old and Historic District. Mayor Rollins thought these plans would have to go before the Board of Architectural Review. He also felt she should tell the Board that there are some serious reservations about such plans . Also, it might be well to include in the lease for the Odd Fellows building a clause that says no renovations can be undertaken without the town ' s approval . 81-58 - RESOLUTION - REGARDING AN APPLICATION FOR COMMUNITY DEVELOP- MENT FUNDS . On motion of Mr. Tolbert, seconded by Mr. Herrell, and there be- ing no objection to consideration tonight, the following resolution was proposed and unanimously adopted : RESOLVED by the Council of the Town of Leesburg in Virginia as follows: The manager is authorized and directed to submit a full ap- plication to the Department of Housing and Urban Develop- ment in the amount of $450 , 000 for the South Harrison Street Redevelopment and Revitalization Project, to include those projects generally described in the preapplication submitted December 19 , 1980 . Aye: Councilmembers Bos , Herrell , D. Hill, M. Hill, Tolbert, Willis and Mayor Rollins. Nay: None. Mayor Rollins reminded that the appointment of the Citizens Committee on the above project should be on the agenda for the next Council meeting. Mr. Cohen requested that the businesses have some input on the project as well, whether it be on .this committee or a separate one. Mr . Minor felt it should all be one committee. Mr. Cohen then asked that he be included in the appointments. On motion of Mr . Tolbert, seconded by Mr. Herrell , the meeting was adjourned at 10 : 15 p.m. Mayor Clerk of theCouncil