AGENDA Waynesboro City Council April 30, 2007 – 7:00 PM - April 28

AGENDA

Waynesboro City Council

April 30, 2007 – 7:00 PM

1. Call to Order/Pledge of Allegiance

2. Consideration of a resolution providing a commitment by City Council to the Wayne Theatre project through the Economic Development Authority.

3. Public Hearing – Reassessment/Real Property Tax Rate

RESOLUTION

Waynesboro City Council

Monday, April 30, 2007

WHEREAS, the City of Waynesboro accepted the Wayne Theatre from R/C Theatres on December 28, 1999 and directed the Waynesboro Cultural Commission to develop a plan for the theatre’s continued use as a community asset; and

WHEREAS, the Cultural Commission created and incorporated the Wayne Theatre Alliance on June 8, 2000 and charged it to develop a plan that would generate three distinct benefits for the community: to preserve a historic landmark, create a performing arts center, and provide a catalyst for the continued revitalization of downtown Waynesboro; and

WHEREAS, the Waynesboro City Council has, to-date, supported the work of the Wayne Theatre Alliance with funding for professional theater and marketing expertise and extensive design work and, most recently, with the stated intent to donate the building to the Wayne Theatre Alliance; and

WHEREAS, the Waynesboro City Council has obtained an estimate in the amount of $300,000 to demolish the Wayne Theatre and an estimate of $417,100 to replace a leaking roof and failing roof structure that is currently compromising the structural integrity of this historic landmark; and

WHEREAS, the Waynesboro City Council has a legal and moral responsibility to maintain the structural integrity of its historic landmarks; and

WHEREAS, the Waynesboro City Council has a vision for the City as a destination for arts, culture and festive events and seeks to work collaboratively with partners, both private and public, such as the Wayne Theatre Alliance in this regard for the benefit of the City as whole; and

WHEREAS, the Waynesboro City Council believes that a direct capital investment in the Wayne Theatre constitutes a direct capital investment in the future economic health and vitality of the City’s central downtown business district; and

WHEREAS, the City Council believes that its efforts to create a healthy, vital, reinvigorated central downtown business district is a prudent and responsible course of action that will help to stimulate additional private investment and commercial activity in the City’s downtown which, in turn, will result in increased tax revenues to the benefit of all citizens of Waynesboro; and

WHEREAS, the Waynesboro City Council seeks to embrace a thoughtful and responsible approach in providing limited financial support for this economic development project that includes the active involvement of the Economic Development Authority as a collaborative partner for the purpose of achieving economic prosperity for this City;

NOW, THEREFORE, BE IT RESOLVED, that the Waynesboro City Council intends to allocate $300,000 in economic development incentive funds as an initial contribution to the Economic Development Authority of the City of Waynesboro for the identified purpose of promoting economic development, specifically earmarked for the Wayne Theatre project, said amount to be appropriated from identified savings in the FY07 approved budget in the cost of support for the regional jail.

AND BE IT RESOLVED FURTHER, that the City Council of the City of Waynesboro pledges future contributions to the Wayne Theatre over a period of not more than ten (10) years in a total amount of $700,000, as valued presently, through future allocations of economic development incentive funds to the Economic Development Authority, as such funds are identified and appropriated by City Council, with the first of such allocations beginning no sooner that FY2009.

AND BE IT RESOLVED FURTHER, that the Waynesboro City Council intends that such incentive funds, as specifically described in this resolution, be utilized by the Waynesboro Economic Development Authority to provide grants to the Wayne Theatre Alliance, LLC and/or its assigns and successors, in annual amounts equal to said economic incentive funds provided by the Waynesboro City Council as indicated herein.

AND BE IT RESOLVED FURTHER that nothing herein is intended to limit any future action on the part of the Waynesboro City Council regarding allocation of economic development incentive funds to the Waynesboro Economic Development Authority for this or any other project, specified or unspecified.

AND BE IT RESOLVED FURTHER that transfers of all funds in excess of the specific FY2007 funds contemplated herein shall be conditioned upon the Waynesboro Economic Development Authority successfully entering into a performance based agreement and incentive structure with the Wayne Theatre Alliance, LLC whereby said funds would be made contingent upon the satisfaction of certain milestones and/or requirements as fully outlined in said agreement and incentive structure,

AND BE IT RESOLVED FURTHER that any and all Deeds from the Waynesboro Economic Development Authority granting the Wayne Theatre property to any entity shall include specific provisions, whereby upon completion of any statutory periods necessary for the Wayne Theatre Alliance, LLC to receive tax credit financing, the real property subject of this Resolution, and any improvements thereon, shall revert to the City of Waynesboro in the event that the property ceases to be used as a performing arts venue.

4. Adjourn

NOTICE OF PROPOSED

REAL PROPERTY TAX INCREASE

PUBLIC HEARING – APRIL 30, 2007

AT 7:00 P.M.

The City of Waynesboro proposes to increase property tax levies.

1. Assessment Increase: Total assessed value of real property (excluding additional assessments due to new construction or improvements to property and less deductions for land use valuation), exceeds last year’s total assessed value of real property by 34.1 percent.

2. Lowered Rate Necessary to Offset Increased Assessment: The tax rate which would levy the same amount of real estate tax as last year, when multiplied by the new total assessed value of real estate with the exclusions mentioned above, would be $0.58 per $100 of assessed value. This will be known as the “lowered tax rate”.

3. Effective Rate Increase: The City of Waynesboro proposes to adopt a tax rate of $0.78 per $100 of assessed value. The difference between the lowered tax rate and the proposed rate would be $0.20 per $100, or 34.5 percent. This difference will be known as the “effective tax rate increase”. Individual property taxes may, however, increase or decrease at a percentage greater or less than the above percentage.

4. Proposed Total Budget Increase: Based on the proposed real property tax rate and changes in other revenues, the total budget of City of Waynesboro (excluding enterprise funds, VPA Fund and CSA Fund but including other special revenue funds and General Fund transfers) will exceed last year’s budget by 13.3 percent.

A Public Hearing on the increase will be held on Monday, April 30, 2007, 7:00 P.M. in City Council Chambers at the Charles T. Yancey Municipal Building, 503 West Main Street, Waynesboro, Virginia

The hearing shall be open to the public and Council shall permit persons desiring to be heard an opportunity to present oral testimony at such hearing. Council, however, may limit the time allotted for this hearing and the time allotted to each individual presenting oral testimony at this hearing.

TO: Members of City Council

FROM: The Honorable Thomas W. Reynolds, Mayor

CC: Douglas C. Walker, City Manager

Bonnie S. Stephenson, CMC, Clerk of Council

Robert C. Lunger, Esq., City Attorney

Meghan M. Williamson, Economic Development Director

I am attaching a resolution to be introduced Monday evening, April 30, 2007, regarding a proposed commitment by Council to the Wayne Theatre project through the Economic Development Authority. Please note that there is language in the bottom two paragraphs that addresses performance measures that will be put in place that will be stipulated with future grants to the EDA for this project, as well as a reversion clause that has the building reverting back to the City of Waynesboro, after the tax credit period, if at any point thereafter this building is no longer used as a performing arts center.

Please review this document in preparation for Monday evening’s meeting. If you have any questions, please feel free to contact me.