Board of Supervisors: January 26, 2006

January 26, 2006

January 26, 2006

Virginia:

AT AN ADJOURNEDA REGULAR MEETING of the Nelson County Board of Supervisors at 6:00 P.M. in the Boardroom of the Nelson County Courthouse.

Present:   Harry S. Harris, South District Supervisor
       Constance Brennan, Central District Supervisor
       Thomas H. Bruguiere, Jr., West District Supervisor
       Thomas D. Harvey, North District Supervisor
       Allen M. Hale, East District Supervisor
       Stephen A. Carter, Clerk
       Betty M. Fortune, Planning Secretary

Absent:     Virgie A. Carter, Deputy Clerk

I.   Call to Order

Mr. Harris, Chairman, called the meeting to order at 6:10 P. M.

II.   Wintergreen: Discussion of Draft Economic Stimulus Grant with WPI

Mr. Carter distributed a letter from Mr. Robert Ashton, President of Wintergreen Partners, Inc., concerning the Economic Stimulus Grant with WPI, including a spreadsheet of WPI’s Projected State and County Tax Receipts from Incremental Hotel Revenues. Mr. Ashton stated that the hotel project has been delayed slightly and that the risk profile has increased from approximately $40 million to $50-60 million. Mr. Ashton said the

The Transient Occupancy Tax (TOT), which is currently 2% on condos, has the ability, if the County’s 2006 legislative initiative is approved, to be increasedgo to 5%. He feels the increase should be limited to 3%, at least until the Economic Stimulus Grant term expires, and would like the County’s agreement on this.

Mr. Hale’s understanding was that WPI would work with the County to support the increase, but their letter indicates they oppose it. The original request was for 3% to be implemented immediately, and they would prefer it to be less than 3% to attract investors and business and wait until the project is going to increase the tax to 5%. Mr. Harvey said that without the support of Wintergreen, this bill in the General Assembly will not pass. An increase now would mean approximately $70,000 increase in revenue which, as Mr. Bruguiere stated, could mean the employment of 2 teachers.

Mr. Ashton said WPI is putting the Resort on the line with this investment in the hotel and Mr. Carter said that anything over 2% would be reinvested in tourism for the County. Mr. Ashton pointed out that their focus is conference business. If the TOT increases in future years, it would affect their customer base, and make the hotel less competitive. In addition to the TOT, there are additional taxes that must be charged. WPI is willing to partner with the County and would like

January 26, 2006

to support the pending legislation. Mr. Carter said that Delegate Abbott has been holding the bill until the County was able to discuss the situation with WPI. The bill allows the ability to increase the TOT, which may not be necessary.

Mr. Gary Wood and Mr. Payne discussed with the Board the possibility of creating within the grant a rebate of any transient occupancy tax amount over 3%. Mr. Ashton seemed to be in favor of this and expressed a need to discuss it with legal counsel. Mr. Payne also stated that the contract allows for agreement by the County and WPI that the hotel will remain on the tax records after the grant period, and Mr. Ashton agreed that it is WPI’s intent that when the hotel comes back into the their ownership, it will remain on the tax records of the County.

The length of the grant was discussed. Mrs. Brennan, Mr. Harris, Mr. Harvey suggested that 4 ½ years would be acceptable, with Mr. Hale suggesting 3 and Mr. Bruguiere suggesting 4 years. After discussion, consensus was reached on 4 ½ years. Mr. Payne said the percentage would be figured on the 4 ½ year schedule as requested by WPI: 100% for the 1st 18 months, 75% for the next 12 months, 50% for the next 12 months, 25% in the next 12 months, and then full real estate and personal property tax after that.

Mr. Harris thanked the WPI officials for attending the meeting.

III.   Draft Zoning Ordinance: Work Session
Mr. Boger distributed several items for consideration and discussion: Conservation subdivisions description, Industrial Districts description, Definitions chapter, list of Short Titles for industrial uses, alternatives for lot size, and a list of items to be discussed in the next workshop. The items were re-priortized with the top 5 being: 1) Review of alternative wording for division rights; 2) additional discussion on further division of residue parcel; 3) further discussion on clustering and/or conservation subdivisions; 4) further discussion on Historic District chapter; and 5) further discussion on Corridor Overlay District. In addition, it was agreed by consensus that the Town Center district (Chapter 3.G) would be renamed Village Center. It was suggested that Kevin Wright of VDOT be invited to the next zoning meeting.

IV.   Other Business: None

V.   Adjournment
On a motion by Mr. Hale, seconded by Mrs. Brennan, and all Supervisors voting yes, the following Resolution was adopted:

   BE IT RESOLVED, That the Nelson County Board of Supervisors does
   hereby adjourn this meeting to reconvene on February 3, 2006 at 9:00 A. M.
   at the Nelson Center for a Board of Supervisors Retreat.

_________________, Chair