Board of Supervisors: September 27, 2005

September 27, 2005

September 27, 2005

Virginia:

AT A SPECIAL CALLED MEETING of the Nelson County Board of Supervisors at 5:30 p.m. in the Board Room located in the Nelson County Courthouse.

Present:   Gary D. Wood, Chairman
       Harry S. Harris, Vice-Chairman
       Thomas H. Bruguiere, West District Supervisor
       Thomas D. Harvey, North District Supervisor
Stephen A. Carter, Clerk

Absent:   Constance Brennan, Central District Supervisor

I.   Call to Order

Mr. Wood called the meeting to order at 5:30 p.m.

II.   Joint Meeting with Economic Development Authority of Nelson County and
   Wintergreen Partners, Inc. on Wintergreen Hotel and Village Project

Mr. Wood welcomed the members of the Economic Development Authority of Nelson County and representatives of Wintergreen Partners, Inc.

The EDA meeting was called to order by Ms. Barbara Powell. Members present included Messrs. Allen Hale, Stu Armstrong, Montie Pritchett, Alphonso Taylor and Tom Wheaton. Absent was Chairman Nat Hall. (See 9-27-05 EDA meeting minutes for full content).

Representatives from WPI included Messrs. Lee Kollmorgen, Chairman of the Board of Directors, Bob Ashton, President/CEO, Rob Sullivan, CFO and Assistant CEO, and Brent Douglass, Director of Development.

Discussion then ensued with Mr. Ashton presenting a power point presentation that overviewed the origin and ensuing development of Wintergreen Resort, significant ($45 million) recent improvements completed to the resort’s facilities and substantive ($75 million) investments that WPI plans to complete in the next five years, including a 210 room hotel and overall resort amenities and infrastructure.

Mr. Douglass continued the presentation by discussing the planned hotel and village project noting that WPI’s initiative was now in the schematic drawing phase. He added, as Mr. Ashton had also stated, that the underlying objective to WPI’s development plan is to firmly establish Wintergreen Resort as a year round attraction, inclusive of expanding the resort’s conference business. Mr. Douglass noted that WPI’s plan is to begin construction in spring 2006 and have the hotel in operation by early 2008.

Mr. Sullivan concluded the presentation with a series of power point slides summarizing the economic benefits of the project, including long term financial stability for the resort and increased tax revenues to Nelson County. He stated that over a projected ten year period (Fiscal Years 2008 to 2017) the County would realize estimated growth in tax revenues from the resort of $1.25 million (FY 08) to $2.0 million (FY 17). Mr. Sullivan projected the creation of 200 (plus) full and part time jobs at the resort as a result of the planned hotel and related improvements.

Mr. Sullivan included with his commentary a request from WPI for financial assistance from Nelson County to assist the resort in accomplishing its project. He presented WPI’s proposal as an approximate $1.0 million contribution by the County paid over a five year period on a declining basis with the source of the funding being new real estate and personal property taxes that WPI would pay to the County as a result of the hotel and resort wide improvements project. Mr. Sullivan said this proposed private-public partnership would assist WPI in the initial, more risky, first years of operation of the hotel and other new resort facilities and, thereby, help to insure a solid financial base for the County.

Mr. Wood thanked Messrs. Ashton, Douglass and Sullivan for the very informative presentation. He noted that the source of funding for previous requests from businesses for incentives by the County was the County’s general fund and not from new revenues the project might generate whereas the source of funding for WPI’s proposed incentives would be new revenues actually generated by the project. Mr. Wood said that the County’s incentives could be based on the project’s performance such that the County would not pay more than the actual revenues generated. He added that he understands the risk of the initial years of operation and that helping to grow an existing business was very positive.

Discussion between the Board, Authority and WPI then ensued as follows:

Ms. Powell stating and Mr. Sullivan confirming that the approximate value of the proposed incentives is $1.0 million.

Mr. Armstrong noting that the County would benefit from new residential development and other business spin off that may result from Wintergreen’s project and that the County should look into the possible provision of state assistance and incentives for the project, adding that he thought two or three localities had received special legislation for similar projects.

Mr. Ashton stating the County’s investment is a positive for all involved, psychologically and financially.

Ms. Powell asking if WPI would share project specific information, financials and a study completed for WPI by RevPar, a hotel/resort industry consultant.

Messrs. Ashton and Sullivan responding that much information was proprietary in nature, including the RevPar report but that WPI may be able to share a summary of information with the EDA and the County.

Mr. Armstrong commenting that Davenport and Company, a financial consultant to the County and WPI has been involved with the project and it was his recollection that Davenport had advised that the hotel would work financially even with minimal occupancy levels.

Mr. Hale requesting that the specific roles (related to the project) of the County and the EDA be defined with Mr. Wood responding that any grants to WPI’s project had to be provided by the County to Wintergreen through the EDA and adding that any financial grants by the County to WPI via the EDA would be a moral obligation subject to annual appropriation by the Board of Supervisors. Mr. Hale responding that simply put it was $990,000 in total incentives and the procedure was WPI to the County, the County to the EDA and the EDA then to WPI.

Mr. Wood noting other considerations important to the County such as removing an exception in the Code of VA that restricts Nelson County’s use of the local lodging tax and, maintaining the new hotel being subject to the local real estate tax.

Mr. Hale commenting that a lot needs to be done with Mr. Wood responding that this was a correct observation.

General discussion as to the means for the Board of Supervisors and Economic Development Authority to work together and with WPI, use of a joint committee, the timeline for completion and the use of outside consultants, as may be necessary to assist with analysis and information.

Each member of the Board of Supervisors then commented, collectively noting the importance of Wintergreen’s project, the Board’s support of the project, concurrence to reach a mutually agreeable understanding with WPI, including the provision of financial incentives to WPI by the County through the EDA, agreement with the use of outside consultants by the EDA to be paid by the County should this assistance be necessary, and agreement that the EDA proceed with facilitating the next steps through discussions with WPI.

Following this discussion the Economic Development Authority adjourned its meeting (see Authority’s 9-27-05 meeting minutes).

III.   Joint Public Hearing with Virginia Department of Transportation on FY 2006-2007 through FY 2011-12 Secondary Six Year Plan and FY 2006-2007 Secondary Construction Budget

Mr. Wood asked VDOT staff members attending the meeting (Messrs. Mike McCormack, Resident Engineer, Kevin Wright, Assistant Resident Engineer, and Ronnie Brown, Right of Way Coordinator – Amherst Residency) if they had any opening remarks or comments. Mr. Wright responded that he did want to make a brief presentation, noting that VDOT did not anticipate any major project deficits in the fiscal year 2006-2007 construction program and adding that the anticipated FY 2006-2007 Secondary Construction Budget included $40,000 for Countywide Items (private entrances, traffic services, preliminary engineering, seeding and subdivision review), $781,869 in Regular Construction Projects and $437,458 in Unpaved Construction Projects. He noted that the regular construction funding was a slight decrease in funding while the unpaved construction funding was a small increase over FY 2005-2006. Mr. Wright concluded his remarks by stating that the projected funding is not final and that final funding numbers would be available in March 2006, approximate and, that VDOT staff proposed to schedule a work session with the Board of Supervisors on finalizing the County’s ensuing construction budget and revised six year plan.

Mr. Wood thanked Mr. Wright for his comments and then opened the public hearing. Public input was as follows:

Mr. Robert Lee Lyons asked if Route 661 would be worked on this year. Mr. Harris responded that this road is number 12 on the priority list and scheduled for FY 09.

Mr. David Ebberwein asked that Lodebar Estates road (off Route 613) be taken into the state secondary system. Mr. Wood noted that due to a change in state law the County was not currently able to use rural addition funding to bring private roads into the state system. Mr. Harvey added that private parties could pay for these improvements if they were so inclined.

Mr. Bud Phillips asked that Route 617 be moved to a higher priority.

Mr. John Roberts asked that a one miles section of Route 634, Old Roberts Mountain Road, beginning at Route 616 and continuing to the end of state maintenance be added to the plan for paving, stating that the development of a new winery was resulting in increased traffic on the road.

Ms. Dee Davis Wells asked that Route 617 be moved higher on the priority list.

Mr. Gordon Koerner stated that the East District is not receiving its fair share of funding and that VDOT does not have any information on its website to insure Nelson County is receiving its fair share of state funding.

Mr. Bruce Rutherford thanked the Board for work done on Route 605 and stated that Mr. David Johnson was doing a good job in managing VDOT’s local office off Route 56.

Ms. Faye Willoughby, Ms. Faye Wood, Mr. Brian Thomas, Mr. Sam Reagan and Ms. Sandra Micklein all asked the Board to improve Cedar Creek Road (Route 654) by adding it back into the Six Year Plan and paving this road.

Mr. Wood closed the public hearing following receipt of public comment from all who wished to speak. The Board then asked Mr. Wright to obtain input on road improvements from Gary Wade, the school division’s transportation supervisor. Mr. Wright noted that there are currently 200 miles, approximate, of unpaved roads in Nelson County. Mr. Wood asked that recent traffic counts be available for the Supervisors ensuing transportation workshop with VDOT. And, it was tentatively agreed that the Board and VDOT staff would hold a work session on the annual construction and six year plans on the Board’s regular meeting date in November 2005 albeit prior to the regular session(s).

IV.     Other Matters – Closed Session

Mr. Harvey, seconded by Mr. Bruguiere, moved that the Board of Supervisors hold a closed session pursuant to Section 2.1-3711.A.1 of the Code of VA to discuss the appointment of specific employees of the public body. Roll call was unanimous (4-0) in favor of the motion.

On motion by Mr. Harvey, seconded by Mr. Harris, the Board of Supervisors voted unanimously (4-0) to return to public session.

On motion by Mr. Harvey, seconded by Mr. Harris, the Board of Supervisors moved, pursuant to Section 2.2-3712.D of the Code of Virginia, to certify that to the best of each member’s knowledge (i) only public business matters lawfully exempted from open meeting requirements under Chapter 37 (Virginia Freedom of Information Act) of Title 2.2 of the Code of VA and (ii) only such public business matters as were identified in the motion by which the closed meeting was convened were heard, discussed or considered in the meeting by the public body. Roll call vote was unanimous (4-0) in support of the motion.

V.     Adjournment

On motion by Mr. Harvey, seconded by Mr. Harris, the Board of Supervisors voted unanimously (4-0) to continue the meeting on October 5, 2005 at 6:00 p.m. in the boardroom located in the Nelson County Courthouse for purposes of a work session on the draft county zoning ordinance and such other matters as the Board may wish to consider.

IV.   Adjournment

On motion by Mr. Harris, seconded by Ms. Brennan, the Board of Supervisors voted unanimously by roll call to continue the meeting at 7:00 p.m. on Thursday, April 28, 2005 in the Board Room located in the Nelson County Courthouse for the purpose of a work session on the Fiscal Year 2005-2006 Budget and the draft Nelson County Zoning Ordinance.

Mr. Wood then closed the meeting at 9:45 p.m.