Loading...
HomeMy WebLinkAboutCouncil Actions 01-07-19COBB 41342- 010719 RRHA CITY of ROANOKE REDEVELOPMENT and HOUSING AUTHORITY PARTNERS IN PROGRESS ROANOKE CITY COUNCIL ROANOKE REDEVELOPMENT AND HOUSING AUTHORITY JANUARY 7, 2019 9:00 A.M. CITY COUNCIL CHAMBER NOTICE This morning meeting and briefings will be televised live and replayed on RVTV Channel 3 following the 2:00 p.m. session on Friday, January 11 at 7:00 p.m. and Sunday, January 13 at 4:00 p.m.; and video streamed through Facebook Live at facebook.com /RoanokeVa. Council meetings are offered with closed captioning for the hearing impaired. 1. Call to Order -- Roll Call. • City Council All Present (Council Member Garland tendered his resignation as a Member of the Roanoke City Council, effective January 2, 2019) • Roanoke Redevelopment and Housing Authority — Andrew Anguiano was absent. 2. Welcome and Opening Remarks. • Mayor Sherman P. Lea, Sr. • Chair Edward Garner 3. Items for Discussion and Comments: • Update regarding RRHA Executive Director retirement and search process. (RRHA) • Multi -phase plan for redevelopment of Lansdowne Park. (RRHA) • Capital needs assessment processes for public housing developments and low- income housing tax credits developments. (RRHA) 1 • Storm doors for Hurt Park townhomes. (Vice -Mayor Cobb) • Amenities for Hurt Park Community Room. (Vice -Mayor Cobb) 4. Recess /Adjourn. - 9:49 a.m. AT 10:02 A.M., THE COUNCIL MEETING RECONVENED TO CONSIDER THE FOLLOWING AGENDA ITEMS: A communication from Mayor Sherman P. Lea, Sr., requesting that Council convene in a Closed Meeting to discuss a personnel matter, being the appointment of an interim Council Member to fill the unexpired term of John A. Garland ending June 30, 2020, pursuant to Section 2.2 -3711 (A)(1), Code of Virginia (1950), as amended. (6 -0) A communication from Mayor Sherman P. Lea, Sr., requesting that Council convene in a Closed Meeting to discuss vacancies on certain authorities, boards, commissions and committees appointed by Council, pursuant to Section 2.2 -3711 (A)(1), Code of Virginia (1950), as amended. A list of current vacancies is included with the agenda for this meeting. (6 -0) A communication from Council Member Michelle L. Davis, Chair, City Council Personnel Committee, requesting that Council convene in a Closed Meeting to discuss a personnel matter, being the annual performances of the Council- Appointed Officers, pursuant to Section 2.2 -3711 (A)(1), Code of Virginia (1950), as amended. (6 -0) A communication from the City Attorney requesting that Council convene in a Closed Meeting for consultation with legal counsel and briefings by staff members or consultants pertaining to probable litigation, where such consultation or briefing in open meeting would adversely affect the negotiating or litigating posture of the public body, pursuant to Section 2.2 -3711 (A)(7), Code of Virginia (1950), as amended. (6 -0) A communication from the City Manager requesting that Council convene in a Closed Meeting to discuss reports or plans related to the security of the Noel C. Taylor Municipal Building, situated at 215 Church Avenue, S. W., Roanoke, Virginia, pursuant to Section 2.2 -3711 (A)(19), Code of Virginia, as amended. (6 -0) ITEMS FOR DISCUSSION AT THE JOINT MEETING OF THE COUNCIL AND THE ROANOKE CITY SCHOOL BOARD ON MONDAY, FEBRUARY 4, 2019, AT 9:00 A.M., IN THE CITY COUNCIL CHAMBER, ROOM 450, NOEL C. TAYLOR MUNICIPAL BUILDING. NONE. 2 ITEMS LISTED ON THE 2:00 P.M. COUNCIL DOCKET REQUIRING DISCUSSION /CLARIFICATION AND ADDITIONS /DELETIONS TO THE 2:00 P.M. AGENDA. (NONE.) TOPICS FOR DISCUSSION BY THE MAYOR AND MEMBERS OF COUNCIL. (NONE.) BRIEFINGS: • General Real Estate Reassessment - 30 minutes Received and filed. • Budget/Financial Planning Fiscal Year 2020 - 30 minutes Received and filed. AT 10:55 A.M., THE COUNCIL MEETING WAS DECLARED IN RECESS UNTIL 2:00 P.M., FOR A CLOSED MEETING IN THE COUNCIL'S CONFERENCE ROOM, ROOM 451, NOEL C. TAYLOR MUNICIPAL BUILDING. 3 ROANOKE CITY COUNCIL REGULAR SESSION JANUARY 7, 2019 2:00 P.M. CITY COUNCIL CHAMBER AGENDA 1. Call to Order - -Roll Call. All Present. The Invocation was delivered by The Reverend Andrew Whaley, Pastor, Raleigh Court Presbyterian Church. The Pledge of Allegiance to the Flag of the United States of America was led by Mayor Sherman P. Lea, Sr. Welcome. Mayor Lea. Mayor Lea announced that Council Member John A. Garland tendered his resignation as a Member of the Roanoke City Council, effective January 2, 2019. NOTICE: Today's Council meeting will be televised live and replayed on RVTV Channel 3 on Friday, January 11 at 7:00 p.m., and Sunday, January 13 at 4:00 p.m.; and video streamed through Facebook Live at facebook.com / /RoanokeVa. Council meetings are offered with closed captioning for the hearing impaired. ANNOUNCEMENTS: The Council of the City of Roanoke is seeking applications for the following current vacancies and /or upcoming expirations of terms of office: Board of Zoning Appeals — one vacancy Three -year term of office ending December 31, 2021 Building and Fire Code Board of Appeals — one vacancy Building Representative term of office ending June 30, 2021 Roanoke Valley Greenway Commission — one vacancy Unexpired term of office ending June 30, 2019 Access the City's homepage to complete an online application for the abovementioned vacancies. 2. PRESENTATIONS AND ACKNOWLEDGEMENTS: Recognition of City employees with 30, 35, 40 and 45 years of service. Mayor Lea presented City employees with gifts for their years of service with the City of Roanoke. 3. HEARING OF CITIZENS UPON PUBLIC MATTERS: City Council sets this time as a priority for citizens to be heard. All matters will be referred to the City Manager for response, recommendation or report to Council, as he may deem appropriate. Barbara Duerk, 2607 Rosalind Avenue, S. W., and Estelle McCadden, 2128 Mercer Avenue, N. W., appeared before the Council in support of Bob Clement to fill the unexpired term of Council Member John A. Garland. Alexandros Filth, 319 -A Mountain Avenue, S. W., appeared before the Council regarding cost of living. 4. CONSENT AGENDA: (APPROVED 6 -0) All matters listed under the Consent Agenda are considered to be routine by the Members of City Council and will be enacted by one motion. There will be no separate discussion of the items. If discussion is desired, the item will be removed from the Consent Agenda and considered separately. 5 C -1 A communication from Council Member John A. Garland tendering his resignation as a Member of Roanoke City Council, effective January 2, 2019. RECOMMENDED ACTION: Accepted resignation with regret; and received and filed communication. C -2 Annual Report of the Western Virginia Regional Industrial Facility Authority for Fiscal Years 2017 and 2018. RECOMMENDED ACTION: Received and filed. C -3 Minutes of the Audit Committee held on Wednesday, September 5, 2018. RECOMMENDED ACTION: Received and filed. C -4 Reports of qualification of the following individuals: Jeffrey H. Powell as a City representative of the Roanoke Valley Resource Authority for a four -year term of office, commencing January 1, 2019 and ending December 31, 2022; Kenneth S. Cronin as the Citizen -at -Large member of the City of Roanoke Finance Board for a two -year term of office ending June 30, 2020; Laura Leonard Clark as a member of the Human Services Advisory Board for a four -year term of office, commencing December 1, 2018 and ending November 30, 2022; Kermit "Kit" Hale as a member of the City Planning Commission for a four -year term of office ending December 31, 2022; and Charles Waters as a Citizen -at -Large representative of the Building and Fire Code Board of Appeals for a three -year term of office ending June 30, 2021. RECOMMENDED ACTION: Received and filed. REGULAR AGENDA: 5. PUBLIC HEARINGS: NONE. 6. PETITIONS AND COMMUNICATIONS: NONE. 7. REPORTS OF CITY OFFICERS AND COMMENTS OF THE CITY MANAGER: a. CITY MANAGER: BRIEFINGS: NONE. ITEMS RECOMMENDED FOR ACTION: Authorization for access to residential parking permits in connection with the Patrick Henry Hotel Project. Adopted Resolution 41342 - 010719. (6 -0) 2. Acceptance of the Financial Empowerment Grant. Adopted Resolution No. 41343 - 010719 and Budget Ordinance No. 41344-0101719. (6 -0) 3. Authorization to execute a proposed Agreement for Purchase and Sale of Real Estate with Brandon Woody and Booker, LLC, and The Brandon Company, Inc., for the purchase of real estate on Salem Avenue, S. W. Adopted Ordinance No. 41345 - 010719 and Budget Ordinance No. 41346- 010719. (5 -0, Council Member Davis abstaining.) 4. Authorization to schedule and advertise a public hearing on Tuesday, January 22, 2019 at 7:00 p.m., or as soon thereafter as the matter may be heard, or at such later date and time as the City Manager shall determine, in his discretion, on the proposed sale of the GRTC Relocation Parcels from the City to Greater Roanoke Transit Company, in accordance with the proposed City and GRTC Exchange Agreement, which proposed agreement includes the transfer of Campbell Court from GRTC to the City, upon certain terms and conditions. Adopted Resolution No. 41347 - 010719. (5 -0, Council Member Davis abstaining.) 7 5. Authorization to schedule and advertise a public hearing on Tuesday, January 22, 2019 at 7:00 p.m., or as soon thereafter as the matter may be heard, or at such later date and time as the City Manager shall determine, in his discretion, on the proposed sale of Campbell Court to Hist;Re Partners, LLC, in accordance with the terms and conditions of the proposed City and Developer Exchange Agreement that includes the City's acquisition of the Future Rail Station Parcels, upon certain terms and conditions. Adopted Resolution No. 41348 - 010719. (5 -0, Council Member Davis abstaining.) COMMENTS OF THE CITY MANAGER. The City Manager made the following comments: Fiscal Year 2020 Budget • Work has begun on the development of the FY20 Budget. • For the next few months, briefings will be provided at the first City Council meeting of the month to update Council members and the public on the budget process. Roanoke 100 Miler • Once again, Roanoke Parks and Recreation is offering this popular program in 2019. • Every year, hundreds of people in the Roanoke Valley celebrate the start of the New Year by accepting the Roanoke 100 Miler challenge. • The program asks participants to track their activity levels every day for 100 days, with the goal of walking 100 miles or the equivalent of 50 hours of exercise. • Activities must be completely human - powered, such as walking, running, biking, or swimming. • To kick off the 100 days, Parks and Recreation will host an event for participants on Sunday, January 13, from 2 to 4 p.m., and walk the first mile as a group. • To register, visit PlayRoanoke.com b. CITY ATTORNEY: 1. Adoption of a resolution urging the General Assembly of the Commonwealth of Virginia to ratify the Equal Rights Amendment to the Constitution of the United States. Adopted Resolution No. 41349- 010719. (6 -0) 2. Adoption of a resolution acknowledging the opioid epidemic experienced by the City of Roanoke. Adopted Resolution No. 41350 - 010719. (6 -0) 3. Waiver of requirement of Notice of Special Meeting of Stockholder of Greater Roanoke Transit Company set for Tuesday, January 22, 2019 at 6:30 p.m.; and authorization of the Mayor or the City Manager to execute and deliver the waiver. Adopted Resolution No. 41351 - 010719. (5 -0, Council Member Davis abstaining.) 8. REPORTS OF COMMITTEES: a. A report of the Roanoke City School Board requesting appropriation of funds for various educational programs; and a report of the City Manager recommending that Council concur in the request. Donna Caldwell, Director of Accounting, Spokesperson. Adopted Budget Ordinance No. 41352 - 010719. (6 -0) 9. UNFINISHED BUSINESS: NONE. 10. INTRODUCTION AND CONSIDERATION OF ORDINANCES AND RESOLUTIONS: NONE. 11. MOTIONS AND MISCELLANEOUS BUSINESS: a. Inquiries and /or comments by the Mayor and Members of City Council. Mayor Lea announced that the 2019 Lea's High School Winter Classic Basketball Challenge will be on Saturday, January 12, 2019 at the Berglund Center, commencing at 12:00 Noon. Vice -Mayor Cobb expressed gratitude to former Council Member John A. Garland for his service to the City of Roanoke from July 1, 2018 — January 2, 2019. b. Vacancies on certain authorities, boards, commissions and committees appointed by Council. See below. 9 12. RECESSED - 3:19 P.M. At 3:19 p.m., the Council Meeting recessed for continuation of a Closed Meeting in the Council's Conference Room. At this point, Mayor Lea relinquished the Chair to the Vice -Mayor (3:20 p.m.). At 3:59 p.m., the Council Meeting reconvened in the Council Chamber, Vice -Mayor Cobb presiding and all Members of the Council in attendance, with the exception of Mayor Lea. CERTIFICATION OF CLOSED MEETING. (5 -0, Mayor Lea was absent.) Appointed Stephen Ambruzs as a City representative of the Roanoke Valley Greenway Commission to fill the unexpired term of office of Margaret Douglas Butler ending June 30, 2019. Appointed Va'Shay McCalla to replace Madison Duval as a member (Student/Alternate Patrick Henry High School) of the Youth Services Citizen Board for a term of office ending June 30, 2019. 13. RECESSED - 4:01 P.M. The Council Meeting recessed until Wednesday, January 16, 2019, at 10:00 a.m., in the Council's Conference Room, Room 451, fourth floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., for a Closed Meeting, being a personnel matter, to continue discussion of the appointment of an Interim Council Member to fill the unexpired term of John A. Garland, resigned, ending June 30, 2020. 10 A RO V��IkGr..atji SHERMAN P. LEA, SR. Mayor CITY OF ROANOKE OFFICE OF THE MAYOR 215 CHURCH AVENUE, S.W., SUITE 452 ROANOKE, VIRGINIA 24011 -1594 TELEPHONE: (540) 853 -2444 FAX: (540) 853 -1145 EMAIL: MAYOR @ROANOKEVA.GOV January 7, 2019 The Honorable Vice -Mayor Joseph L. Cobb and Members of the Roanoke City Council Roanoke, Virginia Dear Vice -Mayor Cobb and Members of Council: This is to request a Closed Meeting to discuss the appointment of an interim Council Member to fill the unexpired term of John A. Garland ending June 30, 2020, pursuant to Section 2.2- 3711(A)(1), Code of Virginia (1950), as amended. Sincerely, Sherman P. Lea, Sr. Mayor SPL:ctw SHERMAN P. LEA, SR. Mayor CITY OF ROANOKE OFFICE OF THE MAYOR 215 CHURCH AVENUE, S.W., SUITE 452 ROANOKE, VIRGINIA 24011 -1594 TELEPHONE: (540) 853 -2444 FAX: (540) 853 -1145 EMAIL: MAYOR @ROANOKEVA.GOV January 7, 2019 The Honorable Vice -Mayor Joseph L. Cobb and Members of the Roanoke City Council Roanoke, Virginia Dear Vice -Mayor Cobb and Members of Council: This is to request a Closed Meeting to discuss vacancies on certain authorities, boards, commissions and committees appointed by Council, pursuant to Section 2.2- 3711(A)(1), Code of Virginia (1950), as amended. A list of current vacancies is included with the agenda for this meeting. Sincerely, Sherman P. Lea, Sr. Mayor S PL: ctw COMMITTEE VACANCIES /REAPPOINTMENTS January 7, 2019 Public VACANCIES: Term of office on the Board of Zoning Appeals ending December 31, 2021. Term of office (Building Representative) on the Building and Fire Code Board of Appeals ending June 30, 2021. Unexpired term of office on the Roanoke Valley Greenway Commission ending June 30, 2019. SHERMAN P. LEA, SR. Mayor CITY OF ROANOKE CITY COUNCIL 215 Church Avenue, S.W. Noel C. Taylor Municipal Building, Suite 456 Roanoke, Virginia 24011 -1536 Telephone: (540) 853 -2541 Fax: (540) 853 -1145 Email: clerk(aaroanokeva.gov January 7, 2019 The Honorable Mayor and Members of the Roanoke City Council Roanoke, Virginia Dear Mayor Lea and Members of Council: I wish to request a Appointed Officers, amended. MLD:ctw Council Members William D. Bestpitch Joseph L. Cobb Michelle L. Dykstra John A. Garland Djuna L. Osborne Anita J. Price Closed Meeting to discuss the annual performances of the Council - pursuant to Section 2.2 -3711 (A)(1), Code of Virginia (1950), as Sincerely, Michelle L. Davis, Chair City Council Personnel Committee Daniel J. Callaghan City Attorney CITY OF ROANOKE OFFICE OF THE CITY ATTORNEY 464 MUNICIPAL BUILDING 215 CHURCH AVENUE, SW ROANOKE, VIRGINIA 24011 -1595 The Honorable Mayor and Members of City Council Roanoke, Virginia TELEPHONE 540- 853 -2431 FAX 540 - 853 -1221 EMAIL: cityatty@roanokeva.gov January 7, 2019 Re: Request for closed meeting Dear Mayor Lea and Council Members: Timothy R. Spencer David L. Collins Heather P. Ferguson Laura M. Carini Assistant City Attorneys This is to request that City Council convene a closed meeting pursuant to Sec. 2.2- 3711.A.7, Code of Virginia, to consult with legal counsel and briefings by staff members or consultants pertaining to probable litigation, where such consultation or briefing in open meeting would adversely affect the negotiating or litigating posture of the public body. With kindest personal regards, I am Sincerely yours, km'VJ Pan Daniel J. Cal City Attor DJC /lsc c: Robert S. Cowell, Jr., City Manager Stephanie Moon Reynolds, City Clerk CITY COUNCIL AGENDA REPORT To: Honorable Mayor and Members of City Council Meeting: January 7, 2019 Subject: Request for Closed Meeting request that City Council hold a closed meeting pursuant to Section 2.2-3711 (A)(19), Code of Virginia (1950), as amended, for the purpose of discussion of reports or plans related to the security of the Noel C. Taylor Municipal Building, situated at 215 Church Avenue, S.W., Roanoke, Virginia. SQL - --------------------------- Robert S. Cowell, Jr. City Manager Distribution: Council Appointed Officers Brian Townsend, Assistant City Manager for Community Development Sherman Stovall, Assistant City Manager for Operations Ci -Orl-19 Roanoke City Council General Reassessment Briefing FY 2019 - 2020 January 7, 2019 FY 2020 Real Estate Assessment Projections _t_ 2.76% 0.55% 3.31% Single Family Multi - Family Commercial Total $3,958,868,900 $667,578,900 $2,702,443,800 $7,328,891,600 $T'06' $687,117,000 2.93% $2,815,535,800 4.18% $7,571,300,900 3.31% 5.00% 4.50% 4.00% 3.50% 3.00% 2.50°/6 2.00% 1.50% 1.00% 0.50% 0.00% -0.50% -1.00% -1.50% -2.00% -2.50% -3.00% FY 2010 -2011 Assessment History by Fiscal Year 2011 -2012 2012 -2013 2013 -2014 20142015 2015 -2016 2015-2017 2017 -2018 2018 -2019 2019 -2020 Source: PROVAL Database Includes new construction Residential includes Multi- family —*— Residential Commercial _. Total Assessment New Construction History by Fiscal Year 2015 -16 2016 -17 2017 -18 2018 -14 Residential New Construction Value Commercial New Construction Value Total New Construction Value 2014 — 2018 Actual certified permit values 4 2018 -2019 Based on Projections through June 30, 2019 3000 r 'T► � 2a=C, E 1 =01, 4 10170 5170 History of Residential Sales and Foreclosures 2456 2307 `' 2342 2009 2010 2011 1012 2013 2014 2015 2016 2017 2018* Calendar Year ®Foreclosures EValidSales ❑T:,- `2018 — Sales from January through October - annualized $140= $100,0 r 41 $80,000 $60,000 Median Residential Sales Price 2009 to 2018 $131450 $131000 $131000 $134,975 $1341504 $130x904 r-1 F----I 2009 2010 2011 *2018 sales data from January to October 2012 2013 2014 Calendar Year $1391900 $1401000 $1421000 -i $1361000 F----I 7 2015 2016 2017 2018* In Summary • The City's residential assessed values show an overall increase of 2.77% • The apartment sector continues to show growth @ 2.93% • Commercial properties showed an overall increase in assessed values of 4.18 • Overall the total assessment change is projected at 3.31% • Sales ratios remain in line with State standards Appealing an Assessment ✓ Appeal to the Office of Real Estate Valuation by February 4th ✓ If a property owner does not agree with our appeal decision, they can file an appeal with the Board of Equalization. J If a property owner does not agree with the Board of Equalization's decision, they can then file suit in Circuit Court. 250 200 150 3 a a 100 CL 50 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Appeals to Real Estate Valuation Appeals to Board of Equalization i Tax Relief Programs Property Owner's Status: • Elderly Tax Freeze • Disability Tax Relief Program • Veterans Tax Relief Program Real Estate Status: • Rehabilitated Tax Abatement • Land Use Program • Solar Energy Abatement • Energy Efficient— Reduced Tax Rate All programs require an application 9 Projected Real Estate Fiscal Impact $88,� $87,0 w $8b.o 0 $85.0 d $84.0 m 4W $83.0 4A LU M $82.0 at $81.0 $80.c *Actual $82.7 FY 2018* FY 2019 FY 2020 Questions &Comments Susan S. Lower, SRA Director of Real Estate Valuation Suite 250 Noel C. Taylor Building 215 W. Church Ave. S.W. Roanoke, VA 24011 (540) 853 -2771 susan.lowera), roanokeva.gov KC Bratton Supervising Appraiser Suite 250 Noel C. Taylor Building 215 W. Church Ave. S.W. Roanoke, VA 24011 (540) 853 -2771 kelvin.bratton(a-)-roanokeva.gov Steve Staker Deputy Director of Real Estate Valuation Suite 250 Noel C. Taylor Building 215 W. Church Ave. S.W. Roanoke, VA 24011 (540) 853 -2771 steve.staker6a roanokeva.gov Cookie Wall Supervising Appraiser Suite 250 Noel C. Taylor Building 215 W. Church Ave. S.W. Roanoke, VA 24011 (540) 853 -2771 cookie.wall(a-)-roanokeva.gov 11 APPENDIX • Timeline of Assessment Process • History of Projected Assessments • Tax Relief and Abatement Programs • History of Sales Ratios 12 Timeline of Assessment Process • January: Notices mailed and hearings begin for citizens to appeal • February: Hearings end, mail decisions • March: Board of Equalization (BOE) begins • March: Begin re- assessment process and appraisers field reviewing property data, sales and building permits • April 5th : Second payment of tax bill due (previous assessment) • June 30th : BOE complete • July 1St : Begin new fiscal year • October 5th : First payment of tax bill due (new January assessed value) • October to December: Appraiser team finalizing re- assessment • December: Post and certify the new assessment values • December to January 1St : Proofing final values 13 Tax Relief and Abatement Programs (by Assessed Values Rehabs $131,001,200 Leaseholds $23,727,015 Veterans $19,939,300 Elderly Tax Freeze $9,193,375 Energy Efficient $2,265,200 Disabled Tax Freeze $4,346,230 Agricultural Land Use $3,953,900 Solar $249,608 $116,300,700 $24,461,056 $21,746,100 $8,116,833 $1,485,900 $4,569,647 $3,944,400 $300,768 102 100 98 96 94 Preliminary Ratio ■ Posted Ratio 92 90 88 86 84 History of Sales Ratio 100 Source: Virginia Department of Taxation 98.4 711 97.55 2012 99.4 96.9 94.9 QA 1 93.3 93.5 2011' _'- 2n15 2016 2017 L.JuuyIU L .lane iary 7 gn1 A Agenda • FY 2019 Overview • Preliminary FY 2020 Expenditure Priorities • Five Year Operating Model • Next Steps 2 FY 19 General Fund Overview • The FY19 adopted budget is $0.76 million or 0.26% higher than FY1 8 actual revenues. • Through December, FY 19 revenues have decreased approximately $689,000 or (0.64 %) compared to the same period FY 18. • Expenditures and obligations through December decreased approximately $391,000 or (0.28 %) compared to the same period last year, mainly due to the timing of CSA expenditures and transfers. 9 All Local Taxes Revenue Through $75,000,000.00 $70,000,000.00 $65,000,000.00 $60,000,000.00 $55,000,000.00 $50,000,000.00 December FY 19 Revenue Estimate $199.0 million $70,767,773 $71,020,098 $72,559,331 FY 18 YTD Actual FY 19 YTD Target FY 19 YTD Actual FY19 Local Tax revenue increased 2.53% over same period of FY18, and is 2.17% ahead of YTD budget. V Preliminary FY 2020 Expenditure Priorities • Total Non - Discretionary Cost Increases: $850,000 — Medical /Dental - $0 — Retirement - $0 — Reserves - $350,000 — Debt Service - $250,000 — Worker Compensation - $250,000 • Other: — Compensation — 1 % Increase - $973,000 — Cash Funded Capital • Capital Building Maintenance • Fleet Replacement • Technology Capital — General Assembly Action 5 Five -Year Operating Model $330,000,000 $320,000,000 i m 111 $300,000,000 $290,000,000 $280,000,000 $270,000,000 2017 2018 2019 ADO 2020 2021 2022 2023 Revenue Expense T Revenue $279.3 $290.9 $291.7 $296.7 $302.0 $307.3 $312.8 Expense 277.5 287.3 291.7 297.5 304.2 311.3 318.7 Variance 1.8 3.6 0.0 (0.8) (2.2) (4.0) (5.9) Assumptions: • Real Estate Tax Growth — 1.75% in FY 20, 2% in FY 21 -23 • Personal Property Tax Growth — 1.75% in FY 20 -23 • Prepared Food and Beverage Tax Growth — 1 % in FY 20 -23 • Most Other Revenue Growth — 2% in FY 20 -23 • Operating Expenditure Growth — predominantly 2% in FY 20 -23 • Salary Increases — 2% in FY 20 -23 7 Next Steps • Budget Staff, Director and Budget Committee Reviews • Council Briefing — February 4, 2019 — FY 19 Budget Performance — FY 20 Revenue Outlook • Local Tax Trends • Total Price of Government — FY 20 RCPS Estimate — FY 19 CIP Current Status 0 The Honorable Sherman P. Lea, Sr. and Members of Roanoke City Council clo Stephanie M. Moon Reynolds, City Clerk Noel C. Taylor Municipal Building 215 Church Avenue, S.W. Roanoke, Virginia 24011 Re: Resignation as Member of City Council Dear Mayor Lea, Members of Council, and Clerk Moon Reynolds: This letter confirms and clarifies my resignation as a Member of Roanoke city Council sent via email on Thursday, December 27, 2018, at 8 :59 P.M. EST, a copy of which email Is attached. My resignation as a Member of City Council is effective January 2, 2019, at 5:00 p.m., EST. Please let me know if you have any questions. Sin ely, J n A. Garland Attachment Pc: Robert S. Cowell, Jr., City Manager Daniel J. Callaghan, City Attorney Troy A. Harmon, Municipal Auditor CITY OF ROANOKE Ea CITY COUNCIL 21 S Church Avcmtc, S.W. NnO CIllylur Mtuticip;d 13oih1ing, Suita 456 Ruanukc, Virgini; :24011 -151( Telephone: (540)X53-2541 S1111ANIAN !. LI ?A, tilt. Fin.: (540)X53-114i Nin ?gar t ataiF, clvrRfi,r< ?hm�kcvo, w Cuunell Alembers William 1). Hempitch January 2, 20? 9 JA911c L. Cobb hlichclle L. Dykstra John A. G rhatd Dhow L.O%hwac An pin J. Price The Honorable Sherman P. Lea, Sr. and Members of Roanoke City Council clo Stephanie M. Moon Reynolds, City Clerk Noel C. Taylor Municipal Building 215 Church Avenue, S.W. Roanoke, Virginia 24011 Re: Resignation as Member of City Council Dear Mayor Lea, Members of Council, and Clerk Moon Reynolds: This letter confirms and clarifies my resignation as a Member of Roanoke city Council sent via email on Thursday, December 27, 2018, at 8 :59 P.M. EST, a copy of which email Is attached. My resignation as a Member of City Council is effective January 2, 2019, at 5:00 p.m., EST. Please let me know if you have any questions. Sin ely, J n A. Garland Attachment Pc: Robert S. Cowell, Jr., City Manager Daniel J. Callaghan, City Attorney Troy A. Harmon, Municipal Auditor Bonnie Clayton From: John.Garland @roanokeva.gov Sent: Thursday, December 27, 2018 8:40 PM 70: Council PlusoloCity_of Roanoke @RoanokeCity.com Subject: City Council It is with regret that I submit my resignation as a member of City Council. As a developer, which is my passion, I continue to run up against conflict of interest rules. Most recently, the RRHA has determined, that In their opinion, I have a conflict of interest in having some tenants that receive Section 8 rental vouchers. My options to resolve this situation, included divesting myself of the properties, having tenants removed from my properties or no longer be on City Council. I am unable to divest myself of multiple properties owned by diverse partners and I do not want to have to ask long term tenants to move when it is disruptive to their lives and has nothing to do with them. I am also not allowed to have tenants that are recipients of HUD grants, which I am quite sure will continue to be a problem. After careful review and consideration, I have decided that my ability to serve my community is best served as a developer, while not simultaneously serving on City Council. I will work with Bob Cowell for a smooth transition, while Council is able to find a suitable interim Council member to serve out my term. One candidate that I would hope that you would consider is Trish White Boyd, whom lost the election in 2016 by only 47 votes. If she is willing, I feel she would bring great value to City Council Wishing you the best in your service to our Great City. Sincerely, John Garland WESTERN VIRGINIA REGIONAL INDUSTRIAL FACILITY AUTHORITY Annual Report FY 20179 2018 The following is a list of significant actions taken and accomplishments of the Western Virginia Regional Industrial Facility Authority over the course of fiscal years 2017 and 2018. The Western Virginia Regional Industrial Facility Authority completed the process of financing structure, acquisition, master planning, and rezoning for its first acquisition, the Wood Haven Road property in 2017 -18. Financing: Utilizing funds from a DHCD grant, the WVRIFA engaged Davenport & Company (Richmond) to structure financing for Phase I of the Wood Haven Road project. The structure was based around a $10 million borrowing and Roanoke, Roanoke County, and Salem formed a participation committee in December 2016 to jointly develop the project. Financing with Union Bank was closed on October 14, 2016. Finance directors from the participating localities advised on investing unused borrowings in a LGIP account for greater yield. The WVRIFA also received grants from the Virginia Economic Development Partnership ($100,000) and Appalachian Power Company ($20,000) and GoVirginia ($200,000). Property Acquisition: The Bowman, Wolfe, Peoples, and Amos parcels were acquired in FY17 for a total of approximately 104 acres. Three houses on the property were demolished in January 2018 due to unstable condition. Master Planning: Draper Aden was selected in December 2016, through a public procurement process, as the engineering firm to complete the master plan and site due diligence as a prerequisite to land use application. The process included three community meetings in 2017 to solicit input on plan development. The master plan and draft restrictive covenants for designation as a Planned Technology District (PTD) were presented and accepted in April 2018 as the first step in developing a land use application with Roanoke County. The property went through the land use process and was rezoned in July 2018. • Development: The WVRIFA applied for and received a GoVirginia grant of $200,000 to fund a $950,000 utility extension project to bring water and sewer to the Wood Haven property entrance. Engineering and design is underway with construction anticipated to begin in FY2019. Administration: In September 2016, the WVRIFA entered into an agreement with the Roanoke Valley - Alleghany Regional Commission to provide administrative /staff support. The Roanoke Regional Partnership continues to provide administrative and technical oversight. Clean audits were completed by Robinson, Farmer, Cox Associates for FY 2016, FY2017 and FY2018 and accepted by the WVRIFA. III. Franklin County Project: The WVRIFA entered into a participation agreement with Franklin County in July 2018 to act as agent to receive and distribute funds from Franklin County for a railroad switch in Rocky Mount. Respectfully submitted: Beth Doughty John Hull Executive Director Assistant Executive Director MINUTES Audit Committee of Roanoke City Council Location: Council Conference Room Noel C. Taylor Municipal Building, Room 451 South Date: September 5, 2018 Time: 4:04 p.m. to 5:10 p.m. Attendees: Audit Committee Member Present (Y /N) Anita Price (Chair) Y William Bestpitch (Vice- Chair) Y Michelle Dykstra (Member) N Sherman Lea (Ex- Officio) N Drew Harmon, Municipal Auditor Bob Cowell, City Manager Dan Callaghan, City Attorney Brian Townsend, Assistant City Manager for Community Development Sherman Stovall, Assistant City Manager for Operations Amelia Merchant, Director of Finance Dawn Hope Mullins, Assistant Municipal Auditor Tasha Burkett, Information Systems Auditor Cari Spichek, Senior Auditor Brian Pendleton, Senior Auditor Emma Coole, Senior Auditor Dorothy Hoskins, Senior Accountant Amanda Dooley, Accounts Payable Coordinator Eric Charles, Deputy Chief of Police 1. Call to Order: Ms. Price called the meeting to order at 4:04 p.m. 2. Approval of the Minutes from the June 6, 2018 Meeting: The minutes were set aside until a quorum was present. September 5, 2018 3. Police Cash and Fees Audit: Page 2 of 6 In addition to the typical cash funds and fees audited annually, off -duty billings and a staff fund were included in this year's audit. There were no exceptions noted in relation to the cash funds. The $2,000 emergency fund, which had been inactive for several years, was closed in March 2018. Off -duty Billing: Businesses and other entities can request and pay for off duty officers to provide security. Officers working off duty assignments are in uniform and follow police standard operating procedures. Officers log into dispatch so the department is aware of where they are and their status. The off duty program increases policing capacity because private entities pay for the additional police coverage. Billings totaled almost $500,000 in 2017 with over 11,000 hours worked. Account delinquencies were minimal. Mr. Harmon explained that auditors looked at days when an officer worked more than 15 hours of shift and off -duty time combined. A sample was tested for overlapping time. Exceptions noted were discussed with the persons involved and their supervisors. Explanations were reasonable but indicated a need for better documentation of schedule changes. Verification Reports: Management had implemented their plans from the prior year's audit. Auditors found that deposits were made timely. The availability of verification reports continued to be an issue. Auditors reviewed ten days (10) of mailed requests and found 61% were returned to the requestor unfulfilled. The cause appears to be with a Department of Motor Vehicles interface. A software upgrade is expected to correct the underlying issue. Deputy Chief Charles anticipates the upgrade will be scheduled for the fall or winter timeframe. Online Service: The City subscribes to an online service that allows customers to download verification reports themselves. The Police Department receives $5 for each download. The contract with the service requires that the City upload all accident reports within 48 hours. Various factors can prevent the City from meeting the 48 hour requirement and we noted several exceptions. The number of reports being uploaded to the site began dropping in late 2016 and have not recovered to previously noted levels. The cause of lower numbers has not been determined. This issue will be reviewed again in the next audit. Deputy Chief Charles commented that work is in progress on some of the items noted. Ms. Price asked if the technology glitches would be addressed. Deputy Chief Charles affirmed that they would. Ms. Price thanked him for being present. Hearing no further questions, the report was received and filed. 4. Council Expenditures Audit: The audit covered expenditures for the year ended June 30, 2018. No exceptions were noted. Overall, disbursements were three percent [3 %] below budget. Ms. Price expressed her appreciation. September 5, 2018 Page 3 of 6 Hearing no further questions, the report was received and filed. 5. Clerk of the Circuit Court Audit: The audit covered transactions occurring January 1, 2017 through March 31, 2018, as specified by the Auditor of Public Accounts [APA]. No exceptions or concerns were identified. Ms. Price asked about the agreement with the APA for the audit. Mr. Harmon responded that the agreement dates back to the 1970's and waives all costs for the audit in return for Municipal Auditing performing a share of the audit work. There were some challenges in scheduling the work and obtaining state reports in recent years. Ms. Price asked how other localities handle the audit. Mr. Harmon was unaware of any that have the same arrangement. He plans to review the agreement with the APA and consider changes going forward. Hearing no further questions, the report was received and filed. 6. Revenue Project Update: Ms. Burkett presented the update. The team completed the remaining Business Process Reviews [BPRs] this quarter, with the exception of miscellaneous accounts receivable. Mr. Bestpitch asked for a description of miscellaneous accounts receivable. Ms. Burkett responded that this would be anything billed by the City that is not a tax. These types of fees are currently billed through the Advantage financial system. Mr. Bestpitch asked how parks and recreation fees are billed. Ms. Mullins replied that a separate cloud -based system is used for people to register and pay for recreation classes and events. The Advantage financial system is used to bill sports leagues and delinquencies. Mr. Bestpitch inquired as to how miscellaneous billing will work if it is not included in the new system. Ms. Burkett replied that it would stay on the financial system, but options such as interfacing are available. Ms. Mullins added that the preference is to move miscellaneous receivables to the new system, but the decision has not yet been finalized. Mr. Bestpitch noted that one of the main objectives of the project was to have everything someone owes in one system. Ms. Burkett assured him that was still the goal and all options will be carefully and fully evaluated. The vendor provided a two day demonstration of the whole system for employees this quarter. This provided employees an opportunity to see the system work and to ask questions. The majority of time this last quarter was spent on converting legacy data to be transferred into the new system. Almost 200,000 records have been provided to the vendor and have passed an initial review. The work is very detail oriented and time consuming. Employees must look at every customer record to make sure the data is correct. The team started with business license data and is now reviewing the associated personal property records. Additionally, departments are developing a list of reports that will be needed, with approximately 400 currently identified. Once completed, the vendor will review the list September 5, 2018 Page 4 of 6 and either identify a comparable report or create a new one. Ms. Burkett reported that the team is doing an amazing job. A kick -off luncheon was held for all project stakeholders and team members to acknowledge the start of the project. It was very well attended, with almost all invitees present. Ms. Price asked that Ms. Burkett let the team know how much the Committee appreciates their work. Ms. Burkett thanked the Council Members and management for their support. Hearing no further questions, the update was received and filed. 7. Hotline Update: Mr. Harmon reviewed a synopsis of closed reports. All completed investigations were found to be either unsubstantiated or were referred to other agencies. Allegations of criminal activity unrelated to city government were referred to the Police after verifying the persons named were not City of Roanoke employees. Allegations of fraud involving recipients of public assistance were referred to investigators in the Department of Human and Social Services. The investigation of code enforcement activity was extensive and compared citation history for all inspectors. There was no evidence to support the allegations; a comprehensive report was provided to management. The allegation related to Valley Metro was the first such report received through the City's hotline. The hotline was created to receive complaints involving City of Roanoke employees and has not been publicized at Valley Metro. Auditing reviewed video and audio from the bus involved, with management's assistance, and found no evidence to support the allegation. Ms. Price expressed her appreciation for the way in which the hotline is handled. The reports deal with very sensitive issues and Municipal Auditing makes certain they are appropriately investigated. Mr. Bestpitch appreciated that the Valley Metro complaint was investigated and not passed over because of being outside the intended scope of the hotline. Hearing no further questions, the update was received and filed. 8. Annual Report — Audit Committee: Mr. Harmon presented the annual report for fiscal year 2018. Mr. Bestpitch asked if the report will be included on the consent agenda for the upcoming Council Meeting. Mr. Harmon confirmed that it would be on the agenda. It was an unusual year that included assisting the Department of Finance with financial statement preparation and serving as project manager for the revenue system implementation. These projects required considerable hours that affected the number of audits that could be completed. The number of September 5, 2018 Page 5 of 6 hours worked on school audits was consistent with the agreement and audit plan. Indirect time that includes activities such as paid leave, training, and employee development was in line with benchmarks at 33 %. New staff hired in two positions during the year contributed to additional training hours. Client satisfaction was slightly below target with only two surveys completed. Convincing people to take the time to complete a survey has been challenging. The percentage of action plans completed was below target primarily due to one vendor having several reportable issues that it did not resolve. Hearing no further questions, the report was received and filed. 9. Audit Plan: The plan is risk - based, utilizing nine risk factors along with input from management and elected officials. Other planning considerations include staff availability and client availability. The auditable areas identified in the plan are primarily based on budget offers. In this year's plan, the Information Systems Auditor will work exclusively on the revenue system implementation. Audits in the Commissioner's and Treasurer's offices, as well as DoT will be deferred until the new system is fully implemented. Areas listed as priorities in the plan will be audited as staff become available. Mr. Cowell asked if a specific focus area in Fire /Emergency Medical Services was planned, such as medical supplies. Mr. Harmon shared information about the processes for controlling medications and explained how objectives and scope are developed during an audit. The process engages department management in talking through risks inherent to their operational objectives. Mr. Harmon discussed financial audits with a focus on workforce development funds. The City is part of a regional system which contracts with vendors to provide client services. An assignment has been set -up and work is underway. Mr. Cowell added that a recent review by the state identified a series of issues and that a closer look is appropriate. The new director has been working to address the issues cited by the state as well as other issues. Ms. Price commented on remarks about the workforce development board made by citizens the previous day at the regular City Council meeting. Mr. Cowell noted that the issues shared at the Council meeting were part of the reason the workforce development board changed vendors. Mr. Bestpitch asked about the new vendor. Ms. Coole responded that it is Ross IE Services, a workforce development company. Ms. Price was glad an audit had been initiated and Mr. Bestpitch concurred. Mr. Cowell commented on the City's fiduciary responsibility as the grantee for work force development funds. Changes to the workforce development board were required to comply with state requirements. Mayor Lea and Vice -Mayor Cobb were appointed to the board during the previous day's council meeting. Other member localities will need to do the same. Mr. Harmon discussed the simplified comparative and fiscal condition report, noting that Auditing has been considering this idea for several years. An outline has been developed as a proof of concept. The report will include financial and non - financial data that can be compared with other localities in the region. Most of the data will come from existing public reports and government agencies. It will be September 5, 2018 Page 6 of 6 purely informational without recommendations, and would be published annually so that trends may be noted and better understood. Ms. Price commented that it is a very ambitious and innovative project that she supports. Audit priorities for RCPS and GRTC were noted. Mr. Cowell asked if the review of GRTC's fixed route service is related to the recently completed operational assessment. Mr. Harmon responded that it would not directly relate to the operational assessment. The audit will potentially address processes such as driver training, standby time and security situations. Hearing no further questions, the plan was received and filed. 10. Other Business: Mr. Harmon confirmed upcoming meeting dates and times including December 12, 2018, March 6, 2019 and June 5, 2019. Ms. Price and Mr. Bestpitch confirmed that 4:00 p.m. meeting times worked well with their schedules. 11. Adjournment: Ms. Price thanked everyone for attending and adjourned the meeting at 5:10 p.m. STEPHANIE M. MOON REYNOLDS, MMC Cily Clerk CITY OF ROANOKE OFFICE OF'I'HE CI'T'Y CLERK 215 Church Avenue, S. W., Room 456 Roanoke, Virginia 24011 -1.536 Telephone: (540) 853 -2541 Fax: (540) 853 -1145 E -mail: clerk(n)ronuokeva.gov January 8, 2019 Peggy Bishop, Secretary Roanoke Valley Resource Authority 1020 Hollins Road, N. E. Roanoke, Virginia 24012 Dear Ms. Bishop: CECELIA F. MCCOY Depute City Clerk CECELIA T. WEBB, CMC Assistant Deputy City Clerk This is to advise you that Jeffrey H. Powell has qualified as a City representative of the Roanoke Valley Resource Authority for a four -year term of office, commencing January 1, 2019 and ending December 31, 2022. Sincerely, phanie M. Moon Reyn City Clerk Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Jeffrey H. Powell, do solemnly swear or (affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as a City representative of the Roanoke Valley Resource Authority for a four -year term of office, commencing January 1, 2019, and ending December 31, 2022, according to the best of my ability. (So help me God.) J F Y H. POWELL The foregoing oath of office was taken, sworn to, and subscribed before me by Jeffrey H. Powell this Iq day of 'I�eL 2018. Brenda S. Hamilton, Clerk of the Circuit Court Clerk STEPHANIE M. MOON REYNOLDS, MMC City Clerk CITY OF ROANOKE OFFICE OF THE CIrrY CLERK 215 Church Avenue, S. W., Room 456 Roanoke, Virginia 24011 -1536 Telephone: (540) 853 -2541 Fax: (540) 853 -1145 E -mail: clerk(nsroanokeva.gov January 8, 2019 Amelia C. Merchant, Director City of Roanoke Finance Board Roanoke, Virginia Dear Ms. Merchant: CECELIA F. MCCOY Deputy City Clerk C'ECELIA T. WEBB, C IC Assistant Deputy City Clerk This is to advise you that Kenneth S. Cronin has qualified as a Citizen -at -Large member of the City of Roanoke Finance Board for a two -year term of office ending June 30, 2020. Sincer y, Stephanie M. Moon City Clerk Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Kenneth S. Cronin, do solemnly swear (or affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as the Citizen -at -Large member of the City of Roanoke Finance Board for a two -year term of office ending June 30, 2020, according to the best of my ability. (So help me God.) 1 KEW ETH . CRONIN The foregoing oath of office was taken, sworn to, and subscribed before me by i Kenneth S. Cronin this /iAl day of 2018. Brenda S. Hamilton, Clerk of the Circuit Court STE 111ANIE M. MOON REVNOLDS, MMC City Clerk CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S. W., Room 456 Roanoke, Virginia 240] 1 -1536 Telephone: (540) 853 -2541 Fax: (540) 853 -1145 E -mail: clerk(wroanokcva.gov January 8, 2019 Teresa McDaniel, Secretary Human Services Advisory Board Roanoke, Virginia Dear Ms. McDaniel: CECELIA F. MCCCIV Deputy City Clerk CECE:LIA T. WEBB, CMC Assistant Deputy City Clerk This is to advise you that Laura Leonard Clark has qualified as a member of the Human Services Advisory Board for a four -year term of office, commencing December 1, 2018, and ending November 30, 2022. Sincerely, Stephanie M. Moon Reyno s, MC City Clerk Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Laura Leonard Clark, do solemnly swear (or affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as a member of the Human Services Advisory Board for a four -year term of office, commencing December 1, 2018, and ending November 30, 2022 according to the best of my ability. (So help me God.) ZIA LAXURA LEONARD CLARK The foregoing oath of office was taken, sworn to, and subscribed before me by Laura Leonard Clark this2 l day ofUC;„,2018. Brenda S. Hamilton, Clerk of the Circuit Court By �� , Clerk CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S. W., Suite 456 Roanoke, Virginia 24011 -1536 Telephone: (540) 853 -2541 Fax: (540)853 -1145 F_nmil• nlnrlc /n�rnn unknononv STEPHANIE M. MOON REYNOLDS, MMC City Clerk January 8, 2019 Tina Carr, Secretary City Planning Commission Roanoke, Virginia Dear Ms. Carr: CECELIA F. MCCOY Deputy City Clerk CECELIA T. WEBB, CMC Assistant Deputy City Clerk This is to advise you that Kermit "Kit" Hale has qualified as a member of the City Planning Commission for a four -year term of office ending December 31, 2022. Sincere , -------------- Stephanie M. Moon Reyn ; City Clerk Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Kermit "Kit" Hale, do solemnly swear (or affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as a member of the City Planning Commission for a four -year term of office ending December 31, 2022, according to the best of my ability. (So help me God.) KERMI "KIT" HALE The foregoing oath of office was taken, sworn to, and subscribed before me by Kermit "Kit" Hale this Ill day of QtC.tv�\be_ _f 2018. Brenda S. Hamilton, Clerk of the Circuit Court By JIL , Clerk J STEPHANIE M. MOON REYNOLDS, MMC City Clerk CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S. W., Room 456 Roanoke, Virginia 24011 -1536 Telephone. (540) 853 -2541 Fax: (540) 853 -1145 E -mail: elerkOroanokeva.gov January 8, 2019 Donna Payne, Secretary Building and Fire Code Board of Appeals Roanoke, Virginia Dear Ms. Payne: CECELIA F. MCCOY Deputy City Clerk CECELIA T. WEBB, CMC Assistant Deputy City Clerk This is to advise you that Charles Waters has qualified as an Citizen -at -Large representative of the Building and Fire Code Board of Appeals for a three -year term of office ending June 30, 2021. Sincerely, Stephanie M. Moon Reyno , City Clerk Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Charles Waters, do solemnly swear (or affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as a Citizen At -large representative (member) of the Building and Fire Code Board of Appeals for a three -year term of office ending June 30, 2021, according to the best of my ability. (So help me God.) CHARLES WATERS The foregoing oath of office was taken, sworn to, and subscribed before me by Charles Waters this,day of '­Pee'��018. Brenda S. Hamilton, Clerk of the Circuit Court gy � ,Clerk IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 7th day of January, 2019. No. 41342- 010719. A RESOLUTION approving the terms of a Second Letter Agreement between the City of Roanoke, Virginia ( "City "), and 611 Jefferson, LLC ( "Company "), for access to parking permits for the Patrick Henry Hotel Project ( "Project "); authorizing the City Manager to execute the Second Letter Agreement referred to above; and authorizing the City Manager to execute such other documents and to take such further actions as may be necessary to implement, administer, and enforce such Second Letter Agreement. WHEREAS, by Letter Agreement between the City and the Company dated July 11, 2011, as authorized by Resolution No. 39156- 070511, adopted by Roanoke City Council on July 5, 2011, the City provided access to public parking for individual residents at the former Patrick Henry Hotel ( "Original Letter Agreement "); WHEREAS, under the terms of the Original Letter Agreement, the duration of the Original Letter Agreement did not exceed a period of the 30 year term of financing provided to the Company by Virginia Housing and Development Authority ( "VHDA ") in connection with the redevelopment of the former Patrick Henry Hotel; and WHEREAS, the Company is planning to refinance its obligations with VHDA and has requested an agreement that will replace the Original Letter Agreement to provide for a maximum duration of 30 years from the date on which such refinancing occurs. THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke as follows: 1. City Council hereby approves the terms of a Second Letter Agreement between the City and the Company, for access to unreserved residential parking permits for the Project, as set forth in the attachment to the City Council Agenda Report dated January 7, 2019. R- Patrick Henry Hotel - Second Letter Agreement - parking permits (1.7.19).doe 1 2. The City Manager is authorized on behalf of the City to execute a Second Letter Agreement between the City and the Company, for access to unreserved residential parking permits for the Project, upon certain terms and conditions as set forth in the City Council Agenda Report dated January 7, 2019. Such Second Letter Agreement shall be substantially similar to the one attached to such report and in a form approved by the City Attorney. 3. The City Manager is further authorized to execute such other documents and take such further actions as may be necessary to implement, administer, and enforce such Second Letter Agreement. ATTEST: City Clerk r 01�1 R- Patrick Henry Hotel - Second Letter Agreement- parking permits (1.7.19).doc 2 x5� COUNCIL CITY AGENDA REPORT PF To: Honorable Mayor and Members of City Council Meeting: January 7, 2019 Subject: Authorization for a Second Letter Agreement for Access to Parking Permits for the Patrick Henry Hotel Project Background: The renovation of the former Patrick Henry Hotel at 611 Jefferson Street, S.W., was a significant project for the long term growth and vitality of downtown Roanoke. The $20 Million renovation project of this long vacant structure in 2012 resulted in over 130 apartment dwellings and over 26,000 square feet of additional active commercial and retail / restaurant space on one of Roanoke's most important corridors, Jefferson Street. The project's permanent financing was undertaken through the Virginia Housing Development Authority (VHDA). In order to facilitate this financing, VHDA requested that the developer of the project, 611 Jefferson, LLC (Company), obtain access to off - street parking in support of the project's dwelling units during the term of the VHDA permanent financing commitment, which was for an original term of thirty years. Through a Letter Agreement, dated July 11, 2011, authorized by City Council Resolution No. 39156-070511, the City provided access to public parking for individual residents of the Patrick Henry, such Agreement for a term not to exceed the 30 year term of the original financing provided to the Company by VHDA (Original Letter Agreement). The Company is planning to refinance its obligations with VHDA and has requested an agreement that will replace the Original Letter Agreement to provide for a maximum duration of 30 years from the date on which such refinancing occurs. Based on the foregoing, the City proposes a Second Letter Agreement between the City and the Company, which entails the same general terms, conditions, and obligations of the parties as were contained in the Original Letter Agreement. Considerations: The Second Letter Agreement, a copy of which is attached to this report, dated January 9, 2019, has been developed that is acceptable to 611 Jefferson, LLC, and VHDA. The Agreement contains the terms and conditions under which 140 parking permits will be made available in the City's downtown parking system to residents of the Patrick Henry who choose to obtain parking from the City. The parking permits would be made available to residents upon request during the term of the Agreement at the then current applicable posted residential parking rate as established by the City Council. Residents of the Patrick Henry who wish to obtain parking permits under this Agreement will be subject to all of the terms and conditions to which all other residential parking customers in the City's parking system must comply. The availability of parking permits in any specific parking garage or lot will be at the sole discretion of the City parking administration, but the City will use reasonable efforts to place customers in parking facilities in closest proximity to the Patrick Henry. The Agreement also provides for conditions under which the City could terminate the Agreement, including certain reductions in the size of the City's parking system during the Agreement's term; in the event of non - appropriation of funds to operate the parking system; and upon certain reductions to the number of, or cessation of the use of, the residential units in the Patrick Henry project during the term of the Agreement. Recommended Action: Approve the terms of the Second Letter Agreement between the City and 611 Jefferson, LLC, as set forth in the attachment to this report. Authorize the City Manager to execute a Letter Agreement between the City and 611 Jefferson, LLC, substantially similar to the one attached to this report, and to execute such other documents and take such further actions as may be necessary to implement, administer, and enforce such Agreement, with the form of the Letter Agreement and such other documents to be approved by the City Attorney. Robert S. Co eil, Jr. City Manager Distribution: Council Appointed Officers R. Brian Townsend, Assistant City Manager for Community Development Amelia C. Merchant, Director of Finance Robert Ledger, Economic Development Manager Jamie Brooks, General Manager, Park Roanoke 2 January 9, 2019 Mr. Edward Walker c/o 611 ,Jefferson, LLC 24 Kirk Avenue, S.W. Roanoke, VA 24011 Re: Second Letter Agreement Dear Mr. Walker: The City of Roanoke ( "City ") owns, operates, and manages a public parking system in its downtown which is currently comprised of seven parking garages and four off - street parking lots which contain a total of approximately four thousand (4,000) parking spaces. By letter agreement dated .July 1 1 , 201 1 , as authorized by Resolution No. 39156 -07051 1, adopted by Roanoke City Council on July 5, 2011, the City and 611 .Jefferson, LLC, a Virginia limited liability company ( "Company "), the City provided access to public parking for individual residents at the former Patrick Henry Hotel, situated at 611 .Jefferson Street, S.W., Roanoke, Virginia, that was being redeveloped by the Company ( "Original Letter Agreement "). Under the terms of the Original Letter Agreement, the duration of the Original Letter Agreement did not exceed a period of the 30 year term of financing provided to the Company by Virginia Housing and Development Authority ( "VHDA ") in connection with the redevelopment of the former Patrick Henry Hotel. The Company is planning to refinance its obligations with VHDA and has requested an agreement that will replace the Original Letter Agreement to provide for a maximum duration of 30 years from the date on which such refinancing occurs. Based on the foregoing, the City proposes this letter agreement (the "Second Letter Agreement ") between the City and the Company, its successors and assigns, that provides, to the extent permitted by law, access to public parking for individual residents of residential dwelling units (as defined in Appendix A. Definitions of Section 36.2 Zoning, of the Code of the City of Roanoke, 1979, as amended) located in The Patrick Henry located in downtown Roanoke, at 611 Jefferson Street, S.W. ( "The Patrick Henry "), which is owned and operated by the Company. The City agrees to make available for such residents a total of 140 parking permits for use in off - street parking garage or parking lot facilities that the City owns, operates, and manages under the following terms and conditions: 1. The determination of availability of parking permits in any specific parking garage or parking lot owned, operated, and managed by the City will be at the City's sole discretion, provided the City will use reasonable efforts to make parking available to the residents at facilities closest in proximity to The Patrick Henry. 2. The parking permits will be made available to residents of The Patrick Henry during the term of this Second Letter Agreement at the then current applicable posted residential parking rate, or other applicable rate, established and as modified from time to time by the City Council of the City of Roanoke. All such parking permits for residents who qualify shall be subject to the terms and conditions of any application and /or agreement documents that other residential parking patrons are subject to, as well as any other requirements for such permits that may be promulgated from time to time by the City Manager or City Council for the use of such permits. Currently, qualified residents of The Patrick Henry may apply for monthly residential parking permits at a rate of $25.00 per permit per month. 3. The City will make available a total of 140 parking permits for such residents in The Patrick Henry for the duration of the project's proposed refinancing term with VHDA. The City acknowledges and agrees this Second Letter Agreement may be assigned, in its entirety but not in part, to VHDA or a successor owner of The Patrick Henry during the term of this Second Letter Agreement, but under no circumstances shall the term of this Second Letter Agreement exceed a total of 30 years from the date of the closing on the VHDA refinancing agreement, anticipated to be no later than June 30, 2019. Notwithstanding anything in this paragraph to the contrary, this Second Letter Agreement shall terminate if the Company refinances its loan with VHDA with another lender. 4. The City's obligations under this Second Letter Agreement to provide access as set forth above to such parking permits are specifically subject to the following conditions: 2 a. The availability of funds and the appropriation of such funds by the City Council as may be necessary to operate and manage the City's parking garages and lots. b. The City maintaining ownership, operation, and management of parking garages and lots through the duration of the agreement; provided if more than 2,500 of the parking spaces currently managed by the City are sold or transferred to a single third party (or more than one party if part of a single transaction or series of transactions to individuals or entities having a common control group) during the term of this Second Letter Agreement then this Second Letter Agreement shall be binding on such successor. Except as provided in the preceding sentence, should the total number of parking spaces in such facilities fall below one thousand (1,000) during the term of this Second Letter Agreement, this Second Letter Agreement may be terminated by the City in its sole discretion. C. If more than twenty five percent (25 %) of the residential dwelling units in The Patrick Henry are no longer used as active residential dwelling units during the term of this Second Letter Agreement, or if The Patrick Henry shall close or cease operation of the residential dwelling units in their entirety for any consecutive twelve (12) month period, this Second Letter Agreement may be terminated by the City in its sole discretion. d. In the event of a breach by the City under the terms of this Second Letter Agreement, the Company, its successors and /or assigns, shall give written notice to the City setting forth the nature of the breach and the City shall have thirty (30) days following receipt of the notice to cure the breach, provided that if the cure cannot be reasonably completed within thirty (30) days following the City's receipt of written notice the City shall be granted additional time to cure the same provided it diligently proceeds to do so. All notices to the City shall be sent via overnight delivery or certified mail, return receipt requested to: City Manager, City of Roanoke, 215 Church Avenue, S.W., Suite 364, Roanoke, VA 24011. Should the City fail to cure any 3 default within the time period set forth in the preceding sentence, the City shall be deemed in default of this Second Letter Agreement and the Company may exercise all rights and remedies available to it under Virginia law, provided the City's liability, if any, shall be limited to an amount not to exceed the lesser of (i) the actual cost of any excess amount that it would cost the Company to provide such parking permits over what the City would have charged to provide such parking permits or (ii) an amount not to exceed a total of $100,000. e. The City shall not be liable for its inability to perform its obligations under this Second Letter Agreement by reason of strikes, lock -outs, casualties, acts of God, labor troubles, failure of power, governmental laws or regulations, riots, insurrection, war or other causes beyond the reasonable control of the City. 5. The Company shall indemnify and hold harmless the City, its Parking Management Company (if any), and their officers, agents, and employees against any and all liability, losses, damages, claims, causes of action, suits of any nature, costs, and expenses, including reasonable attorney's fees, resulting from or arising out of the Company's, its assignees, or their employees, agents, or subcontractors actions, activities, or omissions, negligent or otherwise, on or near the City's property or the area where any services are to be provided, or arising in any way out of or resulting from any of the matters or items involved in or covered by this Second Letter Agreement, and this includes, without limitation, any fines or penalties, violations of federal, state, or local laws or regulations, personal injury, wrongful death, or property damage claims or suits. 6. This Second Letter Agreement shall take effect upon the finalization of the refinancing of the Company's existing obligations owed to VHDA by VDHA on or before ,June 30, 2019. Upon finalization of the refinancing agreement on or before June 30, 2019 by the Company with VHDA, the Original Letter Agreement shall automatically terminate and be of no further force or effect. In the event that the refinancing agreement does not occur as contemplated herein by June 30, 2019, this Second Letter Agreement shall automatically terminate, be of no further force or effect, and 12 the Original Letter Agreement shall remain in full force and effect. If the Company agrees to the terms and provisions set forth herein, please have an authorized representative sign and return to me the original of this letter. Thank you for your cooperation in this matter. City of Roanoke, Virginia Robert S. Cowell, Jr. City Manager 611 Jefferson, LLC hereby acknowledges that it has read the above Second Letter Agreement document and does hereby agree to and accepts all such provisions, including, without limitation the automatic termination of the Original Letter Agreement when and if this Second Letter Agreement takes effect in accordance with Section 6 of this Second Letter Agreement. Date: January--, 2019 611 Jefferson, LLC By its Manager 611 Jefferson Management, LLC Printed Name and Title 5 IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 7th day of January, 2019. No. 41343 - 010719. A RESOLUTION authorizing the acceptance of the 2018 Financial Empowerment Center Planning Grant to the City of Roanoke ( "City ") from the Cities for Financial Empowerment Fund, Inc. (the "CFE Fund "); authorizing the City Manager to execute any documents necessary to receive such grant, including a Memorandum of Understanding with the CFE Fund, in order for the City to improve the financial stability of low and moderate income households by embedding financial empowerment strategies into local government infrastructure; and authorizing the City Manager to take such further actions and execute such other documents as may be necessary to obtain, accept, implement, administer, and use such grant funds. BE IT RESOLVED by the Council of the City of Roanoke as follows: L The City of Roanoke hereby accepts the 2018 Financial Empowerment Center Planning Grant offered by the CFE Fund in the amount of $20,000, which requires no local match, as more particularly described in the City Council Agenda Report dated January 7, 2019. 2. City Council hereby authorizes the City Manager to execute any documents necessary to receive such grant, including the Memorandum of Understanding with the CFE Fund, which is attached to the above mentioned Agenda Report, with all such documents to be approved as to form by the City Attorney. 3. The City Manager is authorized to take such further actions and execute such further documents as may be necessary to obtain, accept, implement, administer, and use such grant funds, as allowed by the terms and conditions of the grant, with any such documents being approved as to form by the City Attorney. ATTES OEM � City Clerk R- Accept Grant funding from the CFE Fund (1.7.19) CITY COUNCIL AGENDA REPORT To: Honorable Mayor and Members of City Council Meeting: January 7, 2019 Subject: Acceptance of an 2018 Financial Empowerment Center Planning Grant Award Background: Cities for Financial Empowerment (CFE) is an organization with a mission to help improve the financial stability of low and moderate - income households around the country. They do this by embedding financial empowerment strategies into local government infrastructures. In practical terms, CFE's goal is to make free, one -on -one professional financial counseling a standard public service provided by the participating municipality. CFE has selected Roanoke for participation and is ready to provide a $20,000 "Planning Grant" which will be used during the first twelve months of the program to plan and prepare to establish a "Financial Empowerment Center" ( "FEC ") in which the City, and its local partners, will offer free financial counseling for low and moderate income individuals. If successful, the next phase or, "Implementation Phase," would involve additional grant moneys that would be used to make the plan a reality. If approved, an anticipated local partner would be Freedom First Federal Credit Union which is prepared to participate and provide the initial financial counselors for the FEC. Considerations: City Council action is needed to accept the 2018 Financial Empowerment Center Planning Grant award and authorize the City Manager to execute the MOU between the CFE Fund and the City. A copy of the MOU and Application is attached to this letter. There is no local funding match required for this grant. Recommended Action: Accept the Grant as described above and authorize the City Manager to execute any required grant agreements, including the MOU, to be approved as to form by the City Attorney. 0 Cities for FINANCIAL EMPOWERMENT Fund MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding (the "MOU "), dated as of January 7, 2019 (the "Effective Date "), is by and between Cities for Financial Empowerment Fund, Inc. (the "CFE Fund "), a Delaware nonprofit corporation qualified as exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code ") with its principal office located at 44 Wall Street, Suite 605, New York, NY 10005 and the City of Roanoke, VA (the "Grantee "). WHEREAS, the CFE Fund works to support municipal engagement to improve the financial stability of low and moderate income households by embedding financial empowerment strategies into local government infrastructure (the "Pu oses "). WHEREAS, the CFE Fund has determined that the support of the Grantee in the work contemplated by this MOU furthers the exempt purposes of the CFE Fund. WHEREAS, the Grantee has agreed to use the funds provided by this MOU (the "Grant ") to support the Purposes by managing the implementation and operation of the activities set forth in Exhibit A (the "Request for Proposal & Grantee Proposal "), Exhibit B (the "Scope of Work ") and Exhibit C (the "Model ") (Exhibits A, B and C collectively, the "Program "). WHEREAS, the CFE Fund and the Grantee desire to enter into this MOU to provide for the terms and conditions of the Grant and the Program. 1. Grant. The CFE Fund pledges and agrees to provide the Grantee a Grant in the form of cash in an amount not to exceed $20,000 (TWENTY THOUSAND DOLLARS). Grant funds will be paid electronically in U.S. Dollars as provided for in the Grant Payout Schedule in Section 5(c). 2. Use of Grant. The Grant is to be used only for the purposes outlined in the Request for Proposal and in accordance with the specific allocations identified in the Grant budget included in Exhibit D (the "Grantee Budget "). The work detailed in the Request for Proposal should be executed in accordance with Scope of Work. The Grantee must obtain the prior written consent of the CFE Fund before using the Grant for goods or services outside the Scope of Work; the failure to comply with this provision may invalidate any obligation of the CFE Fund to pay any invoices for such goods or services and constitute breach of this contract. 3. Term. (a) The period of this Grant shall not exceed twelve (12) months. The Grant term will begin as of the Effective Date and end no later than December 31, 2019. Any funds not used by the end of the Grant term toward the purposes of this Grant will be returned to the CFE Fund within thirty (30) days after the end of the Grant term unless otherwise agreed upon by both parties in writing in advance. (b) This MOU may be terminated at any time prior to its scheduled termination as set forth above: (i) By either the CFE Fund or the Grantee without cause by giving the other party sixty (60) days' prior written notice; (ii) Immediately by a non - breaching party following a material breach of this MOU by the other party and the expiration of a ten (10) day "cure" period after the non - breaching party shall have given notice to the breaching party of such breach; or; (iii) Immediately by the CFE Fund when its objectives can no longer be advanced through the relationship set forth in this MOU, without limitation, by the Grantee's administration of any Vendor Contract (as defined below). 4. Vendor(s). (a) The CFE Fund hereby appoints the Grantee as its sole and exclusive agent with respect to any community -based 501(c)(3) organizations, governmental organizations, consultants, or other private entities (each a "Vendor ") engaged by the Grantee to support the implementation of the Program. Each Vendor may rely upon the direction and instruction of the Grantee. (b) The Grantee shall administer all aspects of each contract entered into with any Vendor for purposes of this MOU (the "Vendor Contracts "), including, without limitation, payment of Vendor(s)' invoices, managing and overseeing the performance of each Vendor under the Vendor Contracts and monitoring such Vendor's adherence to its duties, obligations and responsibilities thereunder, including appropriate insurance. (c) Notwithstanding the above, Grantee shall notify CFE Fund in timely, written manner of any Vendors engaged for the purposes of this MOU. 2 5. Conditions of Disbursement of Grant. (a) Grantee shall be eligible to receive funds upon the fulfillment of the following condition: (i) Receipt by the CFE Fund of a signed copy of this MOU, which includes Scope of Work and Grantee Budget. (b) Disbursements of the Grant shall be subject to the fulfillment of the following conditions: (i) Timely receipt of all Grantee reports as detailed in the Scope of Work. (ii) Satisfactory performance of this MOU in accordance with the Scope of Work. (iii) The Grantee covenants and agrees that it shall take no action, omit to take any action, or engage in any activity that could impair or endanger, either directly or indirectly, the CFE Fund's exempt status under the Internal Revenue Code, or which could hinder the CFE Fund's ability to fulfill its charitable mission. (c) Grantee Payout Schedule: (i) Terms of payments: a. 100% of funds will be available for payment upon execution of MOU. (ii) All funds will be electronically transferred. 6. Payment of Grant. Subject to the fulfillment of the conditions set forth in Section 3: (a) The CFE Fund may increase the Scope of Work and corresponding outcome requirements and make concomitant payment adjustments as funds become available to expand services. Any increase in the Scope of Work and subsequent outcome goals would be made in consultation with the Grantee and the Vendor(s). (b) Services provided by the Vendor to clients beyond the Grant term shall not be Initial here within the Scope of Work under this MOU and shall not be included in the Grant. (c) Grantee acknowledges that the CFE Fund will be making one or more electronic grant payments, and that Amelia Merchant, Director Department of Finance (amelia.merchant @roanokeva.gov) is authorized to enter the Fiscal Conduit's appropriate routing and account number into CFE Fund's payment system (bill.com). 3 7. Covenants. During the term of this Grant, the Grantee is expected to adhere to the terms and conditions below and outlined in the Scope of Work or as set forth in Exhibit A (the "Request for Proposal & Grantee Proposal"). Failure to adhere to these conditions will constitute an act of default and result in the Grantee's obligation to return of part or all of the Grant funds to the CFE Fund and the termination of any obligation of the CFE Fund to pay subsequent invoices submitted after such default. In such a case, the CFE Fund will determine in its sole and absolute discretion the percentage of the Grant to be returned. Cessation or reclamation of Grant funding by the CFE Fund may also result in the Grantee's elimination from consideration for investment from the CFE Fund in any other form. In the event that the CFE Fund terminates the Grant as provided herein, the Grantee shall return Grant funds to the CFE Fund within the time period specified by the CFE Fund upon termination. During the Grant term and beyond as applicable, the Grantee under this MOU agrees to: (a) Coordinate the overall implementation of the program with respect to the Scope of Work and the Grantee Proposal. The Grantee will oversee and direct the work of all partner organizations with respect to the Scope of Work and the Grantee Proposal, including its Fiscal Conduits, nonprofit, referral, integration and training partners and Vendor(s). In particular, the Grantee will monitor and manage any Vendor(s) to ensure proper implementation in conformance with the Scope of Work and will serve as the main point of contact with the Vendor. The Grantee and its Vendor(s), if any, will draft and sign an agreement that will memorialize this understanding and submit a timely, written copy of such sub - agreement to CFE Fund. (b) Adhere to the uses of the Grant detailed in the Request for Proposal. (i) This Grant is made only for the purposes of implementing the Scope of Work pursuant to the Request for Proposal and this MOU. Any Grant funds not expended or committed for these purposes within the Grant term will be returned to the CFE Fund. Any prospective changes in the use of this Grant totaling over ten percent (10 %) of any individual budget line must be submitted in writing to and approved in advance by the CFE Fund. (ii) The Grantee will provide immediate written notification to the CFE Fund if significant changes or events occur during the term of the Grant which could potentially impact the progress or outcome of the Grant, including, without limitation, changes in the Grantee's or any Vendor(s)' management personnel, loss of funding or other extenuating circumstances which could affect the Grantee Budget or any Vendor(s)' budget. The CFE Fund, in its sole and absolute discretion, will determine if requests for budget modifications are warranted. 11 (c) To the extent that any Vendor is a tax - exempt entity, to confirm the tax - exempt status of such Vendor at the time of each payment, and ensure that that each such Vendor is maintaining all authorizations, filings, exemptions, insurance, etc. required of a Vendor to perform its duties within and outside this MOU. (i) The Grantee also agrees to provide immediately any correspondence from the Internal Revenue Service or other related agencies regarding the above. (d) Cooperate in the monitoring, evaluation, and reporting of work, as detailed in the Scope of Work and as set forth in Exhibit E ("Reporting"). (e) Adhere to the CFE Fund financial compliance stipulations. (i) The Grantee will maintain financial records to clearly account for the Grant funds from the CFE Fund and proper expenditures in furtherance of the Grant. The Grantee shall retain and maintain adequate records to substantiate such expenditures according to generally accepted accounting practices. The Grantee shall retain original substantiating documents related to the specific Grant expenditures and make these records available to the CFE Fund and Bloomberg Family Foundation ( "Foundation ") upon request. (ii) The CFE Fund reserves the right to audit the Grantee's financial and other records to ensure the proper utilization of its Grant funds. During and at least three years following the end of the Grant term, the Grantee must maintain records showing, separately from other accounts kept in its books and records, the receipt and expenditure of the CFE Fund Grant funds. (f) Adhere to the CFE Fund's marketing and communications guidelines. (i) The Grantee agrees to adhere to the marketing and communication guidelines of the CFE Fund (as it may be amended, modified, supplemented or otherwise revised), and any Grant - relevant CFE Fund partners, including the Foundation, as provided by the CFE Fund and as applicable. (ii) The Grantee agrees to provide details about all Grant - related marketing and communication materials and events to the CFE Fund reasonably in advance to jointly determine appropriate branding opportunities for the CFE Fund and any relevant CFE Fund partners, including the Foundation. Materials include but are not limited to websites, newsletters, media releases, public announcements, event invitations and programs. The CFE Fund will provide specific communication protocols including language for recognizing the CFE Fund in text and logo format, as well as the Foundation. Grantee also shall provide to the CFE Fund final copies of all printed materials as part of the progress reports for the Program. (iii) The Grantee will request pen- nission from the CFE Fund before using or modifying the FEC Public and FEC logos and related branded materials. (iv) Any Grant - related media interviews or public announcements intended for media or public purposes must be coordinated with and approved by the CFE Fund, in advance. (v) The Grantee shall not make any statement or otherwise imply to donors, investors, media, or the general public that the Foundation directly funds the activities detailed in the Scope of Work. (vi) The Grantee and its Vendor(s) may not publicly announce the receipt of this Grant or its details until the CFE Fund and its institutional investors have made their official announcement or have otherwise given permission in writing. (vii) Execution of this MOU provides the CFE Fund and its institutional investors the right to disseminate any products, outcomes, or other information related to the Grantee's efforts in any media of its choosing. Whenever feasible, the CFE Fund will share these materials with the Grantee prior to publication and give appropriate credit to the Grantee as the provider of this information. The Grantee and its Vendor(s), if any, will be expected to cooperate in any public education or outreach effort undertaken in connection with this Grant, which may include other CFE Fund programs. (g) Adhere to the following prohibitions on the use of the Grant. Under no circumstances may the Grantee or any other organization receiving the CFE Fund's Grant funds use these funds directly or indirectly for the following purposes or activities: (i) Make a Grant to an individual for travel, study or other similar purpose, as described in section 4945(d)(3) of the Code. (ii) Promote or engage in violence, terrorism, bigotry, or the destruction of any state, nor will it make sub - Grants to any entity that engages in these activities. (iii) Influence legislation, especially for the benefit of the CFE Fund or any of its affiliates or funders, including by publishing or distributing any statements, or any campaign in support of or opposition to any pending legislation. (iv) Any other purposes outside what is stated in the Request for Proposal without express written permission from the CFE Fund. 2 8. Confidentiality. All reports, information or data furnished to or to be prepared or assembled under this MOU are to be held confidential, unless otherwise herein provided or subject to disclosure by law. 9. Non - Assignability. The Grantee shall not assign, transfer, subcontract, convey or otherwise dispose of this MOU or of its rights, obligations, responsibilities or duties hereunder or under any Vendor Contract, either in whole or in part, without the prior written consent of the CFE Fund. 10. Compliance with Anti - Discrimination Rules. In its use of Grant funds provided by the CFE Fund, and in the course of all development, marketing and operation activities, the Grantee shall fully comply with all applicable federal, state, local (and any other governmental), anti - discrimination laws, executive orders, rules and regulations. 11. Entire MOU. This MOU contains the entire understanding between the parties hereto with respect to the subject matter of this MOU and replaces and supersedes all prior agreements and understandings of the parties. This MOU may be amended or modified only by a writing executed by the parties hereto. 12. Binding MOU. Notwithstanding any other provision of this MOU, the parties agree that this MOU constitutes a legal, valid and binding agreement of each party, and is enforceable against each party in accordance with its terms. 13. Amendment. The CFE Fund shall consider, but is not obligated to agree to, requests by the Grantee to amend the terms of this MOU. Amendments to this MOU shall be made only after (i) the CFE Fund has received written request from the Grantee stating the nature of the amendment request, and (ii) the CFE Fund has executed a written agreement describing the terms of the amendment. 14. Counterparts. The MOU may be executed in any number of counterparts, including by facsimile or other electronic means of communication, each of which shall be deemed an original of this MOU and all of which together shall constitute one and the same instrument. 7 IN WITNESS WHEREOF, the parties hereto have caused this MOU to be duly executed by their respective officers as of the day and year first above written. CITIES FOR FINANCIAL EMPOWERMENT FUND, INC. LIM Name: Jonathan Mintz Title: President and Chief Executive Officer Date: CITY OF ROANOKE Name: Robert S. Cowell, Jr Title: City Manager Date: Request for Proposal & Grantee Proposal (Attached) Exhibit A Exhibit A Exhibit B The Scope of Work Where there may be discrepancies, this Scope of Work supersedes both the Request for Proposal and the Grantee Proposal. As part of the Financial Empowerment Center Planning Grant, the CFE Fund will be providing the City of Roanoke with a range of technical assistance services, including staff time, along with a $20,000 planning grant to help it achieve the following deliverables: • Draft an implementation plan to launch the Financial Empowerment Center initiative, based on Exhibit C (the "Model "). This plan will serve as the main component of the Implementation Proposal for the CFE Fund's Implementation Grant. The plan will outline: • the nonprofit partner(s) who will deliver the financial counseling; • training partnerships and a training plan for the financial counselors; • a plan to identify a dedicated FEC program manager (employed by the local government) or name of person hired; • any commitments for the matching funds needed during the implementation phase; • the partnerships secured to integrate the financial counseling within a range of services and locations; and • the implementation budget. • If eligible, apply for the CFE Fund's Implementation Grant. In order to be eligible for matching funds, Grantees will be expected to submit their Implementation Proposal within nine months of the start of the Grant term. The CFE Fund will review all proposals beyond the nine months but decisions will be based on funding available at the time of submission. In order to accomplish these deliverables, the Grantee will: 1. Designate the necessary staff members to manage and support all planning efforts. a. Assign a senior staff member, such as the director or assistant director of the lead office, who will serve as the main liaison between the CFE Fund and the Grantee. b. Ensure that designated staff members are actively and successfully working independently and collaboratively with the CFE Fund in furtherance of the planning efforts, including regular calls and emails with the CFE Fund to monitor progress, engage stakeholders, troubleshoot and make course corrections, as needed. c. Allow two staff members to attend a two -day orientation convening on October 18 and 19, 2018 in New York City. d. Ensure that all relevant staff members attend an in -depth planning session during the first CFE Fund site visit (early 2019); and assist in planning meetings with relevant stakeholders during the site visit to further planning efforts. e. Determine which office, agency or department the FEC work will fall within in the local government. Exhibit B f. Work with the assigned Expert Partner who will be available for phone calls and an in- person meeting to supplement the CFE Fund's technical assistance. 2. Coordinate key service delivery stakeholders to inform and finalize planning activities and implementation strategies. a. Assist in the completion of a detailed review, working collaboratively with the CFE Fund, outlining the stakeholders, integration opportunities, resources and issues relevant to launching a Financial Empowerment Center. Develop a list of relevant stakeholders (including but not limited to local government agencies, nonprofits, financial institutions, funders, etc.) who will participate in the assessment. Work with the CFE Fund to review findings from the assessment, provide feedback and develop priorities. Conduct outreach to engage community stakeholders in developing planning and implementation strategies. b. Identify and receive approval from the CFE Fund of acceptable counselor training options, based on training standards provided by the CFE Fund. c. Identify, and if possible procure, the services of, nonprofit organization partners to deliver the financial counseling. d. Identify and secure commitments from potential partners for counseling referrals, for co- location opportunities and for programmatic integration. 3. Secure match funding to access the CFE Fund's Implementation Grant to launch the FEC initiative. a. Raise or otherwise provide match funds totaling one -half of the first year implementation budget (estimate fundraising goal of $150,000) to be eligible for up to $150,000 in CFE Fund match dollars. i. Work independently or collaboratively with the CFE Fund to identify funding opportunities. ii. Coordinate outreach activities with local and /or national funders to provide an overview of the FEC work. iii. Make due effort to identify and secure Year 2 implementation funding commitments. Note: The CFE Fund support to those selected as implementation partners will include a 1:1 match of up to $150,000 in the first year, and a 1:2 match of up to $100,000 in the second year. Planning Grantees will be eligible to apply for the Implementation Grant funding if they have committed funding for Year 1 (totaling approximately $150,000) and have displayed a high likelihood of securing Year 2 funding (totaling approximately $200,000) through either verbal or written commitments from funding stakeholders. 4. Support a vibrant Financial Empowerment Center Learning Community. a. Share accomplishments, best practices and lessons learned with the broader field through participation in a variety of national Learning Community activities lead by the CFE Fund. Such activities include: i. Attendance at national gatherings hosted by the CFE Fund. Exhibit B ii. Participation in ad -hoc webinars or conference calls with other grantees and partners. iii. Involvement in written communications about the work, which could include features on the CFE Fund website, newsletter, or written briefs. 5. Review the Implementation Grant Request for Proposal and draft of the Implementation Grant Agreement. By early 2019 the CFE Fund will send the Grantee for review a copy of the Implementation Grant Request for Proposal and a draft template of the Implementation Grant Agreement. a. Review the Implementation Grant Request for Proposal to help prepare for application within nine months of the start of the Grant term. b. Review the draft of the Implementation Grant Agreement to get a head start on compliance should Grantee ultimately be awarded the Implementation Grant from the CFE Fund. i. The draft does not constitute a final version of a contract that would be given to Grantee in the event that they are awarded the Implementation Grant. ii. Neither Grantee nor the CFE Fund is bound by any terms set forth in the draft, as it is only offered for preparation purposes and does not signify that Grantee has been awarded an Implementation Grant. iii. Note that the Implementation Grant Agreement contains sections covering Insurance, Indemnification, Governing Law, Submission to Jurisdiction, Service of Process, and Waiver of Jury Trial that are not in the Planning Grant MOU. Further note that the Governing Law, Submission to Jurisdiction, Service of Process, and Waiver of Jury Trial provisions are non - negotiable. The Insurance and Indemnification sections are unlikely to be negotiable, with the exception of municipalities that self - insure but are able to certify that they can use their self - insurance to meet the insurance requirements spelled out in the contract, and municipalities with state statutes prohibiting certain types of indemnification, in which case the CFE Fund would not be able to indemnify Grantee. As part of the Planning Grant, the CFE Fund staff will provide technical assistance to the Grantee on a regular basis. The CFE Fund will: • Facilitate a series of initial training sessions, including one in- person launch session — October 18 and 19, 2018 in New York City — to set the context for the work, provide in- depth overviews of the Model, and share best practices; • Lead regular calls and be available via email to support strategic planning and program development; • Make at least one site visit to meet partners, facilitate stakeholder discussions, and provide targeted assistance; • Host learning community activities, including an annual all- partner, in- person event; • Provide assistance with fundraising activities, including participating in fundraising meetings by phone (or in person during site visits), and review fundraising strategies; and Exhibit B • Provide access to a range of technical assistance resources, including fundraising templates, training curricula, operations manuals, and other resources. Exhibit B Exhibit C Financial Empowerment Center Model (the "Model ") In 2008, New York City under Mayor Michael R. Bloomberg first piloted a Financial Empowerment Center ( "FEC ") to offer professional, one -on -one financial counseling targeted to New Yorkers with low incomes as a free public service, helping residents navigate the increasingly complex financial marketplace and increase their financial stability. Since then, and through replication supported by Bloomberg Philanthropies and the Cities for Financial Empowerment Fund ( "CFE Fund ") in five other cities, Financial Empowerment Centers have grown into a large -scale network of targeted financial counseling and coaching services. Embedded into local government social service delivery systems, the Model in the six cities has provided financial counseling to more than 70,000 clients. Local governments are uniquely poised to integrate financial empowerment interventions, such as financial counseling and coaching, into core social service delivery systems: they are responsible for local implementation of services, and can connect to residents through schools, benefits disbursal, affordable housing, and other key touchpoints. In addition, because underlying financial instability is often the primary backdrop, if not the actual presenting cause, for residents seeking and receiving social services, the FEC experience both helps generate better financial outcomes and also leads to enhanced success within primary social services (the "Supervitamin Effect "). As quantified in a recent evaluation of the Model, despite significant financial obstacles, people who received FEC counseling succeeded in reducing debt, improving credit, opening bank accounts, and even saving for emergencies and for their futures. FEC counselors helped clients reduce debt by more than $83 million and increase their savings by $9 million, significant success that occurred in the context of deep financial challenges. In fact, FEC clients' average annual incomes were just over $21,000; close to 30% had no health insurance; and over 60% had no savings. Key elements of the Model and operations include: Model: • One -on -one financial counseling from trained professionals • Offered by local government, often as delivered through nonprofit organization partners, as a free public service • Data systematically tracked, including defined client outcomes • Counseling connected to a range of local government and nonprofit service delivery systems • Prioritizes sustainability efforts to become a sustained, publicly - funded service Operations: • Program implementation and management is led and overseen by the local government • Service provision is conducted by one or more qualified nonprofit partners or local government agencies Exhibit C • Counselors conduct financial triage with clients to determine the nature of their financial situation, set goals, and establish a specific plan of action with each client focused in four primary areas: banking, savings, debt, and credit • Client retention, critical to outcome achievement, is prioritized • All counselors must take and pass a CFE Fund - approved training (based on CFE Fund standards) The Financial Counseling Session As defined for the Model, one -on -one financial counseling and coaching represents a mix of goal setting and light case management in a direct service provision role, as well as deep technical knowledge of financial issues and the ability to advise people on their financial and personal goals in the areas of banking, savings, debt, and credit. One -on -one counseling, either in person or remotely, is conducted or tracked with the goal of clients achieving meaningful, defined financial outcomes. The initial counseling session consists of a comprehensive financial health assessment, where counselors conduct triage to determine the full nature of the client's financial situation, support the client in setting goals, and establish a specific client -led action plan to manage their finances, pay down debt, increase savings, establish and build credit, and access safe and affordable mainstream banking products. Retention, or returning for more than one session, is critical; clients are more likely to achieve outcomes if they participate in multiple counseling sessions. Throughout the process, counselors advise clients, and track progress towards outcomes aimed at enhancing financial stability. Partnership Structure The Model is a partnership between local government and community based organizations, with critical and distinct roles for each partner. Local Government (city or county) plays a central role of directing and coordinating the initiative on the ground. The local government partner ensures quality and consistency of service delivery by establishing protocols for monitoring and evaluation, using public channels for marketing and promotion of services, and supporting integration of service delivery within other public programs and local government access points. Financial Counseling Providers recruit, hire and supervise the FEC counselors. Typically nonprofits, they are responsible for all data collection and regular reporting to the local government and the CFE Fund. They support public marketing efforts by participating in outreach events and presentations. In addition, nonprofit providers establish and maintain relationships with other community partners hosting counselors, referral partners, and other outreach and community efforts. This provider role can also be fulfilled by a local government agency. Local and National Counselor Training Partners deliver financial counseling training instruction based on the training standards provided by the CFE Fund, focusing on financial content, counseling and coaching skills, and cultural awareness. Partners can deliver this Exhibit C training in a variety of formats, including at a local college, through self -paced webinars, and /or with program managers or national training providers teaching the curriculum. Prior to working with their own clients, counselors must pass an exam that evaluates their command of training material and succeed at a period of mentored, experiential training (such as role - playing, shadowing, and observation). In addition, local government and nonprofit managers coordinate continuing education opportunities as the program evolves in order to further counselors' professional development and understanding of new issues facing those with low incomes. Programmatic Partners are crucial to integrating the FEC services into the service streams of local government and nonprofit agencies, especially those serving people with low and moderate incomes. At their best, these partnerships deeply embed financial counseling and coaching into local government and nonprofit programs and advance those programs' goals. Potential complementary program linkages could include homeownership assistance, homeless prevention, foreclosure prevention, workforce development, asset building, financial access, domestic violence prevention, or other social services. Philanthropic Partners play a key role in both the launch of the FEC and subsequent enhancement opportunities. At the start of the implementation phase, localities secure funding from local and /or national funders to partially match the CFE Fund's investment to launch the FEC. Funder engagement in the FEC stems from a range of interests, including geographic footprints, programmatic priorities, innovation opportunities, and issue -based giving. Once the FEC has launched, funders offer opportunities to enhance the Model with targeted pilots, while also providing support to complement the public funding. Data Collection and Reporting Data collection and reporting are essential to the success of the Model, used to improve service delivery, track required outcomes, and further budgetary and political sustainability efforts. FEC initiative partners will be required to use the FECBOT, the FEC's dedicated database, during the Implementation grant period. Partners participate in all national data collection, tracking, and evaluation activities throughout the grant period. Partners have access to all local data collected and are able to create customized reports. Learning Community The CFE Fund operates a national learning community of local government partners engaged in FEC development and implementation, as well as an Affiliate Network who also provide government- connected free financial counseling. Partners will have access to, and be expected to participate in, various learning community opportunities, both remotely and in person. Exhibit C Exhibit D Grantee Budget The CFE Fund will provide $ 20,000 planning grant to support the City of Roanoke. The City of Roanoke will use the funding from this grant to commit staff ($10,000), manage administrative needs ($2,500) and fund local events, marketing and promotion and if necessary travel for site visits to other CFE programs ($7,500), in line with the Request for Proposal and Scope of Work. Exhibit D Exhibit E Reporting The Grantee is responsible for reports using the CFE Fund's online grant portal. • Interim Report: A six -month narrative report, includes overview of activities to date related to the Scope of Work and next steps (estimated due date: June 30, 2019). • Implementation Proposal: For those submitting the Implementation Proposal within the nine -month period, it will serve as the final report. Grantees will need to also submit a financial overview of how the planning grant funds were spent. • Final Report: If the proposal is not submitted in that time frame, Grantees will be required to submit a final report to outline all planning activities, as well as a financial overview of how grant funds were spent (due on November 15, 2019). Exhibit E IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 7th day of January, 2019. No. 41345 - 010719. AN ORDINANCE authorizing the City Manager to execute a proposed Agreement for Purchase and Sale of Real Estate ( "Agreement ") between the City of Roanoke, Virginia, ( "City "), and Brandon, Woody and Booker, LLC, ( "LLC Seller ") and The Brandon Company, Incorporated, ( "Company Seller "), which proposed Agreement provides LLC Seller and Company Seller agree that the City would acquire the Parcels, as described below, upon certain terms and conditions; authorizing the City Manager to execute all documents necessary to perform, effectuate, administer, and enforce the proposed Agreement; and dispensing with the second reading of this Ordinance by title. WHEREAS, LLC Seller is the owner of certain real property, together with improvements thereon, located at (i) 0 Salem Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010113; and (ii) 325 Salem Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010115; and Company Seller is the owner of certain real property, together with improvements thereon, located at (i) 0 Salem Avenue, S.W., Roanoke Virginia, bearing Official Tax Map No. 1010121; and (ii) 0 Salem Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010122 ( "Parcels "); and WHEREAS, as set forth in the proposed Agreement, the City proposes to acquire the Parcels and transfer and exchange all right, title, and interest in the Parcels to the Greater Roanoke Transit Company ( "GRTC ") pursuant to an Exchange Agreement with GRTC. THEREFORE, BE IT ORDAINED by the Council of the City of Roanoke as follows: 1. The City Manager is hereby authorized on behalf of the City to execute the Agreement, substantially similar to the Agreement attached to the City Council Agenda Report 1 dated January 7, 2019, whereby the City proposes to purchase (i) 0 Salem Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010113; and 325 Salem Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010115 from LLC Seller; and (ii) 0 Salem Avenue, S.W., Roanoke Virginia, bearing Official Tax Map No. 1010121; and 0 Salem Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010122, from Company Seller, upon such terms and conditions as more particularly set forth in the above referenced Agenda Report. 2. The City Manager is further authorized on behalf of the City to negotiate, execute, deliver and implement such further documents and agreements and take such further actions related to this matter and as may be necessary to implement, administer, and enforce the conditions and obligations of the Agreement, and to negotiate, execute, deliver and implement any other agreements or documents related to this matter. 3. The form of the documents referred to above and in the City Council Agenda Report are to be approved by the City Attorney. 4. Pursuant to the provisions of Section 12 of the City Charter, the second reading of this Ordinance by title is hereby dispensed with. ATTEST: City Clerk. 2 vb��' ,gam IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 7th day of January, 2019. No. 41346- 010719. AN ORDINANCE to appropriate funding to the GRTC Salem Ave Bus Station project, amending and reordaining certain sections of the 2018 -2019 Capital Projects Fund Appropriations, and dispensing with the second reading by title of this ordinance. BE IT ORDAINED by the Council of the City of Roanoke that the following sections of the 2018 -2019 Capital Projects Fund Appropriations be, and the same are hereby, amended and reordained to read and provide as follows: Appropriations Appropriated from General Revenue 08- 530 - 9257 -9003 $ 50,000 Appropriated from General Revenue 08- 530 - 9653 -9003 (20,000) Contingency 08- 530 - 9575 -9220 (30,000) Pursuant to the provisions of Section 12 of the City Charter, the second reading of this ordinance by title is hereby dispensed with. ATTEST: - er City Clerk. �- r COUNCIL CITY AGENDA REPORT To: Honorable Mayor and Members of City Council Meeting: January 7, 2019 Subject: Authorization to Enter Into a Contract with Brandon, Woody and Booker, LLC, and The Brandon Company, Incorporated for the Purchase of Real Estate on Salem Avenue Background: Greater Roanoke Transit Company ( "GRTC ") provides a bus transit system to the public throughout the area of the City of Roanoke, the City of Salem, and the Town of Vinton. As a part of its transit operations, GRTC owns the bus transportation center located at Campbell Court within the City ( "Campbell Court "). Campbell Court is nearing the end of its useful life and GRTC desires to construct and operate a new transportation center within the City and the City is interested in acquiring Campbell Court from GRTC for future economic development opportunities. Brandon, Woody and Booker, LLC is the owner of two parcels of real property, together with improvements thereon, located at (i) 0 Salem Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010113; and (ii) 325 Salem Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010115 ( "LLC Parcels "). The Brandon Company, Incorporated is the owner of two parcels of real property, together with improvements thereon, located at (i) 0 Salem Avenue, S.W., Roanoke Virginia, bearing Official Tax Map No. 1010121; and (ii) 0 Salem Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010122, ( "Company Parcels "). The LLC Parcels and the Company Parcels are collectively referred to as the "Parcels." Considerations: The City proposes to acquire the Parcels, on terms and conditions set forth in the attached Agreement for the Purchase and Sale of Real Estate ( "Agreement "), and, subject to the terms and conditions of the City and GRTC Exchange Agreement (as more particularly described in the Agreement), transfer and exchange all rights, title, and interest in the Parcels to GRTC in exchange for all right, title, and interest of GRTC in Campbell Court, in accordance with the terms of the City and GRTC Exchange Agreement. The City and GRTC will consider action on the City and GRTC Exchange Agreement on January 22, 2019, or at some subsequent date. Performance of the Agreement by the City is expressly subject to (a) satisfactory completion of all inspections and due diligence of the Parcels by the City; and (b) the express written approval of the United States Department of Transportation, Federal Transit Administration ( "FTA "), of the transaction contemplated by (i) the Agreement, and (ii) the City and GRTC Exchange Agreement. Recommended Action: Authorize the City Manager to execute an Agreement between the City and Brandon, Woody And Booker, LLC, and The Brandon Company, Incorporated substantially similar to the form of Agreement attached to this report, and to execute such other documents and to take such further actions as may be necessary to administer, and enforce the Agreement. Such Contract and any other documents to be approved as to form by the City Attorney. Adopt the attached Budget Ordinance to transfer funding in the amount of $20,000 from the Passenger Rail Infrastructure account and $30,000 from the Capital Improvement Reserve Contingency account to a designated project account established by the Director of Finance for the required deposit associated with the purchase of the real estate from Brandon, Woody and Booker, LLC, and The Brandon Company, Incorporated. Funding for the balance of the $2,135,000 required for the purchase of the real estate will be identified during the FY 2019 -2020 budget development process and Capital Im m o ram Update. Robert S. Cowell, Jr. City Manager Distribution: Council Appointed Officers Sherman M. Stovall, Assistant City Manager for Operations R. Brian Townsend, Assistant City Manager for Community Development Amelia C. Merchant, Director of Finance Robert Ledger, Acting Director, Economic Development Kevin Price, General Manager, GRTC 2 DRAFT January 7, 2019 AGREEMENT FOR THE PURCHASE AND SALE OF REAL ESTATE THIS AGREEMENT FOR THE PURCHASE AND SALE OF REAL ESTATE ( "Agreement ") is made this day of January, 2019, by and between the CITY OF ROANOKE, VIRGINIA, a Virginia municipal corporation ( "City" or "Purchaser "), and BRANDON, WOODY AND BOOKER, LLC, a Virginia limited liability company ( "LLC Seller ") and THE BRANDON COMPANY, INCORPORATED, a Virginia corporation ( "Company Seller ") (LLC Seller and Company Seller are collectively referred to as "Sellers "). RECITALS A. Greater Roanoke Transit Company, a Virginia corporation ( "GRTC ") provides a bus transit system to the public throughout the area of the City of Roanoke, the City of Salem, and the Town of Vinton. As a part of its transit operations, GRTC owns the bus transportation center located at Campbell Court within the City, which transportation center is more particularly described in Exhibit A attached hereto and made a part hereof ( "Campbell Court"). B. GRTC desires to construct and operate a new transportation center within the City and the City is interested in acquiring Campbell Court from GRTC for future development. C. LLC Seller is the owner of two (2) parcels of real property, together with improvements thereon situated in Roanoke, Virginia and more particularly described in Exhibit Battached hereto and made a part hereof ( "LLC Parcels "). D. Company Seller is the owner of two (2) parcel of real property, together with improvements thereon, situated in Roanoke, Virginia, and more particularly described in Exhibit C attached hereto and made a part hereof ( "Company Parcels "). E. The City proposes to acquire the Parcels from Sellers, on terms and conditions set forth in this Agreement, and transfer and exchange all right, title, and interest in the Parcels to GRTC in exchange for all right, title, and interest of GRTC in Campbell Court, in accordance with the terms of the City and GRTC Exchange Agreement. F. Sellers desire to sell all of their respective rights, title, and interests in the Parcels to the City in accordance with the terms of this Agreement. G. The Parties acknowledge and agree that performance of this Agreement is expressly subject to the express written approval of the United States Department of Transportation, Federal Transit Administration ( "FTA "), of the transaction contemplated by (i) this Agreement, and (ii) the City and GRTC Exchange Agreement. H. Subject to the terms and conditions of this Agreement, the City is willing to purchase and acquire the Parcels from Sellers and Sellers are willing to sell, transfer, and convey all of their respective rights, title, and interests in the Parcels to the City. THEREFORE, based upon the mutual covenants, agreements, and understandings set forth in this Agreement, including the Recitals set forth above and which Recitals are DRAFT January 7, 2019 incorporated herein and constitute a material part of this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which the Parties acknowledge, the City and Sellers agree as follows: ARTICLE I DEFINITIONS All capitalized terms, not otherwise defined in this Agreement, shall have the following meanings: 1.1 Agreement shall mean this Agreement for the Purchase and Sale of Real Estate. 1.2 Applicable Law shall mean all federal, state, and local laws, rules, regulations, or ordinances that affect or otherwise apply to the transactions contemplated by this Agreement. 1.3 Business Days shall mean a Day or Days other than a Saturday, Sunday, or a holiday established under the laws of the United States of America or the Commonwealth of Virginia. 1.4 Campbell Court shall mean those certain parcels of real estate together with buildings and improvements thereon, owned by GRTC, and more particularly described in Exhibit A attached hereto and made a part hereof. 1.5 City shall mean the City of Roanoke, Virginia, a Virginia municipal corporation. 1.6 City and GRTC Exchange Agreement shall mean the agreement between the City and GRTC dated January , 2019, under which agreement the City will sell and transfer all of the City's rights, title, and interest in the Parcels to GRTC; and GRTC will sell and transfer all of GRTC's rights, title, and interest in Campbell Court to the City. 1.17 City's Inspection Period shall mean the period of 120 Days after the Effective Date. 1.8 City Manager shall mean the person appointed by the Roanoke City Council as City Manager or the person designated by City Manager to act on behalf of the City Manager. 1.9 Closing shall mean the date on which the transactions contemplated by this Agreement for the sale and transfer of the Parcels from the Sellers to the City. 1.10 Company Deed shall mean the general warranty deed, with English Covenants, by which Company Seller sells, transfers and conveys the Company Parcels to the City in accordance with this Agreement. 1.11 Company Parcels shall mean those two (2) parcels of real property, together with improvements thereon, situated in Roanoke, Virginia, and more particularly described in Exhibit C attached hereto and made a part hereof. 2 DRAFT January 7, 2019 1.12 Company Seller shall mean The Brandon Company, Incorporated, a Virginia Corporation. 1.13 Company Seller Portion shall mean the portion of the Purchase Price to be paid to Company Seller at Closing by the City, and which sum is equal to $1,090,000, subject to adjustments and prorations as provided in this Agreement. 1.14 Days or Days shall mean a calendar day beginning and ending at the prevailing time in Roanoke, Virginia. 1.15 Deposit shall mean the sum of $50,000 to be paid by the City to Sellers, to be held by Sellers' counsel in escrow, pending the Closing, and (i) applied to the Purchase Price at Closing; (ii) retained by Sellers; or (iii) returned to the City as provided in this Agreement. 1.16 Effective Date shall mean the date set forth at the beginning of this Agreement. 1.17 Government Entity shall mean any federal, state, or local governmental body, agency, board or commission. 1.18 GRTC shall mean Greater Roanoke Transit Company, a Virginia corporation. 1.19 LLC Deed shall mean the general warranty deed, with English Covenants, by which LLC Seller sells, transfers, and conveys the LLC Parcels to the City in accordance with this Agreement 1.20 LLC Parcels shall mean those two (2) parcels of real property, together with improvements thereon, situated in Roanoke, Virginia, and more particularly described in Exhibit B attached hereto and made a part hereof. 1.21 LLC Seller shall mean Brandon, Woody and Booker, LLC, a Virginia limited liability company. 1.22 LLC Seller Portion shall mean the portion of the Purchase Price to be paid to LLC Seller at Closing by the City, and which sum is equal to $1,095,000, subject to adjustments and prorations as provided in this Agreement. 1.23 Parcels shall mean the LLC Parcels and the Company Parcels, collectively. 1.24 Parties shall mean the City and Sellers. 1.25 Party shall mean the City, LLC Seller, Company Seller, or Sellers. 1.26 Purchase Price shall mean the aggregate sum of $2,185,000, a portion of which is Company Seller Portion and the other portion of which is LLC Seller Portion, payable by the City at Closing, subject to adjustments and prorations as provided in this Agreement. 1.27 Title Company shall mean Fidelity National Title Insurance Company or such other nationally recognized title insurance company acceptable to this City. 3 DRAFT January 7, 2019 ARTICLE II PURCHASE AND SALE 2.1 Subject to the terms and conditions of this Agreement, LLC Seller agrees to sell, transfer, and convey by execution, delivery, and performance of the LLC Deed, and the City agrees to purchase and acquire by acceptance of the LLC Deed, the LLC Parcels. 2.2 Subject to the terms and conditions of this Agreement, Company Seller agrees to sell, transfer, and convey by execution, delivery, and performance of the Company Deed, and the City agrees to purchase and acquire by acceptance of the Company Deed, the Company Parcels. 2.3 The Parties acknowledge and agree that the City's rights and obligations under this Agreement are to purchase and acquire all of the Parcels, and not less than all of the Parcels. 2.4 Upon the Effective Date, the City shall pay to Sellers the Deposit. Sellers' counsel shall hold the Deposit in escrow in a non - interest bearing trust account. The Deposit shall be applied to the Purchase Price, delivered to Sellers in the event of default by City or returned to City, as provided in this Agreement. ARTICLE III RIGHT OF ENTRY AND INSPECTION PERIOD PRIOR TO CLOSING 3.1 City shall complete City's due diligence review of Parcels during City's Inspection Period. Should the City determine during City's Inspection Period that it is not satisfied with the Parcels or any characteristics thereof for any reason whatsoever, in City's sole and absolute discretion, the City may terminate this Agreement by notifying Sellers in writing as soon as possible, but no later than five (5) Days after the end of the City's Inspection Period, of the City's decision to terminate this Agreement. In such case, this Agreement shall thereupon be terminated and of no further force and effect, unless Parties, mutually agree to modify this Agreement to address any such issue(s). In the event of termination hereunder, Sellers shall return the Deposit to the City and upon receipt of the Deposit this Agreement shall terminate and no Party shall have any further rights or obligations hereunder. The City shall provide Sellers with its objections to the title of Parcels, including without limitation, any easements, encumbrances, or restrictions of record (including all matters shown on the plat that depicts the Parcels), within five (5) Days after the end of the City's Inspection Period. 3.2 In connection with the City's due diligence review referenced above, Sellers hereby jointly and severally grant to the City, its officers, agents, employees, contractors, subcontractors, licensees, designees, representatives, and consultants, 4 DRAFT January 7, 2019 a revocable right to enter on Parcels at any time during the City's Inspection Period, on not less than two (2) working days prior written notice to Sellers, in order to survey, make test borings, and carry out such other examinations, exploratory work, or settings as may be necessary to complete a Phase I Environmental Site Assessment and, if required by Phase I report, a Phase Il Environmental Site Assessment, geotechnical assessments, or other nondestructive engineering evaluations of the Parcels, to otherwise perform the City's due diligence with respect to the Parcels, and to store the City's property and equipment, on the following terms and conditions: 3.2.1 If the City exceeds its rights granted under Section 3.2, or fails to require the City's contractors to maintain and provide the insurance coverages provided herein, Sellers may immediately revoke this right of entry. 3.2.2 The City, to the extent permitted by Applicable Law, agrees to be responsible for any and all damages resulting from the activity or activities of the City, its officers, agents, employees, contractors, subcontractors, licensees, designees, representatives and consultants, on Parcels in the exercise of the rights granted under this Section 3.2. The City shall, at its sole cost, promptly and fully restore any land disturbed by the exercise of the rights under this Section 3.2 to a condition equal to that existing immediately prior to entry on any of the Parcels if the City does not purchase the Parcels. 3.2.3 The City shall require its contractors to indemnify and defend Sellers from any loss, damage, or claim arising out of City's access to any of the Parcels pursuant to this Section 3.2 for the purpose of making tests, inspections, studies, and other investigations. The indemnity obligations of the City's contractors hereunder are conditioned on Sellers promptly notifying the City and its contractors in writing of any claim; cooperating with the City's contractors in the defense of the claim; and granting the City's contractors sole control of defense or settlement of the claim at the sole cost and expense of the City's contractors. Under no circumstance shall the City's contractors be obligated to indemnify or defend Sellers for or from the Sellers' own negligence or willful misconduct (which includes, without limitation, any breach by Sellers of this Agreement), or unlawful act or omission, or any claim resulting from any of the foregoing. 3.2.4 The City shall require each of its contractors who enter the Parcels under Section 3.2, at the sole expense of such contractor, to obtain and maintain, or have its contractors or representatives obtain and 5 DRAFT January 7, 2019 maintain, the insurance set forth below. Any required insurance shall be effective prior to the beginning of any work or other performance by the City under Section 3.2. The following policies and coverages are required: (i) Commercial General Liabilitv. Commercial General Liability insurance, written on an occurrence basis, shall insure against all claims, loss, cost, damage, expense or liability from loss of life or damage or injury to persons or property arising out of such contractor's acts or omissions. The minimum limits of liability for this coverage shall be $1,000,000 per occurrence and $2,000,000 general aggregate. (ii) Contractual Liabilitv. Broad form Contractual Liability insurance shall include the indemnification obligation set forth above. (iii) Workers' Compensation. Workers' Compensation insurance covering such contractor's statutory obligation under the laws of the Commonwealth of Virginia and Employer's Liability insurance shall be maintained for all its employees engaged in work under this Section 3.2. Minimum limits of liability for Employer's Liability shall be $100,000 bodily injury by accident each occurrence; $500,000 bodily injury by disease (policy limit); and $100,000 bodily injury by disease (each employee). With respect to the Workers' Compensation coverage, the City agrees to require its contractors to use reasonable efforts to obtain a waiver by the insurance company of rights of subrogation against Sellers if the policy does not expressly permit a waiver of subrogation. (iv) Automobile Liabilitv. The minimum limit of liability for Automobile Liability Insurance shall be $1,000,000 combined single limit applicable to owned or non -owned vehicles used in the performance of any work under this Section 3.2, and shall be written on an occurrence basis. 3.3 The insurance coverages and amounts set forth above may be met by an umbrella liability policy following the form of the underlying primary coverage in a minimum amount of $1,000,000. Should an umbrella liability insurance coverage policy be used, such coverage shall be accompanied by a certificate of endorsement stating that it applies to the specific policy numbers indicated for the insurance providing the coverages required by this Section 3.2, and it is further CI DRAFT January 7, 2019 agreed that such statement shall be made a part of the certificates of insurance furnished to Sellers. 3.4 All insurance shall also meet the following requirements: The City or its contractors shall furnish to Sellers appropriate documentation showing the type, amount, effective dates, and date of expiration of policies; that Sellers, and their officers, employees, agents, volunteers, and representatives are named as additional insureds; where waiver of subrogation is specified with respect to any policy or insurance required, any such waiver that the City's contractor is able to obtain shall be specified; insurance coverage shall be in a form and with an insurance company approved by Sellers, which approval shall not be unreasonably withheld; and any insurance company providing coverage shall be authorized to do business in the Commonwealth of Virginia. The City's contractors shall provide Sellers with not less than thirty (30) Days advance notice of cancellation or material alteration of any of the above - required insurance coverage. 3.5 The City, in performing its inspections on Parcels pursuant to this Section 3.2, shall at all times comply with all Applicable Law. 3.6 On the request of Sellers, the City shall, within a reasonable period of time after receipt of any preliminary or final survey, test results or conclusory reports and opinion statements, deliver copies of same to Sellers. If Sellers so requests, the City shall also turn over copies of raw data obtained and any laboratory and observation reports or analyses. Such copies of all the above shall be provided to Seller without charge. All such deliverables shall be without any warranties whatsoever, and neither the City nor the provider of any report or opinion shall be deemed to make or have made any representations or warranties to Sellers regarding such report or opinion, or any information contained therein, and Sellers may not rely on any such report or opinion, or any information contained therein. 3.7 The Sellers acknowledge that the City desires to acquire the Parcels for the relocation of the GRTC transit operations currently conducted at Campbell Court, as set forth in the City and GRTC Exchange Agreement. Sellers agree to allow GRTC, its employees, contractors, and subcontractors to participate with the City in the inspection and due diligence to be conducted by the City under this Article III. Prior to entry onto the Parcels, GRTC shall enter into a right of entry agreement that includes all requirements imposed on the City and/or its Contractors under this Article III, including all insurance requirements. ARTICLE IV 4.1 Title to LLC Parcels TITLE 7 DRAFT January 7, 2019 The City's obligation to purchase the Parcels at the Closing is conditioned on all of the LLC Parcels being conveyed to the City by LLC Seller by the LLC Deed, free and clear of all restrictions, encumbrances, and liens except for such restrictions, encumbrances, and liens that constitute LLC Parcels Permitted Encumbrances. LLC Parcels Permitted Encumbrances with respect to LLC Parcels means and includes the following: 4.1.1 Ad valorum real property taxes (including the downtown district special assessments), stormwater utility fees, and solid waste collection fees for the current year, not yet due and payable. 4.1.2 The conditions set forth on the plats prepared by the City during the City's Inspection Period that have not been designated as unacceptable by the City by notice to the Sellers given in accordance with Section 3.1 of this Agreement. 4.1.3 Easements, restrictions and encumbrances that have not been designated as unacceptable by the City by notice to Sellers given in accordance with Section 3.1 of this Agreement following the City's review of the preliminary title report for the LLC Parcels and such other diligence as the City elects to perform. The City acknowledges and agrees that the Sellers have no obligation to remove, amend or alter any easement, restriction, or encumbrance or record, other than to pay in full, the amount secured by a lien, deed of trust, or other encumbrance. LLC Seller shall satisfy, at its sole expense, such deed of trust, lien or encumbrance that may be removed and discharged as a matter of record and record evidence that lien, deed of trust or other encumbrance has been satisfied in full and discharged. The City's sole remedy is to accept title subject to such easement, restriction, or encumbrance as an LLC Parcels Permitted Encumbrance or terminate the Agreement. In the event that the City elects to terminate this Agreement, the City shall provide the Sellers with written notice of such termination, the Deposit shall be returned to the City and no Party shall have any further rights or obligations under this Agreement. 4.2 Title to the Company Parcels. The City's obligation to purchase the Parcels at the Closing is conditioned upon all of the Company Parcels being conveyed by Company Seller to the City by the Company Parcels Deed, free and clear of all restrictions, encumbrances, and liens, except for such restrictions, encumbrances, and liens that constitute the Company Parcels Permitted Encumbrances. Company Parcels Permitted Encumbrances with respect to the Company Parcels means and includes the following: 4.2.1 Ad valorum real property taxes (including the downtown district special assessments), stormwater utility fees, and solid waste collection fees for the current year, not yet due and payable. M DRAFT January 7, 2019 4.2.2 The conditions set forth on the plats prepared by the City during the City's Inspection Period that have not been designated as unacceptable by the City by notice to the Sellers given in accordance with Section 3.1 of this Agreement. 4.2.3 Easements, restrictions and encumbrances that have not been designated as unacceptable by the City by notice to Sellers given in accordance with Section 3.1 of this Agreement following the City's review of the preliminary title report for Company Parcels and such other diligence as the City elects to perform. The City acknowledges and agrees that Sellers have no obligation to remove, amend or alter any easement, restriction, or encumbrance of record, other than to pay in full, the amount secured by a lien, deed of trust, or other encumbrance. Company Seller shall satisfy, at its sole expense, such deed of trust, lien or encumbrance that may be removed and discharged as a matter of record and record evidence that lien, deed of trust or other encumbrance has been satisfied in full and discharged. The City's sole remedy is to accept title subject to such easement, restriction, or encumbrance as a Company Parcels Permitted Encumbrance or terminate the Agreement. In the event that the City elects to terminate this Agreement, the City shall provide the Sellers with written notice of such termination, the Deposit shall be returned to the City and no Party shall have any further rights or obligations under this Agreement. ARTICLE V FTA APPROVAL 5.1 The Parties acknowledge and confirm that the City's acquisition of the Parcels is a part of the relocation of GRTC transit operations from Campbell Court. The City and GRTC have entered into the City and GRTC Exchange Agreement which Agreement contemplates the acquisition of the Parcels by GRTC in exchange for the transfer to the City of all of GRTC's right, title, and interest in Campbell Court. The transactions contemplated by this Agreement and the City and GRTC Exchange Agreement are subject to the prior review, consent and approval by FTA, on terms and conditions acceptable to the City and GRTC ( "FTA Approval "). In the event that FTA does not provide its consent and approval on terms and conditions acceptable to the City and GRTC by the expiration of the City's Inspection Period, the City may terminate this Agreement. In such event, the Deposit shall be returned to the City and no Party shall have any further rights under this Agreement. 5.2 The City shall diligently pursue the review, consent, and approval of this Agreement and the City and GRTC Exchange Agreement with FTA following the Effective Date. Sellers agree to cooperate with the City in seeking the review, consent, and approval of this Agreement from FTA. 5.3 The Parties acknowledge and agree that the review, consent, and approval by FTA is an essential condition precedent under this Agreement for the benefit of the City and cannot, 0 DRAFT January 7, 2019 under any circumstances be waived by Sellers. The Parties further acknowledge and agree that, in the event FTA does not approve the terms and conditions of the City and GRTC Exchange Agreement or this Agreement, the City, in its sole and absolute discretion, may waive this condition precedent and proceed to acquire the Parcels under the terms of this Agreement. ARTICLE VI CONDITIONS TO CLOSE THE SALE OF THE PARCELS 6.1 Conditions to the City Obligations to Close. The following are conditions precedent to the City obligation to purchase the Parcels: 6.1.1 The fulfillment to the City reasonable satisfaction of (i) LLC Seller's obligation to convey title to LLC Parcels on the Closing Date to the City pursuant to the terms and conditions of this Agreement; and (ii) Company Seller's obligation to convey title to the Company Parcels on the Closing Date to the City pursuant to the terms and conditions of this Agreement. 6.1.2 The City shall have obtained, at the City's expense, the FTA Approval in accordance with Article V of this Agreement or such condition has been waived by the City, as provided in Section 5.3 of this Agreement. 6.1.3 The City must be satisfied that the conditions of all of the Parcels have not changed since the completion of the City's Inspection Period and no casualty or other loss has occurred that is the subject of Article X of this Agreement. 6.1.4 Sellers must not be in default of the Sellers' obligations under this Agreement, and the Sellers' representations and warranties in this Agreement must remain true and correct as of the Closing. 6.1.5 The Title Company's commitments to issue, on payment of its standard premiums, to the City, it's A.L.T.A. (Form B) Owner's Policies of Title Insurance, insuring the City (i) in the amount of the LLC Seller Portion, in respect of the LLC Parcels, and that title is vested in the City, subject only to LLC Parcels Permitted Encumbrances; and (ii) in the amount of the Company Seller Portion, in respect of the Company Parcels, and that title is vested in the City, subject only to the Company Parcels Permitted Encumbrances. All of the foregoing conditions are for the benefit of the City, and the City may choose, in the City's sole discretion, to proceed with the Closing, despite having knowledge that one or more of the above conditions have not been satisfied. If, after the expiration of the City Inspection Period, any of the foregoing conditions have not been satisfied through no fault of the Sellers, other than the provisions of Section 6.1.3, and if the City does not choose to proceed with the Closing, then the Deposit will be paid to Sellers and the Parties shall have no further rights under this Agreement. 10 DRAFT January 7, 2019 6.2 Conditions to the Sellers' Obligation to Close. The following are conditions precedent to the Sellers' obligation to sell the Parcels to the City: 6.2.1 The City must not be in default of its obligations under this Agreement. 6.2.2 The City has notified Sellers that funds have been appropriated to pay the Purchase Price. All of the foregoing conditions are for the benefit of the Sellers, and the Sellers may choose, in their sole discretion, to proceed with the Closing, despite having knowledge the condition set forth in Section 6.2.1 has not been satisfied. ARTICLE VII CLOSING DATE 7.1 Closing Date. The Closing date shall occur within 60 days after the end of the City's Inspection Period or, if later, within 30 Days after the conditions set forth in Section 6.1 have been satisfied, and in any event prior to June 30, 2019, on a mutually agreeable date( "Closing Date "). The Closing shall occur at a mutually acceptable time (anticipated to be approximately 10:00 a.m. prevailing Roanoke, Virginia time) on the Closing Date in the Office of the City Attorney, or at such other location and time as the Parties shall approve. ARTICLE VIII CLOSING DELIVERABLES AND MECHANICS 8.1 Sellers' Obligations at Closing 8.1.1 LLC Parcels 8.1.1.1 The duly executed and acknowledged LLC Deed conveying to the City the LLC Parcels in accordance with the provisions of this Agreement, in their "as is" condition, without any representations or warranties with respect to the presence of hazardous materials. At the request of the City, LLC Seller shall convey the LLC Parcels to the City using the survey prepared during the City's Inspection Period as the description of the LLC Parcels in the LLC Deed. 8.1.1.2 A mechanic's lien affidavit executed by LLC Seller, satisfactory to the Title Company, and to the effect that no work has been performed on the LLC Parcels by LLC Seller in the 125 Days immediately preceding the Closing Date that could result in a mechanic's lien claim, or if such work has been performed, it has been paid in full. 11 DRAFT January 7, 2019 8.1.1.3 A parties in possession affidavit executed by LLC Seller, satisfactory to the Title Company, that no parties are in possession of the LLC Parcels as of Closing, including, without limitation, all parking licensees and permittees. 8.1.1.4 Such documents as may be reasonably required by the Title Company to evidence the authority of the person(s) executing the various documents on behalf of LLC Seller in connection with the sale of the LLC Parcels, including, without limitation, certificate of existence, certified copies of corporate votes, incumbency certificate of mangers and officers of LLC Seller, and certified copy of LLC Seller's operating agreement. 8.1.1.5 A written certificate that LLC Seller's warranties and representations in Section 12.2 of this Agreement remain true and correct as of the Closing Date. 8.1.1.6 A duly executed counterpart of a closing statement for the Closing. 8.1.1.7 Any other documents or items to be delivered pursuant to this Agreement or other documents reasonably required by the Title Company and that do not include the payment of money. 8.1.2 Company Parcels 8.1.2.1 The duly executed and acknowledged Company Deed conveying to the City the Company Parcels in accordance with the provisions of this Agreement, in their "as is" condition, without any representations or warranties with respect to presence of hazardous materials. At the request of the City, Company Seller shall convey the Company Parcels to the City using the survey prepared during the City's Inspection Period as the description of the Company Parcels in the Company Deed. 8.1.2.2 A mechanic's lien affidavit executed by Company Seller, satisfactory to the Title Company, and to the effect that no work has been performed on the Company Parcels by Company Seller in the 125 Days immediately preceding the Closing Date that could result in a mechanic's lien claim, or if such work has been performed, it has been paid in full. 8.1.2.3 A parties in possession affidavit executed by Company Seller, satisfactory to the Title Company, that no parties are in possession of the Company Parcels as of Closing, including, without limitation, all parking licensees and permittees. 12 DRAFT January 7, 2019 8.1.2.4 Such documents as may be reasonably required by the Title Company to evidence the authority of the person(s) executing the various documents on behalf of Company Seller in connection with the sale of the Company Parcels, including, without limitation, certificate of existence, certified copies of corporate votes, incumbency certificate of directors and officers of Company Seller, and certified copy of Company Seller's articles of incorporation and bylaws. 8.1.2.5 A written certificate that Company Seller's warranties and representations in Section 12.2 of this Agreement remain true and correct as of the Closing Date. 8.1.2.6 A duly executed counterpart of a closing statement for the Closing. 8.1.2.7 Any other documents or items to be delivered pursuant to this Agreement or other documents reasonably required by the Title Company and that do not include the payment of money. 8.2 City's Obligations On the Closing Date, the City shall purchase and acquire the Parcels from the Sellers, by delivering or causing to be delivered to Sellers the following: 8.2.1 The Purchase Price, less the Deposit, distributed by wire transfer as follows: (i) The LLC Portion, as adjusted in accordance with this Agreement and as set forth in the closing statement, to LLC Seller; and (ii) The Company Portion, as adjusted in accordance with this Agreement and as set forth in the closing statement, to Company Seller. 8.2.2 Copies of the title commitments issued by the Title Company with respect to the LLC Parcels and the Company Parcels in forms and substance acceptable to the City. 8.2.3 Certified copy of the ordinance adopted by Roanoke City Council authorizing the City Manager, on behalf of the City, to enter into this Agreement and perform all obligations of the City under this Agreement. 8.2.4 A written certification that the City's representations and warranties set forth in Section 12.1 of this Agreement remain true and correct as of the Closing Date. 8.2.5 A duly executed counterpart of the closing statement for the Closing. 13 DRAFT January 7, 2019 8.2.6 Any other documents required to be delivered pursuant to this Agreement or reasonably required by Sellers and that do not require, except as set forth in this Agreement, the payment of money, indemnity or the assumption of any liability or obligation. 8.3 Prorated Expenses. At the Closing, real property taxes, stormwater utility fees, and solid waste collection fees, if any, shall be prorated as follows, with respect to the Parcels, Seller shall be responsible for all amounts due prior to the Closing Date and the City being responsible for all periods thereafter. The settlement of such prorated expenses shall occur at the Closing or as soon thereafter as reasonably possible. 8.4 Sellers' Expenses. Seller shall pay for (1) all attorneys' fees and expenses incurred by legal counsel for Sellers; and (ii) Grantor's Taxes, if any, for the transfers of the Parcels. 8.5 City's Expenses. The City shall pay for (i) the Grantee's taxes, if any, and the recording charges for the transfer of the Parcels; (ii) its legal fees and expenses in connection with this Agreement including the fees and expenses in connection with the City Inspections; (iii) all costs of the City's investigations of the Parcels; and (iv) all title insurance premiums for issuance of the title insurance process with respect to the Parcels. 8.6 Possession. Sellers shall deliver exclusive possession of the Parcels to the City on the Closing Date, free and clear of all tenants, licensees, and permittees. ARTICLE IX CONDEMNATION Sellers have no actual knowledge of any pending or threatened condemnation of the Parcels. However, if, after the Effective Date, and prior to the Closing Date, all or any part of the Parcels are subject to a bona fide threat of condemnation or condemned or taken by a Government Entity having a power of eminent domain or a transfer in lieu of condemnation, Sellers shall promptly notify the City in writing and within thirty (30) Days after receipt of written notice, either Party may, by written notice to the other, elect to cancel this Agreement prior to the Closing Date, in which event all Parties shall be relieved and released of any further duties, obligations, rights, or liabilities hereunder and this Agreement shall be deemed terminated and of no further force or effect. If no such election is made by either Party to cancel this Agreement, this Agreement shall remain in full force and effect and the purchase contemplated herein, less any interest taken in condemnation or eminent domain, shall be effected without further adjustment and on the Closing Date, Sellers shall assign, transfer, and set over to the City all of 14 DRAFT January 7, 2019 the right, title, and interest of Sellers in and to any awards that have been made or may thereafter be made for any such taking or takings with respect to the Parcels. ► : 71Y[ya0.14 RISK OF LOSS Risk of loss by fire or other casualty for the Parcels shall be on Sellers until the Closing is completed, subject only to the obligations of the Parties under this Agreement. If the Parcels are substantially damaged or destroyed before the Closing by such casualty, then the City may elect to (i) acquire the Parcels and receive all proceeds of insurance received by Sellers; or (ii) cancel the Closing, in which event, the Deposit shall be returned to the City, and neither Party will have any further obligations to the other (except as otherwise specifically provided in this Agreement). Sellers shall maintain fire and extended coverage insurance on the Parcels, at the full replacement value, pending consummation of the Closing. ARTICLE XI BROKER'S COMMISSIONS Sellers represent, and warrant that they have not incurred any liability or obligation — whether contingent or otherwise — for a brokerage commission, a finder's fee, or any other similar payment in connection with this Agreement or the transaction contemplated herein. Sellers shall indemnify and hold the City harmless from any and all claims of any broker. ARTICLE XII REPRESENTATIONS AND WARRANTIES 12.1 City's Representations and Warranties. The City represents and warrants, as of the Effective Date and as of the Closing, to Sellers that: 12. 1.1 No Conflicts. The City's execution and performance of this Agreement does not (i) breach any other agreement to which the City is a party; or (ii) violate any law, judgment, or order to which the City is subject. 12.2.1 No Litigation. No litigation, claim, or arbitration is pending or, to the knowledge of the City threatened, with regard to performance of this Agreement. 12.2 Sellers' Representation and Warranties. Sellers represent and warrant, as of the Effective Date and as of the Closing, with respect to Parcels that: 15 DRAFT January 7, 2019 12.2.1 Title. (a) LLC Seller is the legal and beneficial fee simple title holder of LLC Parcels and has good, marketable title to LLC Parcels, free and clear of all liens, encumbrances, claims, covenants, conditions, restrictions, easements, rights of way, options, judgments, or other matters, subject only to matters of record. LLC Seller will convey title to the LLC Parcels to the City by the LLC Deed. (b) Company Seller is the legal and beneficial fee simple title holder of the Company Parcels and has good, marketable title to the Company Parcels, free and clear of all liens, encumbrances, claims, covenants, conditions, restrictions, right of way, options, judgments, or other matters, subject only to matters of record. Company Seller will convey title to the Company Parcels to the City by the Company Deed. 12.2.2 Condemnation. Sellers have no knowledge of any pending or threatened proceedings for condemnation or the exercise of the right of eminent domain as to any part of Parcels or the limiting or denying of any right of access thereto. 12.2.3 Special Taxes. The Parcels are subject to the Downtown Service District special assessment as set forth in Sections 32 -102 through 32- 102.4, Code of City of Roanoke (1979), as amended. Sellers have no knowledge of, nor has it received any notice of, any other special taxes or assessments relating to the Parcels or any part thereof. 12.2.4 Hazardous Materials. Sellers make no warranties, covenants, or representations of any type regarding hazardous materials of any type at the Parcels. 12.2.5 Leases. The Parcels are subject to the leases, permits, and licenses set forth and described in Exhibit D attached hereto. All such leases, permits, and licenses shall be terminated and extinguished prior to Closing at the request of the City. Such request shall be made thirty (30) Days prior to Closing. 12.2.6 Access. Ingress to and egress from the Parcels is available and provided through Salem Avenue. S.W., and Norfolk Avenue, S.W. 12.2.7 No Conflicts. Sellers' execution and performance of this Agreement does not: (i) breach any other agreement to which either of the Sellers is a party; or (ii) violate any law, judgment, or order to which any of the Sellers is subject. 16 DRAFT January 7, 2019 12.2.8 No Notice of Violations. Sellers have received no notice of any violation of zoning requirements or other ordinances, rules or regulations with respect to Parcels. 12.2.9 No Litigation. There is no litigation, claim, or arbitration, pending or, to the knowledge of Sellers, threatened, with regard to Parcels or performance of this Agreement by the Sellers. 12.2.10 (a) LLC Seller is a Virginia limited liability company, qualified to conduct business and in good standing in Virginia, and has the right to own its assets and operate its business in the ordinary course. The Manager of LLC Seller is The Brandon Company, Incorporated. The Manager of LLC Seller has been authorized to execute, deliver, and perform this Agreement, the documents and agreements referred to in this Agreement, and take all actions necessary to effectuate this Agreement on behalf of LLC Seller. (b) Company Seller is a Virginia corporation, qualified to conduct business and in good standing in Virginia, and has the right to own its assets and operate its business in the ordinary course. The officers and directors of Company Seller are as of the date of this Agreement: Robin W. Ingram, Pres /CEO and Director Lee Hardin Woody, Secretary and Director Judith B. Bishop, Director Patty Booker Hiott, Director Robert Draper Woody, Director Mary Louise W. Hahn, Director The proper officers of Company Seller have been authorized to execute, deliver, and perform this Agreement, the documents and agreements referred to in this Agreement, and take all actions necessary to effectuate this Agreement on behalf of Company Seller. ARTICLE XIII DEFAULT IN CLOSING OBLIGATIONS 17 DRAFT January 7, 2019 13.1 Sellers Default. In the event that the Closing does not occur solely by reason of default by Sellers, and the City has fully performed its obligations and is prepared to consummate the Closing, the City shall have all of its remedies at law or in equity, including the remedy of specific performance. The City may also terminate this Agreement in which event, the Deposit shall be returned to the City, and neither Party shall have any further rights or obligations hereunder except for Sellers' indemnity obligations that will survive the termination of this Agreement. 13.2 City Default. In the event that the Closing does not occur solely by reason of default by the City, and Sellers have fully performed its obligations and is prepared to consummate the Closing, Sellers' sole remedy shall be to terminate this Agreement and retain the Deposit and neither Party shall have any further rights or obligations hereunder. ARTICLE XIV LIMITATIONS ON ASSIGNMENTS Each Party agrees not to assign or transfer any part of the Party's rights or obligations under this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld, and any such assignment shall not relieve the assigning Party from any of its obligations under this Agreement. ARTICLE XV NOTICES All notices hereunder must be in writing and shall be deemed validly given, by personal service, if sent by certified mail, return receipt requested, or by a nationally recognized overnight courier, addressed as follows (or any other address the party to be notified may have designated to the sender by like notice): If to City: City of Roanoke, ATTN: City Manager 364 Noel C. Taylor Municipal Building 215 Church Avenue, S.W. Roanoke, Virginia 24011 Fax No. 540- 853 -2333 With a Copy to: City of Roanoke Department of Economic Development ATTN: Economic Development Director 117 Church Avenue, S.W. Roanoke, Virginia 24011 Fax No. 540- 853 -1213 If to LLC Seller: Brandon, Woody and Booker, LLC 18 DRAFT January 7, 2019 c/o The Brandon Company, Incorporated ATTN: Robin W. Ingram, President 540 Pembroke Avenue Norfolk, Virginia 23507 With a Copy to: Talfourd Kemper, Esq. Woods Rogers, PLC 10 S. Jefferson Street, Suite 1400 Roanoke, Virginia 24011 If to Company Seller: The Brandon Company, Incorporated ATTN: Robin W. Ingram, President 540 Pembroke Avenue Norfolk, Virginia 23507 With a Copy to: Talfourd Kemper, Esq. Woods RogersPLC 10 S. Jefferson Street, Suite 1400 Roanoke, Virginia 24011 Notice shall be deemed delivered on the date of personal service, five (5) Days after deposit in the United States mail, or the day after delivery to a nationally recognized overnight courier. ARTICLE XVI APPROVAL BY CITY COUNCIL This Agreement is subject to approval by the City Council of the City of Roanoke. Sellers shall be responsible for any advertising costs and other expenses incurred by the City and paid to third party vendors in connection with any public hearings that may be required. ARTICLE XVII GENERAL PROVISIONS 17.1 Time. Time is of the essence in the performance of the Parties' respective obligations in this Agreement. 17.2 Successors and Assigns. This Agreement shall inure to the benefit of, and be binding on, the Parties hereto and their respective successors and permitted assigns. 17.3 Acquisition of All Parcels. Sellers acknowledge and agree that the City is obligated to purchase all of the Parcels pursuant to this Agreement and the failure or inability of either LLC Seller or Company Seller to perform its obligations under this Agreement constitutes a failure or inability of the other entity that constitutes Sellers. 17.4 Counterpart Copies. This Agreement may be executed in one or more counterparts, and all such counterparts so executed shall constitute one Agreement binding on all of the 19 DRAFT January 7, 2019 Parties hereto, notwithstanding that all of the Parties are not signatories to the same counterpart. 17.5 Construction. The Parties acknowledge that each Party and its counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments or exhibits hereto. 17.6 Severability. If a provision of this Agreement is determined to be unenforceable in any respect, the enforceability of the provision in any other respect and of the remaining provisions of this Agreement shall not be impaired. 17.7 Cooperation. Each Party agrees to cooperate with the other in a reasonable manner to carry out the intent and purpose of this Agreement. 17.8 Authority To Sign. The persons who have executed this Agreement on behalf of the Parties represent and warrant they are duly authorized to execute this Agreement on behalf of their respective entity. 17.9 Non - waiver. Each Party agrees that any Party's waiver or failure to enforce or require performance of any term or condition of this Agreement or any Party's waiver of any particular breach of this Agreement by any other Party extends to that instance only. Such waiver or failure is not and shall not be a waiver of any of the terms or conditions of this Agreement or a waiver of any other breaches of the Agreement by any Party and does not bar the non - defaulting Party from requiring the defaulting Party to comply with all the terms and conditions of this Agreement and does not bar the non - defaulting Party from asserting any and all rights and/or remedies it has or might have against the defaulting Party under this Agreement or by law. 17.10 Faith Based Organizations. Pursuant to Virginia Code Section 2.2.4343.1, be advised that the City and GRTC do not discriminate against faith -based organizations. ARTICLE XVIII COMPLIANCE WITH STATE LAW; FOREIGN AND DOMESTIC BUSINESSES AUTHORIZED TO TRANSACT BUSINESS IN THE COMMONWEALTH OF VIRGINIA Sellers shall comply with the provisions of Virginia Code Section 2.2- 4311.2, as amended, which provides that a contractor organized as a stock or nonstock corporation, limited liability company, business trust, or limited partnership or registered as a registered limited liability partnership shall be authorized to transact business in the Commonwealth of Virginia as a domestic or foreign business entity if so required by Title 13.1 or Title 50 or as otherwise required by law. Each of the Sellers agrees not to allow its existence to lapse or, if applicable, its certificate of authority or registration to transact business in the Commonwealth of Virginia, if so required under Title 13.1 or Title 50, to be revoked or cancelled at any time before Closing, and to promptly cure any such lapse, revocation or cancellation following notice from the City. It 20 DRAFT January 7, 2019 shall be a condition of the City's closing obligations under Section 8.2 above that Sellers not be in breach of this Article XVIII. ARTICLE XIX APPROPRIATION OF FUNDS All obligations or funding to be undertaken by the City in connection with this Agreement are subject to the availability of funds and the appropriation of such funds by City Council as may be necessary for such obligations or funding. The City Manager shall include funding for the City's obligations under this Agreement in seeking appropriation of funding for the project involving the relocation of GRTC transit operations facility from Campbell Court to a new bus transportation center. If any such funding is not approved, withdrawn, or otherwise not made available for this Agreement, with the result that City is unable to perform its obligations under this Agreement, City shall provide Sellers with written notice of such unavailability of funding. ARTICLE XX FORCE MAJEURE None of the Parties shall be in default or otherwise liable for any delay in or failure of its performance under this Agreement if such delay or failure arises by any reason beyond its reasonable control, including any act of God, any acts of common enemy, the elements, earthquakes, floods, fires, epidemics, riots, strikes, failures or delay in transportation or communication, shortages of material, approval delays or any act or failure to act by the other party or such other party's employees, agents or contractors; provided, however, that Sellers' lack of funds shall not be deemed to be a reason beyond Sellers' reasonable control. The Parties shall promptly inform and consult with each other as to any of the above causes which in their judgment may or could be the cause of a delay in the performance of this Agreement. Notwithstanding anything else set forth above, in no event shall the Closing Date be extended because of force majeure beyond August 31, 2019. ARTICLE XXI ENTIRE AGREEMENT This Agreement, including, without limitation, its exhibits and other attachments, contains the entire understanding of the Parties regarding its subject matter and supersedes all prior and contemporaneous negotiations and agreements, whether written or oral, between the Parties with respect to its subject matter. Without limitation, and for avoidance of any doubt, the preceding sentence shall not operate to invalidate or supersede any separate agreements between the Parties regarding the Incentives. No amendment to this Agreement shall be valid unless made in writing and signed by the Parties. ARTICLE XXII FORUM SELECTION AND CHOICE OF LAW 21 DRAFT January 7, 2019 By virtue of entering into this Agreement, the Parties agree and submit themselves to a court of competent jurisdiction, which shall be the Circuit Court or General District Court for City of Roanoke, Virginia, and further agree that this Agreement is controlled by the laws of the Commonwealth of Virginia, with the exception of Virginia's conflict of law provisions which shall not apply, and that all claims, disputes and other matters shall be decided only by such court according to the laws of the Commonwealth of Virginia as aforesaid. Each Party further waives and agrees not to assert in any such action, suit or proceeding, that the Party is not personally subject to the jurisdiction of such courts, that the action, suit or proceeding, is brought in an inconvenient forum or that the venue of the action, suit or proceeding, is improper. SIGNATURE PAGES TO FOLLOW 22 DRAFT January 7, 2019 IN WITNESS WHEREOF, the Parties have executed this Agreement by their authorized representatives as of the date of this Agreement. WITNESS: Print name and title COMMONWEALTH OF VIRGINIA CITY OF ROANOKE CITY OF ROANOKE, VIRGINIA By: Robert S. Cowell, Jr. City Manager The foregoing Agreement was acknowledged before me this day of , 2019, by Robert S. Cowell, Jr., the duly authorized City Manager of the City of Roanoke, Virginia, a Virginia Municipal Corporation. My Commission expires: Notary Public Approved as to form: Approved as to execution: Ordinance No. Funding has been appropriated pursuant to Ordinance No. Director of Finance 23 SEAL DRAFT January 7, 2019 WITNESS: Print Name and title: STATE OF CITY /COUNTY of BRANDON, WOODY AND BOOKER, LLC By its Manager: The Brandon Company, Incorporated Robin W. Ingram, President The foregoing Agreement was acknowledged before me this day of , 2019, by Robin W. Ingram, the duly authorized president of The Brandon Company, Incorporated, a Virginia corporation, as the duly authorized manager Brandon Woody and Book, LLC, a Virginia limited liability company, on behalf of The Brandon Company, Incorporated. My Commission expires: Notary Public 24 SEAL DRAFT January 7, 2019 WITNESS: Printed name and title STATE OF CITY /COUNTY of THE BRANDON COMPANY, INCORPORATED LM Robin W. Ingram, President The foregoing Agreement was acknowledged before me this day of , 2019, by Robin W. Ingram, the duly authorized president of The Brandon Company, Incorporated, a Virginia corporation, on behalf of The Brandon Company, Incorporated. My Commission expires: Notary Public 25 SEAL DRAFT January 7, 2019 EXHIBIT A Description of Campbell Court Those parcels of real property, together with improvements thereon, situated at 29 Campbell Avenue SW and 30 Salem Avenue SW, Roanoke, VA 24011, and bearing Official Tax Parcel Nos. 1011105, 1011106, 1011107, 1011108, 1011109, 1011110, 1011116, 1011117, 1011118, 1011119, 1011120, 1011122, and 1011129, containing, in the aggregate, approximately 1.0674 acres. DRAFT January 7, 2019 EXHIBIT B Description of LLC Parcels Two (2) parcels of real property, together with improvements thereon, described as follows: (i) a parcel of real property, together with improvements thereon, containing approximately 13,258 sq. feet of land, more or less, situated at 0 Salem Avenue, S.W., Roanoke Virginia, and bearing Official Tax Map No. 1010113; and (ii) a parcel of real property, together with improvements thereon, containing approximately 23,307 sq. feet of land, more or less, situated at 325 Salem Avenue, S.W., Roanoke, Virginia, and bearing Official Tax Map No. 1010115. 27 DRAFT January 7, 2019 EXHIBIT C Description of Company Parcels Two (2) parcels of real property, together with improvements thereon, described as follows: (i) a parcel of real property, together with improvements thereon, containing approximately 16,074 sq. feet of land, more or less, situated at 0 Salem Avenue, S.W., Roanoke Virginia, and bearing Official Tax Map No. 1010121; and (ii) a parcel of real property, together with improvements thereon, containing approximately 20,275 sq. feet of land, more or less, situated at 0 Salem Avenue, S.W., Roanoke, Virginia, and bearing Official Tax Map No. 1010122. 28 DRAFT January 7, 2019 EXHIBIT D Leases, permits, and licenses at the Parcels Oral agreements for monthly parking terminable on 30 Days notice. 29 4­1 IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 7th day of January, 2019. No. 41347 - 010719. A RESOLUTION authorizing a public hearing to receive public comments on the proposed sale of the GRTC Relocation Parcels from the City to Greater Roanoke Transit Company (GRTC) in accordance with the proposed City and GRTC Exchange Agreement, which proposed agreement includes the transfer of Campbell Court from GRTC to the City, upon such terms and conditions as more particularly set forth in the City Council Agenda Report dated January 7, 2019. WHEREAS, the City and GRTC are proposing to enter into a proposed agreement under which the City, after it acquires the GRTC Relocation Parcels from the GRTC Relocation Parcels Owners, and which GRTC Relocation Parcels and the GRTC Relocation Parcels Owners are more particularly described and identified in the proposed City and GRTC Exchange Agreement which agreement is more particularly described in the City Council Agenda Report dated January 7, 2019, would transfer the GRTC Relocation Parcels to GRTC in exchange for certain other parcels of real property described in the City and GRTC Exchange Agreement as Campbell Court, the transportation center currently owned by GRTC; and WHEREAS, pursuant to the requirements of State Code, the City must conduct a public hearing before considering the transfer of City -owned property. THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke as follows: I . The City Manager is authorized to schedule and advertise the proposed sale of the GRTC Relocation Parcels from the City to GRTC in accordance with the proposed City and GRTC Exchange Agreement, which proposed agreement includes the transfer of Campbell Court 1 from GRTC to the City, upon such terms and conditions as more particularly set forth in the City Council Agenda Report dated January 7, 2019, for a public hearing on January 22, 2019, at 7:00 p.m., or as soon thereafter as the matter may be heard, or at such later date and time as the City Manager shall determine, in his discretion. ATTEST: City Clerk, 2 G CITY COUNCIL AGENDA REPORT To: Honorable Mayor and Members of City Council Meeting: January 7, 2019 Subject: Request to Schedule a Public Hearing for Sale of Real Estate to Greater Roanoke Transit Company (GRTC) Background: The City has negotiated an agreement under which the City will acquire four parcels of real estate to relocate the GRTC central transit facility from Campbell Court: (i) 0 Salem Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010113; and 325 Salem Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map No. 10101 1 5, owned by Brandon, Woody and Booker LLC; and (ii) 0 Salem Avenue, S.W., Roanoke Virginia, bearing Official Tax Map No. 1010121; and 0 Salem Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010122, owned by The Brandon Company, Incorporated (collectively, "the GRTC Relocation Parcels ") for the sum of $2,185,000 (the "GRTC Relocation Parcels Acquisition Agreement "). The GRTC Relocation Parcels Acquisition Agreement allows the City and GRTC to conduct inspections of the GRTC Relocation Parcels, including environmental, geotechnical, and title, to confirm the suitability of the GRTC Relocation Parcels for use and operation of a central transit facility for GRTC. The GRTC Relocation Parcels Acquisition Agreement is subject to authorization by City Council and approval by the Federal Transit Administration (FTA). The GRTC Relocation Parcels Acquisition Agreement contemplates a closing by ,June 30, 2019. Subsequent to the City acquiring the GRTC Relocation Parcels, the attached proposed agreement provides for the transfer of the GRTC Relocation Parcels from the City to GRTC in exchange for the transfer of Campbell Court, the transit facility owned by GRTC, consisting of 13 parcels within the City, and which parcels are more particularly described in a proposed Agreement for the Exchange of Real Estate between the City and GRTC, from GRTC to the City (the "City and GRTC Exchange Agreement "). The proposed City and GRTC Exchange Agreement is contingent on (i) the City's acquisition of the GRTC Relocation Parcels; and either (ii) construction of a temporary central transit facility by GRTC on the GRTC Relocation Parcels if the City and Hist:Re Partners LLC ( "Developer ") proceed with an agreement involving the redevelopment of Campbell Court by Developer and the acquisition and development of a passenger rail facility by the City ( "City and Developer Exchange Agreement "); or (iii) construction of a permanent central transit facility if the proposed City and Developer Exchange Agreement terminates during the inspection periods set forth in that agreement. The proposed City and GRTC Exchange Agreement is subject to (a) approval by City Council following a public hearing; (b) approval by the GRTC Board of Directors; (c) approval by City Council as stockholder of GRTC; and (d) approval by FTA. The closing of this transaction is dependent upon whether the proposed transaction between the City and Developer is finalized. If finalized, the closing could occur in 2019 or 2020. If that transaction does not occur, the closing would occur after construction of the permanent facility is completed; likely in 2020 or 2021. A public hearing is required for the sale of city -owned property. Subject to City Council's concurrence with this request, a copy of the proposed City and GRTC Exchange Agreement will be placed with the City Clerk for review prior to the public hearing. Pursuant to the requirements of State Code, notice of the public hearing must be advertised at least seven days prior to the public hearing. Recommended Action: Authorize the scheduling and advertising of the proposed sale of the GRTC Relocation Parcels from the City to GRTC in accordance with the proposed City and GRTC Exchange Agreement, which proposed agreement includes the transfer of Campbell Court from GRTC to the City, for a public hearing on .January 22, 2019, at 7:00 p.m., or as soon thereafter as the matter may be heard, or at such later date and time as the City Manager shall determine, in his discretion. -- XCowe ------------ RoberJr. Cit y Manager Distribution: Council Appointed Officers Sherman M. Stovall, Assistant City Manager for Operations R. Brian Townsend, Assistant City Manager for Community Development Amelia C. Merchant, Director of Finance Robert Ledger, Acting Director, Economic Development Kevin Price, General Manager, GRTC 2 DRAFT DATE: January 7, 2019 AGREEMENT FOR THE EXCHANGE OF REAL ESTATE BETWEEN THE CITY OF ROANOKE, VIRGINIA AND GREATER ROANOKE TRANSIT COMPANY THIS AGREEMENT FOR THE EXCHANGE OF REAL ESTATE BETWEEN THE CITY OF ROANOKE, VIRGINIA AND GREATER ROANOKE TRANSIT COMPANY ( "Agreement ") is made this day of January, 2019, by and between the CITY OF ROANOKE, VIRGINIA, a Virginia municipal corporation ( "City "), and GREATER ROANOKE TRANSIT COMPANY, a Virginia corporation ( "GRTC "). RECITALS A. GRTC is the owner of thirteen (13) parcels of real property, together with buildings and improvements thereon, situated in Roanoke, Virginia, known as Campbell Court, and being more particularly described in Exhibit A attached hereto and made a part hereof ( "Campbell Court"). B. GRTC, a corporation in which the City is the sole stockholder, provides bus transportation services to the public throughout the areas of the City of Roanoke, the City of Salem, and the Town of Vinton. Campbell Court serves as the central bus transit facility for all such bus transportation services. C. GRTC is interested and desires in relocating its central bus transit facility from Campbell Court. D. The City is interested in acquiring Campbell Court for future potential development as proposed in an agreement between the City and Hist:Re Partners, LLC, a Virginia limited liability company ( "Developer "), as more particularly described in an Agreement dated January , 2019, ( "City and Developer Exchange Agreement "), or other development opportunities if the transactions contemplated by the City and Developer Exchange Agreement are not consummated. E. GRTC is willing to sell Campbell Court and relocate its central bus transit facility within the City of Roanoke provided the transaction does not disrupt the daily bus transit operations of GRTC. F. The City has entered into an agreement with the GRTC Relocation Parcels Owners of four (4) parcels of real property, together with improvements thereon, situated in Roanoke, Virginia and more particularly described in Exhibit B attached hereto and made a part hereof, ( "GRTC Relocation Parcels "), to acquire the GRTC Relocation Parcels for the purposes of relocating GRTC's central bus transit facility from Campbell Court. G. The City proposes to acquire the GRTC Relocation Parcels; and either (1) allow GRTC to construct a Temporary Transit Facility at the GRTC Relocation Parcels; and, upon completion of the Temporary Transit Facility, transfer and exchange all of the City's rights, title, DRAFT DATE: January 7, 2019 and interest in the GRTC Relocation Parcels to GRTC in exchange for the transfer and exchange of all of GRTC's rights, title and interest in Campbell Court; or (2) allow GRTC to construct the Permanent Transit Facility at the GRTC Relocation Parcels and, upon completion of the Permanent Transit Facility, transfer and exchange all of the City's rights, title, and interest in the GRTC Relocation Parcels to GRTC in exchange of all of GRTC's rights, title, and interest in Campbell Court. H. Subject to the terms and conditions of this Agreement, (i) the City is willing to sell, convey, and transfer all of the City's rights, title, and interest in the GRTC Relocation Parcels to GRTC, (ii) GRTC is willing to acquire the GRTC Relocation Parcels from the City, (iii) GRTC is willing to sell, convey, and transfer all of GRTC's rights, title, and interest in Campbell Court to the City, and (iv) the City is willing to acquire the Campbell Court from GRTC. I. The City and GRTC agree to set forth their agreements and understandings in accordance with this Agreement. THEREFORE, based upon the mutual covenants, agreements, and understandings set forth in this Agreement, including the Recitals set forth above and which Recitals are incorporated herein and constitute a material part of this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which the Parties acknowledge, the City and GRTC agree as follows: ARTICLE I DEFINITIONS All capitalized terms, not otherwise defined in this Agreement, shall have the following meanings: 1.1 Agreement shall mean this Agreement for the Exchange of Real Estate between the City of Roanoke, Virginia and Greater Roanoke Transit Company. 1.2 Applicable Law shall mean all federal, state, and local laws, rules, regulations, or ordinances that affect or otherwise apply to the transactions contemplated by this Agreement. 1.3 Approvals shall mean all licenses, permits, and other approvals under Applicable Law required or deemed necessary to develop, construct, operate, and maintain the Temporary Transit Facility or the Permanent Transit Facility, as applicable under the terms of this Agreement. 1.4 Business Days shall mean a Day or Days other than a Saturday, Sunday, or a holiday established under the laws of the United States of America or the Commonwealth of Virginia. 2 DRAFT DATE: January 7, 2019 1.5 Campbell Court shall mean those certain parcels of real estate together with buildings and improvements thereon, owned by GRTC, and more particularly described in Exhibit A attached hereto and made a part hereof. 1.6 Campbell Court Deed shall mean the special warranty deed from GRTC to the City conveying title of Campbell Court to the City. 1.7 Campbell Court Purchase Price shall mean the execution, delivery, acceptance and recording of the GRTC Relocation Parcels Deed to effectuate the transfer of the GRTC Relocation Parcels by the City to GRTC. 1.8 Certificate of Occupancy shall mean the permanent certificate issued by the City of Roanoke's Department of Planning, Building and Development which authorizes GRTC to use, occupy, and operate the Temporary Transit Facility or the Permanent Transit Facility, as applicable under the terms of this Agreement, at the GRTC Relocation Parcels. 1.9 City shall mean the City of Roanoke, Virginia, a Virginia municipal corporation 1.10 City and Developer Exchange Agreement shall mean the agreement between the City and Developer dated January , 2019, under which agreement the City would sell and transfer all of the City's rights, title, and interest in Campbell Court to Developer; and Developer would sell and transfer all of Developer's rights, title, and interest in the Future Rail Station Parcels to the City. 1.11 City's Approval Period shall mean the period of 90 Days beginning after the expiration of the City's Inspection Period. 1.12 City's Inspection Period shall mean the period of 180 Days after the Effective Date. 1.13 City Manager shall mean the person appointed by the Roanoke City Council as City Manager or the person designated by City Manager to act on behalf of the City Manager. 1.14 Closing shall mean the date on which the transactions contemplated by this Agreement for (i) the transfer of Campbell Court to the City, and (ii) the transfer of the GRTC Relocation Parcels to GRTC. 1.15 Days or Days shall mean a calendar day beginning and ending at the prevailing time in Roanoke, Virginia. 1.16 Developer shall mean Hist:Re Partners, LLC, a Virginia limited liability company. 1.17 Effective Date shall mean the date set forth at the beginning of this Agreement. 3 DRAFT DATE: January 7, 2019 1.18 Future Rail Station Facility shall mean the facility to be improved by the City located on the Future Rail Station Parcels and at which facility services for passengers of rail transportation will be provided. 1.19 Future Rail Station Parcels shall mean those parcels of real property, together with improvements thereon, situated in Roanoke, Virginia, and more particularly described in Exhibit C attached hereto and made a part hereof. 1.20 Future Rail Station Parcels Owner shall mean T -W Properties, a Virginia partnership. 1.21 Government Entity shall mean any federal, state, or local governmental body, agency, board or commission. 1.22 GRTC shall mean Greater Roanoke Transit Company, a Virginia corporation. 1.23 GRTC Relocation Expenses Payment shall mean the sum of Five Hundred Thousand Dollars ($500,000.00) to be paid by Developer to the City in accordance with Section 3.2 of the City and Developer Exchange Agreement. 1.24 GRTC Relocation Parcels shall mean those parcels of real property, together with improvements thereon, described in Exhibit B attached hereto and made a part hereof. 1.25 GRTC Relocation Parcels Agreement shall mean that agreement by and among the City and the GRTC Relocation Parcels Owners dated January , 2019, under which the City will purchase and acquire all rights, title, and interests of the GRTC Relocation Parcels Owners in the GRTC Relocation Parcels. 1.26 GRTC Relocation Parcels Closing Date shall mean the date on which the City acquires the GRTC Relocation Parcels pursuant to the terms of the GRTC Relocation Parcels Agreement which date shall be no later than June 30, 2019, unless otherwise extended under the terms of that agreement. 1.27 GRTC Relocation Parcels Deed shall mean the special warranty deed from the City to GRTC conveying title of the GRTC Relocation Parcels to GRTC. 1.28 GRTC Relocation Parcels Owners shall mean the owners of the GRTC Relocation Parcels identified in Exhibit B attached hereto and made a part hereof. 1.29 GRTC's Approval Period shall mean the period of 90 Days beginning after the expiration of GRTC's Inspection Period. 1.30 GRTC's Construction Right of Entry Agreement shall mean the agreement between the City and GRTC under which agreement the City grants to GRTC and its employees, contractors, and subcontractors, the rights to enter onto the GRTC Relocation Parcels and construct either (i) the Temporary Transit Facility, or (ii) the Permanent Transit Facility; as provided in Sections 4.2 and 4.3 of this Agreement. M DRAFT DATE: January 7, 2019 1.31 GRTC's Inspection Period shall mean the period of 180 Days after the Effective Date. 1.32 Parties shall mean the City and GRTC. 1.33 Party shall mean either the City or GRTC. 1.34 Permanent Transit Facility shall mean the permanent central bus transit facility to be constructed by GRTC at the GRTC Relocation Parcels in accordance with this Agreement. 1.35 Temporary Transit Facility shall mean the temporary central bus transit facility to be constructed by GRTC at the GRTC Relocation Parcels in accordance with this Agreement. 1.36 Title Company shall mean Fidelity National Title Insurance Company or any nationally recognized title insurance company (i) acceptable to the City with respect to Campbell Court; or (ii) acceptable to GRTC with respect to GRTC Relocation Parcels. ARTICLE II PRELIMINARY STATEMENT 2.1 GRTC desires to relocate its central bus transit facility from Campbell Court. The City desires to establish a Future Rail Station Facility in the area of Downtown Roanoke, proximate to the existing platform for passenger rail service within Roanoke. In furtherance of these desires, the City has entered into the following transactions: 2. 1.1 GRTC Relocation Parcels Agreement. Under the terms of the GRTC Relocation Parcels Agreement, the City proposes to acquire the GRTC Relocation Parcels by the GRTC Relocation Parcels Closing Date. The transactions contemplated in the GRTC Relocation Parcels Agreement are subject to certain conditions, including FTA Approval. Under the terms of the GRTC Relocation Parcels Agreement, the City may waive the requirement of FTA Approvals and acquire the GRTC Relocation Parcels for uses other than as a Temporary Transit Facility or a Permanent Transit Facility. 2.1.2 City and Developer Exchange Agreement. Under the terms of the City and Developer Exchange Agreement, the City proposes to transfer all of its rights, title, and interests in Campbell Court acquired by the City under this Agreement with Developer in exchange for the transfer of all of Developer's rights, title, and interest in the Future 61 DRAFT DATE: January 7, 2019 Rail Station Parcels. The transactions contemplated under the City and Developer Exchange Agreement are anticipated to close after the dates on which (i) the elections of the City and Developer to proceed with the transactions after completion of their respective inspections under the City and Developer Exchange Agreement are made; and (ii) closing of this Agreement under Section 12.1 hereof. 2.2 GRTC and the City intend to seek FTA Approvals for the relocation of the central bus transit operations from Campbell Court to the GRTC Relocation Parcels and, upon receipt of FTA Approvals, and satisfaction of all other applicable conditions and terms of this Agreement, the City and GRTC intend to execute GRTC's Construction Right of Entry Agreement to allow GRTC to construct the Permanent Transit Facility at the GRTC Relocation Parcels prior to Closing, in the event that the City and Developer Exchange Agreement is terminated for any reason 2.3 The City and GRTC agree to cooperate with each other in facilitating their mutual intents and objections as expressed and set forth in this Agreement. ARTICLE III PURCHASE AND SALE 3.1 Subject to the terms and conditions of this Agreement, GRTC agrees to sell, and the City agrees to purchase Campbell Court in its "as is" condition. 3.2 Subject to the terms and conditions of this Agreement, the City agrees to sell, and GRTC agrees to purchase the GRTC Relocation Parcels in their "as is" condition. ARTICLE IV RELOCATION OF GRTC OPERATIONS 4.1 Relocation of GRTC Operations. Under the terms of the City and Developer Exchange Agreement, Developer requires that the GRTC central bus transit operations be relocated from Campbell Court prior to the closing set forth in such agreement. As set forth in the Recitals and Article II of this Agreement, GRTC also desires to relocate its central bus transit facilities from Campbell Court. In either event, such relocation requires (i) the approval of the United States Department of Transportation, Federal Transit Administration (FTA); (ii) the acquisition of the GRTC Relocation Parcels by the City; and (iii) either the construction of the Temporary Transit Facility or the Permanent Transit Facility, as applicable under the terms of this Agreement. GRTC and the City shall diligently pursue approval of FTA and acquisition of GRTC Relocation Parcels from the GRTC Relocation Parcels Owners. In the event that (i) FTA fails to provide the FTA Approvals as described and defined in Article VI, or (ii) the City 2 DRAFT DATE: January 7, 2019 is unable to acquire the GRTC Relocation Parcels by the GRTC Relocations Parcels Closing Date, this Agreement will automatically terminate and be of no further force or effect. 4.2 In the event that (i) Developer and the City elect to proceed with the City and Developer Exchange Agreement following completion of their respective inspections and due diligence; (ii) the Parties receive the FTA Approvals; (iii) Developer pays the GRTC Relocation Expenses Payment to the City; and (iv) the City acquires the GRTC Relocation Parcels, the City shall make available to GRTC the GRTC Relocation Expense Payment for use in the construction of the Temporary Transit Facility and the relocation of GRTC's central bus transit operations from Campbell Court to the Temporary Transit Facility. The City and GRTC shall enter into GRTC's Construction Right of Entry Agreement for the purpose of constructing the Temporary Transit Facility. GRTC shall procure construction services in accordance with Applicable Law and commence construction of the Temporary Transit Facility. 4.3 In the event that (i) Developer or the City elects to terminate the City and Developer Exchange Agreement as a result of their respective inspections, and pursuant to such agreement, Developer is not obligated to provide the GRTC Relocation Expense Payment to the City; (ii) the FTA Approvals are received; and (iii) the City acquires the GRTC Relocation Parcels, the City and GRTC shall enter into GRTC's Construction Right of Entry Agreement for the purpose of constructing the Permanent Transit Facility. GRTC shall procure construction services in accordance with Applicable Law and commence construction of the Permanent Transit Facility. ARTICLE V RIGHT OF ENTRY AND INSPECTION PERIODS PRIOR TO CLOSING 5.1 City's Right of Inspection 5.1.1 The City shall complete the City's due diligence review of Campbell Court during the City Inspection Period. Should the City determine during the City Inspection Period that it is not satisfied with Campbell Court or any characteristics thereof for any reason whatsoever, in the City's sole and absolute discretion, the City may terminate this Agreement by notifying GRTC in writing as soon as possible, but no later than five (5) Days after the end of the City's Inspection Period, of the City's decision to terminate this Agreement. In such case, this Agreement shall thereupon be terminated and of no further force and effect, unless the Parties mutually agree to modify this Agreement to address any such issue(s). The City shall provide GRTC with its objections to the title of 7 DRAFT DATE: January 7, 2019 Campbell Court, including without limitation, any easement, encumbrances, or restrictions of record (including all matters shown on the plat that depicts Campbell Court), within five (5) Days after the end of the City's Inspection Period. 5.1.2 In connection with the City's due diligence review referenced above, GRTC hereby grants to the City, its officers, agents, employees, contractors, subcontractors, licensees, designees, representatives, and consultants, a revocable right to enter Campbell Court, at any time during the City's Inspection Period, on not less than two (2) working days prior written notice to GRTC, in order to survey, make test borings, and carry out such other examinations, exploratory work, or settings as may be necessary to complete Phase I and Phase II Environmental Assessments, or geotechnical assessments, or nondestructive engineering evaluations of Campbell Court, to otherwise perform the City's due diligence with respect to Campbell Court, and to store the City's property and equipment, on the following terms and conditions: 5.1.2.1 If the City exceeds its rights granted under Section 5.1 or fails to obtain and maintain the insurance required by Section 5.1, GRTC may immediately revoke its right of entry. 5.1.2.2 The City, to the extent permitted by law, agrees to be responsible for any and all damages resulting from the activity or activities of the City, its officers, agents, employees, contractors, subcontractors, licensees, designees, representatives and consultants, on Campbell Court in the exercise of the rights granted under this Section 5.1. The City shall, at its sole cost, promptly and fully restore any land disturbed by the exercise of the rights under this Section 5.1 to a condition equal to that existing immediately prior to entry on Campbell Court if the City does not purchase Campbell Court. 5.1.2.3 The City shall require each of its contractors ( "City Contractors ") to indemnify and defend GRTC and the City from any loss, damage, or claim arising out of the City's access to Campbell Court pursuant to this Section 5.1 for the purpose of making tests, inspections, studies, and other investigations. The indemnity obligations of the City Contractors hereunder are conditioned on GRTC (i) promptly notifying the City and the City Contractors in writing of any claim; (ii) cooperating with the City and the City Contractors in the defense of the claim; and (iii) granting the City and the City Contractors sole control of defense or settlement of the claim at the sole cost and expense of the City Contractors. Under no circumstance shall the City Contractors be obligated to E DRAFT DATE: January 7, 2019 indemnify or defend GRTC for or from such party's own negligence or willful misconduct (which includes, without limitation, any breach by GRTC of this Agreement), or unlawful act or omission, or any claim resulting from any of the foregoing. 5.1.2.4 The City shall, at its sole expense, obtain and maintain, or have the City Contractors obtain and maintain, the insurance set forth below. Any required insurance shall be effective prior to the beginning of any work or other performance by the City under this Section 5.1. The following policies and coverages are required: (i) Commercial General Liabilitv. Commercial General Liability insurance, written on an occurrence basis, shall insure against all claims, loss, cost, damage, expense or liability from loss of life or damage or injury to persons or property arising out of the City's and /or City Contractors' acts or omissions. The minimum limits of liability for this coverage shall be $1,000,000 per occurrence and $2,000,000 general aggregate. (ii) Contractual Liabilitv. Broad form Contractual Liability insurance shall include the indemnification obligation set forth above. (iii) Workers' Compensation. Workers' Compensation insurance covering the City's and /or City Contractors' statutory obligation under the laws of the Commonwealth of Virginia and Employer's Liability insurance shall be maintained for all its employees engaged in work under this Section 5.1. Minimum limits of liability for Employer's Liability shall be $100,000 bodily injury by accident each occurrence; $500,000 bodily injury by disease (policy limit); and $100,000 bodily injury by disease (each employee). With respect to the Workers' Compensation coverage, the City agrees to use reasonable efforts to obtain a waiver by the insurance company of rights of subrogation against GRTC if the policy does not expressly permit a waiver of subrogation. (iv) Automobile Liabilitv. The minimum limit of liability for Automobile Liability Insurance shall be $1,000,000 combined single limit applicable to owned or non -owned vehicles used in the performance of any work under this Section 5.1 and shall be written on an occurrence basis. we DRAFT DATE: January 7, 2019 5.1.3 The insurance coverages and amounts set forth above may be met by an umbrella liability policy following the form of the underlying primary coverage in a minimum amount of $1,000,000. Should an umbrella liability insurance coverage policy be used, such coverage shall be accompanied by a certificate of endorsement stating that it applies to the specific policy numbers indicated for the insurance providing the coverages required by this Section 5. 1, and it is further agreed that such statement shall be made a part of the certificates of insurance furnished by the City or the City Contractors to GRTC. 5.1.4 All insurance shall also meet the following requirements: The City and /or the City Contractors shall furnish to GRTC appropriate documentation showing the type, amount, effective dates, and date of expiration of policies; that GRTC, its officers, employees, agents, volunteers, and representatives are named as additional insureds; where waiver of subrogation is specified with respect to any policy or insurance required, any such waiver that the City Contractors are able to obtain shall be specified; insurance coverage shall be in a form and with an insurance company approved by GRTC, which approval shall not be unreasonably withheld; and any insurance company providing coverage shall be authorized to do business in the Commonwealth of Virginia. The City and /or the City Contractors shall provide GRTC's General Manager with not less than thirty (30) Days advance notice of cancellation or material alteration of any of the above - required insurance coverage. 5.1.5 The City, in performing its inspections on Campbell Court pursuant to this Section 5. 1, shall at all times comply with all Applicable Law. 5.1.6 On the request of GRTC, the City shall, within a reasonable period of time after receipt of any preliminary or final survey, test results or conclusory reports and opinion statements, deliver copies of same to GRTC. If GRTC so requests, the City shall also turn over copies of raw data obtained and any laboratory and observation reports or analyses. Such copies of all the above shall be provided to GRTC without charge. All such deliverables shall be without any warranties whatsoever, and neither the City nor the provider of any report or opinion shall be deemed to make or have made any representations or warranties to GRTC regarding such report or opinion, or any information contained therein, and GRTC may not rely on any such report or opinion, or any information contained therein. 5.2 GRTC's Right of Inspection. 5.2.1 GRTC shall complete GRTC's due diligence review of the GRTC Relocation Parcels during GRTC's Inspection Period. Should GRTC determine during GRTC's Inspection Period that it is not satisfied with the GRTC Relocation Parcels or any characteristics thereof for any reason whatsoever, in GRTC's sole and absolute discretion, GRTC may terminate this Agreement by notifying the City in writing as soon as possible, but no later than five (5) Days after the end of 10 DRAFT DATE: January 7, 2019 GRTC's Inspection Period, of GRTC's decision to terminate this Agreement. In such case, this Agreement shall thereupon be terminated and of no further force and effect, unless Parties, mutually agree to modify this Agreement to address any such issue(s). GRTC shall provide the City with its objections to the title of GRTC Relocation Parcels, including without limitation, any easements, encumbrances, or restrictions of record (including all matters shown on the plat that depicts the GRTC Relocation Parcels), within five (5) Days after the end of GRTC's Inspection Period. 5.2.2 In connection with GRTC's due diligence review referenced above, and pursuant to the authorization provided by the GRTC Relocation Parcels Owners pursuant to the GRTC Relocation Parcels Agreement, the City hereby grants to GRTC, its officers, agents, employees, contractors, subcontractors, licensees, designees, representatives, and consultants, a revocable right to enter on the GRTC Relocation Parcels at any time during GRTC's Inspection Period, on not less than two (2) working days prior written notice to the City and the GRTC Relocation Parcels Owners, in order to survey, make test borings, and carry out such other examinations, exploratory work, or settings as may be necessary to complete a Phase I Environment Site Assessment and, if required by the Phase I Environmental Site Assessment, Phase Il Environmental Site Assessments; or geotechnical assessments, or nondestructive engineering evaluations of the GRTC Relocation Parcels, to otherwise perform GRTC's due diligence with respect to the GRTC Relocation Parcels, and to store GRTC's property and equipment, on the following terms and conditions: 5.2.2.1 If GRTC exceeds its rights granted under Section 5.2, or fails to require GRTC's contractors to maintain and provide the insurance coverages provided herein, the City or the GRTC Relocation Parcels Owners may immediately revoke this right of entry. 5.2.2.2 GRTC, to the extent permitted by Applicable Law, agrees to be responsible for any and all damages resulting from the activity or activities of GRTC, its officers, agents, employees, contractors, subcontractors, licensees, designees, representatives and consultants, on GRTC Relocation Parcels in the exercise of the rights granted under this Section 5.2. GRTC shall, at its sole cost, promptly and fully restore any land disturbed by the exercise of the rights under this Section 5.2 to a condition equal to that existing immediately prior to entry on any of the GRTC Relocation Parcels if GRTC does not purchase the GRTC Relocation Parcels. 5.2.2.3 GRTC shall require its contractors ( "GRTC Contractors ") to indemnify and defend the City and the GRTC Relocation Parcels Owners from any loss, damage, or claim arising out of GRTC's 11 DRAFT DATE: January 7, 2019 access to any of the GRTC Relocation Parcels pursuant to this Section 5.2 for the purpose of making tests, inspections, studies, and other investigations. The indemnity obligations of GRTC Contractors hereunder are conditioned on the City or the GRTC Relocation Parcels Owners promptly notifying GRTC and the GRTC Contractors in writing of any claim; cooperating with GRTC Contractors in the defense of the claim; and granting GRTC Contractors sole control of defense or settlement of the claim at the sole cost and expense of GRTC Contractors. Under no circumstance shall GRTC Contractors be obligated to indemnify or defend the City or the GRTC Relocation Parcels Owners for or from the City or the GRTC Relocation Parcels Owner's own negligence or willful misconduct (which includes, without limitation, any breach by the City of this Agreement), or unlawful act or omission, or any claim resulting from any of the foregoing. 5.2.2.4 GRTC shall require each of the GRTC Contractors who enter the GRTC Relocation Parcels under this Section 5.2, at the sole expense of such GRTC Contractors, to obtain and maintain, or have its contractors or representatives obtain and maintain, the insurance set forth below. Any required insurance shall be effective prior to the beginning of any work or other performance by GRTC under this Section 5.2. The following policies and coverages are required: (i) Commercial General Liabilitv. Commercial General Liability insurance, written on an occurrence basis, shall insure against all claims, loss, cost, damage, expense or liability from loss of life or damage or injury to persons or property arising out of such contractor's acts or omissions. The minimum limits of liability for this coverage shall be $1,000,000 per occurrence and $2,000,000 general aggregate. (ii) Contractual Liabilitv. Broad form Contractual Liability insurance shall include the indemnification obligation set forth above. (iii) Workers' Compensation. Workers' Compensation insurance covering such contractor's statutory obligation under the laws of the Commonwealth of Virginia and Employer's Liability insurance shall be maintained for all its employees engaged in work under this Section 5.2. Minimum limits of liability for Employer's Liability shall be $100,000 bodily injury by accident each occurrence; $500,000 bodily injury by disease (policy limit); and $100,000 bodily injury by 12 DRAFT DATE: January 7, 2019 disease (each employee). With respect to the Workers' Compensation coverage, GRTC agrees to require GRTC Contractors to use reasonable efforts to obtain a waiver by the insurance company of rights of subrogation against the City if the policy does not expressly permit a waiver of subrogation. (iv) Automobile Liability. The minimum limit of liability for Automobile Liability Insurance shall be $1,000,000 combined single limit applicable to owned or non -owned vehicles used in the performance of any work under this Section 5.2, and shall be written on an occurrence basis. 5.2.3 The insurance coverages and amounts set forth above may be met by an umbrella liability policy following the form of the underlying primary coverage in a minimum amount of $1,000,000. Should an umbrella liability insurance coverage policy be used, such coverage shall be accompanied by a certificate of endorsement stating that it applies to the specific policy numbers indicated for the insurance providing the coverages required by this Section 5.2, and it is further agreed that such statement shall be made a part of the certificates of insurance furnished to the City. 5.2.4 All insurance shall also meet the following requirements: GRTC or the GRTC Contractors shall furnish to the City and GRTC Parcel Owners appropriate documentation showing the type, amount, effective dates, and date of expiration of policies; that the City, GRTC Relocation Parcels Owners, and their respective officers, employees, agents, volunteers, and representatives are named as additional insureds; where waiver of subrogation is specified with respect to any policy or insurance required, any such waiver that GRTC Contractors are able to obtain shall be specified; insurance coverage shall be in a form and with an insurance company approved by the City's Risk Manager, which approval shall not be unreasonably withheld; and any insurance company providing coverage shall be authorized to do business in the Commonwealth of Virginia. GRTC Contractors shall provide the City with not less than thirty (30) Days advance notice of cancellation or material alteration of any of the above - required insurance coverage. 5.2.5 GRTC, in performing its inspections on GRTC Relocation Parcels pursuant to this Section 5.2, shall at all times comply with all Applicable Law. 5.2.6 On the request of the City, GRTC shall, within a reasonable period of time after receipt of any preliminary or final survey, test results or conclusory reports and opinion statements, deliver copies of same to the City and GRTC Relocation Parcels Owners. If the City or GRTC Relocation Parcels Owner so requests, GRTC shall also turn over copies of raw data obtained and any laboratory and observation reports or analyses. Such copies of all the above shall be provided to 13 DRAFT DATE: January 7, 2019 the City and GRTC Relocation Parcels Owners without charge. All such deliverables shall be without any warranties whatsoever, and neither GRTC nor the provider of any report or opinion shall be deemed to make or have made any representations or warranties to the City and GRTC Relocation Parcel Owner regarding such report or opinion, or any information contained therein, and the City and GRTC Relocation Parcels Owners may not rely on any such report or opinion, or any information contained therein. ARTICLE VI FTA APPROVAL 6.1 The Parties acknowledge and confirm that the transactions contemplated by this Agreement and the GRTC Relocation Parcels Agreement are subject to the prior review, consent and approval by FTA, on terms and conditions acceptable to the City and GRTC ( "FTA Approvals "). In the event that FTA does not provide its consent and approval on terms and conditions acceptable to the City and GRTC by the expiration of GRTC's Inspection Period this Agreement shall terminate and neither Party shall have any further rights herein. 6.2 GRTC shall diligently pursue the FTA Approvals with FTA following the Effective Date. The City agrees to cooperate with GRTC in seeking the FTA Approvals. 6.3 The Parties acknowledge and agree that the FTA Approvals are an essential condition precedent under this Agreement for the benefit of GRTC and cannot, under any circumstance be waived by the Parties. ARTICLE VII GRTC APPROVALS 7.1 Upon (a) completion of GRTC's Inspection Period, (b) notification from GRTC that GRTC elects to proceed with the acquisition of the GRTC Relocation Parcels, (c) notification that the City desires to proceed with the acquisition of Campbell Court, and (d) the City has acquired the GRTC Relocation Parcels, GRTC shall, within GRTC's Approval Period seek and obtain all Approvals needed or deemed necessary for GRTC to construct, operate, and maintain (i) the Temporary Transit Facility at the GRTC Relocation Parcels; or (ii) the Permanent Transit Facility at the GRTC Relocation Parcels. 7.2 GRTC may extend the term of GRTC's Approval Period for an additional 90 Days provided that (i) GRTC is diligently pursuing all Approvals in good faith; and (ii) GRTC provides the City with notice of GRTC's election to extend the term of GRTC's Approval Period and such notice is provided to the City prior to the expiration of GRTC's Approval Period. 7.3 Upon the happening of the events set forth in Section 7.1 the Parties will execute GRTC's Construction Right of Entry Agreement with respect to construction of the Temporary 14 DRAFT DATE: January 7, 2019 Facility or the Permanent Transit Facility, as applicable under the terms of this Agreement. ARTICLE VIII CITY'S ACQUISITION OF GRTC RELOCATION PARCELS 8.1 By the GRTC Relocation Parcels Closing Date and prior to the Closing Date set forth in this Agreement, the City shall acquire good and marketable title, fee simple interest in each of the GRTC Relocation Parcels in accordance with the terms of the GRTC Relocation Agreement, a fully executed copy of which agreement has been reviewed and approved by GRTC. The City shall, at the City's cost and expense, obtain owner's title insurance policies for each of the GRTC Relocation Parcels, each policy insuring title of each of the GRTC Relocation Parcels without special exceptions and without standard conditions for (i) parties in possession; (ii) mechanics' liens; and (iii) matters that would be revealed by an accurate ground survey. The City shall provide to GRTC certified copies of the deeds transferring title to the GRTC Relocation Parcels to the City, as recorded in the Clerk's Office of the Circuit Court of the City of Roanoke, Virginia, together with fully executed copies of the title insurance policies. 8.2 The City shall hold title to the GRTC Relocation Parcels, free and clear of all liens, claims and encumbrances, and shall not voluntarily place, or involuntarily suffer, any deed of trust, lien, claim, or restriction from the date on which the City acquires title to the respective GRTC Relocation Parcels through and including the Closing. ARTICLE IX TITLE 9.1 Title to Campbell Court. The City's obligation to purchase Campbell Court at the Closing is conditioned on Campbell Court being conveyed by GRTC to the City by the Campbell Court Deed, free and clear of all restrictions, encumbrances, and liens except for such restrictions, encumbrances, and liens that constitute City Permitted Encumbrances. City Permitted Encumbrances with respect to Campbell Court means and includes the following: 9.1.1 Ad valorum real property taxes (including the downtown district special assessments), stormwater utility fees, and solid waste collection fees for the current year, not yet due and payable. 9.1.2 The conditions set forth on the plats prepared by the City and which are acceptable to the City. 9.1.3 Easements, restrictions and encumbrances designated by the City in writing as being acceptable to the City following the City's review of the preliminary title report for Campbell Court and such other diligence as the City elects to perform. 15 DRAFT DATE: January 7, 2019 The City acknowledges and agrees that GRTC has no obligation to remove, amend or alter any easement, restriction, or encumbrance of record, other than to pay in full, the amount secured by a lien, deed of trust, or other encumbrance. GRTC shall satisfy, at its sole expense, such deed of trust, lien or encumbrance that may be removed and discharged as a matter of record and record evidence that lien, deed of trust or other encumbrance has been satisfied in full and discharged. The City's sole remedy is to accept title subject to such easement, restriction, or encumbrance as a City Permitted Encumbrance or terminate the Agreement. In the event that the City elects to terminate this Agreement, the City shall provide GRTC with written notice of such termination, and no Party shall have any further rights or obligations under this Agreement. Notwithstanding the foregoing, GRTC shall be obligated to terminate all leases, licenses, and permits to possess and use any portion of Campbell Court, including all leases identified in Exhibit D attached hereto and made a part hereof, and all permits, licenses and permission to park vehicles at Campbell Court. 9.2 Title to the GRTC Relocation Parcels. GRTC's obligation to purchase the GRTC Relocation Parcels at the Closing is conditioned upon all of the GRTC Relocation Parcels being conveyed by the City to GRTC by the GRTC Relocation Parcels Deed, free and clear of all restrictions, encumbrances, and liens, except for such restrictions, encumbrances, and liens that constitute the GRTC Permitted Encumbrances. GRTC Permitted Encumbrances with respect to the GRTC Relocation Parcels means and includes the following: 9.2.1 Ad valorum real property taxes (including the downtown district special assessments), stormwater utility fees, and solid waste collection fees for the current year, not yet due and payable. 9.2.2 The conditions set forth on the plats prepared by GRTC, and acceptable to GRTC. 9.2.3 Easements, restrictions and encumbrances designated by GRTC in writing as being acceptable to GRTC following GRTC's review of the preliminary title report for GRTC Relocation Parcels and such other diligence as GRTC elects to perform. GRTC acknowledges and agrees that the City has no obligation to remove, amend or alter any easement, restriction, or encumbrance of record, other than to pay in full, the amount secured by a lien, deed of trust, or other encumbrance. The City shall satisfy, at its sole expense, such deed of trust, lien or encumbrance that may be removed and discharged as a matter of record and record evidence that lien, deed of trust or other encumbrance has been satisfied in full and discharged. GRTC's sole remedy is to accept title subject to such easement, restriction, or encumbrance as a GRTC Permitted Encumbrance or terminate the Agreement. In 16 DRAFT DATE: January 7, 2019 the event that GRTC elects to terminate this Agreement, GRTC shall provide the City with written notice of such termination, and no Party shall have any further rights or obligations under this Agreement. ARTICLE X CONDITIONS TO CLOSE THE SALE OF CAMPBELL COURT 10.1 Conditions to the City's Obligations to Close. The following are conditions precedent to the City's obligation to purchase Campbell Court: 10.1.1 The fulfillment to the City's reasonable satisfaction of GRTC's obligation to convey title to Campbell Court on the Closing Date to the City pursuant to the terms and conditions of this Agreement. 10.1.2 The City must be satisfied in its sole discretion with the results of its due diligence and inspection of Campbell Court. 10.1.3 GRTC must not be in default of GRTC's obligations under this Agreement, and GRTC's representations and warranties in this Agreement must remain true and correct as of the Closing. 10.1.4 The Title Company's commitment to issue, on payment of its normal premium, to the City, its A.L.T.A. (Form B) Owner's Policy of Title Insurance insuring the City in the amount of the Campbell Court Purchase Price in respect of Campbell Court and that title is vested in the City subject only to the City Permitted Encumbrances. All of the foregoing conditions are for the benefit of the City, and the City may choose, in the City's sole discretion, to proceed with the Closing, despite having knowledge that one or more of the above conditions have not been satisfied. 10.2 Conditions to GRTC's Obligation to Close. The following are conditions precedent to GRTC's obligation to sell Campbell Court to the City: 10.2.1 The City acquires all rights, title, and interest of the GRTC Relocation Parcel Owners in the GRTC Relocation Parcels in accordance with the terms and conditions of the GRTC Relocation Parcels Agreement. 10.2.2 Either (i) in the event that the City and Developer Exchange Agreement remains in force and effect and Developer has paid the GRTC Relocation Expenses Payment to the City, GRTC completes construction of the Temporary Transit Facility and GRTC receives Approvals, including the Certificate of Occupancy needed to occupy and operate its central bus transit operations at the Temporary Transit Facility; or (ii) in the event that the City and Developer Exchange Agreement has been terminated, GRTC completes construction of the Permanent 17 DRAFT DATE: January 7, 2019 Transit Facility and GRTC receives Approvals, including the Certificate of Occupancy needed to occupy and operate its central bus transit operations at the Permanent Transit Facility. 10.2.3 GRTC must be satisfied in its sole discretion with the results of its due diligence and inspections of the GRTC Relocation Parcels. 10.2.4 The City must not be in default of the City's obligations under this Agreement, and the City's representations and warranties in this Agreement must remain true and correct as of the Closing. All of the foregoing conditions are for the benefit of GRTC, and GRTC may choose, in its sole discretion, to proceed with the Closing, despite having knowledge that one or more of the above conditions have not been satisfied. 10.3 Conditions to Close on Campbell Court to which the City and GRTC are Subject Notwithstanding the conditions precedent to the City's obligation to close on the acquisition of Campbell Court by the City and the conditions precedent to GRTC's obligation to close on the transfer of Campbell Court to the City, the obligation of the Parties to close on the sale of Campbell Court are expressly subject to: 10.3.1 Receipt of the FTA Approvals, without conditions or restrictions unacceptable to the City or GRTC. Under no circumstances may either Party waive this condition. 10.3.2 The Temporary Transit Facility or the Permanent Transit Facility, as applicable under the terms of this Agreement, for use by GRTC has been substantially completed, available for use by GRTC in accordance with Applicable Law, including issuance of a Certificate of Occupancy to GRTC. 10.3.3 The Parties are prepared to close on the sale of the GRTC Relocation Parcels at Closing, subject only to the consummation of the transfer of Campbell Court to the City in accordance with this Agreement. ARTICLE XI CONDITIONS TO CLOSE THE SALE OF THE GRTC RELOCATION PARCELS 11.1 Conditions to GRTC's Obligation to Close. The following are conditions precedent to GRTC's obligation to purchase the GRTC Relocation Parcels: 11.1.1 The fulfillment to GRTC's reasonable satisfaction of the City's obligation to convey title to the GRTC Relocation Parcels on the Closing Date to GRTC pursuant to the terms and conditions of this Agreement. 18 DRAFT DATE: January 7, 2019 11. 1.2 GRTC shall have obtained, at GRTC's expense, all Approvals as applicable under Section 10.2.2 hereof. 11.1.3 GRTC must be satisfied in its sole discretion with the results of its due diligence and inspections of the GRTC Relocation Parcels conducted during GRTC's Inspection Period. 11.1.4 The City must not be in default of the City's obligations under this Agreement and the City's representations and warranties in the Agreement must remain true and correct as of the Closing. 11.1.5 The Title Company's commitment to issue, on payment of its normal premium, to GRTC its A.L.T.A. (Form B) Owner's Policy of Title Insurance insuring GRTC in the amount of the GRTC Relocation Parcels Purchase Price in respect to the GRTC Relocation Parcels that title to the GRTC Relocation Parcels is vested in GRTC subject only to GRTC Permitted Encumbrances. All of the forgoing conditions are for the benefit of GRTC, and GRTC may choose, in its sole discretion, to proceed with the Closing despite having knowledge that one or more of the above conditions have not been satisfied. 11.2 Conditions to the City's Obligation to Close. The following are conditions precedent to the City's obligation to sell the GRTC Relocation Parcels to GRTC: 11.2.1 GRTC must not be in material default of GRTC's obligation under this Agreement. 11.2.2 GRTC's representations and warranties in this Agreement remain true and correct as of the Closing. All of the forgoing conditions are for the benefit of the City and the City may choose, in its sole discretion, to proceed with the Closing despite having knowledge that one or more of the above conditions have not been satisfied. 11.3 Conditions to Close on GRTC Relocation Parcels to which the City and GRTC are Subs ect. Notwithstanding the conditions precedent on GRTC's obligation to close on the acquisition of the GRTC Relocation Parcels by GRTC, and the conditions precedent to the City's obligations to close on the transfer of the GRTC Relocation Parcels to GRTC, the obligation of the Parties to close on the GRTC Relocation Parcels is expressly subject to consummation of the transfer of Campbell Court to the City at the Closing in accordance with the terms and conditions of this Agreement. Under no circumstance may either Party waive this condition. 19 DRAFT DATE: January 7, 2019 ARTICLE XII CLOSING DATE 12.1 Closing Date. The Closing date shall occur prior to June 30, 2021 on a date selected by the City ( "Closing Date ") that is on the date which is the later to occur of (i) within thirty (30) Days to one hundred twenty (120) Days after satisfaction of all conditions set forth in Article X and XI of this Agreement; or (ii) Thirty (30) Days after GRTC (x) completes construction of the Temporary Transit Facility or the Permanent Transit Facility, as applicable under the terms of this Agreement, (y) receives a Certificate of Occupancy for the use and operation of the Temporary Transit Facility, or the Permanent Transit Facility, as applicable under the terms of this Agreement, and (z) vacates Campbell Court and commences its central bus transit operations at the GRTC Relocation Parcels. The City shall provide GRTC with not less than thirty (30) Days advance written notice of the Closing Date. The Closing shall occur at a mutually acceptable time (anticipated to be approximately 10:00 a.m. prevailing Roanoke, Virginia time) on the Closing Date in the Office of the City Attorney, or at such other location and time as the Parties shall approve. ARTICLE XIII CLOSING DELIVERABLES AND MECHANICS 13.1 GRTC's Obligations at Closing. On the Closing Date, GRTC shall (i) sell and convey Campbell Court to the City, and (ii) purchase and acquire the GRTC Relocation Parcels from the City, by delivering or causing to be delivered to the City the following: 13.1.1 The duly executed and acknowledged Campbell Court Deed conveying to the City Campbell Court in accordance with the provisions of this Agreement, in its "as is" condition without any representations or warranties with respect to the presence of hazardous materials. At the request of the City, GRTC shall convey Campbell Court to the City by using the survey of Campbell Court obtained by the City during the City's Inspection Period as the description in the Campbell Court Deed. 13.1.2 A mechanic's lien affidavit executed by GRTC, satisfactory to the Title Company, and to the effect that no work has been performed on Campbell Court by GRTC in the 125 Days immediately preceding the Closing Date that could result in a mechanic's lien claim or, if such work has been performed, it has been paid in full. 13.1.3 Such documents as may be reasonably required by the Title Company to evidence that authority of the person(s) executing the various documents on behalf of GRTC in connection with the sale of Campbell Court. 20 DRAFT DATE: January 7, 2019 13.1.4 A written certification that GRTC's warranties and representations in Section 17.1 of this Agreement remain true and correct as of the Closing Date. 13.1.5 A duly executed counterpart of a closing statement for the Closing. 13.1.6 Any other documents or items to be delivered pursuant to this Agreement or other documents reasonably required by the Title Company and that do not include the payment of money, indemnity, or the assumption of any liability or obligation. 13.1.7 The title commitment from the Title Company agreeing to insure title to the GRTC Relocation Parcels, without standard exclusions or special exemptions, is vested, in fee simple in GRTC. 13.2 The City's Obligations at Closing. On the Closing Date, the City shall (i) purchase and acquire Campbell Court from GRTC, and (ii) sell and transfer the GRTC Relocation Parcels to GRTC, by delivering or causing to be delivered to GRTC the following: 13.2.1 The duly executed GRTC Relocation Parcels Deed, conveying to GRTC the GRTC Relocation Parcels in accordance with the provisions of this Agreement in their "as is" condition without any warranties or representations with respect to the presence of hazardous materials. At the request of GRTC, the City shall convey the GRTC Relocation Parcels to GRTC by using the survey of the GRTC Relocation Parcels obtained by GRTC during GRTC's Inspection Period as the description in the GRTC Relocation Parcels Deed. 13.2.2 A copy of the owner's title insurance policy, without standard exclusions or special exceptions, issued and effective, insuring fee simple title to the GRTC Relocation Parcels is vested in the City. 13.2.3 A mechanics' lien affidavit executed by the City, satisfactory to the Title Company, and to the effect that no work has been performed at the GRTC Relocation Parcels by the City in the 125 Days immediately preceding the Closing Date that could result in a mechanic's lien claim, or, if such work has been performed, it has been paid in full. 13.2.4 Such documents as may be reasonably required by GRTC to evidence the authority of the person(s) executing the various documents on behalf of the City in connection with this Agreement. 13.2.5 A written certification that the City's representations and warranties set forth in Section 17.2 of this Agreement remain true and correct as of the Closing Date. 21 DRAFT DATE: January 7, 2019 13.2.6 A duly executed counterpart of the closing statement for the Closing. 13.2.7 Any other documents required to be delivered pursuant to this Agreement or reasonably required by GRTC and that do not require (except as set forth in this Agreement) the payment of money, indemnity or the assumption of any liability or obligation. 13.2.8 The title commitment from the Title Company agreeing to insure title to Campbell Court, without standard exclusions ' or special exceptions, is vested in fee simple in the City. 13.3 Prorated Expenses. At the Closing, real property taxes, stormwater utility fees, and solid waste collection fees, if any, shall be prorated as follows, with respect to Campbell Court, GRTC shall be responsible for all amounts due prior to the Closing Date and the City being responsible for all periods thereafter; and with respect to the GRTC Relocation Parcels, the City shall be responsible for all amounts due prior to the Closing Date and GRTC being responsible for all periods thereafter. The settlement of such prorated expenses shall occur at the Closing or as soon thereafter as reasonably possible. 13.4 The City's Expenses. The City shall pay for (i) all costs of the City's investigations of Campbell Court, including but not limited to the City's examination of title; (ii) all attorneys' fees and expenses incurred by legal counsel for the City; (iii) any Grantee's tax and the recording charges required in connection with the Campbell Court Deed; (iv) the title insurance premium for issuance of the Title Policy for Campbell Court; and (v) Grantor's Tax, if any, for the transfer of the GRTC Relocation Parcels. The City shall also be responsible for all tenant relocation expenses for tenants at Campbell Court in the event that Developer fails to pay such expenses as required under the terms of the City and Developer Exchange Agreement. 13.5 GRTC's Expenses. GRTC shall pay for (i) all costs of GRTC's investigations of the GRTC Relocation Parcels; (ii) all attorneys' fees and expenses incurred by legal counsel for GRTC; (iii) any Grantee's tax and the recording charges required in connection with the GRTC Relocation Parcels Deed; (iv) the title insurance premium for issuance of the Title Policy for GRTC Relocation Parcels; and (v) Grantor's Tax, if any, for the transfer of Campbell Court. 13.6 Possession. 13.6.1 GRTC shall deliver exclusive possession of Campbell Court free and clear of all tenants, licensees, or permitees to the City on the Closing Date, subject to the provisions of this Agreement. Fla DRAFT DATE: January 7, 2019 13.6.2 The City shall deliver exclusive possession of the GRTC Relocation Parcels free and clear of all tenants, licensees, or permitees to GRTC on the Closing Date, subject to the provisions of this Agreement. ARTICLE XIV CONDEMNATION 14.1 The City has no actual knowledge of any pending or threatened condemnation of GRTC Relocation Parcels. However, if, after the Effective Date and prior to the Closing Date, all or any part of GRTC Relocation Parcels is subject to a bona fide threat of condemnation or condemned or taken by a Government Entity having the power of eminent domain or a transfer in lieu of condemnation, the City shall promptly notify GRTC in writing and within thirty (30) Days after receipt of written notice, either Party may, by written notice to the other party elect to cancel this Agreement prior to the Closing Date, in which event all Parties shall be relieved and released of and from any further duties, obligations, rights, or liabilities hereunder, and this Agreement shall be deemed terminated and of no further force and effect. If no such election is made by either Party to cancel this Agreement, this Agreement shall remain in full force and effect and the purchase contemplated herein, less any interest taken by condemnation or eminent domain, shall be effected with no further adjustments, and on the Closing Date the City shall assign, transfer, and set over to GRTC all of the right, title, and interest of the City in and to any awards that have been or that may thereafter be made for any such taking or takings with respect to GRTC Relocation Parcels. 14.2 GRTC has no actual knowledge of any pending or threatened condemnation of the Campbell Court. However, if, after the Effective Date, and prior to the Closing Date, all or any part of the Campbell Court are subject to a bona fide threat of condemnation or condemned or taken by a Government Entity having a power of eminent domain or a transfer in lieu of condemnation, GRTC shall promptly notify the City in writing and within thirty (30) Days after receipt of written notice, either Party may, by written notice to the other, elect to cancel this Agreement prior to the Closing Date, in which event all Parties shall be relieved and released of any further duties, obligations, rights, or liabilities hereunder and this Agreement shall be deemed terminated and of no further force or effect. If no such election is made by either Party to cancel this Agreement, this Agreement shall remain in full force and effect and the purchase contemplated herein, less any interest taken in condemnation or eminent domain, shall be effected without further adjustment and on the Closing Date, GRTC shall assign, transfer, and set over to the City all of the right, title, and interest of GRTC in and to any awards that have been made or may thereafter be made for any such taking or takings with respect to Campbell Court. 23 DRAFT DATE: January 7, 2019 ARTICLE XV RISK OF LOSS 15.1 Risk of loss by fire or other casualty for Campbell Court shall be on GRTC until the Closing is completed, subject only to the obligations of the Parties under this Agreement. If Campbell Court is substantially damaged or destroyed before the Closing by such casualty, then either of the Parties may cancel this Agreement by giving written notice of such cancellation to the other Party and neither Party will have any further obligations to the other (except as otherwise specifically provided in this Agreement). In the event that neither Party cancels this Agreement, the City shall acquire Campbell Court in accordance with this Agreement and shall receive all proceeds of insurance. GRTC shall maintain fire and extended coverage insurance on Campbell Court in amounts and conditions currently in place, pending consummation of the Closing. 15.2 Risk of loss by fire or other casualty for the GRTC Relocation Parcels shall be on the City until the Closing is completed, subject only to the obligations of the Parties under this Agreement. If the GRTC Relocation Parcels are substantially damaged or destroyed before the Closing by such casualty, then GRTC may elect to (i) acquire the GRTC Relocation Parcels and receive all proceeds of insurance received by the City; or (ii) cancel the Closing, in which event, neither Party will have any further obligations to the other (except as otherwise specifically provided in this Agreement). The City shall maintain fire and extended coverage insurance on the GRTC Relocation Parcels, after acquisition of the acquisition of the GRTC Relocation Parcels by the City, at the full replacement value, pending consummation of the Closing. ARTICLE XVI BROKER'S COMMISSIONS 16.1 The Parties represent, and warrant that they have not incurred any liability or obligation, whether contingent or otherwise, for a brokerage commission, a finder's fee, or any other similar payment in connection with this Agreement or the transaction contemplated herein. ARTICLE XVII REPRESENTATIONS AND WARRANTIES 17.1 GRTC's Representations and Warranties. GRTC represents and warrants, as of the Effective Date and as of the Closing, to the City, with respect to Campbell Court that: 17. 1.1 Title. GRTC is the legal and beneficial fee simple title holder of Campbell Court, and will have good, marketable title to Campbell Court, free and clear of all liens, encumbrances, claims, covenants, conditions, restrictions, easements, right -of- way, options, judgments, or other matters, subject only to the City Permitted 24 DRAFT DATE: January 7, 2019 Encumbrances. GRTC will convey Campbell Court to the City by Campbell Court Deed. 17.1.2 Special Taxes. Campbell Court is subject to the Downtown Service District special assessment set forth in Sections 32 -102 through 32- 102.4, Code of GRTC of Roanoke (1979), as amended. GRTC has no knowledge of, nor has it received notice of, any other special assessments or special taxes relating to Campbell Court or any part thereof. 17.1.3 Condemnation. GRTC has no knowledge of any pending or threatened proceedings for condemnation or the exercise of the right of eminent domain as to any part of Campbell Court or the limiting or denying of any right of access thereto. 17.1.4 Hazardous Materials. GRTC makes no representations with respect to Campbell Court. 17.1.5 Leases. Campbell Court is subject to the Leases identified in Exhibit D attached hereto and made a part hereof. Such leases shall not be modified, amended, or extended without the prior written approval of the City. 17.1.6 Access. Access to Campbell Court is provided at Campbell Avenue, S.W., and Salem Avenue, S.W., public streets. 17.1.7 No Conflicts. GRTC's execution and performance of this Agreement does not (i) breach any other agreement to which GRTC is a party; or (ii) violate any law, judgment, or order to which GRTC is subject. 17.1.8 No Notice of Violation. GRTC has received no notice of any violation of the zoning requirements or other Applicable Law with respect to Campbell Court. 17.1.9 No Litigation. No litigation, claim, or arbitration is pending or, to the knowledge of GRTC, threatened, with regard to Campbell Court. 17.1.10 Corporate Status. GRTC is a Virginia corporation, qualified to conduct business and in good standing in Virginia, and has the right to own its assets and operate it business in the ordinary course. The stockholder of GRTC is the City of Roanoke, Virginia. The officers and directors of GRTC are: Robert S. Cowell, Jr., Vice - President of Operations Sherman M. Stovall, Assistant Vice - President of Operations Stephanie M. Moon Reynolds, Secretary Cecelia F. McCoy, Assistant Secretary Daniel J. Callaghan, General Counsel Amelia C. Merchant, Treasurer P&I DRAFT DATE: January 7, 2019 The proper officers of GRTC have been authorized to execute and perform this Agreement, the documents and agreements referred to in this Agreement, and take all actions necessary to effectuate this Agreement on behalf of GRTC. 17.2 City's Representation and Warranties. The City represents and warrants, as of the Effective Date and as of the Closing, with respect to GRTC Relocation Parcels, that: 17.2.1 Title. The City has legal, binding agreements to acquire the GRTC Relocation Parcels and, as of the GRTC Relocation Parcels Closing will be the legal and beneficial fee simple titleholder of GRTC Relocation Parcels and has good, marketable title to GRTC Relocation Parcels, free and clear of all liens, encumbrances, claims, covenants, conditions, restrictions, easements, rights of way, options, judgments, or other matters, created by the City, subject to the GRTC Permitted Encumbrances. The City will convey title to the GRTC Relocation Parcels to GRTC by the GRTC Relocation Parcels Deed. 17.2.2 Condemnation. The City has no knowledge of any pending or threatened proceedings for condemnation or the exercise of the right of eminent domain as to any part of GRTC Relocation Parcels or the limiting or denying of any right of access thereto. 17.2.3 Special Taxes. The GRTC Relocation Parcels are subject to the Downtown Service District special assessment as set forth in Sections 32- 102 through 32- 102.4, Code of City of Roanoke (1979), as amended. The City has no knowledge of, nor has it received any notice of, any other special taxes or assessments relating to the GRTC Relocation Parcels or any part thereof. 17.2.4 Hazardous Materials. The City makes no warranties, covenants, or representations of any type regarding hazardous materials of any type. 17.2.5 Access. Ingress to and egress from the GRTC Relocation Parcels is available and provided through Salem Avenue, S.W., and Norfolk Avenue, S.W., public streets. 17.2.6 No Conflicts. The City's execution and performance of this Agreement does not: (i) breach any other agreement to which the City is a party; or (ii) violate any law, judgment, or order to which the City is subject. P161 DRAFT DATE: January 7, 2019 17.2.7 No Notice of Violations. The City has received no notice of any violation of zoning requirements or other ordinances, rules or regulations with respect to GRTC Relocation Parcels. 17.2.8 No Litigation. There is no litigation, claim, or arbitration, pending or, to the knowledge of the City, threatened, with regard to GRTC Relocation Parcels. ARTICLE XVIII DEFAULT IN CLOSING OBLIGATIONS 18.1 City Default. In the event that the Closing does not occur solely by reason of default by the City, and GRTC has fully performed its obligations and is prepared to consummate the Closing, GRTC shall have all of its remedies at law or in equity, including the remedy of specific performance. GRTC may also terminate this Agreement and neither Party shall have any further rights or obligations hereunder. 18.2 GRTC Default. In the event that the Closing does not occur solely by reason of default by GRTC, and the City has fully performed its obligations and is prepared to consummate the Closing, the City shall have all of its remedies at law or in equity, including the remedy of specific performance. The City may also terminate this Agreement, in which event neither Party shall have any further rights or obligations hereunder. ARTICLE XIX LIMITATIONS ON ASSIGNMENTS Each Party agrees not to assign or transfer any part of the Party's rights or obligations under this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld, and any such assignment shall not relieve the assigning Party from any of its obligations under this Agreement. ARTICLE XX NOTICES All notices hereunder must be in writing and shall be deemed validly given, by personal service, if sent by certified mail, return receipt requested, or by a nationally recognized overnight courier, addressed as follows (or any other address the party to be notified may have designated to the sender by like notice): 27 DRAFT DATE: January 7, 2019 If to City: City of Roanoke, ATTN: City Manager 364 Noel C. Taylor Municipal Building 215 Church Avenue, S.W. Roanoke, Virginia 24011 Fax No. 540- 853 -1138 With a Copy to: City of Roanoke Department of Economic Development ATTN: Economic Development Director 117 Church Avenue, S.W. Roanoke, Virginia 24011 Fax No. 540- 853 -1213 If to GRTC: Kevin L. Price, General Manager Greater Roanoke Transit Company 1108 Campbell Avenue, S.E. Roanoke, VA 24013 Fax No. 540- 982 -2703 With a Copy to: Attn: Vice President of Operations, GRTC 364 Noel C. Taylor Municipal Building 215 Church Avenue, SW Roanoke, VA 24011 Fax No. (540) 853 -1138 Notice shall be deemed delivered on the date of personal service, five days after deposit in the United States mail, or the day after delivery to a nationally recognized overnight courier. ARTICLE XXI APPROVAL BY CITY COUNCIL This Agreement is subject to approval by the City Council of the City of Roanoke after public hearing. GRTC shall be responsible for all advertising costs and other expenses incurred by the City and paid to third party vendors in connection with public hearings. ARTICLE XXII GENERAL PROVISIONS 22.1 Time. Time is of the essence in the performance of the Parties' respective obligations in this Agreement. 22.2 Successors and Assigns. This Agreement shall inure to the benefit of, and be binding on, the Parties hereto and their respective successors and permitted assigns. W. DRAFT DATE: January 7, 2019 22.3 Counterpart Copies. This Agreement may be executed in one or more counterparts, and all such counterparts so executed shall constitute one Agreement binding on all of the Parties hereto, notwithstanding that all of the Parties are not signatories to the same counterpart. 22.4 Construction. The Parties acknowledge that each Party and its counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments or exhibits hereto. 22.5 Severability. If a provision of this Agreement is determined to be unenforceable in any respect, the enforceability of the provision in any other respect and of the remaining provisions of this Agreement shall not be impaired. 22.6 Cooperation. Each Party agrees to cooperate with the other in a reasonable manner to carry out the intent and purpose of this Agreement. 22.7 Authority To Sign. The persons who have executed this Agreement on behalf of the Parties represent and warrant they are duly authorized to execute this Agreement on behalf of their respective entity. 22.8 Non - waiver. Each Party agrees that any Party's waiver or failure to enforce or require performance of any term or condition of this Agreement or any Party's waiver of any particular breach of this Agreement by any other Party extends to that instance only. Such waiver or failure is not and shall not be a waiver of any of the terms or conditions of this Agreement or a waiver of any other breaches of the Agreement by any Party and does not bar the non - defaulting Party from requiring the defaulting Party to comply with all the terms and conditions of this Agreement and does not bar the non - defaulting Party from asserting any and all rights and /or remedies it has or might have against the defaulting Party under this Agreement or by law. 22.9 Faith Based Organizations. Pursuant to Virginia Code Section 2.2.4343.1, be advised that the City and GRTC do not discriminate against faith -based organizations. ARTICLE XXIII NONDISCRIMINATION 23.1 GRTC will not discriminate against any employee or applicant for employment because of race, religion, color, sex, national origin, age, disability, or any other basis prohibited by state law relating to discrimination in employment, except where there is a bona fide occupational qualification reasonably necessary to normal operation of GRTC. GRTC agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. 23.2 GRTC in all solicitations or advertisements for employees placed by or on behalf of GRC will state that GRTC is an equal opportunity employer. 9 DRAFT DATE: January 7, 2019 23.3 Notices, advertisements and solicitations placed in accordance with federal law, rule or regulation shall be deemed sufficient for the purpose of meeting the requirements of this Section. ARTICLE XXIV COMPLIANCE WITH LAWS, REGULATIONS, AND IMMIGRATION GRTC agrees to comply with all Applicable Law, including all licensing requirements. GRTC further agrees that GRTC does not, and shall not, during the performance of this Agreement, knowingly employ an unauthorized alien as defined in the federal Immigration Reform and Control Act of 1986. ARTICLE XXV COMPLIANCE WITH STATE LAW; FOREIGN AND DOMESTIC BUSINESSES AUTHORIZED TO TRANSACT BUSINESS IN THE COMMONWEALTH OF VIRGINIA GRTC shall comply with the provisions of Virginia Code Section 2.2- 4311.2, as amended, which provides that a contractor organized as a stock or nonstock corporation, limited liability company, business trust, or limited partnership or registered as a registered limited liability partnership shall be authorized to transact business in the Commonwealth of Virginia as a domestic or foreign business entity if so required by Title 13.1 or Title 50 or as otherwise required by law. GRTC agrees not to allow its existence to lapse or its certificate of authority or registration to transact business in the Commonwealth of Virginia, if so required under Title 13.1 or Title 50, to be revoked or cancelled at any time before Closing, and to promptly cure any such lapse, revocation or cancellation following notice from the City. It shall be a condition of the City's closing obligations under Articles X and XI above that GRTC not be in breach of this Article XXV. ARTICLE XXVI APPROPRIATION OF FUNDS All obligations or funding to be undertaken by the City in connection with this Agreement are subject to the availability of funds and the appropriation of such funds by City Council as may be necessary for such obligations or funding. The City Manager shall include funding for the City's obligations under this Agreement in appropriation for the project contemplated herein for the relocation of the central bus transit operations of GRTC. If any such funding is not approved, withdrawn, or otherwise not made available for this Agreement, with the result that City is unable to perform its obligations under this Agreement, City shall provide GRTC with written notice of such unavailability of funding. 30 DRAFT DATE: January 7, 2019 ARTICLE XXVII FORCE MAJEURE None of the Parties shall be in default or otherwise liable for any delay in or failure of its performance under this Agreement if such delay or failure arises by any reason beyond its reasonable control, including any act of God, any acts of common enemy, the elements, earthquakes, floods, fires, epidemics, riots, strikes, failures or delay in transportation or communication, shortages of material, approval delays or any act or failure to act by the other party or such other party's employees, agents or contractors; provided, however, that GRTC's lack of funds shall not be deemed to be a reason beyond GRTC's reasonable control. The Parties shall promptly inform and consult with each other as to any of the above causes which in their judgment may or could be the cause of a delay in the performance of this Agreement. For purposes of this Agreement, any one (1) delay caused by any such occurrence shall not be deemed to last longer than six (6) months and the Party claiming delay caused by any and all such occurrences shall give the other Party written notice of the same within 30 Days after the date such claiming party learns of such occurrence. Notwithstanding anything else set forth above, after a total of twelve (12) months of delays of any type have been claimed by a Party as being subject to force majeure, no further delays or claims of any type shall be claimed by such Party as being subject to force majeure and /or being an excusable delay. ARTICLE XXVIII ENTIRE AGREEMENT This Agreement, including, without limitation, its exhibits and other attachments, contains the entire understanding of the Parties regarding its subject matter and supersedes all prior and contemporaneous negotiations and agreements, whether written or oral, between the Parties with respect to its subject matter. Without limitation, and for avoidance of any doubt, the preceding sentence shall not operate to invalidate or supersede any separate agreements between the Parties regarding the Incentives. No amendment to this Agreement shall be valid unless made in writing and signed by the Parties. ARTICLE XXIX FORUM SELECTION AND CHOICE OF LAW By virtue of entering into this Agreement, the Parties agree and submit themselves to a court of competent jurisdiction, which shall be the Circuit Court or General District Court for City of Roanoke, Virginia, and further agree that this Agreement is controlled by the laws of the Commonwealth of Virginia, with the exception of Virginia's conflict of law provisions which shall not apply, and that all claims, disputes and other matters shall be decided only by such court according to the laws of the Commonwealth of Virginia as aforesaid. Each Party further waives and agrees not to assert in any such action, suit or proceeding, that the Party is not personally subject to the jurisdiction of such courts, that the action, suit or proceeding, is brought in an inconvenient forum or that the venue of the action, suit or proceeding, is improper. 31 DRAFT DATE: January 7, 2019 IN WITNESS WHEREOF, the Parties have executed this Agreement by their authorized representatives as of the date of this Agreement. WITNESS: Print name and title COMMONWEALTH OF VIRGINIA CITY OF ROANOKE CITY OF ROANOKE, VIRGINIA Robert S. Cowell, Jr. City Manager The foregoing Agreement was acknowledged before me this day of , 2019, by Robert S. Cowell, Jr., the duly authorized City Manager of the City of Roanoke, Virginia, a Virginia municipal corporation, on behalf of the City of Roanoke, Virginia. My Commission expires: Approved as to form: Notary Public Approved as to execution: SEAL 32 DRAFT DATE: January 7, 2019 WITNESS: Print name and title WITNESS: Print name and title STATE OF CITY /COUNTY of GREATER ROANOKE TRANSIT COMPANY C William D. Bestpitch, President Kevin Price, General Manager The foregoing Agreement was acknowledged before me this day of , 2019, by William D. Bestpitch, the duly authorized President of Greater Roanoke Transit Company, a Virginia corporation, on behalf of Greater Roanoke Transit Company. My Commission expires: Notary Public STATE OF CITY /COUNTY of SEAL The foregoing Agreement was acknowledged before me this day of 12018, by Kevin Price, the duly authorized General Manager of Greater Roanoke Transit Company, a Virginia corporation, on behalf of Greater Roanoke Transit Company. My Commission expires: Approved as to form: Notary Public Approved as to execution: SEAL 33 DRAFT DATE: January 7, 2019 EXHIBIT A Description of Campbell Court Those parcels of real property, together with improvements thereon, situated at 29 Campbell Avenue SW and 30 Salem Avenue SW, Roanoke, VA 24011, and bearing Official Tax Parcel Nos. 1011105, 1011106, 1011107, 1011108, 1011109, 1011110, 1011116, 1011117, 1011118, 1011119, 1011120, 1011122, and1011129, containing, in the aggregate, approximately 1.0674 acres. 34 DRAFT DATE: January 7, 2019 EXHIBIT B GRTC Relocation Parcels Owners and GRTC Relocation Parcels GRTC Relocation Parcels Owners GRTC Relocation Parcels Brandon, Woody and Booker LLC Two (2) certain parcels of real property, together with improvements thereon, situated at 0 Salem Avenue, S.W. and 325 Salem Avenue, S. W., Roanoke, Virginia, and bearing Official Tax Map Nos. 1010113 and 1010115, respectively, more particularly described as Two (2) parcels of real property, together with improvements thereon, described as follows: (i) a parcel of real property, together with improvements thereon, containing approximately 13,258 sq. feet of land, more or less, situated at 0 Salem Avenue, S.W., Roanoke Virginia, and bearing Official Tax Map No. 1010113; and (ii) a parcel of real property, together with improvements thereon, containing approximately 23,307 sq. feet of land, more or less, situated at 325 Salem Avenue, S.W., Roanoke, Virginia, and bearing Official Tax Map No. 1010115. The Brandon Company, Incorporated A certain parcel of real property, together with improvements thereon, situated at 0 Salem Avenue, S.W., Roanoke, Virginia, and bearing Official Tax Map No. 1010121, and more particularly described as a parcel of real property, together with improvements thereon, containing approximately 16,074 sq. feet of land, more or less. The Brandon Company, Incorporated A certain parcel of real property, together with improvements thereon, situated at 0 Salem Avenue, S.W., Roanoke, Virginia, and bearing Official Tax Map No. 1010122, a parcel of real property, together with improvements thereon, containing approximately 20,275 sq. feet of land, more or less. 35 DRAFT DATE: January 7, 2019 EXHIBIT C Description of Future Rail Station Parcels Two (2) parcels of real property, together with improvement thereon, owned by T -W Properties, a Virginia partnership, situated at (i) 1 Jefferson Street, S.W. Roanoke Virginia, bearing Official Tax Map No. 1010507, and containing 0.1670 acres, more or less, and (ii) 7 Jefferson Street, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010508, containing 0.1158 acres, more or less. 36 DRAFT DATE: January 7, 2019 EXHIBIT D Leases at Campbell Court Tenant Location Term 727 Mart, Inc. 2,200 square feet located on Expires February 28, 2019 (3 Optional one year the ground floor at 31 -B renewals: 3/1/2019 to 02/29/2020, 3/1/2020 to Campbell Avenue S.W. 02/29/2021, 3/1/2021 to 02/28/2022) Greyhound 3,000 square feet located on Expires June 30, 2019 (1 additional one year Lines, Inc. the ground floor at 26 Salem renewal July 1, 2019 -June 30, 2020) Avenue S.W. Pyxis, Inc. 787 square feet located on Expires June 30, 2019 (1 additional one year the third floor at 31 -J renewal July 1, 2019 -June 30, 2020) Campbell Avenue S.W. Agreements for monthly parking permits, which are terminable. 37 IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 7th day of January, 2019. No. 41348 - 010719. A RESOLUTION authorizing a public hearing to receive public comments on the proposed sale of Campbell Court to Hist:Re Partners, LLC (Developer) in accordance with the terms and conditions of the proposed City and Developer Exchange Agreement that includes the City's acquisition of the Future Rail Station Parcels, upon such terms and conditions as more particularly set forth in the City Council Agenda Report dated January 7, 2019. WHEREAS, the City and Developer are proposing to enter into a proposed agreement under which the City, after it acquires the transportation center owned by Greater Roanoke Transit Company (GRTC), and which facility is more particularly described in the proposed City and Developer Exchange Agreement (such agreement being more particularly described in the City Council Agenda Report dated January 7, 2019) as Campbell Court, would transfer Campbell Court to Developer in exchange for certain other parcels of real property described in the City and Developer Exchange Agreement as the Future Rail Station Parcels; and WHEREAS, pursuant to the requirements of State Code, the City must conduct a public hearing before considering the transfer of City -owned property. THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke as follows: 1. The City Manager is authorized to schedule and advertise the proposed sale of Campbell Court to Hist:Re Partners, LLC in accordance with the terms and conditions of the proposed City and Developer Exchange Agreement that includes the City's acquisition of the Future Rail Station Parcels, upon such terms and conditions as more particularly set forth in the City Council Agenda Report dated January 7, 2019, for a public hearing on January 22, 2019, at 1 7:00 p.m., or as soon thereafter as the matter may be heard, or at such later date and time as the City Manager shall determine, in his discretion. ATTEST: City Clerk 2 G y CITY COUNCIL AGENDA REPORT To: Honorable Mayor and Members of City Council Meeting: January 7, 2019 Subject: Request to Schedule a Public Hearing for Sale of Campbell Court to Hist:Re Partners, LLC Background: Hist:Re Partners, LLC ( "Developer ") is interested in acquiring Campbell Court in order to redevelop Campbell Court into a new multi -use development project. In order to acquire Campbell Court, Developer requires Campbell Court to be free of all transit operations, and in order to avoid interruptions in transit services, GRTC must relocate its transit operations to a temporary location and construct a permanent facility for its transit operation. The City has negotiated agreements under which (i) the City will acquire two parcels of real property from Brandon, Woody and Booker LLC ( "LLC ") and two parcels of real property from The Brandon Company, Incorporated ( "Company ") (collectively, the "GRTC Relocation Parcels "), in accordance with an Agreement for the Purchase and Sale of Real Estate among the City, the LLC, and the Company (the "GRTC Relocation Parcels Agreement "); and (ii) GRTC will transfer all of its rights, title and interest in Campbell Court to the City and the City will transfer all of its rights, title, and interest in the GRTC Relocation Parcels to GRTC (the "City and GRTC Exchange Agreement "). Campbell Court consists of 13 parcels of real property, together with improvements thereon, situated at 29 Campbell Avenue, S.W. and 30 Salem Avenue, S.W., Roanoke, VA 24011, and bearing Official Tax Map Nos. 101 1 105, 1011106, 1011107, 1011108, 1011109, 1011110, 1011116, 1011117, 101 1 1 1 8, 101 1 1 19, 101 1 120, 101 1 122, and 101 1 129. Developer has options to acquire two parcels of property, currently used as office space for an insurance company, situated at 7 Jefferson Street, S.W. (Official Tax Map Nos. 1010507 and 1010508) ( "Future Rail Station Parcels ") and owned by T -W Properties, a Virginia partnership. Developer will exchange the Future Rail Station Parcels, together with other consideration set forth in the proposed City and Developer Exchange Agreement, at which Future Rail Station Parcels the City intends to construct and operate a facility for use by passengers of train services, in exchange for Campbell Court. The proposed City and Developer Exchange Agreement provides for the transfer of Campbell Court from the City to Developer in exchange for the transfer of the Future Rail Station Parcels from Developer to the City. This proposed transaction is subject to the closing of (i) the City's acquisition of the GRTC Relocation Parcels pursuant to the GRTC Relocation Parcels Agreement; and (ii) the acquisition of Campbell Court by the City pursuant to the terms and conditions of the City and GRTC Exchange Agreement. The proposed City and Developer Exchange Agreement includes inspection periods and the requirement that, if both the City and Developer are satisfied with the inspections and desire to proceed with the transaction, Developer shall pay $500,000 to the City for the costs of relocating the GRTC operations at Campbell Court to a temporary facility at the GRTC Relocation Parcels. The proposed City and Developer Exchange Agreement is also subject to Developer's receipt of three incentive opportunities from the City and the Economic Development Authority for the City of Roanoke, Virginia ( "EDA "). The Public Infrastructure Improvements Performance Grant is in the amount of the actual costs of certain public improvements made by Developer or $2,000,000, whichever amount is less. The Special Construction Requirements Performance Grant is in the amount of the actual costs of Developer to address certain conditions at Campbell Court or $2,000,000, whichever is less. The EDA Operating Performance Grant is in an amount not to exceed $1,500,000 and is to be awarded annually based on 50% of the real estate taxes paid by Developer to the City with respect to the Project, after completion. The City, the EDA, and Developer will negotiate the terms and conditions of these three grant agreements during the due diligence periods set forth in the proposed City and Developer Exchange Agreement. The proposed City and Developer Exchange Agreement is subject to approval by Council following a public hearing. The incentives will be presented to Council and EDA following satisfactory completion of the due diligence periods by the City and Developer. A public hearing is required for the sale of city -owned property. Subject to City Council's concurrence with this request, a copy of the proposed Contract will be placed with the City Clerk for review prior to the public hearing. Pursuant to the requirements of State Code, notice of the public hearing must be advertised at least seven days prior to the public hearing. Recommended Action: Authorize the scheduling and advertising of the proposed sale of Campbell Court to Developer in accordance with the terms and conditions of the proposed City and Developer Exchange Agreement that includes the City's acquisition of the Future Rail Station Parcels for a public hearing on January 22, 2019, at 7:00 p.m., or as soon thereafter as the matter may be heard, or at such later date and time as the City Manager shall determine, in his discretion. - - - - -- -------------------------- Robert S. Cowell, ,Jr. City Manager Distribution: Council Appointed Officers Sherman M. Stovall, Assistant City Manager for Operations R. Brian Townsend, Assistant City Manager for Community Development Amelia C. Merchant, Director of Finance Robert Ledger, Acting Director, Economic Development Kevin Price, General Manager, GRTC 3 AGREEMENT FOR THE EXCHANGE OF REAL ESTATE THIS AGREEMENT FOR THE EXCHANGE OF REAL ESTATE ( "Agreement ") is made this day of January, 2019, by and between the CITY OF ROANOKE, VIRGINIA, a Virginia Municipal Corporation ( "City"), and HIST:RE PARTNERS, LLC, a Virginia limited liability company ( "Developer "). RECITALS A. Greater Roanoke Transit Company, a Virginia Corporation ( "GRTC ") is the owner of thirteen (13) parcels of real property, together with buildings and improvements thereon, situated in Roanoke, Virginia, known as Campbell Court, and being more particularly described in Exhibit A attached hereto and made a part hereof ( "Campbell Court"). B. GRTC provides bus transportation services to the public throughout the areas of the City of Roanoke, the City of Salem, and the Town of Vinton. Campbell Court serves as the central terminal for all such bus transportation services. C. Developer is interested in acquiring Campbell Court in order to redevelop Campbell Court into a new multi -use development project as hereinafter defined and described as the Development Project, which Development Project is more particularly described in Exhibit B attached hereto and made a part hereof. D. In order to acquire Campbell Court, Developer requires Campbell Court to be free of all transit operations and in order to avoid interruptions in transit services, GRTC must relocate its transit operations to a temporary location and construct a permanent facility for its transit operation. E. The City has entered into agreements with (i) the GRTC Relocation Parcel Owners of four (4) parcels of real property, together with improvements thereon, situated in Roanoke, Virginia and more particularly described in Exhibit C attached hereto and made a part hereof ( "GRTC Relocation Parcels "); and (ii) GRTC under which GRTC will transfer all of its rights, title and interest in Campbell Court to the City and the City will transfer all of its rights, title, and interest in the GRTC Relocation Parcels to GRTC. F. Developer proposes to acquire Campbell Court from the City through an exchange of certain parcels of real property, together with improvements thereon, more particularly described in Exhibit D ( "Future Rail Station Parcels "), together with other consideration set forth in this Agreement at which Future Rail Station Parcels the City intends to construct and operate a facility for use by passengers of train services. G. Subject to the terms and conditions of this Agreement, (i) the City is willing to sell, convey, and transfer Campbell Court to Developer, (ii) Developer is willing to acquire Campbell Court, (iii) Developer is willing to sell, convey, and transfer the Future Rail Station Parcels to the City or its assignee, and (iv) the City is willing to acquire the Future Rail Station Parcels. H. The City and Developer agree to set forth their agreements and understandings in accordance with this Agreement. 1 Final draft 12.27.2018 THEREFORE, based upon the mutual covenants, agreements, and understandings set forth in this Agreement, including the Recitals set forth above and which Recitals are incorporated herein and constitute a material part of this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which the Parties acknowledge, the City and Developer agree as follows: ARTICLE I DEFINITIONS All capitalized terms, not otherwise defined in this Agreement, shall have the following meanings: 1.1 Agreement shall mean this Agreement for the Exchange of Real Estate. 1.2 Applicable Law shall mean all federal, state, and local laws, rules, regulations, or ordinances that affect or otherwise apply to the transactions contemplated by this Agreement. 1.3 Approvals shall mean all licenses, permits, and other approvals under Applicable Law required or deemed necessary to develop, construct, operate, and maintain, respectively, the Development Project or the Future Rail Station Facility. 1.4 Business Days shall mean a Day or Days other than a Saturday, Sunday, or a holiday established under the laws of the United States of America or the Commonwealth of Virginia. 1.5 Campbell Court shall mean those certain parcels of real estate together with buildings and improvements thereon, owned by GRTC, and more particularly described in Exhibit A attached hereto and made a part hereof. 1.6 Campbell Court Deed shall mean the special warranty deed from the City to Developer conveying title of Campbell Court to Developer. 1.7 Campbell Court Purchase Price shall mean the execution, delivery, acceptance and recording of the Future Rail Station Parcels Deed to effectuate the transfer of the Future Rail Station Parcels by Developer to the City. 1.8 Certificate of Occupancy shall mean the permanent certificate issued by the City of Roanoke's Department of Planning, Building and Development which authorizes (i) Developer to operate the Development Project at Campbell Court without conditions, contingences, limitations, or restrictions; or (ii) the City to operate the Future Rail Station Facility at the Future Rail Station Parcels without conditions, contingences, limitations, or restrictions. 1.9 City shall mean the City of Roanoke, Virginia, a Virginia municipal corporation. 1.10 City and GRTC Exchange Agreement shall mean the agreement between the City and GRTC dated , 2019, under which agreement the City will sell and transfer all of the City's rights, title, and interest in the GRTC Relocation Parcels to GRTC; 2 Final draft 12.27.2018 and GRTC will sell and transfer all of GRTC's rights, title, and interest in Campbell Court to the City. 1.11 City's Approval Period shall mean the period of 90 Days beginning after the expiration of the City's Inspection Period. 1.12 City's Inspection Period shall mean the period of 180 Days after the Effective Date. 1.13 City Manager shall mean the person appointed by the Roanoke City Council as City Manager or the person designated by City Manager to act on behalf of the City Manager. 1.14 Closing shall mean the date on which the transactions contemplated by this Agreement for (i) the transfer of Campbell Court to Developer, and (ii) the transfer of the Future Rail Station Parcels to the City. 1.15 Construction shall mean activities of Developer to begin and proceed with the actual physical development and building of the Development Project, including obtaining all Approvals. 1.16 Construction Completion Date shall mean the date on which Developer has completed the Construction of the Development Project and has been issued a certificate of substantial completion by its supervising architect or has received a Certificate of Occupancy, whichever first occurs. Under no circumstance (other than as a result of force majeure) will the Construction Completion Date be later than two (2) years after the Closing Date. 1.17 Days or Days shall mean a calendar day beginning and ending at the prevailing time in Roanoke, Virginia. 1.18 Developer shall mean Hist:Re Partners, LLC, a Virginia limited liability company. 1.19 Developer Approval Period shall mean the period of 90 Days beginning after expiration of the Developer Inspection Period. 1.20 Developer Inspection Period shall mean the period of 180 Days after the Effective Date. 1.21 Development Project shall mean the development proposed by Developer as set forth in Exhibit B attached hereto and made a part hereof. 1.22 EDA shall mean the Economic Development Authority of the City of Roanoke, Virginia. 1.23 EDA Operating Performance Grants shall mean the grants from the EDA and the City to Developer in the maximum aggregate amount of $1,500,000 that will be available to Developer pursuant to the EDA Operating Performance Grant Agreement. 1.24 EDA Operating Performance Grant Agreement shall mean the agreement among the City, Developer, and EDA under which agreement EDA will provide Developer with 3 Final draft 12.27.2018 EDA Operating Performance Grants in the maximum aggregate amount of $1,500,000, and which agreement will make annual grants available to Developer, up to the maximum aggregate amount, based upon not more than the Applicable Percentage of the real estate tax revenues received by the City from the Development Project from the prior fiscal year, beginning with the tax year following issuance of the Certificate of Occupancy for the Development Project. For purposes hereof, the Applicable Percentage shall be 50% for each fiscal year until the maximum aggregate amount of the EDA Operating Performance Grants has been received by Developer. 1.25 Effective Date shall mean the date set forth at the beginning of this Agreement. 1.26 Future Rail Station Facility shall mean the facility to be constructed by the City and at which facility services for passengers of rail transportation will be provided. 1.27 Future Rail Station Parcels shall mean those parcels of real property, together with improvements thereon, situated in Roanoke, Virginia, and more particularly described in Exhibit D attached hereto and made a part hereof. 1.28 Future Rail Station Parcels Deed shall mean the general warranty deed, with English Covenants, from Developer to the City, conveying title of the Future Rail Station Parcels to the City. 1.29 Future Rail Station Parcels Owner shall mean T -W Properties, a Virginia partnership. 1.30 Future Rail Station Parcels Purchase Price shall mean the execution, delivery, acceptance, and recording of the Campbell Court Deed to effectuate the transfer of Campbell Court by the City to Developer. 1.31 Government Entity shall mean any federal, state, or local governmental body, agency, board or commission. 1.32 Grant Agreements shall mean, collectively, the EDA Operating Performance Grant Agreement, the Public Infrastructure Improvements Performance Grant Agreement, and the Special Construction Requirements Performance Grant Agreement. 1.33 GRTC shall mean Greater Roanoke Transit Company, a Virginia corporation. 1.34 GRTC Relocation Expenses Payment shall mean the sum of Five Hundred Thousand Dollars ($500,000.00) to be paid by Developer to the City in accordance with Section 3.2 hereof. 1.35 GRTC Relocation Parcels shall mean those parcels of real property, together with improvements thereon, described in Exhibit C attached hereto and made a part hereof. 1.36 GRTC Relocation Parcels Agreement shall mean that agreement by and among the City and the GRTC Relocation Parcels Owners dated , 2019, under which the City will purchase and acquire all rights, title, and interests of the GRTC Relocation Parcels Owners in the GRTC Relocation Parcels. Final draft 12.27.2018 1.37 GRTC Relocation Parcels Owners shall mean the owners of the GRTC Relocation Parcels identified in Exhibit C attached hereto and made a part hereof 1.38 Parties shall mean the City and Developer. 1.39 PA!:!y shall mean either the City or Developer. 1.40 Public Infrastructure Improvements Performance Grants shall mean the amount of grants available to Developer for the cost incurred by Developer in the construction and installation of Public Infrastructure Improvements associated with the Development Project in accordance with a Public Infrastructure_lmprovements Performance Grant Agreement. Under no circumstances shall the aggregate amount of the Public Infrastructure Improvements Performance Grants exceed the lesser of (i) the actual costs incurred by Developer for all Public Infrastructure Improvements; or (ii) $2,000,000. 1.41 Public Infrastructure Improvements shall mean those improvements made by Developer in connection with the Development Project that constitute improvements to public assets such as sidewalks, streets, curbs, gutters, stormwater drainage systems, or utilities including water, sanitary sewer, electric, gas, and telecommunications. Public Infrastructure Improvements are more particularly described in Exhibit E attached hereto and made a part hereof. 1.42 Public Infrastructure Improvements Performance Grant Agreement shall mean that agreement among the City, EDA, and Developer under which agreement Developer may receive Public Infrastructure Improvements Performance Grants. 1.43 Special Construction Requirements shall mean those improvements to the buildings and structures to be constructed by Developer in connection with the Development Project that are required by the unique soils, conditions and location of Campbell Court, which improvements are more particularly described in Exhibit F attached hereto and made a part hereof. Special Construction Requirements shall not include removal of any structures, improvements, or equipment situated at Closing, including without limitation, all existing buildings, machinery, equipment, and underground storage tanks. 1.44 Special Construction Requirements Performance Grants shall mean those grants that will be available to Developer for the cost incurred by Developer in the construction and installation of Special Construction Requirements associated with the Development Project under the terms of the Special Construction Requirements Performance Grant Agreement. Under no circumstances shall the aggregate amount of the Special Construction Requirements Performance Grants exceed the lesser of (i) the actual costs incurred by Developer in construction or installing Special Construction Requirements; or (ii) $2,000,000. 5 Final draft 12.27.2018 1.45 Special Construction Requirements Performance Grant Agreement shall mean that agreement among the City, EDA, and Developer under which agreement Developer may receive Special Construction Requirements Performance Grants.. 1.46 Title Company shall mean any nationally recognized title insurance company (i) acceptable to Developer with respect to Campbell Court; or (ii) acceptable to the City with respect to Future Rail Station Parcels. ARTICLE II PURCHASE AND SALE 2.1 Subject to the terms and conditions of this Agreement, the City agrees to sell, and Developer agrees to purchase Campbell Court in its "as is" condition. 2.2 Subject to the terms and conditions of this Agreement, Developer agrees to sell, and the City agrees to purchase the Future Rail Station Parcels in their "as is" condition. ARTICLE III RELOCATION OF GRTC OPERATIONS 3.1 Relocation of GRTC Operations. Developer requires that the GRTC transit operations be relocated from Campbell Court prior to Closing. The Parties acknowledge and agree that an essential condition of this Agreement is maintenance of uninterrupted transit services provided by GRTC in order to accommodate the relocation of the GRTC transit operations from Campbell Court to another facility prior to the transfer of Campbell Court to the City pursuant to the City and GRTC Exchange Agreement and the subsequent transfer contemplated under this Agreement. Such relocation requires (i) the approval of the United States Department of Transportation, Federal Transit Administration (FTA); (ii) the acquisition of the GRTC Relocation Parcels by the City; (iii) the construction of temporary transit facilities at which GRTC may operate its transit operation; and (iv) transfer of Campbell Court to the City and transfer of GRTC Relocation Parcels to GRTC in accordance with the terms of the City and GRTC Exchange Agreement. GRTC and the City shall diligently pursue approval of FTA and acquisition of GRTC Relocation Parcels from the GRTC Relocation Parcels Owners. In the event that (i) FTA fails to approve the relocation of GRTC operations and the sale of Campbell Court within 180 Days after the Effective Date; or (ii) the City is unable to acquire the GRTC Relocation Parcels within 180 Days after the Effective Date, this Agreement will automatically terminate and be of no further force or effect. 3.2 In the event that (i) FTA approves the relocation of GRTC operations to the GRTC Relocation Parcels and the transfer of Campbell Court to the City, on terms and conditions acceptable to GRTC and the City; (ii) the City acquires the GRTC Relocation Parcels on terms and conditions acceptable to the City and GRTC; and (iii) neither the City and Developer have terminated this Agreement following completion 6 Final draft 12.27.2018 of their respective Inspections as set forth in Article IV of this Agreement (items (i) - (ii) collectively the "Contingencies "), Developer shall pay to the City the GRTC Relocation Expenses Payment, =in immediately available funds of the United States of America, on the date on which the event or condition set forth in Section 3.2(i), (ii) or (iii) last occurs. In the event that Developer fails to pay the GRTC Relocation Expenses Payment in full, in accordance with this Section 3.2, this Agreement shall automatically terminate and be of no further force or effect. Under no circumstances shall any portion of the GRTC Relocation Expenses Payment be refunded or returned to Developer unless the City, through no fault of Developer, fails or refuses to transfer Campbell Court to Developer in accordance with this Agreement or cannot transfer title of Campbell Court as required herein and Developer terminates this Agreement as provided in Section 8.13. 3.3 Upon satisfaction of the Contingencies and receipt of the GRTC Relocation Expenses Payment, the City or GRTC shall procure construction services in accordance with Applicable Law and commence construction of the temporary transit facility for use by GRTC in accordance with the terms of the City and GRTC Exchange Agreement. 3.4 Developer acknowledges, agrees, and confirms that payment of the GRTC Relocation Expenses Payment is an essential condition of this Agreement. Developer further acknowledges, agrees, and confirms that Developer has no right to a refund or reimbursement of the GRTC Relocation Expenses Payment, and Developer shall not receive any refund or reimbursement of the GRTC Relocation Expenses Payment, except as provided in Section 19.2 of this Agreement. ARTICLE IV RIGHT OF ENTRY AND INSPECTION PERIODS PRIOR TO CLOSING 4.1 Developer's Right of Inspection 4.1.1 Developer shall complete Developer's due diligence review of Campbell Court during the Developer Inspection Period. Should Developer determine during the Developer Inspection Period that it is not satisfied with Campbell Court or any characteristics thereof for any reason whatsoever, in Developer's sole and absolute discretion, Developer may terminate this Agreement by notifying the City in writing as soon as possible, but no later than five (5) Days after the end of the Developer's Inspection Period, of Developer's decision to terminate this Agreement. In such case, this Agreement shall thereupon be terminated and of no further force and effect, unless the Parties mutually agree to modify this Agreement to address any such issue(s). Developer shall provide the City with its objections to the title of Campbell Court, including without limitation, any easement, encumbrances, or restrictions of record 7 Final draft 12.27.2018 (including all matters shown on the plat that depicts Campbell Court), within five (5) Days after the end of the Developer Inspection Period. 4.1.2 In connection with Developer's due diligence review referenced above, the City shall obtain a right of entry agreement from GRTC to hereby grant to Developer, its officers, agents, employees, contractors, subcontractors, licensees, designees, representatives, and consultants, a revocable right to enter Campbell Court, at any time during the Developer Inspection Period, on not less than two (2) working days prior written notice to the City and GRTC, in order to survey, make test borings, and carry out such other examinations, exploratory work, or settings as may be necessary to complete Phase I and Phase 11 Environmental Site Assessments, or geotechnical assessments, or nondestructive engineering evaluations of Campbell Court, to otherwise perform Developer's due diligence with respect to Campbell Court, and to store Developer's property and equipment, on the following terms and conditions: 4.1.2.1 If Developer exceeds its rights granted under Section 4.1.2 or fails to obtain and maintain the insurance required by Section 4.1.2.4, GRTC may immediately revoke its right of entry. 4.1.2.2 Developer agrees to be responsible for any and all damages resulting from the activity or activities of Developer, its officers, agents, employees, contractors, subcontractors, licensees, designees, representatives and consultants, on Campbell Court in the exercise of the rights granted under this Section 4.1. Developer shall, at its sole cost, promptly and fully restore any land disturbed by the exercise of the rights under this Section 4.1 to a condition equal to that existing immediately prior to entry on Campbell Court if Developer does not purchase Campbell Court. 4.1.2.3 Developer shall indemnify and defend GRTC and the City from any loss, damage, or claim arising out of Developer's access to Campbell Court pursuant to this Section 4.1 for the purpose of making tests, inspections, studies, and other investigations. Developer's indemnity obligations hereunder are conditioned on GRTC and the City (i) promptly notifying Developer in writing of any claim; (ii) cooperating with Developer in the defense of the claim; and (iii) granting Developer sole control of defense or settlement of the claim at the sole cost and expense of Developer. Under no circumstance shall Developer be obligated to indemnify or defend GRTC or the City for or from such party's own negligence or willful misconduct (which includes, without limitation, any breach by the City of this Agreement), or unlawful act or omission, or any claim resulting from any of the foregoing. 8 Final draft 12.27.2018 4.1.2.4 Developer, at its sole expense, shall obtain and maintain, or have its contractors or representatives obtain and maintain, the insurance set forth below. Any required insurance shall be effective prior to the beginning of any work or other performance by Developer under this Section 4.1. The following policies and coverages are required: (i) Commercial General Liability. Commercial General Liability insurance, written on an occurrence basis, shall insure against all claims, loss, cost, damage, expense or liability from loss of life or damage or injury to persons or property arising out of Developer's and /or Contractor's acts or omissions. The minimum limits of liability for this coverage shall be $1,000,000 per occurrence and $2,000,000 general aggregate. (ii) Contractual Liability. Broad form Contractual Liability insurance shall include the indemnification obligation, if any, set forth above. (iii) Workers' Compensation. Workers' Compensation insurance covering Developer's and /or Contractor's statutory obligation under the laws of the Commonwealth of Virginia and Employer's Liability insurance shall be maintained for all its employees engaged in work under this Section 4.1. Minimum limits of liability for Employer's Liability shall be $100,000 bodily injury by accident each occurrence; $500,000 bodily injury by disease (policy limit); and $100,000 bodily injury by disease (each employee). With respect to the Workers' Compensation coverage, Developer agrees to use reasonable efforts to obtain a waiver by the insurance company of rights of subrogation against GRTC and the City if the policy does not expressly permit a waiver of subrogation. (iv) Automobile Liability. The minimum limit of liability for Automobile Liability Insurance shall be $1,000,000 combined single limit applicable to owned or non -owned vehicles used in the performance of any work under this Section 4.1 and shall be written on an occurrence basis. 4.1.3 The insurance coverages and amounts set forth above may be met by an umbrella liability policy following the form of the underlying primary coverage in a minimum amount of $1,000,000. Should an umbrella liability insurance coverage policy be used, such coverage shall be accompanied by a certificate of endorsement stating that it applies to the specific policy numbers indicated for the insurance providing the coverages required by this Section 4. 1, and it is further agreed that such statement shall be made a part of the certificates of insurance furnished by Developer to GRTC and the City. 9 Final draft 12.27.2018 4.1.4 All insurance shall also meet the following requirements: Developer and /or Contractor shall furnish to GRTC and the City appropriate documentation showing the type, amount, effective dates, and date of expiration of policies; that the City and GRTC, their respective officers, employees, agents, volunteers, and representatives are named as additional insureds; where waiver of subrogation is specified with respect to any policy or insurance required, any such waiver that Developer is able to obtain shall be specified; insurance coverage shall be in a form and with an insurance company approved by GRTC and the City, which approval shall not be unreasonably withheld; and any insurance company providing coverage shall be authorized to do business in the Commonwealth of Virginia. Developer and /or Contractor shall provide GRTC's General Manager and the City's Risk Manager with not less than thirty (30) Days advance notice of cancellation or material alteration of any of the above - required insurance coverage. 4.1.5 Developer, in performing its inspections on Campbell Court pursuant to this Section 4. 1, shall at all times comply with all Applicable Law. 4.1.6 On the request of GRTC or the City, Developer shall, within a reasonable period of time after receipt of any preliminary or final survey, test results or conclusory reports and opinion statements, deliver copies of same to GRTC and the City. If GRTC or the City so requests, Developer shall also turn over copies of raw data obtained and any laboratory and observation reports or analyses. Such copies of all the above shall be provided to GRTC and the City without charge. All such deliverables shall be without any warranties whatsoever, and neither Developer nor the provider of any report or opinion shall be deemed to make or have made any representations or warranties to GRTC and the City regarding such report or opinion, or any information contained therein, and GRTC or the City may not rely on any such report or opinion, or any information contained therein. 4.2 City's Right of Inspection. 4.2.1 City shall complete City's due diligence review of Future Rail Station Parcels during City's Inspection Period. Should the City determine during City's Inspection Period that it is not satisfied with the Future Rail Station Parcels or any characteristics thereof for any reason whatsoever, in City's sole and absolute discretion, the City may terminate this Agreement by notifying Developer in writing as soon as possible, but no later than five (5) Days after the end of the City's Inspection Period, of the City's decision to terminate this Agreement. In such case, this Agreement shall thereupon be terminated and of no further force and effect, unless Parties, mutually agree to modify this Agreement to address any such issue(s). The City shall provide Developer with its objections to the title of Future Rail Station Parcels, including without limitation, any easements, encumbrances, or restrictions of record (including all matters shown on the plat that depicts the Future Rail Station Parcels), within five (5) Days after the end of the City's Inspection Period. 10 Final draft 12.27.2018 4.2.1.1 Developer shall secure, at its sole cost and expense, all approvals and permissions from the Future Rail Station Parcels Owner to allow the City and its contractors, engineers, and consultant's access to the Future Rail Station Parcels for all purposes contemplated under this Section 4.2. All such approvals and consents shall be in writing, in a form substantially in the form described in Section 4.2.2, and delivered to the City prior to the commencement of the City's Inspection Period. 4.2.2 In connection with the City's due diligence review referenced above, Developer hereby grants to the City, its officers, agents, employees, contractors, subcontractors, licensees, designees, representatives, and consultants, a revocable right to enter on Future Rail Station Parcels at any time during the City's Inspection Period, on not less than two (2) working days prior written notice to Developer, in order to survey, make test borings, and carry out such other examinations, exploratory work, or settings as may be necessary to complete Phase I and Phase II Environmental Assessments, or geotechnical assessments, or nondestructive engineering evaluations of the Future Rail Station Parcels, to otherwise perform the City's due diligence with respect to the Future Rail Station Parcels, and to store the City's property and equipment, on the following terms and conditions: 4.2.2.1 If the City exceeds its rights granted under Section 4.2, or fails to require the City's contractors to maintain and provide the insurance coverages provided herein, Developer may immediately revoke this right of entry. 4.2.2.2 The City, to the extent permitted by Applicable Law, agrees to be responsible for any and all damages resulting from the activity or activities of the City, its officers, agents, employees, contractors, subcontractors, licensees, designees, representatives and consultants, on Future Rail Station Parcels in the exercise of the rights granted under this Section 4.2. The City shall, at its sole cost, promptly and fully restore any land disturbed by the exercise of the rights under this Section 4.2 to a condition equal to that existing immediately prior to entry on any of the Future Rail Station Parcels if the City does not purchase the Future Rail Station Parcels. 4.2.2.3 The City shall require its contractors to indemnify and defend Developer and the Future Rail Parcels Owner from any loss, damage, or claim arising out of City's access to any of the Future Rail Station Parcels pursuant to this Section 4.2 for the purpose of making tests, inspections, studies, and other investigations. The indemnity obligations of the City's contractors hereunder are conditioned on Developer or the Future Rail Parcels Owner promptly notifying the City and its contractors in writing of any claim; cooperating with the City's contractors in the defense of the claim; and granting the City's contractors sole control of defense or settlement of the claim at the sole cost and expense of the City's contractors. Under no circumstance shall 11 Final draft 12.27.2018 the City's contractors be obligated to indemnify or defend Developer or Future Rail Parcel Owner for or from Developer or Future Rail Parcels Owner's own negligence or willful misconduct (which includes, without limitation, any breach by Developer of this Agreement), or unlawful act or omission, or any claim resulting from any of the foregoing. 4.2.2.4 The City, at its sole expense, shall obtain and maintain, and shall require each of its contractors who enter the Future Rail Station Parcels under this Section 4.2, at the sole expense of such contractor, to obtain and maintain, or have its contractors or representatives obtain and maintain, the insurance set forth below. Any required insurance shall be effective prior to the beginning of any work or other performance by the City under this Section 4.2. The following policies and coverages are required: (i) Commercial General Liability. Commercial General Liability insurance, written on an occurrence basis, shall insure against all claims, loss, cost, damage, expense or liability from loss of life or damage or injury to persons or property arising out of such contractor's acts or omissions. The minimum limits of liability for this coverage shall be $1,000,000 per occurrence and $2,000,000 general aggregate. (ii) Contractual Liability. Broad form Contractual Liability insurance shall include the indemnification obligation, if any, set forth above. (iii) Workers' Compensation. Workers' Compensation insurance covering such contractor's statutory obligation under the laws of the Commonwealth of Virginia and Employer's Liability insurance shall be maintained for all its employees engaged in work under this Section 4.2. Minimum limits of liability for Employer's Liability shall be $100,000 bodily injury by accident each occurrence; $500,000 bodily injury by disease (policy limit); and $100,000 bodily injury by disease (each employee). With respect to the Workers' Compensation coverage, the City agrees to require its contractors to use reasonable efforts to obtain a waiver by the insurance company of rights of subrogation against Developer if the policy does not expressly permit a waiver of subrogation. (iv) Automobile Liability. The minimum limit of liability for Automobile Liability Insurance shall be $1,000,000 combined single limit applicable to owned or non -owned vehicles used in the performance of any work under this Section 4.2, and shall be written on an occurrence basis. 12 Final draft 12.27.2018 4.2.3 The insurance coverages and amounts set forth above may be met by an umbrella liability policy following the form of the underlying primary coverage in a minimum amount of $1,000,000. Should an umbrella liability insurance coverage policy be used, such coverage shall be accompanied by a certificate of endorsement stating that it applies to the specific policy numbers indicated for the insurance providing the coverages required by this Section 4.2, and it is further agreed that such statement shall be made a part of the certificates of insurance furnished to Developer and the Future Rail Station Parcels Owner. Furthermore, the City may satisfy its obligations to provide the requisite insurance coverages with self - insurance provided Developer with a letter evidencing the same and covering Developer thereunder. 4.2.4 All insurance shall also meet the following requirements: The City or its contractors shall furnish to Developer appropriate documentation showing the type, amount, effective dates, and date of expiration of policies; that Developer and the Future Rail Station Parcels Owner, and their respective officers, employees, agents, volunteers, and representatives are named as additional insureds; where waiver of subrogation is specified with respect to any policy or insurance required, any such waiver that the City's contractor is able to obtain shall be specified; insurance coverage shall be in a form and with an insurance company approved by Developer, which approval shall not be unreasonably withheld; and any insurance company providing coverage shall be authorized to do business in the Commonwealth of Virginia. The City's contractors shall provide Developer and the Future Rail Station Parcels Owner with not less than thirty (30) Days advance notice of cancellation or material alteration of any of the above - required insurance coverage. 4.2.5 The City, in performing its inspections on Future Rail Station Parcels pursuant to this Section 4.2, shall at all times comply with all Applicable Law. 4.2.6 On the request of Developer or the Future Rail Station Parcels Owner, the City shall, within a reasonable period of time after receipt of any preliminary or final survey, test results or conclusory reports and opinion statements, deliver copies of same to Developer or the Future Rail Station Parcels Owner. If Developer or the Future Rail Station Parcels Owner so requests, the City shall also turn over copies of raw data obtained and any laboratory and observation reports or analyses. Such copies of all the above shall be provided to Developer or the Future Rail Station Parcels Owner without charge. All such deliverables shall be without any warranties whatsoever, and neither the City nor the provider of any report or opinion shall be deemed to make or have made any representations or warranties to Developer or the Future Rail Station Parcels Owner regarding such report or opinion, or any information contained therein, and Developer or the Future Rail Station Parcels Owner may not rely on any such report or opinion, or any information contained therein. 13 Final draft 12.27.2018 ARTICLE V DEVELOPER APPROVALS 5.1 Upon completion of Developer Inspection Period and unless this Agreement is terminated in accordance with Section 4. 1, Developer shall, within the Developer Approval Period (i) seek and obtain all Approvals for the Development Project deemed by Developer necessary to construct, operate, and maintain the Development Project; and (ii) acquire the Future Rail Station Parcels in order to deliver possession and title to the Future Rail Station Parcels to the City in accordance with the terms of this Agreement. 5.2 Developer may extend the term of the Developer Approval Period for an additional 90 Days provided that (i) Developer is diligently pursuing all Approvals in good faith; and (ii) Developer provides notice to the City of Developer's election to extend the term of the Developer Approval Period and such notice is provided to the City prior to expiration of Developer Approval Period. ARTICLE VI CITY APPROVALS 6.1 Upon completion of the City's Inspection Period and unless this Agreement is terminated in accordance with Section 4.2, the City shall, within the City's Approval Period seek and obtain all Approvals needed or deemed necessary for the City to construct, operate, and maintain the Future Rail Station Facility at the Future Rail Station Parcels. 6.2 The City may extend the term of the City's Approval Period for an additional 90 Days provided that (i) the City is diligently pursuing all Approvals in good faith; and (ii) the City provides Developer with notice of the City's election to extend the term of the City's Approval Period and such notice is provided to Developer prior to the expiration of the City's Approval Period. ARTICLE VII DEVELOPER ACQUISITION OF FUTURE RAIL STATION PARCELS 7.1 Upon completion of Developer Inspection Period, Developer shall provide to the City copies of the fully executed agreement between Developer and the Future Rail Station Parcels Owner under which agreement Developer has the right and obligation to acquire all rights, title, and interests in the Future Rail Station Parcels, free and clear of all liens, encumbrances, claims, and restrictions other than customary easements that do not unreasonably interfere with the development or use of the Future Rail Station, with title being insurable by the Title Company without special exceptions and without standard conditions for (i) parties in possession after Closing; (ii) mechanics' liens; and (iii) matters that would be revealed by an accurate ground survey. Such agreement will expressly provide that the Future Rail Station Parcels Owner will not enter into any lease, tenancy, or occupancy agreement for a term that extends beyond the Closing without the prior written approval of the City. 7.2 At or prior to the Closing, Developer shall acquire good and marketable title, fee simple interest in each of the Future Rail Station Parcels. Developer shall, at Developer's cost and 14 Final draft 12.27.2018 expense, obtain owner's title insurance policies for each of the Future Rail Station Parcels, each policy insuring title of each of the Future Rail Station Parcels without special exceptions and without standard conditions for (i) parties in possession after Closing; (ii) mechanics' liens; and (iii) matters that would be revealed by an accurate ground survey. If Developer acquires title to the Future Rail Station Parcels prior to Closing, Developer shall provide to the City certified copies of the deeds to Developer transferring title to the Future Rail Station Parcels to Developer, as recorded in the Clerk's Office of the Circuit Court of the City of Roanoke, Virginia, together with fully executed copies of the title insurance policies. 7.3 If Developer acquires title to the Future Rail Station Parcels prior to Closing, Developer shall hold title to the Future Rail Station Parcels, free and clear of all liens, claims and encumbrances, and shall not voluntarily place, or involuntarily suffer, any deed of trust, lien, claim, or restriction from the date on which Developer acquires title to the respective Future Rail Station Parcels through and including the Closing. ARTICLE VIII TITLE 8.1 Title to Campbell Court. Developer's obligation to purchase Campbell Court at the Closing is conditioned on Campbell Court being conveyed by the City to Developer by the Campbell Court Deed, free and clear of all restrictions, encumbrances, and liens except for such restrictions, encumbrances, and liens that constitute Developer Permitted Encumbrances. Developer Permitted Encumbrances with respect to Campbell Court means and includes the following: 8.1.1 Ad valorum real property taxes (including the downtown district special assessments), stormwater utility fees, and solid waste collection fees for the current year, not yet due and payable. 8.1.2 The conditions set forth on the plats prepared by Developer. 8.1.3 Easements, restrictions and encumbrances (i) that are customary and do not unreasonably interfere with the development or use of Campbell Court for the Development Project or (ii) designated by Developer in writing as being acceptable to Developer following Developer's review of the preliminary title report for Campbell Court and such other diligence as Developer elects to perform. Developer acknowledges and agrees that the City has no obligation to remove, amend or alter any easement, restriction, or encumbrance or record, other than monetary liens which the City shall satisfy at its sole expense, and instruments evidencing such satisfaction and discharge of liens shall be placed of record at or prior to Closing. Developer's sole remedy is to accept title subject to such easement, restriction, or encumbrance as a Developer Permitted Encumbrance or terminate the Agreement. In the event that Developer elects to terminate this Agreement, Developer shall provide the City with written notice of such termination, and no Party shall have any further 15 Final draft 12.27.2018 rights or obligations under this Agreement, except the City shall promptly return any GRTC Relocation Expenses Payment. 8.1.4 The leases set forth in Exhibit G attached hereto and made a part hereof, which leases shall be terminated by City at or prior to Closing; provided, however, if the Developer elects, in accordance with Section 13.2.7 of this Agreement, at or prior to Closing to assume certain of the leases the City will not terminate those leases. 8.2 Title to the Future Rail Station Parcels. The City's obligation to purchase the Future Rail Station Parcels at the Closing is conditioned upon all of the Future Rail Station Parcels being conveyed by Developer to the City by the Future Rail Station Parcels Deed, free and clear of all restrictions, encumbrances, and liens, except for such restrictions, encumbrances, and liens that constitute the City Permitted Encumbrances. City Permitted Encumbrances with respect to the Future Rail Station Parcels means and includes the following: 8.2.1 Ad valorum real property taxes (including the downtown district special assessments), stormwater utility fees, and solid waste collection fees for the current year, not yet due and payable. 8.2.2 The conditions set forth on the plats prepared by the City. 8.2.3 Easements, restrictions and encumbrances (i) that are customary and do not unreasonably interfere with the development or use of the Future Rail Station Parcels for their intended purpose or (ii) designated by the City in writing as being acceptable to the City following the City's review of the preliminary title report for Future Rail Station Parcels and such other diligence as the City elects to perform. The City acknowledges and agrees that Developer has no obligation to remove, amend or alter any easement, restriction, or encumbrance of record, other than to pay in full, the amount secured by a lien, deed of trust, or other encumbrance. Developer shall satisfy, at its sole expense, such deed of trust, lien or encumbrance that may be removed and discharged as a matter of record and record evidence that lien, deed of trust or other encumbrance has been satisfied in full and discharged. The City's sole remedy is to accept title subject to such easement, restriction, or encumbrance as a City permitted encumbrance or terminate this Agreement. In the event that the City elects to terminate this Agreement, City shall provide the Developer with written notice of such termination and no Party shall have any further rights of obligations under this Agreement. 8.2.4 The leases identified in Exhibit H attached hereto and made a part hereof shall be terminated by Developer prior to Closing. 16 Final draft 12.27.2018 ARTICLE IX INCENTIVES 9.1 Developer's obligations under this Agreement to close the purchase of Campbell Court is subject to and conditioned on the authorization or approval of the following incentives and grants to be available to Developer from the City and the EDA (collectively, the "Incentives "): 9.1.1 The Public Infrastructure Improvements Performance Grants as set forth in the Public Infrastructure Improvements Performance Grant Agreement; 9.1.2 The Special Construction Requirements Performance Grants as set forth in the Special Construction Requirements Performance Grant Agreement; and 9.1.3 The EDA Operating Performance Grants in accordance with the EDA Operating Performance Grant Agreement. 9.2 The City, EDA, and Developer shall negotiate the terms and conditions of the Incentives following execution of this Agreement. Each of the Incentives shall include standard terms and conditions established by the City and EDA involving similar grant and incentive programs. The Incentives will also include the following specific caps on the maximum aggregate amount of grants that will be available to Developer under each of the Incentives: 9.2.1 Public Infrastructure Improvements Performance Grant Agreement. The aggregate amount of the Public Infrastructure Improvements Performance Grants shall not exceed the lesser of (i) the actual costs incurred by Developer for all Public Infrastructure Improvements; or (ii) $2,000,000. 9.2.2 Special Construction Requirements Performance Grant Agreement. The aggregate amount of the Special Construction Requirements Performance Grants shall not exceed the lesser of (i) the actual costs incurred by Developer in construction or installing Special Construction Requirements; or (ii) $2,000,000. 9.2.3 EDA Operating Performance Grant Agreement. 9.2.3.1 The maximum aggregate amount of the EDA Operating Performance Grants shall be $1,500,000 provided Developer's Total Investment is at least $25,000,000. Developer's Total Investment shall mean all costs and expenses, direct and indirect, incurred in connection with the design and construction of the Development Project, including, but not limited to, (i) all costs, directly and indirectly incurred by Developer for Special Construction Requirements and (ii) Public Infrastructure Improvements. Developer's Total Investment shall not include the GRTC Relocation Expenses Payment or the Tenant Relocation Expenses as defined in Section 13.2.7 of this Agreement. The EDA Operating Performance Grant Agreement will provide that either the EDA or the City may request in writing from Developer reasonable 17 Final draft 12.27.2018 documentation of Developer's Total Investment and, if so, Developer shall provide such reasonable documentation to the EDA and the City, without cost to the EDA or the City, as set forth in the EDA Operating Performance Grant Agreement. 9.2.3.2 In the event that the Developer Total Investment is less than $25,000,000, Developer shall be entitled to no EDA Operating Performance Grants and the EDA Operating Performance Grant Agreement shall automatically terminate 9.3 If, during Developer Approval Period, as extended, Developer determines in its sole discretion that the Incentives have not been approved in amounts and on commercially reasonable terms and conditions (other than the caps set forth in this Agreement) that render the Development Project economically viable, Developer shall have the right to terminate this Agreement by providing written notice to the City of such termination, in which event neither Party shall have any further rights or obligations under this Agreement other than Developer's indemnity obligations set forth in Section 4.1 hereof. ARTICLE X CONDITIONS TO CLOSE THE SALE OF CAMPBELL COURT 10.1 Conditions to Developer's Obligations to Close. The following are conditions precedent to Developer's obligation to purchase Campbell Court: 10.1.1 The fulfillment to Developer's reasonable satisfaction of the City's obligation to convey title to Campbell Court on the Closing Date to Developer pursuant to the terms and conditions of this Agreement. 10.1.2 Developer shall have obtained, at Developer's expense, all Approvals deemed necessary or advisable by Developer for the construction of the Development Project in accordance with Article V of this Agreement. 10.1.3 Developer must be satisfied in its sole discretion with the results of its due diligence and inspection of Campbell Court. 10.1.4 Developer shall have received all approvals for, and shall have accepted, in its sole discretion, the terms and conditions of the Incentives in accordance with Article IX of this Agreement. 10.1.5 The City must not be in default of the City's obligations under this Agreement, and the City's representations and warranties in this Agreement must remain true and correct as of the Closing. 10.1.6 The Title Company's commitment to issue, on payment of its normal premium, to Developer, its A.L.T.A. (Form B) Owner's Policy of Title Insurance insuring Developer in the amount of the Campbell Court Purchase Price in respect of Campbell 18 Final draft 12.27.2018 Court and that title is vested in Developer subject only to the Developer Permitted Encumbrances. All of the foregoing conditions are for the benefit of Developer, and Developer may choose, in Developer's sole discretion, to proceed with the Closing, despite having knowledge that one or more of the above conditions have not been satisfied. 10.2 Conditions to the City's Obligation to Close. The following are conditions precedent to the City's obligation to sell Campbell Court to Developer: 10.2.1 The City acquires all rights, title, and interest of GRTC's in Campbell Court in accordance with the terms and conditions of the City and GRTC Exchange Agreement. 10.2.2 The City acquires the GRTC Relocation Parcels from the GRTC Relocation Parcels Owners in accordance with the GRTC Relocation Parcels Agreement. 10.2.3 The City completes construction of the temporary transit facility for GRTC at the GRTC Relocation Parcels and GRTC receives all permits and approvals needed under Applicable Law to operate its transit operations at such temporary facility. 10.2.4 The fulfillment to City's reasonable satisfaction of Developer's obligation to acquire fee simple title ownership of the Future Rail Station Parcels and the issuance to Developer of its A.L.T.A. (Form B) Owner's Policy of Title Insurance insuring Developer in respect of the Future Rail Station Parcels and title is vested in Developer, subject only to the Future Rail Station Parcels Permitted Encumbrances. 10.2.5 The City must be satisfied in its sole discretion with the results of its due diligence and inspections of the Future Rail Station Parcels. 10.2.6 The City shall have obtained, at the City's expense, all Approvals deemed necessary or advisable by the City for the construction of the Future Rail Station Facility in accordance with Article VI of this Agreement 10.2.7 Developer must not be in default of Developer's obligations under this Agreement, and Developer's representations and warranties in this Agreement must remain true and correct as of the Closing. All of the foregoing conditions are for the benefit of the City, and the City may choose, in its sole discretion, to proceed with the Closing, despite having knowledge that one or more of the above conditions have not been satisfied. 10.3 Conditions to Close on Campbell Court to which Developer and the City are Subject Notwithstanding the conditions precedent to Developer's obligation to close on the acquisition of Campbell Court by Developer and the conditions precedent to the City's obligation to close on the transfer of Campbell Court to Developer, the obligation of the Parties to close on the sale of Campbell Court are expressly subject to: 19 Final draft 12.27.2018 10.3.1 The prior written approval of all transactions contemplated in this Agreement involving the acquisition of the GRTC Relocation Parcels by GRTC and the transfer of Campbell Court as contemplated in the City and GRTC Exchange Agreement by the FTA, without conditions or restrictions unacceptable to the City or GRTC. Under no circumstances may either Party waive this condition. 10.3.2 The temporary transit facility for use by GRTC has been substantially completed, available for use by GRTC in accordance with Applicable Law, including issuance of a final certificate of occupancy from the City of Roanoke Planning, Building and Development Department, and GRTC has acquired all rights, title and interests of the City in the GRTC Relocation Parcels in accordance with the terms and conditions of the City and GRTC Exchange Agreement. 10.3.3 The Parties are prepared to close on the sale of the Future Rail Station Parcels at Closing, subject only to the consummation of the transfer of Campbell Court to Developer in accordance with this Agreement. ARTICLE XI CONDITIONS TO CLOSE THE SALE OF THE FUTURE RAIL STATION PARCELS 11.1 Conditions to the City's Obligation to Close. The following are conditions precedent to the City's obligation to purchase the Future Rail Station Parcels: 11.1.1 The fulfillment to the City's reasonable satisfaction of Developer's obligation to convey title to the Future Rail Station Parcels on the Closing Date to the City pursuant to the terms and conditions of this Agreement. 11.1.2 The City shall have obtained, at the City's expense, all Approvals deemed necessary or advisable by the City for the construction of the Future Rail Station Facility by the City in accordance with Article VI of this Agreement. 11.1.4 The City must be satisfied in its sole discretion with the results of its due diligence and inspections of the Future Rail Station Parcels conducted during the City's Inspection Period. 11.1.5 Developer must not be in default of Developer's obligations under this Agreement and Developer's representations and warranties in the Agreement must remain true and correct as of the Closing. 11.1.6 The Title Company's commitment to issue, on payment of its normal premium, to the City its A.L.T.A. (Form B) Owner's Policy of Title Insurance insuring the City in the amount of the Future Rail Station Parcels Purchase Price in respect to the Future Rail Station Parcels and that title to the Future Rail Station Parcels is vested in the City subject only to the City Permitted Encumbrances. 20 Final draft 12.27.2018 All of the forgoing conditions are for the benefit of the City, and the City may choose, in its sole discretion, to proceed with the Closing despite having knowledge that one or more of the above conditions have not been satisfied. 11.2 Conditions to Developer's Obligation to Close. The following are conditions precedent to Developer's obligation to sell the Future Rail Station Parcels to the City: 11.2.1 The City must not be in material default of the City's obligation under this Agreement. 11.2.2 The City's representations and warranties in this Agreement remain true and correct as of the Closing. All of the forgoing conditions are for the benefit of Developer and Developer may choose, in its sole discretion, to proceed with the Closing despite having knowledge that one or more of the above conditions have not been satisfied. 11.3 Conditions to Close on Future Rail Station Parcels to which the City and Developer are Subject. Notwithstanding the conditions precedent on the City's obligation to close on the acquisition of the Future Rail Station Parcels by the City, and the conditions precedent to Developer's obligations to close on the transfer of the Future Rail Station Parcels to the City, the obligation of the Parties to close on the Future Rail Station Parcels is expressly subject to consummation of the transfer of Campbell Court to Developer at the Closing in accordance with the terms and conditions of this Agreement. Under no circumstance may either Party waive this condition. ARTICLE XII CLOSING DATE 12.1 Closing Date. The Closing date shall occur prior to June 30, 2020 on a date selected by Developer ( "Closing Date ") that is on the date which is the later to occur of (i) within thirty (30) Days to one hundred twenty (120) Days after satisfaction of all conditions set forth in Article XI of this Agreement; or (ii) Thirty (30) Days after GRTC transfers all right, title and interest in Campbell Court to the City and GRTC vacates its transit operations from Campbell Court. Developer shall provide the City with not less than thirty (30) Days advance written notice of the Closing Date. The Closing shall occur at a mutually acceptable time (anticipated to be approximately 10:00 a.m. prevailing Roanoke, Virginia time) on the Closing Date in the Office of the City Attorney, or at such other location and time as the Parties shall approve. 21 Final draft 12.27.2018 ARTICLE XIII CLOSING DELIVERABLES AND MECHANICS 13.1 Ci 's Obligations at Closing. On the Closing Date, the City shall (i) sell and convey Campbell Court to Developer, and (ii) purchase and acquire the Future Rail Station Parcels from Developer, by delivering or causing to be delivered to Developer the following: 13.1.1 The duly executed and acknowledged Campbell Court Deed conveying to Developer Campbell Court in accordance with the provisions of this Agreement, in its "as is" condition without any representations or warranties with respect to the presence of hazardous materials. At the request of Developer, the City shall convey Campbell Court to Developer by using the survey of Campbell Court obtained Developer during the Developer Inspection Period as the description in the Campbell Court Deed, provided to the extent of any differences in the survey and the City's source deed, any such discrepancies will be conveyed by quit claim deed. 13.1.2 A mechanic's lien affidavit executed by the City, satisfactory to the Title Company, and to the effect that no work has been performed on Campbell Court by the City in the 125 Days immediately preceding the Closing Date that could result in a mechanic's lien claim or, if such work has been performed, it has been paid in full. 13.1.3 Such documents as may be reasonably required by the Title Company to evidence that authority of the person(s) executing the various documents on behalf of the City in connection with the sale of Campbell Court. 13.1.4 A written certification that the City's warranties and representations in Section 18.1 of this Agreement remain true and correct as of the Closing Date. 13.1.5 A duly executed counterpart of a closing statement for the Closing. 13.1.6 Any other documents or items to be delivered pursuant to this Agreement or other documents reasonably required by the Title Company or Developer and that do not include the payment of money, indemnity, or the assumption of any liability or obligation. 13.2 Developer's Obligations at Closing. On the Closing Date, Developer shall (i) purchase and acquire Campbell Court from the City, and (ii) sell and transfer the Future Rail Station Parcels to the City, by delivering or causing to be delivered to the City the following: 13.2.1 The duly executed Future Rail Station Parcels Deed, conveying to the City the Future Rail Station Parcels in accordance with the provisions of this Agreement in their "as is" condition without any warranties or representations with respect 22 Final draft 12.27.2018 to the presence of hazardous materials. At the request of the City, Developer shall convey the Future Rail Station Parcels to the City by using the survey of the Future Rail Station Parcels obtained by the City during the City's Inspection Period as the description in the Future Rail Station Parcels Deed provided to the extent of any differences in the survey and Developer's source deed, any such discrepancies will be conveyed by quit claim deed. 13.2.2 A copy of the owner's title insurance policy, without standard exclusions or special exceptions, issued and effective, insuring fee simple title to the Future Rail Station Parcels is vested in Developer or if Developer acquiring the Future Rail Station Parcel, at or in connection with Closing, a Pro Forma title insurance policy. 13.2.3 A mechanics' lien affidavit executed by Developer, satisfactory to the Title Company, and to the effect that no work has been performed at the Future Rail Station Parcels by Developer in the 125 Days immediately preceding the Closing Date that could result in a mechanic's lien claim, or, if such work has been performed, it has been paid in full. 13.2.4 Such documents as may be reasonably required by the City to evidence the authority of the person(s) executing the various documents on behalf of Developer in connection with this Agreement. 13.2.5 A written certification that Developer's representations and warranties set forth in Section 18.2 of this Agreement remain true and correct as of the Closing Date. 13.2.6 A duly executed counterpart of the closing statement for the Closing. 13.2.7 Evidence reasonably satisfactory to the City that Developer, at Developer's option, and with the approval of FTA, either (i) has assumed the leases of any tenants and occupants of Campbell Court effective as of Closing Date, and paid all amount due to tenant and occupants of the Future Rail Station Parcels due under the Uniform Relocation Act, or (ii) has paid all amounts due to tenants and occupants of Campbell Court whose leases were not assumed and the Future Rail Station Parcels under the Uniform Relocation Act, including without limitation, payment of all displacement costs and expenses and all relocation expenses of any such tenants ( "Tenant Relocation Expenses "). Unless this Agreement is terminated as provided herein, the City agrees not to renew any lease for Campbell Court without the consent of the Developer except on a month -to -month basis. 13.2.8 Any other documents required to be delivered pursuant to this Agreement or reasonably required by the City and that do not require (except as set forth in this Agreement) the payment of money, indemnity or the assumption of any liability or obligation. 23 Final draft 12.27.2018 13.3 Prorated Expenses. At the Closing, real property taxes, stormwater utility fees, and solid waste collection fees, if any, shall be prorated as follows, with respect to Campbell Court, the City shall be responsible for all amounts due prior to the Closing Date and Developer being responsible for all periods thereafter; and with respect to the Future Rail Station Parcels, Developer shall be responsible for all amounts due prior to the Closing Date and the City being responsible for all periods thereafter. The settlement of such prorated expenses shall occur at the Closing or as soon thereafter as reasonably possible. 13.4 Developer's Expenses. Developer shall pay for (i) all costs of Developer's investigations of Campbell Court, including but not limited to Developer's examination of title; (ii) all attorneys' fees and expenses incurred by legal counsel for Developer; (iii) any Grantee's tax and the recording charges required in connection with the Campbell Court Deed; (iv) the title insurance premium for issuance of the Title Policy; and (v) Grantor's Tax, if any, for the transfer of the Future Rail Station Parcels. 13.5 The City's Expenses. The City shall pay for (i) the Grantor's tax, if any, for transfer of Campbell Court; (ii) the Grantee's tax, if any, and the recording charges for the transfer of the Future Rail Station Parcels; and (ii) its legal fees and expenses in connection with this Agreement including the fees and expenses in connection with the City Inspections. 13.6 Possession. 13.6.1 The City shall deliver exclusive possession of Campbell Court to Developer on the Closing Date, subject to the provisions of this Agreement. 13.6.2 Developer shall deliver exclusive possession of the Future Rail Station Parcels to the City on the Closing Date, subject to the provisions of this Agreement. ARTICLE XIV POST - CAMPBELL COURT CLOSING OBLIGATIONS OF DEVELOPER Developer shall satisfy the following conditions following the Closing: 14.1 Developer shall commence Construction of the Development Project within ninety (90) Days following the Closing Date. 14.2 Developer shall complete the Development Project by the Construction Completion Date in substantial conformance with the terms and conditions of the Development Project, and shall follow City streetscape design standards for all work within any public right -of -way. 24 Final draft 12.27.2018 14.3 Developer shall remove, at its sole cost and expense and in compliance with Applicable Law, all underground tank storage systems located at Campbell Court. 14.4 Developer shall satisfy all performance standards set forth in the Special Construction Requirements Performance Grant Agreement, the Public Infrastructure Improvements Performance Grant Agreement, and the EDA Operating Performance Grant Agreement. In the event that Developer fails to perform any of its obligations under this Section 14, the City shall have all of its remedies under this Agreement and the City and the EDA, as applicable, will have all of their respective rights and remedies under the Special Construction Requirements Performance Grant Agreement, the Public Infrastructure Improvements Performance Grant Agreement, and the EDA Operating Performance Grant Agreement. ARTICLE XV CONDEMNATION 15.1 The City has no actual knowledge of any pending or threatened condemnation of Campbell Court. However, if, after the Effective Date and prior to the Closing Date, all or any part of Campbell Court is subject to a bona fide thereat of condemnation or condemned or taken by a Government Entity having the power of eminent domain or a transfer in lieu of condemnation, the City shall promptly notify Developer in writing and within thirty (30) Days after receipt of written notice, either Party may, by written notice to the other party elect to cancel this Agreement prior to the Closing Date, in which event all Parties shall be relieved and released of and from any further duties, obligations, rights, or liabilities hereunder, and this Agreement shall be deemed terminated and of no further force and effect. If no such election is made by either Party to cancel this Agreement, this Agreement shall remain in full force and effect and the purchase contemplated herein, less any interest taken by condemnation or eminent domain, shall be effected with no further adjustments, and on the Closing Date the City shall assign, transfer, and set over to Developer all of the right, title, and interest of the City in and to any awards that have been or that may thereafter be made for any such taking or takings with respect to Campbell Court. 15.2 Developer has no actual knowledge of any pending or threatened condemnation of the Future Rail Station Parcels. However, if, after the Effective Date, and prior to the Closing Date, all or any part of the Future Rail Station Parcels are subject to a bona fide threat of condemnation or condemned or taken by a Government Entity having a power of eminent domain or a transfer in lieu of condemnation, Developer shall promptly notify the City in writing and within thirty (30) Days after receipt of written notice, either Party may, by written notice to the other, elect to cancel this Agreement prior to the Closing Date, in which event all Parties shall be relieved and released of any further duties, obligations, rights, or liabilities hereunder and this Agreement shall be deemed terminated and of no further force or effect. If no such election is made by either Party to cancel this Agreement, this Agreement shall remain in full 25 Final draft 12.27.2018 force and effect and the purchase contemplated herein, less any interest taken in condemnation or eminent domain, shall be effected without further adjustment and on the Closing Date, Developer shall assign, transfer, and set over to the City all of the right, title, and interest of Developer in and to any awards that have been made or may thereafter be made for any such taking or takings with respect to the Future Rail Station Parcels. ARTICLE XVI RISK OF LOSS 16.1 Risk of loss by fire or other casualty for Campbell Court shall be on the City until the Closing is completed, subject only to the obligations of the Parties under this Agreement. If Campbell Court is substantially damaged or destroyed before the Closing by such casualty, then either of the Parties may cancel this Agreement by giving written notice of such cancellation to the other Party and neither Party will have any further obligations to the other (except as otherwise specifically provided in this Agreement). In the event that neither Party cancels this Agreement, Developer shall acquire Campbell Court in accordance with this Agreement and shall receive all proceeds of insurance. 16.2 Risk of loss by fire or other casualty for the Future Rail Station Parcels shall be on Developer until the Closing is completed, subject only to the obligations of the Parties under this Agreement. If the Future Rail Station Parcels are substantially damaged or destroyed before the Closing by such casualty, then the City may elect to (i) acquire the Future Rail Station Parcels and receive all proceeds of insurance received by Developer; or (ii) cancel the Closing, in which event, neither Party will have any further obligations to the other (except as otherwise specifically provided in this Agreement). Developer shall maintain fire and extended coverage insurance on the Future Rail Station Parcels, at the full replacement value, pending consummation of the Closing. ARTICLE XVII BROKER'S COMMISSIONS 17.1 The Parties represent, and warrant that they have not incurred any liability or obligation — whether contingent or otherwise — for a brokerage commission, a finder's fee, or any other similar payment in connection with this Agreement or the transaction contemplated herein. ARTICLE XVIII REPRESENTATIONS AND WARRANTIES 18.1 City's Representations and Warranties. The City represents and warrants, as of the Effective Date and as of the Closing, to Developer, with respect to Campbell Court that: 18.1.1 Title. The City has entered into the City and GRTC Exchange Agreement and, upon performance of the City and GRTC Exchange Agreement, the City will be the legal and beneficial fee simple title holder of Campbell 26 Final draft 12.27.2018 Court, and will have good, marketable title to Campbell Court, free and clear of all liens, encumbrances, claims, covenants, conditions, restrictions, easements, right -of -way, options, judgments, or other matters, subject only to such matters disclosed in the title report and existing plat for Campbell Court. The City will convey Campbell Court to Developer by Campbell Court Deed. 18.1.2 Special Taxes. Campbell Court is subject to the Downtown Service District special assessment set forth in Sections 32 -102 through 32- 102.4, Code of the City of Roanoke (1979), as amended. The City has no knowledge of, nor has it received notice of, any other special assessments or special taxes relating to Campbell Court or any part thereof. 18.1.3 Condemnation. The City has no knowledge of any pending or threatened proceedings for condemnation or the exercise of the right of eminent domain as to any part of Campbell Court or the limiting or denying of any right of access thereto. 18.1.4 Hazardous Materials.The City makes no representations with respect to Campbell Court. 18.1.5 Leases. Campbell Court is subject to the Leases identified in Exhibit G attached hereto and made a part hereof. Such leases shall not be modified, amended, or extended without the prior written approval of Developer. 18.1.6 Access. Access to Campbell Court is provided at Campbell Avenue, S.W., and Salem Avenue, S.W., public streets. 18.1.7 No Conflicts. The City's execution and performance of this Agreement does not (i) breach any other agreement to which the City is a party; or (ii) violate any law, judgment, or order to which the City is subject. 18.1.8 No Notice of Violation. The City has received no notice of any violation of the zoning requirements or other Applicable Law with respect to Campbell Court. 18.1.9 No Litiszation. No litigation, claim, or arbitration is pending or, to the knowledge of the City or GRTC, threatened, with regard to Campbell Court. 18.2 Developer's Representation and Warranties. Developer represents and warrants, as of the Effective Date and as of the Closing, with respect to Future Rail Station Parcels that: 18.2.1 Title. Developer has legal, binding agreements to acquire the Future Rail Station Parcels and, as of the Closing will be the legal and beneficial fee simple titleholder of Future Rail Station Parcels and has good, marketable title to Future Rail Station Parcels, free and clear of all liens, encumbrances, claims, 27 Final draft 12.27.2018 covenants, conditions, restrictions, easements, rights of way, options, judgments, or other matters, created by Developer, subject to all matters disclosed by the Title Report and the plat of the Future Rail Station Parcels. Developer will convey or cause to be conveyed, title to the Future Rail Station Parcels to the City by the Future Rail Station Parcels Deed. 18.2.2 Condemnation. Developer has no knowledge of any pending or threatened proceedings for condemnation or the exercise of the right of eminent domain as to any part of Future Rail Station Parcels or the limiting or denying of any right of access thereto. 18.2.3 Special Taxes. The Future Rail Station Parcels are subject to the Downtown Service District special assessment as set forth in Sections 32 -102 through 32- 102.4, Code of City of Roanoke (1979), as amended. Developer has no knowledge of, nor has it received any notice of, any other special taxes or assessments relating to the Future Rail Station Parcels or any part thereof. 18.2.4 Hazardous Materials. Developer makes no warranties, covenants, or representations of any type regarding hazardous materials of any type with respect to the Future Rail Station Parcels. 18.2.5 Leases. The Future Rail Station Parcels are subject to the Leases identified in Exhibit H attached hereto and made a part hereof. The leases shall not be modified, amended, or extended without the prior written approval of the City. At the sole option of the City, all such leases shall be terminated prior to the Closing. 18.2.6 Access. Ingress to and egress from the Future Rail Station Parcels is available and provided through Jefferson Street and Norfolk Avenue, S.W.. 18.2.7 No Conflicts. Developer's execution and performance of this Agreement does not: (i) breach any other agreement to which Developer is a party; or (ii) violate any law, judgment, or order to which Developer is subject. 18.2.8 No Notice of Violations. Developer has received no notice of any violation of zoning requirements or other ordinances, rules or regulations with respect to Future Transit Station Parcels. 18.2.9 No Litigation. There is no litigation, claim, or arbitration, pending or, to the knowledge of Developer, threatened, with regard to Future Rail Station Parcels. 18.2.10 Due Organization. Developer is a Virginia limited liability company, qualified to conduct business and in good standing in Virginia, and has the right to own its assets and operate it business in the ordinary course. 28 Final draft 12.27.2018 (i) The sole member of Developer is Lucas Thornton. (ii) The sole manager of Developer is Lucas Thornton. (iii) The manager of Developer have been authorized to execute and perform this Agreement, the documents and agreements referred to in this Agreement, and take all actions necessary to effectuate this Agreement on behalf of Developer. ARTICLE XIX DEFAULT IN CLOSING OBLIGATIONS 19.1 Developer Default. In the event that the Closing does not occur solely by reason of default by Developer, and the City has fully performed its obligations and is prepared to consummate the Closing, the City shall retain the GRTC Relocation Expenses Payment and shall have all of its remedies at law or in equity, including the remedy of specific performance. The City may also retain the GRTC Relocation Expenses Payment and terminate this Agreement and neither Party shall have any further rights or obligations hereunder except for Developer's indemnity obligations that will survive the termination of this Agreement. 19.2 City Default. In the event that the Closing does not occur solely by reason of default by the City, and Developer has fully performed its obligations and is prepared to consummate the Closing, Developer shall have all of its remedies at law or in equity, including the remedy of specific performance. Developer may terminate this Agreement, in which event the GRTC Relocation Expenses Payment shall be reimbursed to Developer and upon Developer's receipt of such payments neither Party shall have any further rights or obligations hereunder. ARTICLE XX LIMITATIONS ON ASSIGNMENTS Each Party agrees not to assign or transfer any part of the Party's rights or obligations under this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld, and any such assignment shall not relieve the assigning Party from any of its obligations under this Agreement. ARTICLE XXI NOTICES All notices hereunder must be in writing and shall be deemed validly given, by personal service, if sent by certified mail, return receipt requested, or by a nationally recognized overnight courier, 29 Final draft 12.27.2018 addressed as follows (or any other address the party to be notified may have designated to the sender by like notice): If to City: City of Roanoke, ATTN: City Manager 364 Noel C. Taylor Municipal Building 215 Church Avenue, S.W. Roanoke, Virginia 24011 Fax No. 540- 853 -2333 With a Copy to: City of Roanoke Department of Economic Development ATTN: Economic Development Director 117 Church Avenue, S.W. Roanoke, Virginia 24011 Fax No. 540- 853 -1213 If to Developer: Hist:Re Partners, LLC ATTN: Lucas Thornton 631 Campbell Avenue, SE Suite 1 Roanoke, VA 24013 With a Copy to: Woods Rogers PLC ATTN: R. Neal Keesee, Jr. 10 S. Jefferson Street, Suite 1400 Roanoke, VA 24011 Fax No. 540- 983 -7711 Notice shall be deemed delivered on the date of personal service, five days after deposit in the United States mail, or the day after delivery to a nationally recognized overnight courier. ARTICLE XXII APPROVAL BY CITY COUNCIL This Agreement is subject to approval by the City Council of the City of Roanoke after public hearing. Developer shall be responsible for all advertising costs and other expenses incurred by the City and paid to third party vendors in connection with public hearings. ARTICLE XXIII GENERAL PROVISIONS 23.1 Time. Time is of the essence in the performance of the Parties' respective obligations in this Agreement. 23.2 Successors and Assigns. This Agreement shall inure to the benefit of, and be binding on, the Parties hereto and their respective successors and permitted assigns. 30 Final draft 12.27.2018 23.3 Counterpart Copies. This Agreement may be executed in one or more counterparts, and all such counterparts so executed shall constitute one Agreement binding on all of the Parties hereto, notwithstanding that all of the Parties are not signatories to the same counterpart. 23.4 Construction. The Parties acknowledge that each Party and its counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments or exhibits hereto. 23.5 Severability. If a provision of this Agreement is determined to be unenforceable in any respect, the enforceability of the provision in any other respect and of the remaining provisions of this Agreement shall not be impaired. 23.6 Cooperation. Each Party agrees to cooperate with the other in a reasonable manner to carry out the intent and purpose of this Agreement. 23.7 Authority To Sign. The persons who have executed this Agreement on behalf of the Parties represent and warrant they are duly authorized to execute this Agreement on behalf of their respective entity. 23.8 Non - waiver. Each Party agrees that any Party's waiver or failure to enforce or require performance of any term or condition of this Agreement or any Party's waiver of any particular breach of this Agreement by any other Party extends to that instance only. Such waiver or failure is not and shall not be a waiver of any of the terms or conditions of this Agreement or a waiver of any other breaches of the Agreement by any Party and does not bar the non - defaulting Party from requiring the defaulting Party to comply with all the terms and conditions of this Agreement and does not bar the non - defaulting Party from asserting any and all rights and /or remedies it has or might have against the defaulting Party under this Agreement or by law. 23.9 Faith Based Organizations. Pursuant to Virginia Code Section 2.2.4343 1 be advised that the City and GRTC do not discriminate against faith -based organizations ARTICLE XXIV NONDISCRIMINATION 24.1 Developer will not discriminate against any employee or applicant for employment because of race, religion, color, sex, national origin, age, disability, or any other basis prohibited by state law relating to discrimination in employment, except where there is a bona fide occupational qualification reasonably necessary to normal operation of Developer. Developer agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. 24.2 Developer in all solicitations or advertisements for employees placed by or on behalf of Developer will state that Developer is an equal opportunity employer. 31 Final draft 12.27.2018 24.3 Notices, advertisements and solicitations placed in accordance with federal law, rule or regulation shall be deemed sufficient for the purpose of meeting the requirements of this Section. ARTICLE XXV COMPLIANCE WITH LAWS, REGULATIONS, AND IMMIGRATION Developer agrees to comply with all Applicable Law, including all licensing requirements. Developer further agrees that Developer does not, and shall not, during the performance of this Agreement, knowingly employ an unauthorized alien as defined in the federal Immigration Reform and Control Act of 1986. ARTICLE XXVI COMPLIANCE WITH STATE LAW; FOREIGN AND DOMESTIC BUSINESSES AUTHORIZED TO TRANSACT BUSINESS IN THE COMMONWEALTH OF VIRGINIA Developer shall comply with the provisions of Virginia Code Section 2.2- 4311.2, as amended, which provides that a contractor organized as a stock or nonstock corporation, limited liability company, business trust, or limited partnership or registered as a registered limited liability partnership shall be authorized to transact business in the Commonwealth of Virginia as a domestic or foreign business entity if so required by Title 13.1 or Title 50 or as otherwise required by law. Developer agrees not to allow its existence to lapse or its certificate of authority or registration to transact business in the Commonwealth of Virginia, if so required under Title 13.1 or Title 50, to be revoked or cancelled at any time before Closing, and to promptly cure any such lapse, revocation or cancellation following notice from the City. It shall be a condition of the City's closing obligations under Articles X and XI above that Developer not be in breach of this Article XXVI. ARTICLE XXVII APPROPRIATION OF FUNDS All obligations or funding to be undertaken by the City in connection with this Agreement are subject to the availability of funds and the appropriation of such funds by City Council as may be necessary for such obligations or funding. The City Manager shall include funding for the City's obligations under this Agreement in each annual budget proposed by the City Manager. If any such funding is not approved, withdrawn, or otherwise not made available for this Agreement, with the result that City is unable to perform its obligations under this Agreement, City shall provide Developer with written notice of such unavailability of funding. ARTICLE XXVIII FORCE MAJEURE None of the Parties shall be in default or otherwise liable for any delay in or failure of its performance under this Agreement if such delay or failure arises by any reason beyond its reasonable control, including any act of God, any acts of common enemy, the elements, earthquakes, floods, fires, 32 Final draft 12.27.2018 epidemics, riots, strikes, failures or delay in transportation or communication, shortages of material, approval delays or any act or failure to act by the other party or such other party's employees, agents or contractors; provided, however, that Developer's lack of funds shall not be deemed to be a reason beyond Developer's reasonable control. The Parties shall promptly inform and consult with each other as to any of the above causes which in their judgment may or could be the cause of a delay in the performance of this Agreement. For purposes of this Agreement, any one (1) delay caused by any such occurrence shall not be deemed to last longer than six (6) months and the Party claiming delay caused by any and all such occurrences shall give the other Party written notice of the same within 30 Days after the date such claiming party learns of such occurrence. Notwithstanding anything else set forth above, after a total of twelve (12) months of delays of any type have been claimed by a Party as being subject to force majeure, no further delays or claims of any type shall be claimed by such Party as being subject to force majeure and /or being an excusable delay. ARTICLE XXIX ENTIRE AGREEMENT This Agreement, including, without limitation, its exhibits and other attachments, contains the entire understanding of the Parties regarding its subject matter and supersedes all prior and contemporaneous negotiations and agreements, whether written or oral, between the Parties with respect to its subject matter. Without limitation, and for avoidance of any doubt, the preceding sentence shall not operate to invalidate or supersede any separate agreements between the Parties regarding the Incentives. No amendment to this Agreement shall be valid unless made in writing and signed by the Parties. ARTICLE XXX FORUM SELECTION AND CHOICE OF LAW By virtue of entering into this Agreement, the Parties agree and submit themselves to a court of competent jurisdiction, which shall be the Circuit Court or General District Court for City of Roanoke, Virginia, and further agree that this Agreement is controlled by the laws of the Commonwealth of Virginia, with the exception of Virginia's conflict of law provisions which shall not apply, and that all claims, disputes and other matters shall be decided only by such court according to the laws of the Commonwealth of Virginia as aforesaid. Each Party further waives and agrees not to assert in any such action, suit or proceeding, that the Party is not personally subject to the jurisdiction of such courts, that the action, suit or proceeding, is brought in an inconvenient forum or that the venue of the action, suit or proceeding, is improper. ARTICLE XXXI TAX FREE EXCHANGE The parties acknowledge that Developer may consummate this transaction as part of a like -kind exchange pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended, provided that: (i) Closing shall not be delayed; (ii) City shall not be required to acquire or hold title to any real property for purposes of consummating the exchange except as contemplated herein, and (iii) City 33 Final draft 12.27.2018 shall incur no additional expense on account of Developer entering into such exchange. Notwithstanding the foregoing, the City agrees to cooperate with Developer to the extent reasonably necessary to effectuate any such exchange. SIGNATURE PAGES TO FOLLOW 34 Final draft 12.27.2018 IN WITNESS WHEREOF, the Parties have executed this Agreement by their authorized representatives as of the date of this Agreement. WITNESS: Print name and title COMMONWEALTH OF VIRGINIA CITY OF ROANOKE CITY OF ROANOKE, VIRGINIA By: Robert S. Cowell, Jr. City Manager The foregoing Agreement was acknowledged before me this day of , 2019, by Robert S. Cowell, Jr., the duly authorized City Manager of the City of Roanoke, Virginia, a Virginia Municipal Corporation. My Commission expires: Approved as to form: Notary Public Approved as to execution: SEAL Final draft 12.27.2018 35 WITNESS: Print name and title STATE OF CITY /COUNTY of HIST:RE PARTNERS, LLC am Lucas Thornton, Manager/Member The foregoing Agreement was acknowledged before me this day of , 2019, by Lucas Thornton, the duly authorized manager of Hist:Re Partner LLC, a Virginia limited liability company, on behalf of Hist:Re Partners, LLC. My Commission expires: Notary Public SEAL 36 Final draft 12.27.2018 EXHIBIT A Description of Campbell Court Those parcels of real property, together with improvements thereon, situated at 29 Campbell Avenue SW and 30 Salem Avenue SW, Roanoke, VA 24011, and bearing Official Tax Parcel Nos. 1011105, 1011106, 1011107, 1011108, 1011109, 1011110, 1011116, 1011117, 1011118, 1011119, 1011120, 1011122, and 1011129, containing, in the aggregate, approximately 1.0674 acres. 37 Final draft 12.27.2018 EXHIBIT B Development Project 38 Final draft 12.27.2018 H is`: Re PARTNERS LLC December 12, 2018 Mr. Bob Cowell City Manager City of Roanoke 215 Church Ave. S.W., 24011 Re: Exhibit B - Proposed New Street and Real Estate Improvements at the former Campbell Court Site Dear Bob: Thank you for your consideration of the proposed redevelopment of Campbell Court. As an addendum to the architectural renderings included as Exhibit B, I have included various notes and details relevant to the project below. Specifically, as part of this project, we are proposing: • A mixed -use development totaling more than 110,000 SF of constructed area. • A contextual architectural design with multiple facades ranging from three to five stories designed to complement the small lot vertical development characteristic of Roanoke. • More than 15,000 SF of retail or office use on the ground level to activate the new street. • More than sixty street trees along the newly built street, as well as along Campbell Avenue and Salem Avenue. • All masonry facades along Campbell and Salem Avenues, as well as the new street. • A new street built with pavers and characterized by greater than 15' wide sidewalks, heavy plantings, new street lamps, benches and bike racks - all in line with the city's standards and goals for Downtown. • New buildings with raised parapet walls to conceal all mechanical systems. • Heavily fenestrated buildings with multiple window types featuring brick and pre- cast concrete sills and headers. • Storefronts defined by awnings, canopies, traditional wood detailing, pre -cast masonry elements as well as a variety of glass window and door configurations. • Traditional cornice types, featuring masonry, pre -cast and wood elements. • More than 300 linear feet of new sidewalk, new cross walks, 12 new on street parking spaces as well as more than 26 off street parking spaces. 631 Camphell Ave_ � F., Roanoke VA 24013 (p) 340/343 -3640 (t) 540/344-4-226 WN%'%V.histrepartners.com As we have discussed, the outlined project is expected to cost in excess of $25M and will have a significant transformative impact on the blocks between Jefferson and 1St Street and along Campbell and Salem Avenues as well as Norfolk Avenue. Our development is guided by the principles put forward by the Congress for the New Urbanism and looks to the defining historic, commercial vernacular architecture of Roanoke as an inspiration for the future. We hope that our emphasis on the pedestrians experience will be manifest and that the proposed project will be a complement to the town we know and love. If you have any questions or would like to discuss further, please do not hesitate to contact me. Thank you very much for your leadership and guidance on this project. Sincerely, Lucas L. Thornton Managing Member The Hist:Re Partners, LLC CC Brian Townsend, Assistant City Manager Sherman Stovall, Assistant City Manager The Honorable Sherman P. Lea, Sr., Mayor Street View from Salem Ave looking through new Strut ROANOKE PARTNERS Lc Transit Oriented Development: Mixed Use and Intermodal Facility Roanoke, Virginia Preliminary, May 2U 18 &9 u - M-0 Street View from Campbell Ave looking through new Street�� Transit Oriented Development: Mixed Use and Intermodal Facility ROANOKE PARTNERS LLC ry Roanoke, Prehmma ,Ma 2016 Virginia Y - - , - i a f { 'I � 1 Hi9tey Bird's Eye View looking Southeast 8�7 Transit Oriented Development: Mixed Use and Intermodal Facility ROANOKE PARTNERS LLC ry y Roanoke, Virginia Prelimina �, hta � 2018 Exhibit B ROANOKE CITY, VIRGINIA STREET LEVEL AREA PLAN NOT TO SCALE MvJLjEx NOT FOR CONSTRUCTION 12/11/2018 Roanoke, Virginia 03160083 00 Exhibit B ROANOKE CITY, VIRGINIA �1-1-1) SO0.6 SECOND FLOOR AREA PLAN ['-]APARTMENT ❑ COMMERCIAL SPACE M CORRIDOR ELECTRICAL NOT TO SCALE F)1 I ZFQ NOT FOR CONSTRUCTION 12/11/2018 Roanoke, Virginia 0316008300 I- Exhibit B ROANOKE CITY. VIRGINIA ll(SD0.7 (;> THIRD FLOOR AREA PLAN APARTMENT F� COMMERCIAL SPACE CORRIDOR ELECTRICAL M ELEVATOR F-] MECHANICAL IS STAIR NOT TO SCALE 547TIQ NOT FOR CONSTRUCTION 12/11/2018 Roanoke, Virginia 03160083.00 Exhibit B ROANOKE CITY. VIRGINIA SD0.7 4 FOURTH FLOOR AREA PLAN APARTMENT CORRIDOR ELECTRICAL ELEVATOR NOT TO SCALE NOT FOR CONSTRUCTION 12/11/2018 Roanoke, Virginia 03160083.00 Bt'�laZ�� Exhibit B ROANOKE CITY, VIRGINIA SD0.7 SD0.6 FIFTH FLOOR AREA PLAN NOT TO SCALE NOT FOR CONSTRUCTION 12/11/2018 Roanoke, Virginia 0316008300 ,.. Exhibit B ROANOKE CITY, VIRGINIA EXTERIOR ELEVATION FIFTH FLOOR +58' - 0' FOURTH FLOOR ,44'- 0' THIRDFLOOR +30'- 0" SECOND FLOOR '16-0" STREET LEVEL `l +0 -0• `* NOT TO SCALE NOT FOR CONSTRUCTION 12/11/2018 Roanoke, Virginia 03160083.00 ULW/M Exhibit B EXTERIOR ELEVATION NOT TO SCALE NOT FOR CONSTRUCTION FIFTH FLOOR •68' -0' ti FOURTH FLOOR -44'- 0" THIRD FLOOR h +30' - 0' 7 SECOND FLOOR STREET LEVEL ROANOKE CITY, VIRGINIA 12/11/2018 Roanoke, Virginia 03160083.00 LJL LJ ItIP KEY' PROPOSED NEW BUILDING ffm EXISTING AMTRAK PLATFORM /CANOPY SITE INFORMATION (PARCEL #1): TNN ,o TM /:,D GREA ]O BALENRAV NSIT COMPANY N°IE 5 IT COMPANY 25 CAMIBELE OwMDwN PARCEL sze D.os Ac. PARCEL saE. o.os Ac. TMN ro rM110 GREATER�ROA TRANSIT COMPANY EATER ROAN IT COMPANY ZONI AMPBELL AVE. SR PARCEL SIZE:O1 119 AC. PARCEL SIZE. I'S AC. T10 101 TMN° EATER Ro SIT COMPANY OKE T-Iff COMPANY 11 CAMPBELL ANO 5 ZONI O . ° ARCEL PARCEL SIZE 0,10 AC. P SIZE. 005 AC. TNN�.R „oe rMY:,o zD NORE TRANSIT COMPANY UuvBEA AvE SR IT COMPANY PARCEL SIZE ITos AC PARCEL I zT AO TMN�r R, A R 'NN�:,D, RANSIT COMPANY TER RO OKE TRANSIT COMPANY EM Av PA IEL SIZE 1 15 SO 1110EL SIZE 0 09 Al TN:,D TMN:,o GRXAEl SIT COMPANY I TO PARCEL SIZE °O. DS AC. PARCEL SIZE. 0.,] AC. uN 10 ” 'AllBEl 11E 11 P RCEL SIZE I- AC SITE INFORMATION (FUTURE ROANOKE AMTRAK STATION): TNN:,a TMN:,o,os wR oe , WEEE RSON Si PARCEL SIZE 0.167 AC. PARCEL SIZE N SCALE. 1" = 30' CONCEPT PLAN NOTE: C.. TONS ON ACREAEEPI -IN TO ERI ALL EXISTN° Li(1LL/Li11 R A890CMT tin �vww.balz � cc� �P Q� lft ITN ERS LLC Z g a w r- a F— 2 C) £ O �a TO =X -1 EXHIBIT C GRTC Relocation Parcels and GRTC Relocation Parcels Owners GRTC Relocation Parcels Owners GRTC Relocation Parcels Brandon Woody and Booker LLC Certain parcels of real property, together with improvements thereon, situated at 0 Salem Avenue, S.W. and 325 Salem Avenue, S. W., Roanoke, Virginia, and bearing Official Tax Map Nos. 1010113 and 1010115, respectively The Brandon Company, Incorporated. A certain parcel of real property, together with improvements thereon, situated at 0 Salem Avenue, S.W., Roanoke, Virginia, and bearing Official Tax Map No. 1010121 The Brandon Company., Incorporated A certain parcel of real property, together with improvements thereon, situated at 0 Salem Avenue, S.W., Roanoke, Virginia, and bearing Official Tax Map No. 1010122 39 Final draft 12.27.2018 EXHIBIT D Description of Future Rail Station Parcels Two (2) parcels of real property, together with improvement thereon, owned by T -W Properties, a Virginia partnership, situated at (i) 1 Jefferson Street, S.W. Roanoke Virginia, bearing Official Tax Map No. 1010507, and containing 0.1670 acres, more or less, and (ii) 7 Jefferson Street, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010508, containing 0.1158 acres, more or less. 40 Final draft 12.27.2018 EXHIBIT E Public Infrastructure Improvements 41 Final draft 12.27.2018 PARTNERS LLC Project Title: Campbell Court - Public Infrastructure Improvement Projected Schedule of Values Estimate Date: Wednesday, December 12, 2018 Project SF: 1.75 Acres of City Improvements Months: Potential Bids: 3 Base Bid: Bidding. KEVINz Architectural Design = $ 4S,000 Civil Engineering = $ 45,000 Landscape Architectural Design = $ 30,000 Special Inspections = $ 30,000 General Conditions @ 6% = $ 145,000 Earthwork (Site) 3,500 CY @ $ 26 = $ 90,000 LDPaving - StampingSalem 3,000 SY @ $ 30 = $ 90,000 HD Paving - New Street - SY @ $ 40 = $ - Alternate Paving Section 0 SY @ $ 50 = $ - Mill and Overlay - Campbell 500 SY @ $ 50.00 = $ 25,000 Traffic and Regulatory Signage (Site) $ 35,000 Gravel & Aggregates 1667 Cy @ $ 30 $ 50,000 Concrete Underlayment 1300 SY @ $ 192 $ 250,000 Curb (CG -2) - Salem Pedestrian Refuge 200 LF @ $ 75 = $ 15,000 Curb Cut Entrances 4 ea. @ $ 15,000 = $ 60,000 Curb (CG-6) 600 LF @ $ 100 = $ 60,000 Stairs 0 SF @ $ 75 = $ - Sidewalks 5,000 SF @ $ 27 = $ 135,000 Street Pavers 7,700 SF @ $ 30 $ 230,000 Hardscaping 850 SF @ $ 20 = $ 17,000 Equipment Pads @ = $ - Water Utilities est. 450 LF @ $ 285 = $ 128,250 Electrical Utilities - New Service & Vault est. 185 $ 165,000 Sanitary Sewerage est. 550 LF @ $ 225 = $ 123,750 Storm Drainage Utilities - Inc. structures est. 350 LF @ $ 300 = $ 105,000 Surveying 1 $ 35,000 Landscaping 1.75 acres @ $ 95,000 Street Lamps 12 ea. @ $ 15,000 $ 180,000 Benches 4 ea. @ $ 5,000 $ 20,000 Bike Racks 2 ea. @ $ 2,500 $ 5,000 GC Profit & Overhead @ 8% 1 $ 164,720 TOTALS: $ 2,373,720 SUBCONTRACTOR TOTAL: $ 2,373,720 Additional Requirements: TRADE TOTALI $ 2,373,720 EXHIBIT F Special Construction Requirements 42 Final draft 12.27.2018 15: PARTNERS LLC frtiitit _ Project Title: Campbell Court - Special Construction Requirements Projected Schedule of Values Estimate Date: Wednesday, December 12, 2018 Project SF: 34,475 Months: 4 Potential Bids: <; Base Bid: 01 A Structural Engineering = $ 45,000 Civil Engineering = $ 15,000 Special Inspections = $ 65,000 General Conditions @ 6.0% _ $ 130,000 Earth Work $ 225,000 Gravel & Aggregates $ 85,000 Storm Drainage Utilities - inc. structures est. 200 LF @ 300 $ 60,000 Cast -In -Place Concrete Underpinning 30 CY @ $ 2,500 = $ 75,000 Footings 400 CY @ $ 450 = $ 180,000 Slab on Grade 34,475 SF @ $ 8.50 = $ 293,038 Columns CY @ _ $ - Walls CY @ _ $ - Miscellaneous 20 CY @ $ 450 = $ 9,000 Reinforcing Labor 10 Tons @ $350 = $ 4,500 Wire Labor 34,475 SF @ $ 1.25 = $ 43,094 Subcontractor Adjustment @ _ Upgraded Micro Piles @ _ $ 675,000 Upgraded Caissons @ _ $ 225,000 Reinforcing @ _ Reinforcing Material 75 Tons @ $ 1,000 = $ 75,000 Wire Material 34,475 SF @ $ 1.25 = $ 43,094 Tax 236,188 @ 5.30% _ $ 12,518 Miscellaneous Items @ _ Flowable fill below all footings 500 CY @ $180 = $ 90,000 Elevated Equipment Pads & Transformers 2 ea. @ $30,000 = $ 60,000 GC Profit & Overhead @ 8% = $ 182,819 TOTALS: $ 2,593,062 SUBCONTRACTOR TOTAL: $ 2,593,062 Additional Requirements: Winter pouring TRADE TOTAL: $ 2,593,062 EXHIBIT G Leases at Campbell Court 43 Final draft 12.27.2018 EXHIBIT G Leases at Campbell Court Tenant Location Term 727 Mart, Inc. 2,200 square feet located on Expires February 28, 2019 (3 Optional one year the ground floor at 31 -B renewals: 3/1/2019 to 02/29/2020, 3/1/2020 to Campbell Avenue S.W. 02/29/2021, 3/1/2021 to 02/28/2022) Greyhound 3,000 square feet located on Expires June 30, 2019 (1 additional one year Lines, Inc. the ground floor at 26 Salem renewal July 1, 2019 -June 30, 2020) Avenue S.W. Pyxis, Inc. 787 square feet located on Expires June 30, 2019 (1 additional one year the third floor at 31 -J renewal July 1, 2019 -June 30, 2020) Campbell Avenue S.W. Agreements for monthly parking permits, which are terminable. EXHIBIT H Leases at Future Rail Station Parcels To be determined. 44 Final draft 12.27.2018 STEPHANIE M. MOON REYNOLDS, MMC City Clerk CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S. W., Room 456 Roanoke, Virginia 24011 -1536 Telephone: (540) 853 -2541 Fax: (540) 853 -1145 E -mail: clerkaroanokeva.gov January 8, 2019 CECELIA F. MCCOY Deputy City Clerk CECELIA T. WEBB, CMC Assistant Deputy City Clerk The Honorable Ralph C. Northam, Governor, Commonwealth of Virginia The Honorable M. Kirkland Cox, Speaker of the House of Delegates of Virginia The Honorable Eileen Filler -Corn, Minority Leader of the House of Delegates The Honorable Terry L. Austin, Delegate, Virginia House of Delegates The Honorable Christopher T. Head, Delegate, Virginia House of Delegates The Honorable Joseph P. McNamara, Virginia House of Delegates The Honorable Samuel Rasoul, Delegate, Virginia House of Delegates The Honorable Justin E. Fairfax, President of the Senate of Virginia The Honorable Thomas K. Norment, Jr., Majority Leader of the Senate of Virginia The Honorable Richard L. Saslaw, Minority Leader of the Senate of Virginia The Honorable John Edwards, Virginia State Senate, District 21 The Honorable David R. Suetterlein, Virginia State Senate, District 19 The Honorable William M. Stanley, Jr., Virginia State Senate, District 20 Dear Governor Northam and Members of the General Assembly: I am enclosing an attested copy of Resolution No. 41349 - 010719 urging the General Assembly of the Commonwealth of Virginia to ratify the Equal Rights Amendment to the Constitution of the United States by adopting House Joint Resolution 579. The abovereferenced measure was adopted by the Council of the City of Roanoke at a regular meeting held on Monday, January 7, 2019. Sincerely, 1�) Od`n Stephanie M. Moon eynolds, MMC City Clerk Enclosure IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 7th day of January, 2019. No. 41349 - 010719. A RESOLUTION urging the General Assembly of the Commonwealth of Virginia to ratify the Equal Rights Amendment to the Constitution of the United States by adopting House Joint Resolution 579. WHEREAS, constitutional equality of men and women is and should be a fundamental principle established and maintained throughout the United States; WHEREAS, on March 22, 1972, the United States Congress proposed the Equal Rights Amendment to the Constitution of the United States to provide that "equality of rights under the law shall not be denied or abridged by the United States or by any State on account of sex;" WHEREAS, pursuant to Article V of the Constitution of the United States, all amendments proposed by the United States Congress must be ratified by the legislatures of three- fourths of the States to take effect as amendments to the Constitution; WHEREAS, legislatures in thirty -seven States have ratified the Equal Rights Amendment, including, most recently, Nevada in 2017 and Illinois in 2018; and WHEREAS, House Joint Resolution 579, introduced in the 2019 Session of the General Assembly of the Commonwealth of Virginia, seeks to have the Commonwealth of Virginia become the thirty- eighth State to ratify the Equal Rights Amendment. that: NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke, Virginia I . The City Council urges the General Assembly of the Commonwealth of Virginia to ratify the Equal Rights Amendment to the Constitution of the United States by adopting House Joint Resolution 579. 2. The City Council directs the City Clerk to provided attested copies of this Resolution to the Honorable Ralph C. Northam, Governor of the Commonwealth of Virginia, the Honorable M. Kirkland Cox, Speaker of the House of Delegates, the Honorable Eileen Filler -Corn, Minority Leader of the House of Delegates, the Honorable Terry L. Austin, the Honorable Christopher T. Head, the Honorable Joseph P. McNamara, the Honorable Sam Rasoul, the Honorable Justin E. Fairfax, President of the Senate of Virginia, Thomas K. Norment, Jr., Majority Leader of the Senate of Virginia, Richard L. Saslaw, Minority Leader of the Senate of Virginia, the Honorable John S. Edwards, the Honorable David R. Suetterlein, and the Honorable William M. Stanley, Jr. Attest: City Clerk. tl^ Daniel J. Callaghan City Attorney CITY OF ROANOKE OFFICE OF THE CITY ATTORNEY 464 MUNICIPAL BUILDING 215 CHURCH AVENUE, SW ROANOKE, VIRGINIA 24011 -1595 The Honorable Sherman P. Lea, Sr. and Members of Council TELEPHONE 540 - 853 -2431 FAX 540- 853 -1221 EMAIL: cityatty @roanokeva.gov January 7, 2019 Timothy R. Spencer David L. Collins Heather P. Ferguson Laura M. Carini Douglas P. Barber, Jr. Assistant City Attorneys Re: Resolution urging the General Assembly of the Commonwealth of Virginia to ratify the Equal Rights Amendment to the Constitution of the United States by adopting House Joint Resolution 579 Mayor Lea and Members of Council: Background On March 22, 1972, the United States Congress proposed adoption of the Equal Rights Amendment (ERA) to the Constitution of the United States. The ERA provides that "equality of rights under the law shall not be denied or abridged by the United States or by any State on account of sex." Pursuant to Article V of the Constitution of the United States, three - fourths of State legislatures must ratify the adoption of a proposed amendment to add the proposed amendment to the Constitution of the United States. Congress included a seven (7) year deadline for ratification by the States within the preamble of the proposed ERA. Subsequently, Congress extended the deadline to 1982. As of 2018, thirty -seven (37) States have ratified the proposed ERA, although five (5) of those States (Nebraska, Tennessee, Idaho, Kentucky, and South Dakota) subsequently rescinded their ratifications. Assuming that Congress may retroactively extend the expired deadline and States cannot rescind their ratifications, the next State to ratify the proposed ERA will amend the Constitution of the United States to include the ERA. House Joint Resolution 579, a measure ratifying the ERA, is pending in the 2019 session of the General Assembly of the Commonwealth of Virginia. Consideration The 2019 Legislative Program adopted by the Roanoke City Council includes endorsement of the 2019 Legislative Program adopted by the Virginia Municipal League (VML). The VML Program endorses ratification of the proposed ERA. Equality and diversity are fundamental principles of the City of Roanoke. Adopting a measure urging the General Assembly to ratify the proposed ERA is consistent with these principles. Recommendation Adopt the attached resolution urging the General Assembly of the Commonwealth of Virginia to ratify the Equal Rights Amendment to the Constitution of the United States by adopting House Joint Resolution 579, and directing the City Clerk to provide attested copies of the resolution to the Governor, House of Delegates and Senate of Virginia leadership, and members of the City's extended delegation. ectfully submitted, Daniel J. laghan Roanoke City Attorney DJC /lsc c: Council Appointed Officers Amelia C. Merchant, Director of Finance Sherman M. Stovall, Assistant City Manager for Operations R. Brian Townsend, Assistant City Manager for Community Development Robert Catron, Legislative Liaison U"5 IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 7th day of January, 2019. No. 41350 - 010719. A RESOLUTION acknowledging the opioid addiction epidemic and its cost to the City of Roanoke and authorizing the City Attorney to engage outside legal counsel to take such action as he deems appropriate to recover the costs and damages borne by the City as a result of this opioid addiction epidemic. WHEREAS, the City of Roanoke is battling an opioid addiction epidemic that impacts its citizens across demographic lines, harming every economic class, race, gender and age group; WHEREAS, Virginia's State Health Commissioner has declared the J Commonwealth's opioid addiction problem a public health emergency; and WHEREAS, the City of Roanoke has allocated and will continue to be required to allocate substantial taxpayer dollars, resources, staff energy and time to address the damages caused by the opioid epidemic to the City. THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke as follows: 1. In order to abate the public nuisance described above, and to recover the monetary and non - monetary damages that the City of Roanoke has incurred as a result of the opioid epidemic described above, the City of Roanoke authorizes the City Attorney execute such documents necessary to engage outside legal counsel on behalf of the City, including but not limited to, a retainer agreement in such form as approved by the City Attorney to pursue litigation against the parties that such outside legal counsel and the City Attorney determine to be responsible for causing and perpetuating the opioid epidemic. 2. The City Attorney shall take such action, as he deems appropriate to manage such litigation with outside legal counsel to ensure that the best interest of the City and its citizens are served. ATTEST: le- C i ty Clerk. R- Authorizing City to join opioid litigation 1.2.19 2 CITY OF ROANOKE OFFICE OF THE CITY ATTORNEY 464 MUNICIPAL BUILDING 215 CHURCH AVENUE, SW ROANOKE, VIRGINIA 24011 -1595 Daniel J. Callaghan TELEPHONE 540. 853 -2431 City Attorney FAX 540 - 853 -1221 EMAIL: cityatty @roanokeva.gov January 7, 2019 The Honorable Sherman P. Lea, Sr., Mayor and Members of City Council Roanoke, Virginia Timothy R. Spencer David L. Collins Heather P. Ferguson Laura M. Carini Douglas P. Barber, Jr. Assistant City Attorneys Subject: A Resolution acknowledging the opioid epidemic experienced by the City of Roanoke and authorizing the City Attorney to engage outside legal counsel to take such action as the City Attorney deems appropriate to recover the costs and damages borne by the City as a result of the opioid addiction epidemic. Dear Mayor Lea and Members of Council: Background: Virginia's State Health Commissioner has declared the Commonwealth's opioid addiction problem to be a public health emergency. The City of Roanoke has been battling the opioid addiction epidemic at great cost to the City and its citizens. The City has allocated and will continue to allocate significant financial and staff resources to combat the damages caused by the opioid epidemic to the City. Considerations: The City has been approached by a number of outside legal firms offering their services to help the City recover the monetary and non - monetary damages that the City has suffered because of the opioid addiction epidemic. The City Attorney's Office has determined that it is in the best interest of the City to engage the legal services of one of these outside legal firms to pursue litigation against the parties that such outside legal counsel and the City Attorney determine to be responsible for causing and perpetuating the opioid epidemic. Recommended Action: Adopt the attached resolution authorizing the City Attorney to engage outside legal counsel to take such action as he deems appropriate to recover the costs and damages borne by the City as a result of the opioid addiction epidemic. ncerely, Daniel J. Calla n City Attorn DJC /rry c: Council Appointed Officers R. Brian Townsend, Assistant City Manager for Community Development Amelia C. Merchant, Director of Finance Glenda Edwards Goh, Executive Director, RRHA Maryellen Goodlatte, Esq., Counsel to Hotel Roanoke Conference Center Commission Mark Loftis, Esq., Counsel to RRHA Stephanie Moon Reynolds, City Clerk IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 7th day of January, 12019. No. 41351 - 0110719. A RESOLUTION authorizing waiver of notice requirements for a special meeting of the stockholder of Greater Roanoke Transit Company (GRTC) on behalf of the City as the sole stockholder of GRTC, and authorizing the Mayor or City Manager to execute and deliver a waiver of notice to GRTC. WHEREAS, the City is the sole stockholder of GRTC and, by notice dated January 7, 2019, the Secretary of GRTC called a special meeting of the stockholder for Tuesday, January 22, 2019, at 6:30 p.m. for the purpose of discussing, considering, and acting upon any recommendations of the Board of Directors of GRTC that it may make following the meeting of the Board of Directors of GRTC on January 22, 2019, at 1:00 p.m., regarding the acquisition of real property for a public purpose and the disposition of real property owned by GRTC, as more particularly described in the City Attorney Letter to Council dated January 7, 2019; WHEREAS, pursuant to the By -Laws of GRTC, notice of a special meeting of the stockholder must be provided to the City at least 25 days prior to such special meeting; WHEREAS, pursuant to the By -Laws of GRTC, the City may waive the notice requirements; and WHEREAS, it is in the best interest of the City to waive the notice requirements, as more particularly described in the City Attorney's Letter dated January 7, 2019. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke that: 1. The City, as the sole stockholder of GRTC, waives the notice requirements for the special meeting of stockholder set for Tuesday, January 22, 2019, at 6:30p.m., pursuant to Section 4(a), Article II of the By -Laws of GRTC. K: \GRTC \Stockholder Meetings \Waiver of GRTC Stockholder Meeting 1.7.19.doc 1/8/19 2. City Council authorizes the Mayor or the City Manager to execute a waiver of notice on behalf of the City and deliver the waiver of notice to GRTC. The form of the waiver of notice shall be approved by the City Attorney. I ATTEST: City Clerk. K: \GRTC \Stockholder Meetings \Waiver of GRTC Stockholder Meeting 1.7.19.doc 1/4/19 CITY OF ROANOKE OFFICE OF THE CITY ATTORNEY 464 MUNICIPAL BUILDING 215 CHURCH AVENUE, SW ROANOKE, VIRGINIA 24011 -1595 Daniel J. Callaghan TELEPHONE 540 -853 -2431 City Attorney FAX 540- 853 -1221 January 7, 2019 The Honorable Sherman M. Lea, Mayor and Members of City Council Roanoke, Virginia Re: Waiver of Notice of Special Meeting of Stockholder of Greater Roanoke Transit Company Dear Mayor Lea and Members of Council: Timothy R. Spencer David L. Collins Heather P. Ferguson Laura M. Carini Douglas L. Barber Assistant City Attorneys Stephanie M. Moon Reynolds, as Secretary of Greater Roanoke Transit Company, (GRTC), called a special meeting of the Stockholder of GRTC pursuant to Section 2, Article II of the By -Laws of GRTC for Tuesday, January 22, 2019, at 6:30 p.m., or as soon thereafter as the matter may be reached. The purpose of the meeting is to discuss, consider, and act upon any recommendations of the Board of Directors of GRTC with respect to the acquisition of four (4) parcels of real property within the City of Roanoke, Virginia (i) owned by Brandon, Woody and Booker, LLC and described as (a) 0 Salem Avenue, S.W., bearing Official Tax Map No. 1010113, and (b) 325 Salem Avenue, S.W., bearing Official Tax Map No. 1010115; and (ii) owned by The Brandon Company Incorporated and described as (a) 0 Salem Avenue, S.W., bearing Official Tax Map No. 1010121, and (b) 0 Salem Avenue, S.W., bearing Official Tax Map No. 1010122; and the disposition of real estate owned by GRTC, located in the area of Salem Avenue, S.W., and Campbell Avenue, S.W., in Roanoke, Virginia, and generally known as Campbell Court, and bearing Official Tax Map Nos. 1011105, 1011106, 1011107, 1011108, 1011109, 1011110, 1011116, 1011117, 1011118, 1011119, 1011120, 1011122, and 1011129. The Board of Directors of GRTC is considering these matters at its regularly scheduled meeting to be held on January 22, 2019, at 1:00 p.m. and may make recommendations to the Stockholder. Pursuant to Section 3, Article II of the By -Laws, notice of the meeting must be provided to the Stockholder at least 25 days prior to the special meeting. Pursuant to Section 4 (a), Article II of the By -Laws, the Stockholder may waive notice of the meeting. The City is the sole Stockholder of GRTC. City Council may authorize the Mayor or the City Manager to waive the notice requirement, execute the waiver, and deliver the waiver to GRTC. Attached to this letter is a resolution that will authorize these actions. Based on the foregoing, I recommend that Council waive the notice requirement and authorize the Mayor or the City Manager to execute and deliver the waiver. Please let me know if you have questions. incere-ly, Daniel J. Calla an Roanoke City Attorney c: Robert S. Cowell, Jr., City Manager Sherman M. Stovall, Assistant City Manager for Operations R. Brian Townsend, Assistant City Manager for Community Development Stephanie M. Moon Reynolds, City Clerk Troy A. Harmon, Municipal Auditor Amelia Merchant, Director of Finance Laura M. Carini, Assistant City Attorney WAIVER OF NOTICE OF SPECIAL MEETING OF STOCKHOLDER OF GREATER ROANOKE TRANSIT COMPANY The City of Roanoke, Virginia, a municipal corporation organized and existing under the laws of the Commonwealth of Virginia, being the sole stockholder of Greater Roanoke Transit Authority, a Virginia corporation (GRTC), hereby waives the notice requirements to stockholders of a special meeting of stockholders of GRTC, as set forth in Section 3, Article II of the By -Laws of GRTC, with respect to the call of a Special Meeting of Stockholder for January 22, 2019, at 6:30 p.m., or as soon thereafter as the matter may be reached, made by Stephanie M. Moon Reynolds, Secretary of GRTC, dated January 7, 2019. This waiver of notice is made pursuant to Section 4(a), Article II of the By -Laws of GRTC, as authorized by Roanoke City Council on for January 7, 2019. Dated this 7th day of January, 2019 CITY OF P OANOKE, VIRGINLk By: S erman P. Lea, Sr. Mayor Ap ved Va� Daniel J. Wlaghan, Roanoke ity Attorney GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS January 7, 2019 The Honorable Sherman P. Lea, Sr., and Members of the Roanoke City Council Roanoke, Virginia Re: Special Meeting of Stockholder Dear Mayor Lea and Members of City Council: Pursuant to Section 2, Article II, By -Laws of Greater Roanoke Transit Company, this is to advise you that I am calling a Special Meeting of the Stockholder of the Greater Roanoke Transit Company to be held on Monday, January 22, 2019, at 6:30 p.m., or as soon thereafter as the matter may be heard, in the Council Chamber, Room 450, 4th Floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., Roanoke, Virginia. The purpose of the meeting will be to discuss, consider, and act upon any recommendations from the Board of Directors of GRTC regarding the acquisition of four (4) parcels of real property within the City of Roanoke, Virginia (i) owned by Brandon, Woody and Booker, LLC and described as (a) 0 Salem Avenue, S.W., bearing Official Tax Map No. 1010113, and (b) 325 Salem Avenue, S.W., bearing Official Tax Map No. 1010115; and (ii) owned by The Brandon Company Incorporated and described as (a) 0 Salem Avenue, S.W., bearing Official Tax Map No. 1010121, and (b) 0 Salem Avenue, S.W., bearing Official Tax Map No. 1010122; and the disposition of real property owned by Greater Roanoke Transit Company, generally known as Campbell Court, located at Salem Avenue and Campbell Avenue, S. W, in Roanoke, Virginia, and bearing Official Tax Map Nos. 1011105, 1011106, 1011107, 1011108, 1011109, 1011110, 1011116, 1011117, 1011118, 1011119, 1011120, 1011122, and 1011129. The Board of Directors of GRTC is considering these matters at its regularly scheduled meeting to be held on January 22, 2019, at 1:00 p.m. and may make recommendations to the Stockholder. Sincerely, vim, Stephanie M. Moon Reynolds � Secretary PC: Sherman M. Stovall, Assistant Vice President of Operations, GRTC Troy A. Harmon, Municipal Auditor Daniel J. Callaghan, General Counsel, GRTC Amelia Merchant, Treasurer, GRTC Laura Carini, Assistant General Counsel, GRTC Kevin Price, General Manager, Valley Metro Ronnie Parker, Assistant General Manager, Valley Metro IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 7th day of January, 2019. No. 41352 - 010719. AN ORDINANCE to appropriate funding from Commonwealth grant for various educational programs, amending and reordaining certain sections of the 2018 -2019 School Grant Fund Appropriations, and dispensing with the second reading by title of this ordinance. BE IT ORDAINED by the Council of the City of Roanoke that the following sections of the 2018 -2019 School Grant Fund Appropriations be, and the same are hereby, amended and reordained to read and provide as follows: Appropriations Bonuses 302 - 110 - 0000 - 0000 - 327N - 61100 - 41660 - 3 - 01 $ 12,076 Social Security 302 - 110 - 0000 - 0000 - 327N - 61100 - 42201 - 3 - 01 924 Revenues State Grant Receipts 302 - 110 - 0000 - 0000 - 327N - 00000 - 32400 - 0 - 00 $ 13,000 Pursuant to the provisions of Section 12 of the City Charter, the second reading of this ordinance by title is hereby dispensed with. TTE T: t'n . ES. I tad 61 -33Q 81. ROANOKE CITY PUBLIC SCHOOLS Strong students. strong Schools. strong City. On behalf of the School Board, thank you for your consideration. Sincerely, Cindy H. Poulton, Clerk pc: Dan Callaghan Rita D. Bishop Bob Cowell Kathleen Jackson Amelia Merchant Holh Salyers (w /details) Annette Lewis www.rcps.info p: 540.853.2381 f: 540.853.2951 P.O. Box 13145 Roanoke VA 24031 School Board January 7, 2019 Annette Lewis Chairman Mark K. Cathey The Honorable Sherman P. Lea, Sr., Mayor Vice Chairman and Members of Roanoke City Council Roanoke, VA 24011 William B. Hopkins, Jr. Elizabeth C. S. Jamison Dear Mayor Lea and Members of Council: Laura D. Rottenborn Lutheria H. Smith As a result of official School Board action on Tuesday, December 18, Dick Willis 2018, the Board respectfully requests that City Council approve the Dr. Rita D. Bishop following appropriation request: Superintendent New Appropriation Award Cindy H. Poulton Clerk of the Board STEM Teacher Recruitment and Retention Awards 2018 -19 $13,000.00 On behalf of the School Board, thank you for your consideration. Sincerely, Cindy H. Poulton, Clerk pc: Dan Callaghan Rita D. Bishop Bob Cowell Kathleen Jackson Amelia Merchant Holh Salyers (w /details) Annette Lewis www.rcps.info p: 540.853.2381 f: 540.853.2951 P.O. Box 13145 Roanoke VA 24031 w1 ys • • REPORT To: Honorable Mayor and Members of City Council Meeting: January 7, 2019 Subject: School Board Appropriation Request Background: As the result of official Roanoke City School Board action at its December 11, 2018 meeting, the Board respectfully requested that City Council appropriate funding as outlined in this report. The 2018 -19 STEM Teacher Recruitment and Retention grant award of S 13,000 provides funds to classroom teachers in Virginia public schools who met specified criteria in science, technology, engineering, and math content areas and have been reassigned from a fully accredited school to a hard -to -staff school, or a school that is not fully accredited, or teachers who are new to the profession with three or less years of experience. This award will be reimbursed by State funds and will end May 3, 2019. Recommended Action: We recommend that Council concur with this report of the School Board and adopt the attached budget to Av establish revenue estimates and to appropriate funding as outlined. Robert S. Cowell, Jr. City Manager Distribution: Council Appointed Officers Rita D. Bishop, Superintendent, RCPS Dan Lyons, Assistant Superintendent for Operations, RCPS Kathleen M. Jackson, Chief Financial Officer, RCPS Amelia C. Merchant, Director of Finance STEPHANIE M. MOON REYNOLDS, MMC City Clerk CITY OF ROANOKE OFFICE OF 'FHE CITY CLERK 215 Church Avenue, S. W., Room 456 Roanoke, Virginia 24071 -1536 Telephone: (540) 853 -2541 Fax: (540) 853 -1145 E -mail: clerk(a,ronuokeva.gov January 8, 2019 Stephen Ambruzs 1422 Morningside Street, S.E. Roanoke, Virginia 24014 Dear Mr. Ambruzs: CECELIA F. MCCOY Deputy City Clerk CECELIA T. WEBB, CMC Assistant Deputy City Clerk At a regular meeting of the Council of the City of Roanoke which was held on Monday, January 7, 2019, you were appointed as a City representative of the Roanoke Valley Greenway Commission to fill the unexpired term of office of Margaret Douglas Butler ending June 30, 2019. Enclosed you will find a Certificate of your apponfmanf and an Oath or Affirmation of Office which must b the third floor ofetheeRoanokeCC'tulCourts of the City of Roanoke, locat ed on Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were appointed. Pursuant to Section 2.2-3115, Code of Virginia (1950) as amended, I am required to furnish members of the Roanoke Valley Greenway Commission with a Financial Disclosure form Prior to assumin the duties as a member of the Commission. State provisions further Pr ovide that all disclosures must be filed and maintained as a matter of public record for a period of five years in the Office of the Clerk of the -governing body. Please com lete and return the enclosed form to the undersi ned Prior to assuming our duties as a member of the Commission. Furthermore, Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Stephen Ambruzs January 8, 2019 Page 2 On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as a City representative of the Roanoke Valley Greenway Commission, Sincerely, *4v, 4A Step ante Moon Re nods MC City Clerk Enclosures c: Liz Belcher, Roanoke Greenway Coordinator, 1206 Kessler Mill Road, Salem, Virginia 24153 COMMONWEALTH OF VIRGINIA ) } CITY OF ROANOKE ) To -wit: I, Stephanie M. Moon Reynolds, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at a regular meeting of Council which was held on the seventh day of January 2019, STEPHEN AMBRUZS, was appointed as a City representative of the Roanoke Valley Greenway Commission to fill the unexpired term of office of Margaret Douglas Butler ending June 30, 2019. Given under my hand and the Seal of the City of Roanoke this eighth day of January 2019. City Clerk ���J 1 STEPHANIE M. MOON REYNOLDS, MMC City Clerk CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S. W., Room 456 Roanoke, Virginia 24011 -1536 Telephone: (540) 853 -2541 Fax: (540) 853 -1145 E -mail: clerk @roanokeva.gov January 8, 2019 Va'Shay McCalla 812 Maidson Avenue, N. W. Roanoke, Virginia 24016 Dear Ms. McCalla: CECELIA F. MCCOY Deputy City Clerk CECELIA T. WEBB, CMC Assistant Deputy City Clerk At a regular meeting of the Council of the City of Roanoke which was held on Monday, January 7, 2019, you were appointed to replace Madison Duval as a member (Student Alternate /Patrick Henry High School) of the Youth Services Citizen Board for a term of office ending June 30, 2019. Enclosed you will find a certificate of your appointment and an Oath or Affirmation of Office which must be administered by the Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. After the Oath has been administered, please return one copy to the Office of the City Clerk, Room 456, fourth floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S.W., prior to serving in the capacity to which you were appointed. Furthermore, pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve as a member (Student Alternate /Patrick Henry High School) of the Youth Services Citizen Board. Sincerely, Stephanie M. Moo n City Clerk Enclosures pc: Aisha Johnson, Assistant to the City Manager Reynblds;�M COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Stephanie M. Moon Reynolds, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at a regular meeting of Council which was held on the seventh day of January 2019, VA'SHAY MCCALLA was appointed to replace Madison Duval as a member (Student Alternate /Patrick Henry High School) of the Youth Services Citizen Board for a term of office ending June 30, 2019. Given under my hand and the Seal of the City of Roanoke this eighth day of January 2019. City Clerk yj � ROANOKE CITY COUNCIL RECESSED MEETING (CLOSED MEETING) JANUARY % 2019 10:14 A.M. 41353- 011619 COUNCIL'S CONFERENCE ROOM ROOM 451 215 CHURCH AVENUE, S. W. ROANOKE, VIRGINIA AGENDA 1. Call to Order - Roll Call. All Present. 2. Statement of Purpose. Mayor Sherman P. Lea, Sr. City Council to convene in Closed Meeting to discuss a personnel matter, being the appointment of an Interim Council Member to fill the unexpired term of office of John A. Garland, resigned, ending June 30, 2020. 3. Recessed -10:16 a.m. 4. Reconvened - 2:00 p.m. The recessed meeting (Closed Meeting) reconvened in the Council Chamber, with Mayor Lea presiding and all Members of the Council in attendance. L: \CLERK\DATA\simnoon\Agenda 2019\Tanuary 16 Recessed Meeting Action Agenda.doc Certification of Closed Meeting. (6 -0) Adopted Resolution No. 41353 - 011619 appointing Patricia White -Boyd to fill the Council vacancy created by the resignation of John A. Garland for a term commencing upon her qualification and expiring June 30, 2020. (6 -0) 5. Adjourned — 2:08 p.m. 2 IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 16th day of January, 2019. No. 41353 - 011619. A RESOLUTION appointing Patricia White -Boyd as a member of City Council for the City of Roanoke in accordance with §4 of the City Charter and Virginia Code §24.2 -228 for a term commencing upon her qualification and expiring on June 30, 2020. WHEREAS, John A. Garland resigned from City Council on December 27, 2018 effective January 2, 2019; WHEREAS, Mr. Garland's term of office would have expired June 30, 2020; WHEREAS, the Circuit Court of the City of Roanoke has determined that no special election is required to fill Mr. Garland's vacancy, and that Council is authorized to do so; and WHEREAS, the remaining members of Council are desirous of appointing Patricia White -Boyd to fill the Council vacancy created by the resignation of Mr. Garland for a term commencing upon her qualification and expiring June 30, 2020, in accordance with §4 of the City Charter and Virginia Code §24.2 -228. THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke as follows: 1. The resignation of John A. Garland, as a member of the City Council effective January 2, 2019, is hereby acknowledged. 2. Patricia White -Boyd is hereby appointed as a member of the Council of the City of Roanoke for a term commencing upon her qualification and expiring June 30, 2020, in accordance with §4 of the City Charter and Virginia Code §24.2 -228. Pursuant to §59 of the City Charter, before entering upon the duties of a member of City Council, Patricia White -Boyd shall qualify for office by taking the oath prescribed by general law of the Commonwealth. ATTEST: iY1. oo�n D P�4001 City Cle 7