Tag Archives: economic development

Fluvanna Budget Discussion Includes New Business

By. Bryan Rothamel, Field Officer

It takes three to tango during budget season and the Fluvanna County  Board of Supervisors is working its way to a final budget number.  During the latest work session the supervisors left with four nods on stopping at a real estate tax rate of $0.929 per $100 assessed. The current rate is $0.907.

The supervisors got a boost by additional tax values and increasing fees for items like trailers.

But to get to $0.929 and fund the schools its full request of $600,000, the supervisors will pull money from the county’s savings, the fund balance. It is a practice that is highly discouraged because the fund balance is typically used for one time expenses. But school staff is confident the school system will return a few hundred thousand to the fund balance when the current fiscal year is complete.

At the end of the March 28 work session, only Don Weaver (Cunningham District) didn’t give a nod to the budget but he said he would think about it.

Supervisors will have a public hearing on the budget on April 4 at 7 p.m.

Also on March 28 the supervisors held two public hearings on industrial sites in the Zion Crossroads area.

The first hearing was for the old Cosner Brothers location. M&M Salvage owns the property and trying to rezone the front part to I-1 and the back portion to I-2.

The property currently has a zoning violation issued against it for non-conforming use. The property is being used by contractors for the Colonial Gas Pipeline, per the owner. County staff has ruled it is being used as a contractor’s yard, which is a by-right use for an industrially zone property but the property is currently zoned A-1.

“I think you are able to consider this [a violation],” said Fred Payne, county attorney, to the supervisors.

Next to the property is a small cluster subdivision, Fox Glen. Residents continually complain to staff of work consistent with a contractor’s yard.

“People are entitled to the quiet enjoyment of their property and it is being interrupted,” said Charles Hess, who lives in the subdivision.

Residents have complained of the loud noises and lights used to work early in the morning and evenings. One complaint listed a 1 a.m. start time.

“This I-1 and I-2 use next to the residential is less than ideal,” said Tony O’Brien (Rivanna District).

Supervisors denied the rezoning 5-0. The owner filed an appeal of the non-conforming use to the Board of Zoning Appeals. BZA will hear the case on May 15.

LKQ is coming to town thanks to approval of its special use permit, 5-0. The supervisors added provisions to increase buffer areas near residents and restrictions on hours of operation.

The property was previously rezoned, at the direction of the Board of Supervisors, in December. The property is located behind the Cosner Brothers property and was once the back half of Cosner. It is 90 acres.

Residents of Fox Glen aren’t exactly touching it but the subdivision is about 200-300 feet from the property line. LKQ offered to increase its buffer from 50 feet from property line to 75 feet. The company will build an eight-foot fence and plant trees.

LKQ is a salvage yard company that recycles parts mostly from totaled cars. The company buys cars wholesale then goes through the cars to sell parts to repair cars.

The company will fill the property with stripped cars and once it needs more space, it crushes cars. Supervisors put restrictions on hours the company can work in yard to pull parts. Restrictions were also placed on crushing cars to six days a week. Work inside the building have no restrictions.

“This is a very clean facility,” said resident William Hensley, who toured a similar LKQ facility.

LKQ is expected to pay $200,000 to $300,000 in taxes. A penny of real estate taxes is less than $300,000.

“I would love to keep Fluvanna green,” said resident Tom Payne. “But we are going to have to keep Fluvanna with another green (money).”

Some neighbors still were not pleased of the salvage yard coming to town.

“Would you like your daughter or son or grandkids to live there?” said Jeff Wagner.

Katie Ward, said she purchased the neighboring property months after Fluvanna started negotiations with LKQ, “We were robbed to have our voices heard.”

Ward distributed flyers before the meeting of a FOIA request she had that showed the county in discussions with LKQ as far back as February 2017.

The Fluvanna Board of Supervisors will meet on April 4 for a regular session at 4 p.m. followed by a 7 p.m. public hearing session on the budget.

The Free Enterprise Forum’s coverage of Fluvanna County is provided by a grant from the Charlottesville Area Association of REALTORS® and by the support of readers like you.

Bryan Rothamel covers Fluvanna County for the Free Enterprise Forum

Photo Credits: Fluvanna County

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Fluvanna Supervisors Work Budget & Encourage Economic Development

By. Bryan Rothamel, Field Officer

The local government budget season is nearing its climax. On March 14, the Fluvanna County  Board of Supervisors will meet to pick a tax rate to advertise.  Once advertised, the rate can be reduced but it can not be increased.

BOS FRONT (L-R): Mozell Booker (Vice Chair), Patricia Eager REAR (L-R): Don Weaver, Mike Sheridan (Chair), Tony O'Brien

Fluvanna County Board of Supervisors

The supervisors will meet for a work session at 7 p.m. but expect a long night. This will be the first time the supervisors go line by line to determine what should and should not be in the budget.

The county administrator proposed nearly a three cent increase in real property tax in his budget. Steve Nichols didn’t include any additional money for the schools in his budget.

The School Board unanimously passed a budget that requested an additional $1 million in local funding. The largest portion of the request includes $700,000 for salary increases.

Nichols’ budget also doesn’t any salary increases for the county staff. It does include one additional staff member but the departments requested four new positions.

The county’s budget situation will only get tighter in future years without new development. The proposed LKQ salvage yard is estimated to bring in about $300,000 of tax revenue, the equivalent of a penny of real estate taxes for all land owners.

The supervisors have actively followed staff recommendations to make development easier. Besides the Shovel Ready Sites program passing, the county made a change to collection of the land use back taxes for the Zion Crossroads community planning area.

The old rule was when a property changed zoning, it was out of the land use program. The owner would then have to pay five years of back taxes. The recently passed rule is the landowner can request a zoning change, the zoning change can occur but paying five years worth of taxes is not collected until the use of the land changes.

The problem was previously landowners trying to sell and develop land had to pay for zoning changes plus the five years of taxes before even listed the property for sale. Now the landowner can factor in paying the taxes into the sale of the property. Plus, the “five years of back taxes” may include the new zoning. Commercial land is valued higher than agriculture.

Supervisors also reduced fees to rezone. Applications to rezone now will only cost $1,000. Previously they cost $1,000 plus $50 per acre. If a property owner has multiple parcels to rezone but submits one application, it is still just $1,000.

The next supervisor meeting is the budget work session on March 14. It is shaping up to be a long one, bring snacks if coming. Cookies will probably be available.

The Free Enterprise Forum’s coverage of Fluvanna County is provided by a grant from the Charlottesville Area Association of REALTORS® and by the support of readers like you.

Bryan Rothamel covers Fluvanna County for the Free Enterprise Forum

Photo Credits: Fluvanna County

Fluvanna Budget Proposal Includes Real Estate Tax Increase

By. Bryan Rothamel, Field Officer

Steve Nichols

Fluvanna County’s Administrator Steve Nichols presented his budget proposal to the Board of Supervisors on February 7. It included just over a three cent increase in the real estate tax rate.

The current real estate tax rate is $0.907 per $100 assessed. Steve Nichols proposed a $0.939 tax rate for FY19.
His proposed budget holds the line on county services and programs. It adds one position and includes no pay raises for staff.  Nichols’ budget increase is primarily from additional debt the county brought in for the Zion Crossroads water project. The county also has additional maintenance cost for the new radio project.  Debt service for the county went up an additional $275,000, just under the equivalent to a penny in real estate tax rate. The emergency management budget went up $225,000.  Department heads asked for four new positions and six upgraded positions. The Nichols proposal provides one position.

Don Weaver

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Don Weaver (Cunningham District) pointed out Fluvanna is still highest county for tax rates in the area and asked if a tax cut was possible.  “Unless you cut people or programs, you can’t,” said Nichols.
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The two major issues that aren’t addressed in Nichols’ budget are health insurance costs and additional money for the school system.
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Staff is awaiting final numbers for the insurance cost and it is looking to be a slight increase to steady. A finalized number will be available soon.
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Nichols level funded the schools. The superintendent, Chuck Winkler, presented his budget proposal to the School Board the same day Nichols’ proposed his. A report from NBC29 listed the school budget proposal to include increases.
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Fluvanna’s continual real estate tax raises will continue until additional tax revenues work their way into the coffers. One way to entice additional businesses to come to the county is lowering the business and public utility personal property tax. Nichols proposed to lower it from $2.90 to $2.40 per $100 assessed.  It is more a symbolic move to attract new businesses and help current businesses. Overall it isn’t a huge reduction in taxes received. The change in collections is $45,000.
The county is attracting one new business. The salvage yard operator LKQ, going behind the old Cosners’ location, will bring in an estimated $150,000 in tax revenue. That was a low end estimate, per staff.  The outlook for future years is not nearly as grim as it was a few years ago. Unless the county starts taking on additional debt, it can hold the tax rate rather steady, Nichols estimates.
“Frankly, (future) budgets…look steady state,” said Nichols.  Fluvanna had previously kept a sizable unreserved savings account, known as the fund balance. That unreserved amount is slowly being spent.
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It currently is $6.3 million but supervisors have verbally committed to spending a large portion of that to cash fund part of the Zions Crossroads water project. That is estimated to be a $3.5 million commitment.
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“It really is in a tight, tight position,” said Tony O’Brien (Rivanna District).  The fund balance accumulates when the county receives more revenue than expenditures, either through higher tax collection or budgets not be fully spent. Previous years the fund balance has been used for capital improvement plan items. Last year to the tune of $1.2 million. This year that number decreases to $1 million.
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Supervisors will have various work sessions on the budget. The next one on February 14 with the constitutional officers.

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The Free Enterprise Forum’s coverage of Fluvanna County is provided by a grant from the Charlottesville Area Association of REALTORS®and by the support of readers like you.

Bryan Rothamel covers Fluvanna County for the Free Enterprise Forum

Photo Credits: Fluvanna County

Parking Is Driving Charlottesville’s Future

By. Neil Williamson, President

See the source image

Georgia Tech Hotel & Conference Center

Prediction: In 2056, Charlottesville’s Market Street Garage and City Hall Complex will be razed to make way for a new Hotel and Conference Center.

There are two distinctly different paths to this prediction, economic dislocation/collapse [think Detroit 2013] or a capstone of a visionary community investment program – interestingly, parking will be a leading indicator on the City’s direction.

Please let me explain.

The City’s recent decision to abandon their parking meter “pilot program” makes good sense in the short term but the long term issues surrounding parking are significantly larger than a few on street meters.  Currently, the existing garages are effectively full, with greater than 350 potential parkers on waiting lists for the opportunity to buy a monthly parking pass.

Commercial development activity continues in downtown with four prominent parking demanding projects currently in the pipeline. Conservative estimates place the new parking deficit [parking demand less parking provided] created by these developments to be 844 spaces [(386) Charlottesville Technology Center, (213) West 2nd Street, (160) Dewberry Hotel, (85) Vault Virginia].

If there is a future parking deficit exceeding 800 spaces based on projected demand, what would be the cost of building a parking deck to meet that need? It is widely accepted that structured parking costs roughly $25,000 a space to build (absent land costs). Thus, just the construction cost for an 850-space garage would be $21.25 million (absent land costs).

Last week, I had an over simplistic epiphany regarding the future of transportation. With the advent of self-driving cars (which will be a reality sooner than we realize), “park and ride” parking lots will be replaced by more efficient and less land demanding “ride and park” lots surrounding more walkable business and commercial districts. The car will drop you at your destinatSee the source imageion and drive to a nearby, but not too close, parking area.

This no longer science fiction and will completely rework the highest and best use of the land within the business district and increase the value of parcels currently too distant to serve as parking alternatives.

The average life of a parking deck is 50 years; with this pending innovation of self driving cars, the need for close in parking is reduced so how should Charlottesville deal with the next 33 years of market parking demand exceeding supply. The easy answer is build more parking but make the building flexible for reuse.

Progressive parking experts are now contemplating designing parking buildings with the clear vision of conversion to mixed use buildings later in their useful lifetime. By designing parking decks with higher ceilings, roughed in plumbing mains and central elevators (rather than on the corners). The infrastructure investment is higher than building a standard deck but it serves as insurance that the investment is not lost as demand shifts from parking storage to office/residential space.

If we accept that there is a parking deficit (for the next 30 years), what should be the role of the City in remedying this situation?

Option 1 – Charlottesville City Council could choose to do nothing.  Parking availability could go from bad to worse as downtown employees and customers are forced into mass transit (if available) or parking further from employment centers.

Option 2 – The City could build a lot on the recently acquired Guadalajara/Lucky 7 lot.  Based on the current political reality, I fail to see Charlottesville City Council showing the leadership vision necessary to spend $21+ million to address this clear and present danger to downtown economic vitality.

Option 3 – Charlottesville could enter into a Public Private Partnership (3P or PPP) on the Guadalajara/Lucky 7 lot.  The PPP Knowledge Lab defines Public Private Partnerships as:

a long-term contract between a private party and a government entity, for providing a public asset or service, in which the private party bears significant risk and management responsibility, and remuneration is linked to performance. PPPs typically do not include service contracts or turnkey construction contracts, which are categorized as public procurement projects, or the privatization of utilities where there is a limited ongoing role for the public sector.

The PPP option would require a challenging, lengthy process (likely 3+ years) to seek and identify appropriate partners, develop mutually beneficial agreements including financing options all prior to construction.

Back to our prediction:

If the Charlottesville selects the ostrich method of Option 1, the downward economic spiral that was exacerbated by the events of August 12th will continue.  Enterprises see the City failing to address the paring infrastructure issue and flee the City to locations in Albemarle County (Shops at Stonefield, Fifth Street Station, Reimagined Albemarle Square, Peter Jefferson Place, etc.) or elsewhere with ample free parking. This exodus would significantly reduce Charlottesville’s vitality, as well as its real estate and sales tax revenue.

The loss of revenue creates a reduction in City provided services; resulting in a citizen revolt and resignation of City staff and City Council.  After a special election, a new City Manager is hired and recommends (and council agrees) to sell off the City’s real estate assets (City Hall and Market Street Parking Garage) to raise much needed revenue.  The buyer gets the property for a song, demolishes the existing structures and builds a 15 story hotel and conference center (with parking deck).

or, in an alternative reality

https://i0.wp.com/www.savannah.com/wp-content/uploads/Aloft-Savannah-Hotel-Rendering.jpg

Savannah Aloft Hotel

Charlottesville chooses either Option 2 or Option 3, as well as other investments in the community. Enterprises and neighborhoods thrive, tax revenue continues to climb as the City’s business and residential density increases; autonomous cars and an enhanced transit service reduce the need for structured parking downtown.  As an economic development catalyst, Charlottesville chooses to move City Hall to the Strategic Investment Area (SIA).

The City enters into a Public Private Partnership with a developer to raze the Market Street Garage and City Hall and construct a seven story conference center hotel.  The four star hotel fronts on the Downtown Mall and the newly branded “Uber” Pavilion.

Both paths of these paths seem to end in the same place but the courage of City Council making long term infrastructure decisions drives the successful community while a lack of such vision creates economic uncertainty and possible municipal failure.

Charlottesville future will be decided by those in power at present.  Parking, and other municipal decisions, will determine which path the city travels.

Respectfully Submitted,

Neil Williamson, President

Neil Williamson is the President of The Free Enterprise Forum, a privately funded public policy organization covering the City of Charlottesville as well as Albemarle, Greene, Fluvanna, Louisa and  Nelson County.

Photo Credits: Savannah.com, Tripadvisor.com

Free Enterprise Forum 2017 Top 10

By. Neil Williamson

top ten listWell, 2017 is the year many in Central Virginia would like to forget.  Beyond the far reaching ramifications of the year when Charlottesville became a verb on the national stage, The Free Enterprise Forum remained focused on monitoring local government, reducing regulatory burdens, promoting market based solutions, protecting property rights, and encouraging economic vitality.

None of this could be accomplished without the generous support of our donors and our regular readers. Thank you.  As we embark on our fifteenth year of operation,we remain vigilant, and “pleasantly” persistent.

Each year, we select the top ten blog posts for our year in review.  There were many other blog posts that reached honorable mention status.  I would be remiss if I did not thank our Field Officers Brent Wilson (Greene County) and Bryan Rothamel (Fluvanna County) for their significant reportage in 2017.

With apologies to the now retired David Letterman, here are our Top 10 posts for 2017:

#10 Albemarle’s $52 Million Rain Tax Department December 4, 2017

rain gifFarmers count on rain to feed their crops; Albemarle County is counting on the Rain Tax (AKA Storm water “fee”) to grow government with a 10 year budget that exceeds $52 million.

 

#9 Charlottesville’s Paid Parking ‘Canary in the Coal Mine’ ? March 14, 2017

canary in coal mine photo credit share.america.govWhile it is heartening to see Charlottesville position parking meters as a “pilot” and only a part of the parking solutions considered.. . Available parking is the life’s blood of most small businesses.

… The Free Enterprise Forum hopes the City Council will pay attention when the canary stops singing – local businesses (as well as the jobs and taxes they generate) will be at risk.

#8 The Wizard of Oz and the Rio/29 Small Area Plan March 1, 2017

Scarecrow, tin man, lionOver the years, some have considered the Cowardly Lion, the Tin Woodsman and the Scarecrow in The Wizard of Oz to be less than perfect heroes – I beg to differ I find them to be the best kind of heroes – those that must work together to achieve a goal.

Today, (3/1) as the Board of Supervisors considers the innovative Form Based Code land use planning for Rio/29 small area plan I believe this unlikely trio could provide important guidance

#7 Frederick Fleet and Charlottesville’s Form Based Code Charrette Sept. 7, 2017

Frederick Fleet photo credit 123people….Considering the current [Charlottesville] climate, I am reminded of Titanic crewman (and survivor) Frederick Fleet who was on duty when he saw a black mass ahead of the ship. He struck three bells and telephoned the bridge. Though the ship swung out of the way, he watched as an iceberg scraped the starboard side.

The Free Enterprise Forum is ringing the bell.

We fear this ill timed, but worthy, Form Based Charrette exercise will be met with a similar fate.

It is a shame.

#6 Fixing Charlottesville NDS Engine Light February 16, 2017

car-check-engine-lightIf you have ever driven with a “Check Engine” light illuminated, you have an idea of where Charlottesville’s Neighborhood Development Services (NDS) Department has been for some time.

Everyone (land owners, neighborhood associations, developers, etc.) agrees that something is seriously wrong but no one knows specifically what it is or, perhaps more importantly, how to fix it – until now.

#5 Albemarle Economic Development X Files March 29, 2017

i want to believeAlbemarle County says that it is in favor of economic development.  The former County Executive Tom Foley went so far as to say it is a “new day in Albemarle” regarding being open for business.  A couple of supervisors have even gone on the road attempting to drum up public support for economic vitality.

I find myself thinking of the 1990’s science fiction series the X-files where two FBI agents, Fox Mulder the believer and Dana Scully the skeptic, investigate the strange and unexplained, while hidden forces work to impede their efforts.

Just as Fox Mulder in the X-Files, I want to believe Albemarle, but the facts keep getting in the way.

#4 Changing Charlottesville Philosophy to YIMBY July 25, 2017Image result for yimby

…This is not a development problem, it is a political problem, and it exists nationwide.

I recently reviewed the YIMBY (Yes In My Backyard) San Francisco platform and I believe there are many parallels to Charlottesville….

We believe that San Francisco has always been, and should continue to be, an innovative and forward-looking city of immigrants from around the U.S. and the world. San Francisco is not full, and the Bay Area is definitely not full. Ours is an inclusive vision of welcoming all new and potential residents. Anyone who wants to should be able to afford housing in the Bay Area.

#3 Hindsight Report Asks ‘What If?’ August 1, 2017

…The Hindsight Report indicates that over the study period (2001-2016), Albemarle County received, from the study area, over $277 million in local tax revenue compared with the $212.9 million revenue sharing payments made to the City of Charlottesville (+$64.1 million).

….Had Charlottesville been successful in the annexation and the revenue sharing agreement not been in place, the City would have received $304.7 million in tax revenue from the study area during the study period compared with $212.9 million in revenue sharing payments from Albemarle County (-$91.8 million).

 

#2 A Tradition Like No Other–Albemarle Again Seeks to Ban Golf  April 5, 2017 and

Sunny Day? Albemarle Prohibits Greens, Endorses ‘Green’ April 24, 2017

See the source image

….By our back of the envelope calculations, rural recreation is an economic driver in the community representing nearly 2,000 jobs and an annual payroll of $40 million dollars.  In addition, rural recreation is a part of the fabric of Albemarle County.  The Free Enterprise Forum asks you to abandon this folly and utilize your limited staff resources to meet real needs of the community.

#1 Sayonara Shucet March 31, 2017

Shucet - Photo Credit CvillepediaLate yesterday afternoon (3/30), the embattled Elizabeth River Crossings (ERC) named former Virginia Department of Transportation (VDOT) Commissioner Philip Shucet as their new Chief Executive Officer.

In our three years of observation, we have grown to appreciate the charming manner in which Shucet manages (some might say manipulates) meetings and their outcomes…. As a facilitator extraordinaire, he has stayed true to the “Shucet Six” we first identified in 2014…. for now we say Sayonara Shucet, we wish you fair winds and following seas.

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But most of all THANK YOU, the readers and supporters of this blog and our work in Central Virginia.  Without your generous support, we would not exist, thank you!

BRING ON 2018!

Respectfully Submitted,

Neil Williamson, President

Neil Williamson is the President of The Free Enterprise Forum, a privately funded public policy organization covering the City of Charlottesville as well as Albemarle, Greene, Fluvanna, Louisa and  Nelson County.

Fluvanna Ponders Proactive Rezoning for Economic Development Prospect

By. Bryan Rothamel, Field Officer

The Fluvanna County Board of Supervisors will hear an application to rezone a property in the Zion Crossroads area at the December 20 meeting.  The rezoning was initiated by the Board of Supervisors in hopes of attracting a specific company looking to invest over $8 million in a new facility that would employ 30 to 40 people. The company’s name is not disclosed at this time.

The property is located along Memory Lane (State Route 698), approximately 0.35 miles south of the intersection of Richmond Road (U.S. Route 250). The parcel is within the Rural Residential Planning Area and is adjacent to AG Dillard and near the rear portion of the women’s correctional facility. It used to be part of the Cosner salvage yard.

The Cosner salvage yard use of the property was nonconforming to the zoning of A-1. For the property to become a salvage yard again, it would need to be I-2 plus get a special use permit.

The unnamed company would have to initiate a Special Use Permit (SUP), if the zoning change is approved. At that time, additional details would be released. The I-2 zoning does not allow a salvage yard by right but is a permitted use with SUP.

A county official declined to release any other information on the company other than the pictures that were part of the presentation slated for the meeting.  The pictures depict a much different salvage yard than how Cosner operated. The pictures show a cemented yard of cars and a large warehouse.Recycled-green-auto-parts-info-graphic-3

The new term of art for salvage yards is “Automotive Recycling” [See infographic to the right]. The car recycling Industry is the 16th largest in the United States, contributing $25 billion per year to the national Gross Domestic Product (GDP). The US automotive recycling industry employs around 100,000 people and earns around $25 billion a year. Nationally, there are around 7,000 vehicle recycling facilities.

During the Planning Commission meeting, officials said the company brings in cars through the warehouse for inspection then stores the cars in the parking area. Spare parts are shipped to interested buyers and there could be some local buyers. The company would pay taxes including machinery and tools.

The Planning Commission recommended denial of the rezoning on a 3-1-1 after two failed motions. First, the PC had a motion to approve that failed to get a second. Then, there was a motion to defer that did not get a second. A motion to recommend denial received a second but failed on a 2-2-1 vote. Shortly there after a motion to reconsider.

The Planning Commission had issues with the I-2 zoning in the rural planning area. The property is next to the community planning area and next to I-1 zoned property.

PC members at first started considering the economic development portion of the rezoning but then retreated to only considering the question, “Should this property be zoned I-2 on its own merits?”

One suggestion was rezoning on the possibility the zoning reverts back to A-1 if the interested company backs out of the arrangement. County officials said without the rezoning, the business would move on. Tony O’Brien (Rivanna District), the Board of Supervisors liaison to the commission, said there is little concern about the company’s intentions.

The Board of Supervisors will take up the issue at the 7 p.m. session on December 20.

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The Free Enterprise Forum’s coverage of Fluvanna County is provided by a grant from the Charlottesville Area Association of REALTORS®and by the support of readers like you.

Bryan Rothamel covers Fluvanna County for the Free Enterprise Forum

Photo Credits: Automotive Recyclers Association

Fluvanna Primes The New Business Pump

By. Bryan Rothamel, Field Officer

Fluvanna County is trying to be more shovel ready.

The Fluvanna County Board of Supervisors approved transferring $35,000 to start the Fluvanna Shovel Ready Sites Program (FSRSP). The program is set up to help Zion Crossroad area landowners move sites up the development tier.

Currently the county has no properties in the lowest of a five tier grading scale. The FSRSP will help move properties higher up the scale.

“The objective is to get as close as possible to tier five,” said economic development coordinator Jason Smith.

Steve Nichols

Staff stressed the program is assist landowners wanting to move closer to development.

“The program is not to tell citizens what to do with their property,” said Steve Nichols, county administrator.

The program would be administrated by the Fluvanna Economic Development Authority. The EDA and staff recommended a grant based program. The supervisors approved an interest free loan program to be repaid paid back after land use changed.

“There are a lot of places you can put shovel ready sites, but I think we all agree Zion Crossroads makes a lot of sense,” said Tony O’Brien (Rivanna District). O’Brien noted being briefed on a report that Virginia was losing out to development because of lack of shovel ready sites.

Also at the November 15 meeting, supervisors appropriated an additional $54,000 to construct the Farm Heritage Museum to be placed at Pleasant Grove, near the farm house.

The project includes over $250,000 from the funds raised and secured by the Fluvanna Historical Society. The historical society also pledged to give $5,000 over five years to help offset the $54,000 the county is outlaying.

The entire project is estimated at $340,000. The facility will be owned by the county. The bid for construction was awarded to Fuog/InterBuild. The company estimates it will take eight weeks to complete after building permit is issued.

Don Weaver (Cunningham District) was the lone vote against the county contributing $54,000 to complete the project. The county already gave $15,000 to complete site work.

“Should the tax payers pick up the tab,” asked Weaver.

Mozell Booker (Fork Union District) noted how much money was raised from resident and business donations. “That’s telling me there is community support,” said Booker.

Weaver voted with the majority to award the bid and accept funding from the historical society.

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The Free Enterprise Forum’s coverage of Fluvanna County is provided by a grant from the Charlottesville Area Association of REALTORS®and by the support of readers like you.

Bryan Rothamel covers Fluvanna County for the Free Enterprise Forum

Photo Credits: Fluvanna County

Fluvanna Water Project Out To Bid

By. Bryan Rothamel, Field Officer

turn on waterThey said the day would never come.

On November 1st, 2017, Fluvanna County put the Zion Crossroads water and sewer project out to bid.

Decades of discussion have culminated in the supervisors advertising for bid the $11.9 million project.

The request for bid will be done in three parts. The pipes, the mechanical and the water tower are all in separate requests in hops of getting better bids by companies that would otherwise have to subcontract.

After the supervisors completed a series of motions, the room applauded as the long chapter of Fluvanna politics is nearing a close. The project is expected to take 18 months to construct.

Economic Development?  Supervisors also initiated a rezoning process for an undisclosed business trying to relocate in the Zion Crossroads area. The project would be an investment of $8 to $10 million and bring about 40 jobs to the county. The business would be disclosed once the public hearings occur.

The property is currently zoned agricultural and is seeking an industrial zoning. The county is also working with the business to get a hookup to the aforementioned water project once water is flowing.

In other water news, after a closed meeting, the supervisors pledged $5,000 to Caroline County for proposed legal advice on fighting Aqua America’s proposed rate increases. Lake Monticello is served by Aqua. Caroline County has several subdivisions also served by Aqua, estimated at 30 percent of its population.

Caroline reached out to other home owners associations and locality governments for assistance in teaming together to fight against Aqua’s request. Caroline estimated the cost of legal advice and State Corporation Commission expert help at over $75,000.

Other presentations during the November 1st  meeting included one from an official from Fluvanna Girls Softball League (FGSL). FGSL wanted the county to loan $25,000 to the private organization to field improvements at the Carysbrook field. Work included leveling the infield and outfield as well as replacing the backstop and adding an outfield fence.

The proposed loan was $25,000 paid over five years with 2 percent interest. Unfortunately, supervisors were briefed by the county attorney they have no legal authority to loan money to FGSL, a private organization. Because Carysbrook is county property, the county could construct the requested work and FGSL can voluntarily contribute to the county’s coffers.

Chris Fairchild, FGSL official, said even if the supervisors said they didn’t want to be paid back, FGSL wants to pay for the improvements. Supervisors and the parks and recreation department will work with FGSL to get work scheduled as previously planned.

Over the course of the last 15 years, FGSL has invested $168,000 in field improvements including construction of dugouts and concession stand.

Supervisors were briefed on preliminary budget projections of the Fluvanna County Public Schools system. Chuck Winkler, superintendent, is projecting a request of $2.2 million over last year’s budget.

That estimate included standards of quality changes that are partially funded by the state. He included the entire figure but noted if the state implemented, it would have a huge state budget implication. He said the likelihood of being passed was slim, but included it as a precaution.

Also in Winkler’s increase were pay raises and increase in health care costs. He also had additional money for technology improvements. He noted that if technology was funded again by Capital Improvement funds, it lowers the county’s per pupil spending.

The supervisors will next meet on November 15 at 7 p.m.

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The Free Enterprise Forum’s coverage of Fluvanna County is provided by a grant from the Charlottesville Area Association of REALTORS®and by the support of readers like you.

Bryan Rothamel covers Fluvanna County for the Free Enterprise Forum

Unintended Consequence–Albemarle’s AirBnB Black Market

FORUM WATCH EDITORIAL

By. Neil Williamson, President

When a new business concept is successful the first thing the government attempts to do is tax it.  What is the second thing? – regulate it.  In an interesting ‘Short Term Rental’ twist of fate, Albemarle has completed the first thing ensuringBlack Market photo credit news.softpedia but is about to put those revenue sources (and others) in jeopardy by driving much of this thriving new industry out of the open and into a Black Market.

Please let me explain.

Back in June 2017, Albemarle joined many Virginia localities in updating its tax code to capture ‘transient lodging’

TAX CODE
At its June 14, 2017 Board meeting, the Board of Supervisors amended the County Code §15-900 and §15-901 to enable the County to impose taxes on residential transient lodging, previously not included in this regulation. They also amended County Code §8-616 to explicitly list short-term rentals on the list of businesses subject to the business,professions, and occupations licensing (BPOL) tax requirements.

Albemarle County has been engaged in a “community conversation” regarding the regulation of short term rentals (AirBnB, HomeStay Charlottesville, etc.).  Rather than dealing specifically with the impacts of such rentals, with ordinances already on the books, Albemarle is seeking to restrict the number of rentals any property might be able to book in any given calendar year. This is a mistake.

According to Allison Wrabel’s article in Monday’s (10/30) Daily Progress, our good friend, Travis Pietila, of the Southern Environmental Law Center (SELC) spoke out last week’ Planning Commission meeting about this very issue:

“We need to make sure that the revenue to be gained from homestays does not lead to building new houses in the rural area that would not otherwise be built, and it’s critical that the limits put in place to keep that from happening are enforceable,” he said.

Pietila said that the 90-day limit proposed for whole house rental was too high and that a 30-day limit seemed much more appropriate.

“But a more fundamental concern is that the limits based on a number of days a property can be rented would prove unenforceable,” he said.

While we firmly disagree with SELC’s position that property owners should be restricted from building new homes on parcels that have that fundamental property right, we concur that limits based on a number of days would not only prove unenforceable – it not only starts a negative domino effect on transparency and taxation – it is an unfair restriction on property rights.

Negative Domino effect – if allowed to only permitted to rent my house on a short term basis for 30 days a year, that is exactly what some savvy property owner will claim.  If there is market demand for greater than 30 days a year (ie: weekend from April 15 to December 31 = 76 days), the incentive is to rent the space and not claim the rental on the TOT form, lower the BPOL payment, don’t report the rental revenue for 46 days of occupancy on state or federal income tax forms.

This scenario fits Investopedia’s definition of a Black Market:

Economic activity that takes place outside government-sanctioned channels. Black market transactions usually occur “under the table” to let participants avoid government price controls or taxes. The black market is also the venue where highly controlled substances or products such as drugs and firearms are illegally traded. Black markets can take a toll on an economy, since they are shadow markets where economic activity is not recorded and taxes are not paid. In the financial context, the biggest black market exists for currencies in nations with strict currency controls. While most consumers may shun the black market because they consider it sleazy, there may be rare occasions when they have no choice but to turn to this necessary evil.

What is gained by this charade?

More from Wrabel’s article:

Commissioner Pam Riley said she is concerned about the impact on local housing, especially as the county considers adding apartments and townhomes.

“The more you remove what could be housing units, really at any price range, from the long-term rental, you’re really exacerbating your affordability problem,” she said.

The Free Enterprise Forum finds itself again agreeing with SELC’s Pietila’s  economic analysis, if not his property rights restriction on that analysis:

Pietila said officials should consider limiting whole-house rentals in the rural area to existing houses.

“This would give existing homeowners the ability to earn some extra income and help defray housing costs, while reducing the risk of encouraging new house construction,” he said.

We have seen anecdotally, the short term rental income provides the revenue needed that makes the housing ‘affordable’.  If a unit (home, apartment, townhouse) has a monthly cost (mortgage/rent) of $900 a month and it is rented four weekend days at $150 a night, that generates $600 in revenue, this income helps offset housing cost.  Anecdotally, we have witnessed families visit their parents for football weekends and pay their entire monthly housing cost with the revenue.

Commissioner Daphne Spain is quoted in Wrabel’s article questioning the property owner rights regarding short term rentals:

…Spain said she noticed that many comments said that people should be able to do what they want with their homes to generate income.

“I don’t give much credence to that, because if they wanted to open a brewery or a speakeasy to earn money, or a brothel, that wouldn’t be allowed, so there are limits for the public good on what a person can do with their home and these are all residential areas,” she said.

Spain’s argument is really comparing apples and oranges. Unlike a brewery (or even brothel), the use of the property is still residential – it is just a question of the length of stay in residential.  How are the impacts different?

Which has more impact on me as a land owner, my neighbor renting out his house on weekends or a family with 5 teenagers moving in next door?

The reality we see from the Planning Commission is a clear anti short term rental bias.  Albemarle County would be wise to focus on mitigating any impacts of short term rentals [under existing ordinances] and skip any fatally flawed attempt to strangle this thriving new business with onerous regulations that are unlikely to be followed and will be impossible to enforce.

Respectfully Submitted,

Neil Williamson, President

Neil Williamson is the President of The Free Enterprise Forum, a privately funded public policy organization covering the City of Charlottesville as well as Albemarle, Greene, Fluvanna, Louisa and  Nelson County.

What Albemarle Can Learn From Amazon’s HQ2 Search

By. Neil Williamson, President

This afternoon, in an alphabet soup of a joint meeting Albemarle County’s Economic Development Authority (EDA), Planning Commission (PC), and Board of Supervisors (BOS) discussed Site Readiness from a Site Selectors Prospective in an effort to focus on growing business.

Timmons Group Joe Hines presentation “Are your sites and community prospect ready?” was eye opening to many in the room.  Hines suggested the locality should own or control parcels under consideration and that the locality needs to make infrastructure investment on the parcel to become most attractive in the site selection process.

Assistant County Executive Lee Catlin (in likely her last public presentation prior to retirement) used much of Hines Presentation talking points to present an overview of the Deschutes Brewing competition that Roanoke won.   The discussion was very good and highlighted the areas where Roanoke was better prepared for the opportunity.  (Check out  @Neilswilliamson Twitter feed for more details)

In a seemingly unrelated news event, Business Insider reports on Amazon’s search for a new 2nd North American Headquarters.

The company’s press release lays out a few details of what it’s looking for: metro areas with more than one million people; a “business-friendly” environment; a strong technical workforce; be “urban or suburban locations with the potential to attract and retain strong technical talent,” and “communities that think big and creatively when considering locations and real estate options.”

Ignoring the obvious million people hurdle, how do you think Albemarle, or Charlottesville for that matter stacks up regarding “communities that think big and creatively when considering locations and real estate options”.

Considering Catlin’s presentation,  one portion that was not mentioned was the “community” response to Deschutes.   Over two years ago, I wrote in Da Lessons from Deschutes.

4.  While the Supervisors recognize the economic reality, the public is notnimby1 yet sold on the concept of increased economic development.  This lack of public support is seen by outsiders as “unwelcoming” and is clearly a competitive disadvantage.   As Lisa Provence reported in C-ville regarding the Planning Commission denial of the CPA, some are not convinced that economic development (AKA Growth) is a good thing:

 

Watching the various states and localities compete for the Amazon 2nd Headquarters, I am amazed by the deftness of their marketing and efforts to show community support:

This challenge is actually an opportunity.  Notice Amazon did not say “governments” who think big and creatively.  They are looking for a community that will not only welcome them but allow them to become one with them.  The communities competing for HQ2 are attempting to present their community as complimentary to the creative class.  Don’t think this is only in big time economic development.  Roanoke’s “Hashtag” campaign was a big part of the Deschutes Decision.

Albemarle Supervisor Rick Randolph thought the presentation corrected a “myth” that Albemarle lost Deschutes – he said instead Roanoke won it.  Sounds like splitting hairs to me but I still have the core question.

Is Albemarle ready to energetically embrace economic development?

Randolph said he was supportive of “smart” economic development where jobs went to Albemarle citizens and no traffic was generated – sounds like a unicorn hunt to me.

Supervisors Liz Palmer and Brad Sheffield both expressed interest in redevelopment sites.

One positive suggestion came late in the meeting from Planning Commissioner Jennie More.  More thought that economic development should be a part of the community vetted Master Plan process.  This might be a first step in developing the kind of community buy in that can be more than “accepting” of economic development instead can cheer for it.

This meeting was a good first step, but I remain concerned that not everyone is equally energetic about economic development and the community is clearly not yet fully engaged.

If everyone understands the net benefits of economic development and brings positive energy to support the effort, perhaps then Albemarle can be in a position to “Win”.

If not, we may want to ask if Albemarle should be (or is) in the game at all.

Respectfully Submitted,

Neil Williamson, President

Neil Williamson is the President of The Free Enterprise Forum, a privately funded public policy organization covering the City of Charlottesville as well as Albemarle, Greene, Fluvanna, Louisa and  Nelson County.