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HomeMy WebLinkAbout3/18/2025 - Regular1 Vinton Town Council Regular Meeting Council Chambers 311 South Pollard Street Tuesday, March 18, 2025 AGENDA Consideration of: A. 6:00 p.m. - ROLL CALL AND ESTABLISHMENT OF A QUORUM AND CITIZEN GUIDELINES B. MOMENT OF SILENCE AND PLEDGE OF ALLEGIANCE TO THE U.S. FLAG C. COMMUNITY EVENTS/ANNOUNCEMENTS/COUNCIL ACTIVITIES D. REQUESTS TO POSTPONE, ADD TO OR CHANGE THE ORDER OF AGENDA ITEMS E. CONSENT AGENDA 1. Consider approval of the minutes of the regular meeting on March 4, 2025 2. Consider the adoption of a Resolution No. 2583A F. AWARDS, INTRODUCTIONS, PRESENTATIONS, PROCLAMATIONS G. BRIEFINGS 1. Gus Nicks Boulevard Project Briefing a. Citizen Comments regarding Gus Nicks Boulevard Project H. CITIZENS’ COMMENTS AND PETITIONS - This section is reserved for comments and questions for issues not listed on the agenda I. REPORTS FROM COMMITTEES 1. Finance Committee – Andrew Keen a. Motion to approve the Financial Statements for February 28, 2025. Laurie J. Mullins, Vice Mayor Keith N. Liles, Council Member Sabrina M. McCarty, Council Member Michael W. Stovall, Council Member Vinton Municipal Building 311 South Pollard Street Vinton, VA 24179 (540) 983-0607 2 J. PUBLIC HEARING 1. Conduct public hearing and consider public comments on the proposed closure, vacation, discontinuance, and abandonment of a portion of 1st Street and an undeveloped 15’ alley in the vicinity of the intersections of Cedar Avenue, 1st Street, South Pollard Street, and Virginia Avenue in the Town of Vinton, and on the proposed execution and delivery of a quitclaim deed to KARA Roanoke, LLC conveying any interest the Town may have in that portion of 1st Street and the undeveloped 15’ alley. a. Open Public Hearing • Report from Staff – Nathan McClung • Receive public comments • Council discussion and questions b. Close Public Hearing c. Consider the adoption of an Ordinance authorizing the proposed closure, vacation, discontinuance, and abandonment of a portion of 1st Street and an undeveloped 15’ alley in the vicinity of the intersections of Cedar Avenue, 1st Street, South Pollard Street, and Virginia Avenue in the Town of Vinton, and on the proposed execution and delivery of a quitclaim deed to KARA Roanoke, LLC conveying any interest the Town may have in that portion of 1st Street and the undeveloped 15’ alley. – Nathan McClung K. ITEMS REQUIRING ACTION 1. Consider the adoption of a Resolution authorizing the Town Manager to: (1) consent, on behalf of the Town, to an Assignment and Assumption Agreement from KARA Hospitality, LLC to KARA Roanoke, LLC; and (2) agree to an amendment to increase the scope of the project to include a seventh parcel of land and to increase the local grant to KARA Roanoke, LLC by the amount of the purchase price for that seventh parcel. – Town Manager a. This issue relates to the Local Economic Development Performance Agreement among the Town, the Roanoke County Economic Development Authority, and KARA Hospitality, LLC for the development of an extended stay hotel on six Town-owned parcels near the intersections of 1st Street, Cedar Avenue, South Pollard Street, and Virginia Avenue in the Town. 2. Consider the adoption of a Resolution authorizing the Town Manager to execute an Assignment and First Amendment to Contract of Sale among the Town, KARA Hospitality, LLC, and KARA Roanoke, LLC. – Town Manager 3. Consider adoption of a Resolution allowing the Town Treasurer and Finance Director to remove outstanding Personal Property delinquent taxes and Vehicle License Fees over five years old from the active records to a permanent file. – Andrew Keen L. TOWN ATTORNEY M. TOWN MANAGER’S PROJECT UPDATES/COMMENTS N. COUNCIL AND MAYOR O. ADJOURNMENT 3 NEXT COMMITTEE/TOWN COUNCIL MEETINGS AND TOWN EVENTS: April 1, 2025 – 3:00 p.m. – Town Council Work Session – Council Chambers April 1, 2025 – 5:00 p.m. – Planting of the Pinwheels – Front of Municipal Building April 1, 2025 – 6:00 p.m. – Regular Council Meeting – Council Chambers April 9, 2025 – 9:00 a.m. – Community Development Committee Meeting – TOV Annex April 14, 2025 – 3:00 p.m. – Finance Committee Meeting – TOV Annex NOTICE OF INTENT TO COMPLY WITH THE AMERICANS WITH DISABILITIES ACT. efforts will be made to provide assistance or special arrangements to qualified individuals with disabilities in order to participate in or attend Town Council meetings. Please call (540) 983-0607 at least 48 hours prior to the meeting date so that proper arrangements may be made. Meeting Date March 18, 2025 Department Town Clerk Issue Consider approval of the minutes of the Regular Meeting of March 4, 2025, and the adoption of a Resolution No. 2583A amending Resolution No. 2583. Attachments March 4, 2025, minutes Resolution No. 2583A Recommendations Motion to approve consent agenda as presented Town Council Agenda Summary Antonia Arias-Magallon, Town Clerk RESOLUTION NO. 2583A AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESDAY, MARCH 19, 2024, AT 6:00 PM IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA WHEREAS, the Town of Vinton is maintaining records of outstanding Personal Property delinquent taxes for 2017 2018 in the amount of $8,656.10; and WHEREAS, the Town of Vinton is maintaining records of outstanding Vehicle License Fees for 2016 2018in the amount of $14,606.52; and WHEREAS, the personal property taxes and vehicle license fees are over five years old and collection is no longer enforceable by Section 58.1-3940, of the 1950 Code of Virginia as amended; and WHEREAS, the Treasurer’s Office/Finance Department has made all efforts to collect on these balances and has turned them over to collections and the State of Virginia Debt Set- Off Program. NOW, THEREFORE, BE IT RESOLVED that the Vinton Town Council does hereby direct the Treasurer/Finance Director to have the outstanding accounts removed from the active records and placed in a permanent file where, if the opportunity arises, the accounts may be collected. This Resolution was adopted on a motion made by Vice Mayor Stovall, seconded by Council Member Mullins, with the following votes recorded: AYES: McCarty, Mullins, Stovall, Grose NAYS: None ABSENT: Liles ATTEST: 1 MINUTES OF A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD AT 6:00 P.M. ON TUESDAY, MARCH 4, 2025, IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTON, VIRGINIA MEMBERS PRESENT: Bradley E. Grose, Mayor Laurie J. Mullins, Vice Mayor Keith N. Liles Sabrina M. McCarty Michael W. Stovall STAFF PRESENT: Richard Peters, Town Manager Cody Sexton, Deputy Town Manager Antonia Arias-Magallon, Town Clerk Andrew Keen, Finance Director/Treasurer Nathan McClung, Assistant Planning and Zoning Director Fabricio Drumond, Police Chief Tim Lawless, Deputy Police Chief Jeremy Carroll, Town Attorney Mayor Grose called the meeting to order at 6:00 p.m. The Town Clerk Council Member Liles, Council Member McCarty, Council Member Stovall, Vice Mayor Mullins, and Mayor Grose present. After a Moment of Silence, Council Member Liles led the Pledge of Allegiance to the U.S. Flag. announcements, and Council Activities, Council Member McCarty announced the following: March 10 - Blood Drive in Town of Vinton Council Chambers from 10 a.m. to 2 p.m.; March 12 – Lunch and Learn with Oakey’ from 12 p.m. to 1 p.m. Center; March 25 – Senior Services Expo from 10 a.m. to 2 p.m. at William Byrd Middle School; April 9 – Lunch and Learn with Debbie Custer from 12 p.m. to 1 p.m. at Charles Hill Senior Center; April 19 – Shred Event from 9 a.m. to 12 p.m. at the Municipal Building Parking Lot; and May 26 – Memorial Day. Council Member McCarty to visit the entertainment venues social media and website for more information. Vice Mayor Mullins announced the following Council activities: February 28 – Council Member 2 Mullins, and Mayor Grose attended the Rail Yard Dawgs Hockey Game with staff and March 4 – Council Member Liles, Council Member McCarty, Council Member Stovall, Vice Mayor Mullins, and Mayor Grose attended a tour at Gish Mill to see the progress of the building. Council Member Stovall made a motion to approve the Consent Agenda as presented with 21, 2025, the minutes of the Joint Work Session on February 4, 2025, and Regular Meeting on February 18, 2025; the motion was seconded by Council Member Liles and carried by the following vote, with all members voting: Vote 5-0; Yeas (5) – Liles, McCarty, Mullins, Stovall, Grose; Nays (0) – None. January 21, 2025, the minutes of the Joint Work Session on February 4, 2025, and the minutes of the Regular Meeting on February 18, 2025. Under awards, introductions, presentations, and proclamations, Vice Mayor Mullins read the proclamation for Multiple Sclerosis Month. Under citizen comments and petitions, several on the Gus Nicks Boulevard Lane Reconfiguration Demonstration, which will continue through March actively evaluating the demonstration. Mr. Peters designed for bicycles but aims to reduce vehicular pedestrians, ultimately creating lower speeds and improving safety. raised concerns about trash accumulating on the funding to address cleanup efforts. Mayor Grose responded by noting that Pathfinders for Greenways, a volunteer group, is responsible for greenway cleanups and should be addressing the issue. Vinton, Virginia 24179, expressed concerns about around the Charles Hill Center. He stated that he noted that the back portion is poorly lit. He asked 3 additional lighting or surveillance cameras, could be implemented. Virginia 24179, opposed the lane reconfiguration demonstration. Virginia 24179, opposed the lane reconfiguration demonstration. Chris Craft, of 1501 Eastgate Ave NE, Roanoke, demonstration. Virginia 24179, opposed the lane reconfiguration demonstration. purpose behind it. Matt Blankenship, of 531 Cambridge Court Road, reconfiguration demonstration. Katye Hale, of 2423 Wolf Crest, Vinton, Virginia reconfiguration. Aaron Albertson, of 611 Spring Grove Dr, Vinton, Virginia 24179, who Vinton First Aid Crew, spoke in opposition to the demonstration. Virginia 24179, opposed the lane reconfiguration demonstration. reconfiguration demonstration. demonstration is to assess the impact of the road redesign. The Town and City’s goal is to reduce pedestrians by slowing traffic speeds and creating a safer environment. 4 Deputy Town Manager Sexton stated that the City and the Town have been monitoring traffic flow during rush hours. They are making adjustments to the lanes and traffic signals as needed to better measurements, modifications, or evaluations are necessary. demonstration. Under briefings, Deputy Chief Lawless gave the annual Police Department Report for the year 2024. PowerPoint, which will be available at the Town Clerk’s Office as part of the permanent record. He reported that the Police Department currently has twenty- academy, one vacancy, and two c members. He noted that the department’s social media presence has been growing. In 2024, the department was awarded a total of $68,125.00 in grant funds. Additionally, there was a decrease in Chief Drumond also spoke and emphasized that the goal is to continue reducing these numbers. the community through events such as National efforts. Council expressed their appreciation for the Police Department’s presentation. The next item on the agenda was the Consideration of public comments concerning the petition of Winter Properties Partnership LLP, to rezone the portions of currently split-zoned properties located at 0 Highland Road, tax map numbers 060.11-04-29.00-0000 and 060.11-04- 30.00-0000, from the R-2 Residential Dis the M-1 Limited Industrial District. The Mayor opened the Public Hearing at 7:02 p.m. Nathan McClung stated that the ordinance would allow Winter Properties Partnership LLP to rezone portions of the currently split-zoned properties on Public Hearing Opened 5 the M-1 Limited Industrial District. The primary purpose of the rezoning is to create a new vehicular access point on Highland Road and facilitate the expansion of the self-storage facility. Virginia 24179, inquired whether the project would would be a commercial entran road. While storage units are a permitted use, the property is not limited to that purpose and could accommodate any use allowed under the zoning regulations. Hearing no more comments, Public Hearing at 7:07 p.m. Council Member Liles made a motion to approve the Ordinance to rezone the portions of currently split-zoned Highland Road, tax map numbers 060.11-04- 29.00-0000 and 060.11-04-30.00-0000, from the R-2 Residential District to the M- Industrial District; the motion was seconded by Vice Mayor Mullins carried by the following roll call vote, with all members voting: Vote 5-0; Yeas (5) – Liles, McCarty, Mullins, Stovall, Grose; Nays (0) – None; and Public Hearing Closed Approved Ordinance No. 1064 portions of currently split-zoned properties located at 0 Highland Road, tax map numbers 060.11-04- 29.00-0000 and 060.11-04-30.00-0000, from the R-2 Residential District to the M- Industrial District Deputy Town Manager Sexton commented that the Town will engage the Public Works and Police Department streets and side streets during the Boulevard Lane Reconfiguration Demonstration. Council expressed appreciation towards staff for their hard work and dedication. Council McCarty for her recent retirement and wished her a Happy Birthday. Council Member Liles made a motion to adjourn the meeting; the motion was seconded by Council Member McCarty following vote, with all members voting: Vote 5-0; Yeas (5) – Liles, McCarty, Mullins, Stovall, Grose; Meeting adjourned APPROVED: _________________________________ Bradley E. Grose, Mayor 6 ATTEST: _________________________________ Antonia Arias-Magallon, Town Clerk Meeting Date March 18, 2025 Department Administration Issue Briefing on Gus Nicks Boulevard Lane Reconfiguration Demonstration Summary The City of Roanoke and the Town of Vinton continue to evaluate the Gus Nicks Boulevard Lane Reconfiguration Demonstration Project, which ran through March 17, 2025. Initial congestion issues have improved due to traffic signal adjustments, bringing average travel times close to pre- demonstration levels. The project aims to enhance safety and efficiency by implementing a dedicated center turn lane to slow overall speed, reduce accidents and improve traffic flow. With repaving scheduled for the coming year, this demonstration will help inform future re-striping decisions to maximize safety and efficiency along the corridor. Staff will be at the Town Council meeting to provide more details regarding the project. During this briefing, the Town Council will allow a public comment section for citizens to share their feedback and concerns regarding the project. Attachments None Recommendations No action required Town Council Agenda Summary Meeting Date March 18, 2025 Department Finance Issue Finance Committee Summary The Finance Committee met on March 17, 2025. Andrew Keen, Finance Director, will be present to provide a report to Council on what the Committee discussed. Attachments None Recommendations No action required Town Council Agenda Summary Meeting Date March 18, 2025 Department Administration Issue Conduct public hearing and consider public comments on the proposed closure, vacation, discontinuance, and abandonment of a portion of 1st Street and an undeveloped 15’ alley in the vicinity of the intersections of Cedar Avenue, 1st Street, South Pollard Street, and Virginia Avenue in the Town of Vinton, and on the proposed execution and delivery of a quitclaim deed to KARA Roanoke, LLC conveying any interest the Town may have in that portion of 1st Street and the undeveloped 15’ alley. Summary This Ordinance authorizes the closure, vacation, discontinuance, and abandonment of a portion of 1st Street and an undeveloped 15’ alley near the intersections of Cedar Avenue, 1st Street, South Pollard Street, and Virginia Avenue, as shown on Exhibit A to the Ordinance. The request for this action was made by KARA Roanoke, LLC, which owns 100 West Virginia Avenue and has a contract to purchase six additional parcels from the Town. KARA 1, the Town of Vinton, and the Economic Development Authority of Roanoke County have entered into a Local Economic Development Performance Agreement for the development of a hotel on these parcels. To facilitate the project, KARA Roanoke, LLC seeks to incorporate the 100 West Virginia Avenue parcel into the development and requires the vacation of a portion of 1st Street and the adjacent, undeveloped 15’ alley. The Ordinance formally vacates and closes the specified portion of 1st Street, extending from Cedar Avenue to South Pollard Street/Virginia Avenue, as well as a 15-foot-wide alley located between 100 West Virginia Avenue and 0 Cedar Avenue. The vacation is contingent upon KARA Roanoke, LLC commencing the hotel project within 90 days of the Ordinance’s adoption, demonstrated by securing financing for the project and beginning land disturbance activities. The Ordinance also authorizes the Town Manager to execute and deliver a quitclaim deed to KARA 1 KARA Hospitality, LLC is the party to the Performance Agreement, though it is in the process of assigning its rights and delegating its duties and obligations under the Performance Agreement to KARA Roanoke, LLC. Town Council Agenda Summary Roanoke, LLC conveying any interest the Town may have in that portion of 1st Street and the undeveloped 15’ alley. Attachments Ordinance Exhibit Recommendations Motion to adopt Ordinance 1 Ordinance No. 2025-___ 1 2 AN ORDINANCE CLOSING, VACATING, DISCONTINUING, AND 3 ABANDONING A PORTION OF 1ST STREET AND AN UNDEVELOPED 4 ALLEY IN THE VICINITY OF THE INTERSECTIONS OF CEDAR AVENUE, 5 1ST STREET, SOUTH POLLARD STREET, AND VIRGINIA AVENUE IN 6 THE TOWN OF VINTON, VIRGINIA 7 8 This Ordinance of Vacation is adopted this ___ day of March, 2025, by the Council of the 9 Town of Vinton, Virginia, the governing body of the TOWN OF VINTON, VIRGINIA. 10 11 Recitals 12 13 A.KARA Roanoke, LLC (“KARA”) owns the parcel located at 100 West Virginia14 Avenue in the Town of Vinton (“Town”), which parcel also is known as Roanoke County Tax 15 Parcel ID: 060.15-06-44.00-0000. 16 17 B.KARA also has a contract to purchase, from the Town, the following parcels:18 19 0 Cedar Avenue, Vinton, VA 24179 (Tax Parcel ID: 060.15-06-38.00-0000), 20 0 Cedar Avenue, Vinton, VA 24179 (Tax Parcel ID: 060.15-06-39.00-0000), 21 35 Cedar Avenue, Vinton, VA 24179 (Tax Parcel ID: 060.15-06-40.00-0000), 22 509 South Pollard Street, Vinton, VA 24179 (Tax Parcel ID: 060.15-06-41.00-0000), 23 0 South Pollard Street, Vinton, VA 24179 (Tax Parcel ID: 060.15-06-42.00-0000), and 24 537 South Pollard Street, Vinton, VA 24179 (Tax Parcel ID: 060.15-06-43.00-0000). 25 26 C.KARA, the Town, and the Economic Development Authority of Roanoke County,27 Virginia are parties to a Local Economic Development Performance Agreement (“Performance 28 Agreement”) pursuant to which KARA intends to develop and operate a hotel on the six properties 29 KARA is acquiring from the Town (“Project”). 30 31 D.KARA desires to expand the scope of the Project to include the parcel located at32 100 West Virginia Avenue (Tax Parcel ID: 060.15-06-44.00-0000). 33 34 E.For the purpose of developing the Project on the seven parcels referenced above,35 and as contemplated in Section III.B. of the Performance Agreement, KARA requests, pursuant to 36 § 15.2-2006 of the Code of Virginia, 1950, as amended, that the Town Council of the Town of37 Vinton close, vacate, discontinue, and abandon: (i) that portion of 1st Street that extends from 38 Cedar Avenue in a southerly direction to its intersection with South Pollard Street and Virginia 39 Avenue; and (ii) that 15’ alley that extends in a westerly direction from 1st Street between the 40 parcels located at 100 West Virginia Avenue (Tax Parcel ID: 060.15-06-44.00-0000) and 0 Cedar 41 Avenue (Tax Parcel ID: 060.15-06-38.00-0000). 42 43 F.The portion of 1st Street subject to this Ordinance was platted in 1899, and it has44 been accepted by the Town, opened, and maintained as a thoroughfare. The alley subject to this 45 Ordinance was platted in 1899, but it was never accepted by the Town as part of its public street 46 2 system nor otherwise opened or developed. The street and alley that KARA asks to be closed, 47 vacated, discontinued, and abandoned are further identified on the plat attached as Exhibit A to 48 this Ordinance. 49 50 G.The requirements of § 15.2-2006 of the Code of Virginia, 1950, as amended, have51 been met, and this Ordinance has been properly noticed for a public hearing on March 18, 2025. 52 53 NOW, THEREFORE, BE IT ORDAINED by the Council of the Town of Vinton, 54 Virginia, that the Town hereby CLOSES, VACATES, DISCONTINUES and ABANDONS: (i) 55 that portion of 1st Street that extends from Cedar Avenue in a southerly direction to its intersection 56 with South Pollard Street and Virginia Avenue and (ii) that 15’ alley that extends in a westerly 57 direction from 1st Street between the parcels located at 100 West Virginia Avenue (Tax Parcel ID: 58 060.15-06-44.00-0000) and 0 Cedar Avenue (Tax Parcel ID: 060.15-06-38.00-0000), as shown on 59 the plat attached hereto as Exhibit A, with ownership of the area of the vacated street and alley 60 determined in accordance with applicable law. 61 62 BE IT FURTHER ORDAINED, that, in accordance with § 15.2-2006 of the Code of 63 Virginia, 1950, as amended, the closure, vacation, discontinuance, and abandonment of the 64 foregoing street and alley, as provided in this Ordinance, is conditioned upon KARA’s 65 commencement, within ninety (90) days of the adoption of this Ordinance, of the Project, which 66 commencement must be evidenced by KARA’s (i) obtaining financing for the Project pursuant to 67 that _______ __, 2025, commitment letter and term sheet from ___________________ that KARA 68 previously provided to the Town, and (ii) the commencement of land disturbing activities for the 69 Project on the parcels referenced in this Ordinance. 70 71 BE IT FURTHER ORDAINED, that, following the satisfaction of the conditions 72 contained herein, this Ordinance of Vacation shall be recorded as deeds are recorded and indexed 73 in the name of the Town of Vinton. 74 75 BE IT FURTHER ORDAINED, that, the Town Manager is authorized and directed to 76 take such actions as may reasonably be necessary to carry out the purposes of this Ordinance, 77 including, without limitation, the execution and delivery of a quitclaim deed concerning the street 78 and alley vacated in this Ordinance. 79 80 BE IT FURTHER ORDAINED, that the recitals to this Ordinance are an integral part of 81 this Ordinance and are incorporated into this Ordinance. 82 83 BE IT FURTHER ORDAINED, that this Ordinance shall become effective immediately. 84 85 This Ordinance was adopted on motion made by Council Member 86 ____________________ and seconded by Council Member ____________________, with the 87 following votes recorded: 88 89 AYES: 90 91 NAYS: 92 3 93 APPROVED: 94 95 96 ___________________________________ 97 Bradley E. Grose, Mayor 98 99 ATTEST: 100 101 102 ____________________________________ 103 Antonia Arias-Magallon, Town Clerk 104 105 106 Mattern & Craig Meeting Date March 18, 2025 Department Administration Issue This issue relates to the Local Economic Development Performance Agreement among the Town, the Roanoke County Economic Development Authority, and KARA Hospitality, LLC for the development of an extended stay hotel on six Town-owned parcels near the intersections of 1st Street, Cedar Avenue, South Pollard Street, and Virginia Avenue in the Town. Town Council will be asked to consider the adoption of a Resolution authorizing the Town Manager to: (1) consent, on behalf of the Town, to an Assignment and Assumption Agreement from KARA Hospitality, LLC to KARA Roanoke, LLC; and (2) agree to an amendment to increase the scope of the project to include a seventh parcel of land and to increase the local grant to KARA Roanoke, LLC by the amount of the purchase price for that seventh parcel. Summary The Assignment and Assumption Agreement, effective March 18, 2025, is between KARA Hospitality, LLC (Assignor) and KARA Roanoke, LLC (Assignee). The agreement transfers all rights, duties, and obligations under a Local Economic Development Performance Agreement dated November 19, 2024, from Assignor to Assignee. The Town of Vinton and the Economic Development Authority of Roanoke County must consent to the assignment and assumption. The assignment and assumption does not modify any other provision of the Performance Agreement. The Roanoke County Economic Development Authority already has approved the assignment and assumption. The First Amendment to Local Economic Development Performance Agreement amends the aforementioned Performance Agreement in two respects. First, it adds a seventh parcel to the property that is being developed for the hotel project. KARA Roanoke, LLC acquired the seventh parcel for a purchase price of $475,000. Second, it increases the amount of the local grant being provided by the Town in support of the hotel project by the amount of the purchase price for the Town Council Agenda Summary seventh parcel. The Roanoke County Economic Development Authority has not yet approved the First Amendment, but it is expected to do so at a future meeting. Attachments Local Economic Development Performance Agreement Assignment and Assumption Performance Agreement First Amendment to Local Economic Development Performance Agreement Resolution Recommendations Motion to adopt Resolution LOCAL ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT This Performance Agreement ("Agreement") is made and entered into this 19th day of November, 2024, by, between, and among the Town of Vinton, Virginia, a municipality in the Commonwealth of Virginia ("Town"), the Economic Development Authority of Roanoke County, Virginia, a political subdivision of the Commonwealth of Virginia created under the Industrial Development and Revenue Bond Act ("Authority"), and KARA Hospitality, LLC, a Virginia Limited Liability Company ("Company"). Collectively, the Town, Authority, and Company may be referred to herein as the "Parties." RECITALS: WHEREAS, the Company intends to enter into a Contract of Sale with the Town to acquire certain real property, together with all improvements thereon and all rights and appurtenances thereunto pertaining, located in the County of Roanoke, Virginia, identified as Tax Map Parcels 060.15-06-38.00-0000, 060.15-06-39.00-0000, 060.15-06-40.00- 0000, 060.15-06-41.00-0000, 060.15-06-42.00-0000 and 060.15-06-43.00-0000 (collectively, "Property") and WHEREAS, the Company intends to construct on the Property a limited service extended stay hotel for a nationally-recognized brand, with approximately 92 rooms and to make improvements in the area surrounding the Property (the "Project"); and WHEREAS, in performing the Project, the Company will be making a significant Capital Investment, as hereinafter defined, in the Property and in the area surrounding the Property in the Town, will be creating and maintaining a significant number of New Jobs, as hereinafter defined, in the Town, and will be generating Transient Occupancy Tax, as hereinafter defined, for the benefit of the Town; and WHEREAS, the Town and the Authority recognize that the Company's Capital Investment will increase walkability, improve the gateway aesthetics, and generally act as a catalyst for additional economic development activity within the Town and provide additional tax revenue, employment opportunities, and contribute to the vitality of the area; and WHEREAS, the Town is willing to provide funds to the Authority for the Authority to provide a Local Economic Development Incentive Grant to the Company (the "Local Grant") for the purpose of inducing the Company to construct the aforementioned Project, thereby directly and indirectly making a significant Capital Investment in the Town, creating and maintaining a significant number of New Jobs in the Town, and generating Transient Occupancy Tax in the Town; and WHEREAS, the Company will create and Maintain, as hereinafter defined, at least 10 full-time equivalent New Jobs; and WHEREAS, the stimulation of additional tax revenue and economic activity to be generated by the Capital Investment, New Jobs, and Transient Occupancy Tax Revenue constitute valid public purposes for the expenditure of public funds and is the animating purpose for the Local Grant. 1 WITNESSETH: NOW THEREFORE, in consideration of the foregoing premises, the mutual benefits, promises, and undertakings of the Parties to this Agreement as set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties do covenant and agree as follows: I. Definitions. For the purposes of this Agreement, the following terms shall have the following definitions, unless the context or manifest purpose of this Agreement indicate otherwise: Capital Investment means an expenditure by the Company in an amount not less than $12,000,000 for construction of the Project, including engineering, architectural, developer and legal fees, building construction costs, and furniture, fixtures and equipment, all of which must be incurred and paid no later than the Capital Investment Performance Date. Maintain means that the New Jobs created pursuant to this Agreement with the assistance of the Local Grant and will continue without interruption from the Job Creation Performance Date through the Job Maintenance Performance Date. New Jobs means new permanent full-time equivalent employment of an indefinite duration at the Property for which the Company pays an average hourly wage of at least $14.00 or the minimum hourly wage under applicable state or federal law, whichever is greater. Each New Job must require a minimum of either (i) 35 hours per week of an employee's time for at least 48 weeks per Year, or (ii) 1,680 hours per Year. Part-time positions may be aggregated to equal a full-time equivalent position. Seasonal or temporary positions with construction contractors, vendors, suppliers, and similar multiplier or spin-off jobs shall not qualify as New Jobs. All New Jobs must be created no later than the Job Creation Performance Date and maintained through the Job Maintenance Performance Date. Transient Occupancy Tax Revenue means the annual amount of tax revenue collected by the Town on hotel rooms booked by the Company under Article VII, Transient Occupancy Tax, of Chapter 86 of the Vinton Town Code, as amended. Opening Date means the date on which the first paying customer stays overnight at the hotel constructed on the Property, which date shall be no later than the date that is eighteen (18) months following the closing on the Property under the Contract of Sale. Performance Date means, for each respective Target, the following: a. Capital Investment Performance Date — the Opening Date, b. Job Creation Performance Date — the Opening Date, c. Job Maintenance Performance Date — that date which is five (5) years after the Opening Date, 2 d. Transient Occupancy Tax Revenue Performance Date - that date which is five (5) years after the Opening Date, If the Town deems that good faith and reasonable efforts have been made and are being made by the Company to achieve the Target(s) by the respective Performance Date, the Town may, in its sole discretion, extend any or all of the Performance Dates by up to 12 months. If any Performance Date is extended, the Town shall send written notice of the extension to the Authority and the Company and the date to which any Performance Date has been extended shall become the new "Performance Date" for the Target that is the subject of the extended Performance Date. Target means the Company's obligations pursuant to this Agreement to: (i) make Capital Investments in the Property of at least $12,000,000; (ii) create at least 10 New Jobs at the Property; (iii) Maintain at least 10 New Jobs at the Property; (iv) annually collect and remit to the Town a minimum of $100,000 in Transient Occupancy Tax Revenue from the Property, all as of the respective Performance Dates. Year, for the purposes of this Agreement, means any 12-month period commencing on the Opening Date, or anniversary of the Opening Date. Monetary Lien includes, but is not limited to, any loan, note, or other debt secured by any interest in the Property, such as by a deed of trust, mortgage, financing lease, or other similar arrangement. II. Targets. The Company will make a Capital Investment of not less than $12,000,000 in the Property by the Capital Investment Performance Date. The development must be undertaken pursuant to plan presented to and approved by the Town, provided that such approval by the Town shall not be unreasonably withheld, conditioned, or delayed. The Company will create 10 New Jobs at the Property by the Job Creation Performance Date. The Company annually will collect and remit to the Town a minimum of $100,000 in Transient Occupancy Tax Revenue generated at the Property. The Company must achieve this Target each year through the Transient Occupancy Tax Revenue Performance Date. Annual Local Grant payments under Section III of this Agreement will be reduced by the difference between $100,000 and the amount of Transient Occupancy Tax Revenue actually collected and remitted in any Year. For example, if the Company collects and remits $80,000 in Transient Occupancy Tax Revenue, then its next ensuing annual Local Grant payment will be reduced by $20,000. The Company will maintain 10 New Jobs at the Property from the Job Creation Performance Date through the Job Maintenance Performance Date. On each anniversary of the Job Creation Performance Date, until the Job Maintenance Performance Date, the Company will annually report to the Town and the Authority whether it has continued to maintain 10 New Jobs at the Property. III. Local Grant. 3 The Local Grant will be paid by the Authority to the Company in multiple installments as an inducement to the Company to achieve and Maintain the Targets. The Town will provide the funds to the Authority for the purpose of making the Local Grant as set forth herein. The Company shall use the Local Grant proceeds only for expenses directly related to achieving and Maintaining the Targets, and for no other purpose. Upon receipt of the Local Grant proceeds from the Town, the Authority shall disburse the Local Grant proceeds in multiple payments to the Company as follows: A. Annual Payments: Commencing on the first anniversary of the Opening Date and continuing thereafter on each anniversary day of the Opening Date for five (5) consecutive years (for a total of five (5) annual payments), the Town will pay to the Authority and the Authority will pay to the Company a grant in the amount of $100,000; provided, however that the amount of the grant shall be reduced by the amount of any shortfall the Company has in achieving its annual Transient Occupancy Tax Revenue Target for each respective year, as stated above in Section II. Furthermore, each of the foregoing annual payments will be subject to the condition precedent that the Company has delivered to the Town and the Authority notice and evidence satisfactory to the Town and the Authority of the Company's achieving and Maintaining the Targets as follows: 1. On or before the Opening Date, the Company shall provide notice and evidence reasonably satisfactory to the Town and the Authority that the Company has achieved the Capital Investment Target at the Property. 2. On or before the Opening Date, the Company shall provide notice and evidence reasonably satisfactory to the Town and the Authority that the Company has created 10 New Jobs at the Property. 3. On or before each anniversary of the Opening Date, until the Job Maintenance Performance Date, the Company shall provide notice and evidence reasonably satisfactory to the Town and the Authority of the number of New Jobs that it has Maintained at the Property from the Job Creation Performance Date through the date of the notice and evidence. 4. On or before each anniversary of the Opening Date, until the Transient Occupancy Tax Revenue Performance Date, the Company shall provide notice and evidence reasonably satisfactory to the Town and the Authority of the amount of Transient Occupancy Tax Revenue that the Company has collected from the Property and remitted to the Town. 5. All of the foregoing evidence will be subject to verification by the Town and the Authority, and the Town and Authority reserve the right to request additional information from the Company as necessary for such verification. The Company will be solely responsible for obtaining and delivering to the Town and Authority any and all information needed to verify the Targets. 4 Within 30 days of its receipt of any of the foregoing Local Grant proceeds from the Town, the Authority will disburse such Local Grant proceeds to the Company. B. Abandonment of Portion of 1st Street: If required for the Project, the Town shall use good faith efforts to seek all approvals, votes, and ordinances that are required under applicable law to discontinue, vacate, and/or abandon a portion of the block of 1st Street between Virginia Avenue and Cedar Avenue and then convey the vacated portion of 1st Street to the Company, provided such discontinuance, vacation, abandonment, and conveyance shall, in all respects, be subject to the requirements of applicable state law and the required discretionary approvals of the Town Council of the Town of Vinton and any required third parties. The Town shall have discretion in determining which portions of 1st Street will be discontinued, vacated, and/or abandoned and subsequently conveyed to the Company, provided the Town will consider the needs of the Project in making that determination. Any portion of 1st Street deeded to the Company under this provision shall, thereafter, constitute part of the Property as defined herein. If, for whatever reason, the discontinuance, vacation, abandonment, and conveyance of a portion of 1st Street is not timely approved by all necessary parties and beyond any applicable appeal periods in sufficient time for the Company to timely complete the Project, then the Company's sole remedy will be to cancel this Agreement and, if not yet fully performed, the associated Contract of Sale. If the Contract of Sale has been performed and the Property has been conveyed to the Company and the Company cancels this Agreement under this subsection, then then the Town may, at its option, require that the Company convey the Property to the Town within sixty (60) days of the Town's written demand. The Company must satisfy any liens, including Monetary Liens, judgments, or other encumbrances on the Property that did not exist when the Company acquired the Property from the Town. Upon the conveyance of the Property from the Company to the Town, the Town shall pay the Company the same Purchase Price as the Company had paid the Town. The parties covenant and agree that the Town may enforce this provision through an action for specific performance, mandatory injunction, or other similar equitable or legal relief. IV. Reporting. The Company shall annually provide, at the Company's expense, detailed verification reasonably satisfactory to the Town and the Authority of the Company's progress on the Targets. For the purposes of verifying the accuracy of reports, and for no other purpose, the Company hereby waives its protections under Section 58.1-3 of the Code of Virginia, 1950, as amended, and authorizes the Commissioner of the Revenue for Roanoke County, Virginia, to provide verification to the Town and the Authority from her records; provided, however, that such disclosure shall not waive the protections of § 58.1-3 as to any other person, nor authorize the Town or the Authority to disclose such information to any other person. The Company will be solely responsible for obtaining and providing detailed verification reasonably satisfactory to the Town and the Authority of all Capital Investments to be credited towards the Company's Capital Investment obligation, all New Jobs created and Maintained to be credited towards the Company's New Jobs obligation, and all Transient Occupancy Tax Revenue generated at the Property and remitted to the Town to be credited towards the Company's Transient Occupancy Tax Revenue obligation. 5 V. Default; Option; Forfeiture. A. If the Company (i) fails to open a hotel consistent with the terms of this Agreement on or before the last possible date that could qualify as an Opening Date under the definition contained in Section I above or otherwise provide assurances acceptable to the Town that such opening is imminent; (ii) fails to achieve the Capital Investment Target and the New Jobs Target by the last possible date that could qualify as an Opening Date; or (iii) breaches any other material provision of this Agreement and the breach is not cured within thirty (30) days of written notice of such breach to the Company from either the Town or the Authority, then Company shall: (a) forfeit all grant payments under Section III of this Agreement and (b) convey the Property to the Town, subject to all liens and encumbrances, other than any Monetary Liens, judgments, or other encumbrances that did not exist as of the effective date of the acquisition of the Property by the Company, within sixty (60) days of written demand from the Town to the Company for such conveyance for the same consideration the Company paid for the Property as stated in the Contract of Sale. Prior to conveying the Property to the Town under the foregoing sentence, the Company must satisfy any Monetary Liens, judgments, or other encombrances on the Property that did not exist as of the effective date of the acquisition of the Property by Company. If the Company conveys the Property to the Town free and clear of any Monetary Liens, judgments, or other encumbrances that did not exist as of the effective date of the Company's acquisition of the Property, then the foregoing remedies shall be the sole and exclusive remedies available to the Town as a result of any of the foregoing failures of the Company. If, however, the Company fails to convey the Property to the Town free and clear of any such Monetary Liens, judgments, and other encumbrances, then the Town may pursue any and all other remedies it may have available at law or in equity. B. In addition to the foregoing, the Company hereby grants to the Town an option to repurchase the Property, subject to of all liens and encumbrances, other than Monetary Liens, judgments, and other encumbrances that did not exist as of the effective date of the acquisition of the Property by the Company, for the same consideration as the Company paid for the Property as stated in the Contract of Sale; provided, however, the Town may only exercise this option if the Company has failed to open a hotel consistent with the terms of this Agreement on or before the last possible date that could qualify as an Opening Date under the definition contained in Section I above. The Town may exercise its option by notifying the Company within sixty (60) days of the last possible date that could qualify as an Opening Date. The Town shall then consummate the repurchase within sixty (60) days after exercising its option, and that Company shall cooperate in the execution and delivery of all documents required for the Town to repurchase the Property. Prior to conveying the Property to the Town under the foregoing sentence, the Company must satisfy any Monetary Liens, judgments, or other encombrances on the Property that did not exist as of the effective date of the acquisition of the Property by Company. The Town may record a memorandum of option in the Clerk's Office of the Circuit Court of Roanoke County, and any Monetary Lien, judgment, or other encumbrance applicable to the Property after the date of such recordation shall be subordinate to the option granted herein. This option also shall be memorialized in the deed conveying the Property to the Company, which shall have the same effect as the aforementioned memorandum of option. Upon the Company's satisfaction of the Targets contained in this Agreement, the Town shall execute and record an appropriate instrument terminating this repurchase option. 6 C. After the hotel opens, and provided there is no other default by the Company as of the Opening Date, the Company's failure to meet any annual Target will not constitute a default under this Agreement; provided, however, the Company will forfeit annual grant payments under Section III of this Agreement as provided below: a. If the Company: (i) fails to Maintain the required number of New Jobs as of any anniversary of the Opening Date through the Job Maintenance Performance Date; or (ii) fails to timely provide the Town and Authority with notice and evidence reasonably satisfactory to the Town and the Authority that demonstrates that the Company has Maintained the required number of New Jobs as of any anniversary of the Opening Date, which failure is not cured within thirty (30) days of written notice of such failure to the Company from either the Town or the Authority, then the annual grants under Section III of this Agreement for that year shall be reduced pro rata by the difference between the actual number of New Jobs the Company demonstrates it Maintained and the New Jobs Target. For example, if the Company demonstrates that it Maintained 5 New Jobs instead of 10 New Jobs, then the local grants under Section III of this Agreement would be reduced by 50%. The Company's failure to Maintain the required number of New Jobs shall not require the repayment of prior Local Grant payments. Following the forfeiture of any annual payment (or any prorata portion thereof) under this paragraph, annual payments will resume (or be increased to the full amount) once the Company demonstrates that it has created and Maintained the required number of New Jobs as of an ensuing anniversary of the Opening Date. b. The Company's failure to collect and remit to the Town a minimum of $100,000 in Transient Occupancy Tax Revenue annually will result in an equal reduction in the amount of annual Local Grant payments as stated in Section II of this Agreement. VI. Notices. Any notices required or permitted to be given under this Agreement shall be given in writing, and shall be deemed to be received upon receipt or refusal after mailing of same in the United States by First-Class U.S. Mail, certified, postage prepaid, or by customary commercial overnight courier (refusal shall mean return of certified mail or overnight courier package not accepted by addressee): If to Company, to: With a copy to: If to the Authority, to: ECONOMIC DEVELOPMENT AUTHORITY OF ROANOKE COUNTY, VIRGINIA 5204 Bernard Drive Room 421 Roanoke, Virginia 24018 Attn: Linwood P. Windley, Chairman With a copy to: ROANOKE COUNTY ATTORNEY'S OFFICE 5204 Bernard Drive Fourth Floor Roanoke, Virginia 24018 Attn: Peter S. Lubeck, County Attorney 7 If to the Town, to: TOWN OF VINTON, VIRGINIA 311 Pollard Street Vinton, Virginia 24179 Attn: Richard W. Peters, Jr., Town Manager With a copy to: TOWN ATTORNEY Spilman Thomas & Battle PLLC 310 First Street, Suite 1100 Roanoke, Virginia 24011 Attn: Jeremy E. Carroll The addresses set forth in this section only may be amended by sending written notice to all other parties of a change of address, without need of signed amendment to this Agreement. VII. Miscellaneous. Indemnity. The Company agrees to indemnify, defend, and hold the Authority, the Town, and their officers, directors, and employees, free and harmless for and from any and all claims, causes of action, damages or any liability of any type, including reasonable attorneys' fees, on account of any claims by or any injury or damage to any persons or property growing out of or directly or indirectly resulting or arising in any way out of any actions, omissions or activities of the Company or its agents, employees or representatives arising out of or connected in any way to any of the matters involved in this Agreement or its performance, including without limitation the Company's performance or failure to perform under the Loan Agreement, Promissory Note, Restriction Agreement, and/or Deed of Trust. Integration. This Agreement, including the documents referenced herein, constitutes the full and complete understanding of the Parties respecting its subject matter, and any prior or contemporaneous agreements or understandings, written or oral, are hereby merged into and superseded by the provisions of this Agreement. This Agreement may only be amended or supplemented by a subsequent writing of equal dignity except where expressly set forth herein. This Agreement may not be assigned by a Party without the prior written consent of the other Parties. No covenants of officials. No covenant, agreement or obligation contained in this Agreement shall be deemed to be a covenant, agreement or obligation of any present or future director, officer, employee or agent of the Authority or the Town in his or her individual capacity, and neither Town officials nor the directors of the Authority nor any officer, employee or agent thereof executing this Agreement or any related instrument shall be liable personally on this Agreement or such instrument or be subject to any personal liability or accountability by reason of the execution and delivery thereof. No director, officer, employee or agent of the Authority or the Town shall incur any personal liability with respect to any other action taken by him or her pursuant to this Agreement or the Industrial Development and Revenue Bond Act or any of the transactions contemplated hereby or thereby, provided he acts in good faith. Not a pledge of full faith and credit. Any obligation of the Town to pay, set aside, or otherwise appropriate funds for performance of this Agreement shall be construed to be subject to appropriation, and shall not be construed to be in derogation of Article VII § 10 of the Virginia Constitution. THE OBLIGATIONS OF THE AUTHORITY UNDER THIS AGREEMENT ARE NOT GENERAL OBLIGATIONS OF THE AUTHORITY BUT ARE LIMITED OBLIGATIONS PAYABLE SOLELY FROM THE REVENUES AND RECEIPTS 8 DERIVED BY THE AUTHORITY FROM THE TOWN PURSUANT TO THIS AGREEMENT. THE OBLIGATIONS OF THE AUTHORITY AND THE TOWN HEREUNDER SHALL NOT BE DEEMED TO CONSTITUTE A DEBT OR A PLEDGE OF THE FAITH AND CREDIT OF THE COMMONWEALTH OF VIRGINIA OR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE AUTHORITY AND THE TOWN. Rule of construction for dates. If any action is required to be performed, or if any notice, consent or other communication is given, on a day that is a Saturday or Sunday or a legal holiday in the Commonwealth of Virginia, such performance shall be deemed to be required, and such notice, consent or other communication shall be deemed to be given, on the first business day following such Saturday, Sunday or legal holiday. Unless otherwise specified herein, all references in this Agreement to a "day" or "days" shall refer to calendar days and not business days. Choice of law; Forum Selection. This Agreement shall be construed according to the laws of the Commonwealth of Virginia without regard to its principles of conflicts of laws. The Parties consent to exclusive venue and jurisdiction in any state court of competent jurisdiction in Roanoke County, Virginia or the United States District Court for the Western District of Virginia, Roanoke Division. Attorneys' fees. The Parties agree that, except as specifically provided in this Agreement, if any Party pursues legal action to enforce the terms of this Agreement, the American Rule shall apply and each Party shall bear its own attorneys' fees and expert costs and no fee shifting shall occur. Drafter & Severability. This Agreement has been jointly drafted by the Parties, and is to be construed as jointly drafted and not be construed against any of the Parties as the drafter. This Agreement is severable, and if any provision is found to be invalid by any court of competent jurisdiction, the remainder shall survive. The section and paragraph headings in this Agreement are for convenience of reference only and do not modify or restrict any provisions hereof and shall not be used to construe any provisions of this Agreement. Covenant of Authority. All Parties warrant that the signatories below have full authority, and have undertaken such legal actions as may be necessary to ensure such authority, to bind the entities of which they are representatives to the full extent permitted by law. Company agrees that, during the term of this Agreement, it shall not allow its existence to lapse or its authorization to transact business in the Commonwealth of Virginia to be revoked or cancelled at any time. This Agreement may be executed by facsimile, electronic or original signature of the parties and in counterparts which, assuming no modification or alteration, shall constitute an original and when taken together, shall constitute one and the same instrument. Time of the Essence. Time is of the essence of all obligations set forth herein for which a time is stated. Waiver. The failure of any Party to this Agreement to insist upon strict compliance with any term herein shall not be construed to be a waiver of that requirement. 9 No Third-Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies upon any person, other than the Parties hereto and, subject to the restrictions on assignment herein contained, their respective successors and assigns. Assignment of Agreement. Any obligation under this Agreement may be assigned to a third party with the prior written consent of all Parties and upon such terms as may be set forth in such consents. Any such assignment, however, shall not relieve the Company from any of its obligations under this Agreement. Town Attorney approval. This Agreement has been approved as to form by the Town Attorney of the Town of Vinton, Virginia. Any amendment that is not approved as to form by the Town Attorney is void and of no force and effect. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be construed to be an original and production of all of which shall not be necessary to prove the contents of this Agreement. IN WITNESS WHEREOF, see the following signatures, of even date herewith: [SIGNATURES ON FOLLOWING PAGE] 10 1TOW F VINTO4 7 I GINIA: Richard W. Peters, Jr. Town Manager Approved as to legal form: ECONOMIC DEVELOPMENT AUTHORITY OF ROANOKE COUNTY, VIRGINIA Llfnwood P. Windley Chairman Appro to legal for Peter S. Lubeck Roanoke County Attorney, as Counsel for the EDA KARA Hospitality, LLC By: 11 ASSIGNMENT AND ASSUMPTION AGREEMENT THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Assignment”), dated and effective as of March 18, 2025 (the “Assignment”), by and between KARA HOSPITALITY, LLC, a Virginia limited liability company (“Assignor”) and KARA ROANOKE, LLC, a Virginia limited liability company (“Assignee”), recites and provides as follows: RECITALS 1. Assignor is a party to that certain Local Economic Development Performance Agreement, dated November 19, 2024, by and among Assignor, the Town of Vinton, Virginia, a municipality in the Commonwealth of Virginia (“Town”), and the Economic Development Authority of Roanoke County, Virginia, a political subdivision of the Commonwealth of Virginia created under the Industrial Development and Revenue Bond Act (“Authority”), with respect to Assignor’s plans to construct and thereafter operate the Project on the Property and in return receive a Local Economic Development Incentive Grant from the Authority supported by funds to be provided to the Authority by the Town (the agreement is referred to herein as the “Performance Agreement”). 2. Subject to the terms and conditions of this Assignment, (i) Assignor wishes to assign its rights and delegate its duties under the Performance Agreement to Assignee, and (ii) Assignee wishes to receive such rights and assume such duties. 3. Capitalized terms that are not defined in this Assignment have the meanings given to them in the Performance Agreement. NOW, THEREFORE, for good and valuable consideration and in consideration of the mutual covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: AGREEMENTS 1. Assignment and Assumption. Assignor hereby assigns all its rights under the Performance Agreement to Assignee, and Assignor hereby delegates all its duties and obligations under the Performance Agreement to Assignee. Subject to the terms of this Assignment, Assignee hereby accepts the assignment and hereby assumes responsibility for all duties and obligations of Assignor under the Performance Agreement. 2. No Amendment. Nothing in this Assignment shall be construed as amending or modifying any of the terms or provisions of the Performance Agreement. 3. Consent. The Town and the Authority execute this Assignment solely for the purpose of consenting to the assignment and assumption contained herein and for no other purpose. 4. Miscellaneous. Electronic signatures shall be as effective as original signatures for the purpose of executing this Assignment. This Assignment shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and permitted assigns. This Assignment may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute but one and the same instrument. This Assignment and the rights and remedies of the parties hereto shall be governed by the laws of the Commonwealth of Virginia. This Assignment, including the recitals, constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes any prior or contemporaneous, written or oral understandings and agreements among the parties hereto. This Assignment may not be modified orally, through course of performance, or in any manner other than by agreement in writing, signed by each of the parties hereto. [SIGNATURES ON FOLLOWING PAGE] WITNESS the following signatures to the Assignment and Assumption Agreement as of the date first above written. ASSIGNOR: KARA Hospitality, LLC, a Virginia limited liability By: __________________________________ Mitesh Amin, Manager ASSIGNEE: KARA Roanoke, LLC, a Virginia limited liability company By: ___________________________________ Mitesh Amin, Manager CONSENT BY TOWN OF VINTON, VIRGINIA: Town of Vinton, Virginia, as a party to the aforementioned Performance Agreement, hereby accepts and consents to the assignment of the Performance Agreement set forth above. Town of Vinton, Virginia, a municipality in the Commonwealth of Virginia By:_____________________________________ Richard W. Peters, Jr., Town Manager CONSENT BY ECONOMIC DEVELOPMENT AUTHORITY OF ROANOKE COUNTY, VIRGINIA: Economic Development Authority of Roanoke County, Virginia, as a party to the aforementioned Performance Agreement, hereby accepts and consents to the assignment of the Performance Agreement set forth above. Economic Development Authority of Roanoke, Virginia, a political subdivision of the Commonwealth of Virginia By:____________________________________ Linwood P. Windley, Chairman {00459840.DOCX } 1 FIRST AMENDMENT TO LOCAL ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT This First Amendment to Local Economic Development Performance Agreement (“Amendment”) is made and entered into this ___ day of April, 2025, by and among the Town of Vinton, Virginia, a municipality in the Commonwealth of Virginia (“Town”), the Economic Development Authority of Roanoke County, Virginia, a political subdivision of the Commonwealth of Virginia created under the Industrial Development and Revenue Bond Act (“Authority”), and KARA Roanoke, LLC, a Virginia Limited Liability Company (“Company”). Collectively, the Town, Authority, and Company may be referred to herein as the “Parties.” RECITALS: WHEREAS, the Town, the Authority, and KARA Hospitality, LLC previously entered into a Local Economic Development Performance Agreement dated November 19, 2024 (“Performance Agreement”), concerning the development of a limited service extended stay hotel for a nationally-recognized brand, with approximately 92 rooms and related improvements (“Project”), which Project is to be constructed on that certain real property located in the Town of Vinton, County of Roanoke, Virginia, and identified as Roanoke County Tax Map Parcels 060.15-06-38.00-0000, 060.15-06-39.00-0000, 060.15- 06-40.00-0000, 060.15-06-41.00-0000, 060.15-06-42.00-0000 and 060.15-06-43.00- 0000 (collectively, “Property”) and WHEREAS, KARA Hospitality, LLC previously assigned its rights and delegated its duties and obligations under the Performance Agreement to the Company, with the consent of the Town and the Authority; and WHEREAS, the Parties desire to expand the scope of the Project to include that certain real property located at the intersection of 1st Street and West Virginia Avenue in the Town, which parcel is identified as Roanoke County Tax Map Parcel 060.15-06-44.00- 0000 (“New Parcel”), which New Parcel the Company acquired for the purchase price of $475,000; and WHEREAS, the inclusion of the New Parcel in the Project will enhance the Project, including its ability to improve the gateway aesthetics of the surrounding area, act as a catalyst for economic development, and provide additional tax revenue, employment opportunities, and contributions to the area’s vitality; and WHEREAS, the Parties desire to amend the Performance Agreement to (i) add the New Parcel to the Property to be used for the Project and (ii) increase the amount of the Local Economic Development Incentive Grant (“Local Grant”) by the amount of the purchase price for the New Parcel; and WHEREAS, the Town is willing to provide additional funds to increase the amount of the Local Grant to be paid to the Company by the amount of the purchase price for the {00459840.DOCX } 2 New Parcel for the purpose of inducing the Company to construct the Project, thereby directly and indirectly making a significant Capital Investment in the Town, creating and maintaining a significant number of New Jobs in the Town, and generating Transient Occupancy Tax in the Town; provided, however, the Company must comply with all of its duties and obligations under the Performance Agreement, including without limitation achieving and Maintaining the Targets as required in the Performance Agreement; and WHEREAS, the stimulation of additional tax revenue and economic activity to be generated by the Capital Investment, New Jobs, and Transient Occupancy Tax Revenue constitute valid public purposes for the expenditure of public funds and is the animating purpose for the increase in the amount of the Local Economic Development Incentive Grant. WITNESSETH: NOW THEREFORE, in consideration of the foregoing premises, the mutual benefits, promises, and undertakings of the Parties to this Amendment as set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties amend the Performance Agreement as follows: I. Capitalized Terms. Capitalized terms that are not defined in this Amendment shall have the meanings given to them in the Performance Agreement. II. Property. The term Property, which was defined in the Recitals of the Performance Agreement, is amended to add the New Parcel (Tax Map Parcel 060.15-06-44.00-0000) in addition to the six parcels that previously comprised the Property (Tax Map Parcels 060.15-06-38.00-0000, 060.15-06-39.00-0000, 060.15-06-40.00-0000, 060.15-06-41.00- 0000, 060.15-06-42.00-0000 and 060.15-06-43.00-0000). III. Local Grant. Section III, Local Grant, of the Performance Agreement is amended to add Subsection C as follows: C. Additional Local Grant. Subject at all times and in all respects to the terms and conditions contained in the Performance Agreement, including without limitation terms and conditions concerning the Company’s obligation to achieve and Maintain Targets and terms and conditions concerning the payment and use of Local Grant proceeds, the Town shall pay additional Local Grant proceeds, as reimbursement for the purchase price for the New Parcel, as follows: {00459840.DOCX } 3 1. Within thirty (30) days following the Opening Date, the Town shall pay $200,000 to the Authority as part of the Local Grant. 2. Within thirteen (13) months following the Opening Date, the Town shall pay $137,500 to the Authority as part of the Local Grant. 3. Within twenty-five (25) months following the Opening Date, the Town shall pay $137,500 to the Authority as part of the Local Grant. 4. Within 30 days of its receipt of any of the foregoing Local Grant proceeds from the Town, the Authority will disburse such Local Grant proceeds to the Company. IV. No Further Amendment. Except as expressly stated herein, this Amendment shall not be construed as amending or modifying any of the terms or provisions of the Performance Agreement, which shall remain in full force and effect. V. Miscellaneous. Electronic signatures shall be as effective as original signatures for the purpose of executing this Amendment. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and permitted assigns. This Amendment may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute but one and the same instrument. This Amendment and the rights and remedies of the parties hereto shall be governed by the laws of the Commonwealth of Virginia. This Amendment, including the recitals hereto, constitutes the entire understanding between the Parties with respect to the subject matter hereof and supersedes any prior or contemporaneous, written or oral understandings and agreements among the Parties hereto. This Amendment may not be modified orally, through course of performance, or in any manner other than by agreement in writing, signed by each of the Parties hereto. IN WITNESS WHEREOF, see the following signatures, of even date herewith: [SIGNATURES ON FOLLOWING PAGE] {00459840.DOCX } 4 TOWN OF VINTON, VIRGINIA: Richard W. Peters, Jr. Town Manager Approved as to legal form: _____ Jeremy E. Carroll Town Attorney ECONOMIC DEVELOPMENT AUTHORITY OF ROANOKE COUNTY, VIRGINIA Chairman Approved as to legal form: ________________________________ Peter S. Lubeck Roanoke County Attorney, as Counsel for the EDA KARA ROANOKE, LLC By: Mitesh Amin, Manager RESOLUTION NO. AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESDAY, MARCH 18, 2025 AT 6:00 PM IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA 24179. A RESOLUTION (1) APPROVING THE ASSIGNMENT AND ASSUMPTION AGREEMENT BETWEEN KARA HOSPITALITY, LLC AND KARA ROANOKE, LLC CONCERNING THE LOCAL ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT AMONG THE TOWN, THE ROANOKE COUNTY ECONOMIC DEVELOPMENT AUTHORITY, AND KARA HOSPITALITY, LLC; (2) APPROVING THE FIRST AMENDMENT TO THE LOCAL ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT WHICH INCREASES THE SCOPE OF THE PROJECT AND THE AMOUNT OF THE LOCAL GRANT SUPPORTING THE PROJECT; AND (3) AUTHORIZING THE TOWN MANAGER TO EXECUTE AND DELIVER THE FOREGOING DOCUMENTS, AS WELL AS SUCH OTHER DOCUMENTS AS MAY BE REASONABLY NECESSARY TO CARRY OUT THE PURPOSES OF THIS RESOLUTION. WHEREAS, the Town of Vinton, Virginia (the "Town") entered into a Local Economic Development Performance Agreement dated November 19, 2024 (the "Performance Agreement") with KARA Hospitality, LLC ("Assignor") and the Economic Development Authority of Roanoke County, Virginia (the "Authority"); and WHEREAS, the Performance Agreement provides for Town support of Assignor’s planned construction and operation of an extended stay hotel project on six parcels of Town- owned property near the intersections of Cedar Avenue, 1st Street, South Pollard Street, and Virginia Avenue in the form of a Local Economic Development Incentive Grant, which grant will be funded by the Town and administered by the Authority; and WHEREAS, Assignor wishes to assign all its rights and delegate all of its duties and obligations under the Performance Agreement to KARA Roanoke, LLC ("Assignee") through an Assignment and Assumption Agreement dated March 18, 2025 (the "Assignment Agreement"); and WHEREAS, Assignee has agreed to assume all responsibilities, duties, and obligations under the Performance Agreement, ensuring continued compliance with its terms; and WHEREAS, the Authority has already authorized its consent to the assignment and assumption; and WHEREAS, the Town’s consent to this Assignment and Assumption Agreement also is required; and WHEREAS, the Assignee/Buyer has acquired a seventh parcel near the intersection of 1st Street and West Virginia Avenue for a purchase price of $450,000, and it plans to include the seventh parcel in the hotel project; and WHEREAS, the parties desire to amend the Performance Agreement to include the seventh parcel among the parcels that are to be used for the hotel project under the terms and conditions of the Performance Agreement and to increase the amount of the local grant under the Performance Agreement by the amount of the purchase price for the seventh parcel; and WHEREAS, the Town Council has reviewed the terms of the Assignment and Assumption Agreement and the First Amendment to Local Economic Development Performance Agreement and finds it to be in the best interest of the Town to approve both the Assignment and Assumption Agreement and the First Amendment to Local Economic Development Performance Agreement. NOW, THEREFORE, BE IT RESOLVED, BY THE COUNCIL OF THE TOWN OF VINTON, VIRGINIA, AS FOLLOWS: 1. The Assignment and Assumption Agreement is hereby approved in a form substantially similar to the one presented to Council at this meeting, with such additions, deletions, and revisions as the Town Manager may deem reasonable and appropriate with the consent of the Town Attorney; and 2. The First Amendment to Local Economic Development Performance Agreement is hereby approved in a form substantially similar to the one presented to Council at this meeting, with such additions, deletions, and revisions as the Town Manager may deem reasonable and appropriate with the consent of the Town Attorney; and 3. The Town Manager is authorized and directed, for and on behalf of the Town, to execute and then to deliver to KARA Roanoke, LLC and the Economic Development Authority of Roanoke County, Virginia the Assignment and Assumption Agreement and the First Amendment to Local Economic Development Performance Agreement, each in a form substantially similar to what was presented to Council at this meeting, with such additions, deletions, and revisions as the Town Manager may deem reasonable and appropriate with the consent of the Town Attorney; and 4. The Town Manager is authorized and directed to take all such other acts, including the execution and delivery of other documents, as he may deem reasonably necessary to carry out the purposes of this Resolution. This Resolution was adopted on motion made by Council Member ____________, seconded by Council Member _________________, with the following votes recorded: AYES: NAYS: APPROVED: ______________________________ Bradley E. Grose, Mayor ATTEST: _________________________________ Antonia Arias-Magallon, Town Clerk Meeting Date March 18, 2025 Department Administration Issue Consider the adoption of a Resolution authorizing the Town Manager to execute an Assignment and First Amendment to Contract of Sale among the Town, KARA Hospitality, LLC, and KARA Roanoke, LLC. Summary The Sales Contract at issue relates to the six Town-owned properties that are proposed for development into an extended stay hotel in the vicinity of the intersection of Virginia Avenue and South Pollard Street. This Assignment and First Amendment to Contract of Sale, effective March 18, 2025, achieves two objectives. First, it assigns the rights and delegates the duties and obligations of KARA Hospitality, LLC under the Sales Contract to KARA Roanoke, LLC. Following the assignment, the Sales Contract will be between the Town of Vinton, Virginia, as the Seller, and KARA Roanoke, LLC, as the Buyer. Second, it amends the Sales Contract to remove the requirement that KARA Roanoke, LLC simultaneously close on its construction loan and the purchase of the six Town-owned properties. Instead, the Buyer must demonstrate a term sheet or commitment letter from its construction loan lender. Attachments Sales Contract Assignment and First Amendment of Sales Contract Resolution Recommendations Motion to adopt Resolution Town Council Agenda Summary CONTRACT OF SALE THIS CONTRACT OF SALE ("Contract"), made this 19th day of November 2024, by and between the Town of Vinton, Virginia, a municipality in the Commonwealth of Virginia ("Seller"), and the KARA Hospitality, LLC, a Virginia Limited Liability Company ("Buyer"). WITNESSETH: WHEREAS, Buyer desires to purchase from Seller the following six parcels of land located within and adjacent to the intersection of South Pollard Street, Cedar Ave and 1stStreet in the Town of Vinton ("Property"): Property Addresses: 0 Cedar Avenue, Vinton, VA 24179 0 Cedar Avenue, Vinton, VA 24179 35 Cedar Avenue, Vinton, VA 24179 509 South Pollard Street, Vinton, VA 24179 0 South Pollard Street, Vinton, VA 24179 537 South Pollard Street, Vinton, VA 24179 Property Parcel IDs: Roanoke County: 060.15-06-38.00-0000 Roanoke County: 060.15-06-39.00-0000 Roanoke County: 060.15-06-40.00-0000 Roanoke County: 060.15-06-41.00-0000 Roanoke County: 060.15-06-42.00-0000 Roanoke County: 060.15-06-43.00-0000 and WHEREAS, Buyer intends to develop a limited service extended stay hotel with 92 rooms on the Property ("Project"); and WHEREAS, Seller proposes to discontinue, vacate, and/or abandon a portion of the block of Pt Street between Virginia Avenue and Cedar Avenue ("Partially Vacated Street") and deed the Partially Vacated Street to the Buyer for the Project, provided such discontinuance, vacation, and abandonment shall, in all respects, be subject to the requirements of applicable state law and the required discretionary approvals of the Town Council of the Town of Vinton and any required third parties; and WHEREAS, Seller desires to sell the Property to Buyer, provided Buyer agrees to be bound by a mutually-agreeable Performance Agreement concerning the development of the Project. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the Buyer and Seller agree as follows: 1 L. Nothing in this Contract, express or implied, is intended to confer any rights or remedies upon any person, other than the parties hereto and, subject to the restrictions on assignment herein contained, their respective successors and assigns. WITNESS the following signatures and seals as of the date first above written: SELLER: TOWN OF VINTON BUYER: / / DATE 2/25/2025 KARA HOSPITALITY, LLC DATE Approved as to for 7 ASSIGNMENT AND FIRST AMENDMENT TO CONTRACT OF SALE THIS ASSIGNMENT AND FIRST AMENDMENT TO CONTRACT OF SALE, dated and effective as of March 18, 2025 (the “Amendment”), by and among TOWN OF VINTON, VIRGINA, a municipality in the Commonwealth of Virginia (“Seller”), KARA HOSPITALITY, LLC, a Virginia limited liability company (“Buyer”) and KARA ROANOKE, LLC, a Virginia limited liability company (“Assignee”), recites and provides as follows: RECITALS 1. Seller and Buyer are parties to that certain Contract of Sale, dated November 19, 2024, with respect to the purchase and sale of certain property located in the County of Roanoke, Virginia, identified as Tax Map Parcels 060.15-06-38.00-0000, 060.15-06-39.00-0000, 060.15-06- 40.00-0000, 060.15-06-41.00-0000, 060.15-06-42.00-0000 and 060.15-06-43.00-0000 (the “Property”) (the contract is referred to herein as the “Sales Contract”). 2. Subject to the terms and conditions of the Sales Contract and this Amendment, (i) Buyer wishes to assign its rights and delegate its duties and obligations under the Sales Contract to Assignee, (ii) Assignee wishes to receive such rights and assume such duties, and (iii) Seller consents to such assignment and assumption. 3. The parties also desire to amend the terms of the Sales Contract as set forth herein. 4. Capitalized terms that are not defined in this Amendment have the meanings given to them in the Sales Contract. NOW, THEREFORE, for good and valuable consideration and in consideration of the mutual covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: AGREEMENTS 1. Assignment and Assumption. Buyer hereby assigns all its rights under the Sales Contract to Assignee, and Buyer hereby delegates all its duties and obligations under the Sales Contract to Assignee. Subject to the terms of the Sales Contract and this Amendment, Assignee hereby accepts the assignment and hereby assumes responsibility for all duties and obligations of Buyer under the Sales Contract. In connection with this assignment and assumption, Assignee shall reimburse Buyer for its $10.00 deposit paid to, and held by, Old Republic National Title Insurance Company, in accordance with the terms of the Sales Contract, and Assignee shall hereafter be entitled to the benefits of such deposit concerning the Sales Contract and the Property. 2. Consent. Seller consents to the assignment and assumption provisions set forth in Section 1 of this Amendment. 3. Amendment. The provisions of Section 5 (B)(v) of the Sales Contract shall be amended to delete and replace said provisions with the following: “During the Due Diligence Period, Buyer shall obtain and execute a written term sheet or commitment letter from its construction loan lender and shall provide an executed copy of same to Seller prior to Closing, and Buyer shall, thereafter, proceed to closing on the construction loan as soon as practicable following Closing.” 4. Miscellaneous. Electronic signatures shall be as effective as original signatures for the purpose of executing this Amendment. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and permitted assigns. This Amendment may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute but one and the same instrument. This Amendment and the rights and remedies of the parties hereto shall be governed by the laws of the Commonwealth of Virginia. This Amendment, including the recitals hereto, constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes any prior or contemporaneous, written or oral understandings and agreements among the parties hereto. This Amendment may not be modified orally, through course of performance, or in any manner other than by agreement in writing, signed by each of the parties hereto. INTENTIONALLY BLANK SIGNATURE PAGE FOLLOWS WITNESS the following signatures to the Assignment and First Amendment to Contract of Sale as of the date first above written. SELLER: Town of Vinton, Virginia, a municipality in the Commonwealth of Virginia By: __________________________________ Richard W. Peters, Town Manager BUYER: KARA Hospitality, LLC, a Virginia limited liability company By: __________________________________ Mitesh Amin, Manager ASSIGNEE: KARA Roanoke, LLC, a Virginia limited liability company By: ___________________________________ Mitesh Amin, Manager Approved as to legal form: By:____________________________________ Jeremy E. Carroll, Town Attorney RESOLUTION NO. AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESDAY, MARCH 18, 2025 AT 6:00 PM IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA 24179. A RESOLUTION APPROVING THE ASSIGNMENT AND FIRST AMENDMENT TO CONTRACT OF SALE AMONG THE TOWN OF VINTON, KARA HOSPITALITY, LLC, AND KARA ROANOKE, LLC, AND AUTHORIZING THE TOWN MANAGER TO EXECUTE AND DELIVER THE ASSIGNMENT AND FIRST AMENDMENT AS WELL AS ALL OTHER DOCUMENTS REASONABLY NECESSARY TO CARRY OUT THE PURPOSES OF THIS RESOLUTION. WHEREAS, the Town of Vinton, Virginia (the "Town") entered into a Contract of Sale dated November 19, 2024 (the "Sales Contract") with KARA Hospitality, LLC ("Assignor") for the purchase and sale of certain property located in the County of Roanoke, Virginia, identified as Tax Map Parcels 060.15-06-38.00-0000, 060.15- 06-39.00-0000, 060.15-06-40.00-0000, 060.15-06-41.00-0000, 060.15-06-42.00- 0000, and 060.15-06-43.00-0000 (the "Property"); and WHEREAS, Assignor wishes to assign all its rights and delegate all its duties, and obligations under the Sales Contract to KARA Roanoke, LLC ("Assignee") through an Assignment and First Amendment to Sales Contract dated March 18, 2025 (the "Assignment Agreement”); and WHEREAS, the Town must consent to the assignment, and it is willing to do so; and WHEREAS, the Town and Assignee/Buyer also desire to amend the Sales Contract to remove the requirement that Assignee/Buyer simultaneously close on its construction loan and the purchase of the six Town-owned properties and, instead, will require Assignee/Buyer to demonstrate a term sheet or commitment letter from its construction loan lender at the time it closes on the purchase of the Property; and WHEREAS, the Town Council has reviewed the terms of the Assignment and First Amendment to the Sales Contract and finds it to be in the best interest of the Town to approve the transfer of rights, duties, and obligations to Assignee and, thereafter, to amend the Sales Contract as stated herein. NOW, THEREFORE, BE IT RESOLVED, BY THE COUNCIL OF THE TOWN OF VINTON, VIRGINIA, AS FOLLOWS: 1. The Assignment and First Amendment to Contract of Sale is approved in a form substantially similar to the one presented to Council at this meeting, with such additions, deletions, and revisions as the Town Manager may deem reasonable and appropriate with the consent of the Town Attorney; and 2. The Town Manager is authorized and directed, for and on behalf of the Town, to execute and then to deliver to KARA Roanoke, LLC the Assignment and First Amendment to Sales Contract in a form substantially similar to the one presented to Council at this meeting, with such additions, deletions, and revisions as the Town Manager may deem reasonable and appropriate with the consent of the Town Attorney; and 3. The Town Manager is authorized and directed to take all such other acts, including the execution and delivery of other documents, as he may deem reasonably necessary to carry out the purposes of this Resolution. This Resolution was adopted on motion made by Council Member ____________, seconded by Council Member _________________, with the following votes recorded: AYES: NAYS: APPROVED: ______________________________ Bradley E. Grose, Mayor ATTEST: _________________________________ Antonia Arias-Magallon, Town Clerk Meeting Date March 18, 2025 Department Finance/Treasurer Issue Consider adoption of a Resolution allowing the Town Treasurer and Finance Director to remove outstanding Personal Property delinquent taxes and Vehicle License Fees over five years old from the active records to a permanent file. Summary According to State Code Section 58.1-3940, collection of local taxes is only enforceable for five years following December 31 of the year for which such taxes were assessed. All efforts were made by the Treasurer’s Office to collect the delinquent taxes, including reporting them to the State Debt Set-Off Program. Attachments Resolution Recommendations Motion to adopt Resolution Town Council Agenda Summary RESOLUTION NO. AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESDAY, MARCH 18, 2025, AT 6:00 PM IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA WHEREAS, the Town of Vinton is maintaining records of outstanding Personal Property delinquent taxes for 2019 in the amount of $7,966.92; and WHEREAS, the Town of Vinton is maintaining records of outstanding Vehicle License Fees for 2019 in the amount of $16,239.61; and WHEREAS, the personal property taxes and vehicle license fees are over five years old and collection is no longer enforceable by Section 58.1-3940, of the 1950 Code of Virginia as amended; and WHEREAS, the Treasurer’s Office/Finance Department has made all efforts to collect on these balances and has turned them over to collections and the State of Virginia Debt Set- Off Program. NOW, THEREFORE, BE IT RESOLVED that the Vinton Town Council does hereby direct the Treasurer/Finance Director to have the outstanding accounts removed from the active records and placed in a permanent file where, if the opportunity arises, the accounts may be collected. This Resolution was adopted on motion made by Council Member ____________________ and seconded by Council Member ____________________, with the following votes recorded: AYES: NAYS: APPROVED: ___________________________________ Bradley E. Grose, Mayor ATTEST: ____________________________________ Antonia Arias-Magallon, Town Clerk