OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Hampton City Council Work Session – February 11, 2026

City CouncilWednesday, February 11, 2026
BodyHampton, Virginia
SessionCity Council
DateWednesday, February 11, 2026
StatusFILED
Video Record

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Transcript — Verbatim
0:44

Good afternoon and welcome to the uh Hampton City Council work session.

0:48

Uh, Madam Clerk, will you call a roll, please?

0:50

Councilman Bowman, Vice Mayor Brown, President.

0:54

Councilwoman Campbell, present, Councilwoman Fairby, present.

0:57

Councilwoman Harper, present, Councilwoman Muggler, present, Mayor Gray.

1:01

President, and we have several presentations on the agenda for this afternoon, so I'm going to turn it over to the city manager to introduce the first.

1:10

Thank you, Mr.

1:10

Mayor.

1:11

As you and the council members know, uh sometime, I forget exactly when, last fall, we talked about the possibility of adopting a camping and storage ordinance to deal with some of the problems that neighbors, uh neighborhood residents as well as businesses had expressed about people camping out on public right-of-ways and causing problems in front of their businesses or residences.

1:35

When we looked at that ordinance, it was misperceived by the public as an attempt to penalize the homeless, which all of us very clearly did not want to do.

1:45

And so the decision by council was made to postpone consideration on that ordinance, get together a stakeholder group, which would include people who spoke before council at the public hearing as well as other interested stakeholders to see if they might be able to come up with a consensus recommendation on how we dealt with the legitimate concerns of residents and businesses, but also reflected our caring, compassionate spirit as Hamptonians and you know made sure that people didn't think we were trying to penalize the homeless.

2:15

So for several months, um, all right, we've had a group that has met, and I'm very pleased to say that they came to a consensus, uh, which will be presented to you today by J uh Jason Mitchell, assistant city manager.

2:28

Um we have several members of the group in the attendance as well, and after he completes the report, if they have anything they'd like to say, I hope you will allow them to do so, because they did put in a lot of really hard work.

2:38

And um, it's I think it's fair to say that we started off thinking we wouldn't be able to get consensus potentially, and I'm very proud that the group really worked to understand each other and to understand the very serious issues that brought us to the point, but also what we can do to help people who are unfortunately unhoused in our community.

2:57

So what you're gonna see is a report that talks both about the ordinance, but also because we wanted to validate the other conversation we heard, some next steps as we address a broader issue of homelessness in our community and our region.

3:10

With that, I'm pleased to introduce Assistant City Manager Jason Mitchell.

3:14

So good afternoon, Mayor Gray, Vice Mayor Brown, members of council, City Manager Bunting, and City Attorney Sid Noorr.

3:20

Um as the city manager indicated, I have a brief report today about our camping and storage ordinance uh related to our stakeholder group.

3:28

I'll start with a little bit of background as our camping and storage ordinance was introduced last year to address problematic behaviors occurring in the city right-of-ways, specifically in front of businesses and neighborhood properties.

3:39

The original ordinance proposed a misdemeanor one penalty for individuals and or groups that would not leave the right-of-way after being asked to do so.

3:47

The ordinance was labeled by many outside of government, local government, as a homeless ordinance, although the ordinance did not specify or apply to homeless individuals.

3:59

There was a widespread concern that the ordinance sought to criminalize homelessness, which it did not.

4:04

Council and staff believe that there is potentially ways to address the legitimate concerns of businesses and homeowners while also addressing the problems which lead to the original draft ordinance.

4:15

A stakeholder committee made up of residents and business owners that had both supported and objected the initial ordinance was convened.

4:24

With the primary question of how might we address public concerns about safety and cleanliness while upholding the dignity and rights of people experiencing homelessness.

4:35

Sir, our goal.

5:03

Through this process, we aim to surface insight, build empathy, and generate viable recommendations that respect human dignity, address public concern, and align with Hampton's values as a compassionate city.

5:17

To frame the problem, public discomfort and safety concerns related to behaviors associated with individuals perceived to be homeless, such as public urination, nudity, obstruction of the right-of-way, have prompted a proposed ordinance aimed at addressing these many issues.

5:34

While the intent is not to criminalize homelessness, the approach must be carefully considered to avoid unintended consequences that could further marginalize vulnerable individuals.

5:45

Our challenge is to develop a community-informed, compassionate and effective response that upholds public dignity, health, and safety while advancing solutions that reflect on our shared values of work of all residents.

6:00

So we had several design steps.

6:03

Small groups were shared, concerns and generated ideas for amending the camping and storage ordinance to develop practical, compassionate solutions grounded in real-life experiences and community input.

6:16

Aligned on the term camping and storage ordinance, which helped clarify the conversation, scope, and shift of the narrative away from the broader homelessness debates toward this specific policy at hand.

6:27

And then lastly, work on changing the affirmed the importance of having a camping ordinance while shifting the tone toward more balanced and compassionate approaches.

6:36

So the next several slides are talking about our recommendations, and we'll start with the proper tone and framing, as any ordinance should reflect a service-first approach rather than an enforcement first approach.

6:48

We aim to lead with care and compassion, not punishment for any individual.

6:53

Our second recommendation is to clarify the intent as compassionate compliance, protect the community while never giving up on any of these individuals.

7:02

Most people will accept housing when it's safe, dignified and appropriate.

7:07

A small number of repeated customers refuse to help because they are deeply traumatized.

7:13

For this group, the answer is not simply tolerance nor self-simple enforcement.

7:18

It requires balanced strategies.

7:20

We will pair persistent outreach with a variety of housing options and insist that public spaces remain safe and usable.

7:28

When someone's behavior is dangerous or disruptive, we will address that behavior directly through outreach co-responder teams and our community court programs if that can be worked out.

7:39

No one has the right to endanger others and no one should be abandoned.

7:44

Our third recommendation is the review whether or not our goals can be accomplished through a city policy versus a city ordinance.

7:51

Other cities, most recently, the City of Newport News has adopted policies that attempt to achieve the same goals.

7:57

This is the preferred approach.

7:59

However, if our city attorney's office determines such a policy would not allow us to enforce it, then additional ordinance adoption may be needed.

8:08

Our fourth recommendation is to suggest changes to the ordinance.

8:12

That would incorporate language that makes clear that law enforcement shall prioritize voluntary compliance and relocation to lawful areas and/or shelter.

8:21

If enforcement is needed, because voluntary compliance is not achieved, the following steps would be taken.

8:27

It's the notification of prohibition, offer of service to these customers, and in coordination with outreach workers to offer services and alternatives for sleeping locations when available.

8:40

And then the last recommendation is suggested changes to the ordinance continued would be changes of the penalty for non-compliance from a misdemeanor one to a misdemeanor four for the first violation and then a misdemeanor two for subsequent violations, as the misdemeanor four does not have any potential jail time or implication.

9:00

However, the misdemeanor two does have the potential for jail time, but also a means for these individuals to get support from public defenders and our the behavioral health docket for their support and help.

9:12

And then lastly, the last recommendation is to ensure support for emergency sheltering, continue to develop transitional and our permanent supportive housing options.

9:22

Add funding for temporary hotel stays, as we did during the COVID pandemic.

9:26

For those individuals willing to accept support while year-round sheltering andor transitional or permanent housing projects, such as converted hotels or the tiny home communities projects are explored and developed.

9:38

And that's Mayor, that's the last slide for this presentation, but I would like to acknowledge we do have many of the experts in the audience's manager Bunting indicated, uh, Chief Wideman from the Hampton Police Department, um, Dr.

9:51

Porter from Human Services, uh, Demi Callou from our I team, and several other members that may be able to answer any questions council has.

10:00

Okay.

10:01

Um questions for uh sister city manager.

10:06

Okay.

10:07

Oh, sorry, Vice Mayor Moran.

10:09

Yeah, thank you, Jason, and and to members of the committee.

10:12

I know this has been a difficult task when we first began to talk about this.

10:17

There were people on both sides of this and very passionate about it.

10:21

But to be able to bring a group together uh to come up with a consensus uh that uh we know everybody's not gonna be happy with it, uh, but it's a it's a product uh that we can uh all support and hopefully um uh as we shape it and add more to it as things happen or occur, uh it'll be um well worth the time spent.

10:47

So I want to thank the committee.

10:48

The the only thing I had in in your uh suggestion number four, I just thought about this this morning.

10:53

I maybe shared it with uh vice uh with the mayor and familiar last night in a meeting.

10:59

Uh your last sense of misdemeanor two.

11:04

Uh misdemeanor two does have the potential for jail time, but also means individual would get support of public defendants access to behavior health docket.

11:13

I would like to suggest or other supportive services to that statement because everybody may not qualify for behavior health or knee behavior health services.

11:23

So supportive services would be something I would suggest you put in the document.

11:27

Absolutely.

11:27

Yeah, but outstanding work to your committee.

11:29

Thank you.

11:34

I was just gonna say if if you don't mind, and I don't want to put anyone on the spot, but since we have committee members who came, if they did want to share anything about their experience or their thoughts, I I they they put a lot of time and energy into it, and so if you wouldn't mind, we did the presentation on their behalf at the request.

11:50

But um, since we had people who came, if they would like to speak, if that's okay with you.

11:54

That's fine with me, and I would especially like to hear from Miss Cipriano since I know she's been working in this uh homelessness space for many, many, many, many years.

12:02

And uh, you know, to have uh I'm sure she you know gave some wise in uh counseling input uh you know, based on her experience there.

12:11

So, but Miss Cipriano or any other member of the uh stakeholder group.

12:17

Well I'll tell you what, nobody's jumping.

12:19

Let's ask all the members of the stakeholder group to please stand so we can recognize you.

12:23

How about that?

12:24

Let's start with that.

12:31

And again, I didn't tell them they would have to speak or anything like that.

12:34

I just thought since they came, if they wanted to say something, it would be nice to honor them.

12:38

But if they don't if they feel like we represented their work accurately, that's fine too.

12:42

Okay.

12:42

Any any comments from the stakeholder group?

12:47

Okay.

12:48

Well, I uh echo uh Vice Mayor's uh comments that uh you know it I'm sure it took a lot.

12:54

I know you were miles apart initially, but you know, decided to continue to meet uh because this is an important issue in our community that we're trying to address uh and and you know we're we're looking at numerous strategies for addressing homelessness.

13:10

This is just one of them which you know addresses those people who uh sleeping out on the street, sleeping in public spaces.

13:17

But we know I think we all want to make sure that we can possibly get them the uh assistant assistance that they need to uh you know at least come out the streets and into a better situation.

13:28

So any other questions from council members.

13:30

Councilwoman Mugner.

13:31

Thank you, Mr.

13:31

Mayor.

13:32

Just a quick question.

13:33

Um we this is thank you for the presentations, Mr.

13:38

Mitchell, and um and thank you to the uh the stakeholder group that put in all the time and effort to to formulate what we hope will be a a more perfect uh ordinance, um, which brings me to the word ordinance.

13:53

We have this presentation, but so our next step is that the city attorney's office will draft an ordinance based upon these recommendations, and it will come back to us.

14:03

What's the timing?

14:05

So uh our intention was to see how you all receive the report, and if you're comfortable with the recommendations, I will say you know, the first thing that first recommendation was to confirm whether or not we actually needed the ordinance or if a policy would suffice.

14:18

Umce that came uh to us last week, uh the city attorney's office has confirmed that for us to implement we would we don't have all the same authorities on the books that Newport News perceives, and also um that I don't want to talk about the ordinance, but we we they do believe we need that ordinance.

14:38

Um and so if you are comfortable proceeding now that you have a stakeholder report, the city attorney's office would draft the ordinance in accordance with the language suggestions and changes and violation codes, the first step being the misdemeanor for that it has no jail time whatsoever, and then the two as a subsequent um offense if someone continues to cause the problems.

15:02

And do you want to iterate those steps that come before even a summons, which is the outreach work and for the benefit of the public, we already do outreach work for people, and we continue to do it.

15:13

Some people respond to that immediately.

15:15

Some people, I think we were talking about a case where we finally CSB and social services got success after what was it, 18 months.

15:21

I think I'm quoting correctly.

15:23

So we never give up on anybody.

15:25

Um, and that that's what we wanted to convey.

15:28

You know, that the group wanted to convey that before any of this happens, we will have outreach and efforts for voluntary compliance.

15:38

Um, and so we need to get that language actually written into the order.

15:42

So I think the attorney's office could probably do that rather quickly, and we could put it on, say, a March agenda if that was acceptable to you all.

15:50

But we want to make sure that you all were comfortable, didn't have any other uh questions or concerns, or if you had things you wanted to send back to the committee for consideration.

15:59

So really the next step is dependent upon you all.

16:03

But that would be ultimately an ordinance is needed and has been confirmed by the city attorney's office.

16:10

Mr.

16:10

Mayor, if I might just respond to that.

16:13

I'm sorry.

16:14

May I just respond to the manager's response?

16:17

Um thank you, Manager Bunting.

16:20

Um, and I uh and I'll just stay say I'm I'm happy with the report and I do like the direction that the committee um is is sharing with us.

16:31

I obviously, you know, we want to see the ordinance and I'll hold my final position on it until we get a document, but I think we're headed in the right direction with this.

16:44

And just just for clarification, when we talk about this ordinance, as I remember the way it was written, this applies to anyone who would be sleeping on public sidewalks or streets and not just someone who's homeless.

16:57

Correct.

16:58

And we have had instances uh, albeit rare, where we've would have been able to use this ordinance with people who are housed.

17:07

Um there are situations when people might be blocking access on right-aways and/or causing problems in front of a business or in front of um a a residence on the public right-of-way.

17:19

And to your point, and I'm glad you brought that up.

17:21

This was never about homelessness in and of itself.

17:26

It was about making sure that we could control the public right-aways and making sure that disruptive behaviors um short of, you know, obviously First Amendment rights are something different, but other than that, that the disruptive behaviors are not causing harm to businesses or neighborhoods.

17:45

Okay.

17:46

All right.

17:46

Any other questions or comments?

17:48

Uh Councilwoman Cannibal.

17:50

So I'm gonna ask Chief Widman all the way in the back.

17:54

Is this uh the group that you worked with, are you able to enforce kindly and um effectively, I guess.

18:08

Yes, ma'am, to incorporate that.

18:10

That was part of the consideration as to how the ordinance was written, and additionally there'll be some training for the officers prior to our actual use of that to make sure they understand what the proper resources are for referral and what the intent of the ordinance is.

18:24

You're awesome.

18:25

Thank you.

18:26

Thank you.

18:28

Okay.

18:31

All right.

18:31

Thank you for the presentation, and again, thanks to all of the uh members of the stakeholder group for your excellent work, and we appreciate all the time and energy that you put into uh uh getting us an ordinance that will help us get where we need to be to address this issue.

18:46

Thank you again.

18:49

All right, city manager.

18:50

Uh next item on the agenda.

18:52

Yes, the next item is uh a presentation from Leonard Sledge, our chief officer for community and economic development.

18:58

He will be presenting some proposed changes to the economic development authority grant programs uh to try to help small businesses and also to ensure that we are properly leveraging the city's resources to effectuate the strategic goals of the community.

19:14

Wow, these are EDA grants, and ultimately in the EDA's purview, we've always um brief counsel as well because you all are ultimately the funders of these uh programs.

19:25

So with that, I'm pleased to introduce Mr.

19:27

Sledge.

19:28

Thank you, City Manager Bunting.

19:29

Good afternoon, Mayor Gray, distinguished members of City Council, City Attorney Sid Norr.

19:34

Again, my name is Leonard Sledge, and I have the privilege of serving as the chief officer for community and economic development for the city of Hampton.

19:41

We're pleased to share our recommendations as it relates to uh the EDA grant programs, programs that we use to support the growth of businesses and development in the city of Hampton.

19:54

And so this is just a brief agenda in terms of the topics that we will cover for you today.

20:00

And as an overview, the economic development authority of the City of Hampton Virginia, our EDA, we administer several grant programs that are intended to stimulate business growth in the city and economic vibrancy in our commercial corridors.

20:14

The grant program task force was created to review the grant programs and to make recommendations to improve the accessibility of the EDA grant funding to Hampton businesses, enhance the outcomes of grant programs, and improve efficiencies in the application process and administration of the grant programs.

20:32

In other words, we didn't want our programs to be an impediment.

20:36

We wanted them to be value-added and helpful.

20:39

These recommendations that were generated aligned with the city's strategic priorities of economic growth, excellence in government, placemaking, and safe and clean community.

20:49

The recommendations also aid in the implementation of the city's master plan areas of Buck Road, College and Central, Downtown, Kick the Kickatan Road Corridor, the King Street Master Plan, and also FEVAS.

21:01

And I'd like to take a moment to acknowledge our team members who participated in this effort.

21:07

The grant task force was made up of individuals from not just the Department of Economic Development, but our City Attorney's Office and also our community development department.

21:15

And if the team would please stand, uh Curtis Cobert, Nicole Dennis, Regina Facto, Maurice Leary, Trish Melichek, who is not present here in chambers today, Melissa Story, and Mike Eskowski.

21:28

Thank you all very much for your assistance in this effort.

21:32

And the primary objectives of the task force were to increase the education and awareness of the EDA grant programs with an emphasis on improving communication with prospective applicants and minimizing ambiguity in the EDA grant process.

21:46

Despite our best efforts over the years, we are not aware of all activity that's going on in terms of businesses that are backfilling spaces, uh, business growth, and so we wanted to create some flexibility so that as we were out having business visits, engaging with businesses, if we were able to learn about evaluated project, that we were able to also provide some sort of financial assistance.

22:10

To support more small businesses with an emphasis on broadening the types of eligible businesses that can receive grant funding, and we will share a little bit about that.

22:18

Simplifying our grant application requirements, improving staff efficiency by streamlining workflows to enhance productivity, updating the facade improvement grant with the defined maximum grant and enhance funding for projects that adhere to the Virginia Main Street design process or other business district approved design standards, and also accelerating the process to make grant awards.

22:41

With a little background information, since fiscal year 2020, the EDA has awarded 29 grants totaling 509,000 through the Economic Development Grant Program, the Facade Improvement Grant Program, the Hampton Manufacturing and Innovation Assistance Grant Program, the NASA Technology Commercialization Grant Program, and the Retail Assistance Grant Program.

23:01

And as of January 2026, the current funding available for future grant awards is just under 1.7 million dollars.

23:08

Some of those are city administered accounts.

23:11

Excuse me, some are some of those funds are in EDA managed accounts, and then also there's a small amount in a trustee account with O Point or now Town Bank Trust.

23:22

The chart below shows you the number of awards that have been made since fiscal year 2020 in each of those programs and also the total amount of grants awarded.

23:32

And so our facade improvement program facade improvement grant program, or FIG for short.

23:38

The purpose of it is to encourage appropriate and attractive improvements to commercial buildings and or their sites.

23:45

Traditionally, we've awarded up to 30,000 or up to 30 percent, and the up to is a distinguishing characteristic of the qualified improvements for a maximum possible grant of $15,000.

23:57

Applications are evaluated on the improvement value, the scope of work to be performed, and the economic impact, and the requirements.

24:04

The improvements must be made on a taxable commercial, industrial, or mixed-use structure, mixed use structures, commercial components that are 10 years or older.

24:12

And there must be a pre-approved application prior to the commencement of improvements.

24:17

As the task force met and discussed and deliberated, and as we also have used the anecdotal feedback from businesses and property owners over the years, the must-have approved application prior to the commencement of improvements has been an impediment.

24:33

Simply because of our process to review grant proposals, grant applications, to get them in front of the EDA, and then for the EDA ultimately to make to make a decision on yes or no for a grant, what we've cost that business's time and the ability to get open and to start generating revenue for themselves.

24:52

And so the required application documentation for facade improvement grant program, which is a physical improvement to that structure to enhance the overall curb appeal and aesthetic of the commercial corridor and the business.

25:04

We required a lot of information for hard investments made into a piece of physical property and for a program that is on a reimbursement basis.

25:12

We require business plans, financial statements, credit checks, business license, which should stay in in place, renderings of the project outcome, and at least two estimates of the project done by contractors.

25:25

What we are proposing is to remove the following required documentation because the program is not performance-based.

25:33

It is a reimbursement program again with hard improvements to physical property in the city of Hampton.

25:39

So we're proposing to remove the business plan requirement, the personal financial statement of ownership, tax returns, pro forma, and the resume of profile ownership and executive management.

25:49

And also one of the rational pieces of rationale behind us also is the requirements for us to retain records and documentation.

25:56

And we're also proposing not for not just for the FIG program but for other grant programs to replace individual performance agreements with terms and conditions that are embedded in the grant application that an applicant and an awardee are accountable for at the time of the application process.

26:15

Again, what this does is it eliminates the requirement of our city attorney's office to do an individual grant app, an individual grant agreement, excuse me, for each and every grant that is approved.

26:29

FIG parameters, up to 30% of the of the cap, 10% is the max $10,000, excuse me, is the maximum award amount.

26:37

Applications must be completed and accepted by the Department of Economic Development prior to work taking place.

26:44

Right now, landscaping and parking services are not an eligible expense, and again, each of those agreements written by the city attorney's office and a host of other things.

26:54

And what we're proposing is a hard cap of 30% and taking out the ambiguity in the discretion of up to and increasing the maximum dollar amount to $15,000.

27:05

This is an acknowledgement that the cost of construction has increased over the past five years.

27:10

Also, we're proposing to use the main street design standards that are in place in Phoebus or other business district and approve design standards and to increase the award to a 35% threshold and a cap of $20,000.

27:26

What this allows us to do is to encourage business owners and property owners to implement again the design standards and guidelines that have been approved by business by business organizations, our partners such as the Phoebus Partnership, who has the main street design standards, or if Coliseum Central were to do something similar, or if downtown, the downtown Hampton Development Partnership were to do something similar as well.

27:51

We're also recommending that applications submitted within 12 months of the work being completed be eligible.

27:58

That way, again, as we're finding out about work that has been done prior to someone submitting an application and getting approved, we're able to still allow them to participate in the pro in the process be eligible to receive a grant and to receive some of some of that capital outlay back.

28:19

Parcels being eligible for a grant every five years, and this is a way to ensure that again we're able to disperse these funds as as broadly as we can across the entire city without an individual property that may have different tenants over the years being eligible year after year after year after year.

28:38

Again, the terms and conditions on applications, replacing grant agreements, and also making sure that our community development team is involved in our grant evaluation process.

28:47

And right now that's not a standard part of our process.

28:55

Right now, uh what's eligible, decorative fencing, exterior lighting, painting, installation repair, permanent hardscape improvements, masonry repairs, restoration of architectural details, repair and a replacement of windows, screening, and so on.

29:11

Landscaping parking and paving is not an eligible expense.

29:15

And what we are proposing is to make it an eligible expense, but only as it only if the FIG improvement grant is being used for other facade improvements as well.

29:27

So if someone just wanted to come and restrict the parking lot or repave it as a standalone project, it would not be eligible.

29:34

But if it were done in concert with landscaping, with painting, uh, with new windows, new signage, it would be an eligible expense.

29:42

Also, properties ineligible for this program would include national franchises, residential only buildings, tax exempt properties, and nonprofit organizations.

29:51

Most recently, we had the pleasure of awarding a facade improvement grant to the Aberdeen Fashion Flair Building on Aberdeen Road in the city.

30:00

Uh that business owner, they were awarded a grant, they went through the process, and then as they got into the work, they realized that there was more extensive damage just through water penetration on the building, and we had to go back through the process again with the EDA to approve an additional amount.

30:19

And so there are some other things which I'll touch on later that we are proposing to help again better streamline that process.

30:25

And our retail assistance grant, uh, its purpose was to increase the retail presence and sales in Hampton by providing incentives to attract and retain quality businesses, eligible for a matching grant up to 30% of the total qualified costs.

30:38

This program historically has not had a maximum dollar amount.

30:42

Qualifying items would include uh but not be limited to real property improvements and signage.

30:48

This could be interior improvements or exterior improvements.

30:51

Must be a Hampton-based business, and the project must meet a total cost threshold of at least $3,000 or $1,000 if located in an arts and cultural district.

31:01

And speaking of our arts and cultural district, we are not proposing any changes at this time to the requirements or the threshold amounts for the arts and cultural district or businesses that have been deemed arts and cultural.

31:11

A lot of information is required for the retail assistance grant.

31:15

Again, these are in part because it involves interior improvements, higher dollar amount, uh, business plans, tax rex returns, uh, and also additionally the following applies, and ensuring that the consistency that the business, the improvements are consistent with the vision of the various districts and our master plan areas, have a positive impact on district residential revitalization.

31:38

Uh, all of our programs are discretionary.

31:41

Just because someone is eligible does not mean that a grant would be awarded.

31:45

Uh, the ability to increase the critical mass of retail and to convert first floor space to retail, so thinking more mixed-use projects, uh, the previous success of the business in other locations or likely success uh in the new location that's being considered.

31:59

Expected investments by the property and business owners, return on investments, tax revenue to the city.

32:04

And if the project is a mix of uses other than retail, we would purely focus on the percentage of the project that is commercial space.

32:12

Again, over the years, this project, while it has had a threshold of up to 30%, there was no hard set dollar maximum.

32:19

And so some of those grants, uh grant award amounts were fairly high.

32:25

Uh, in terms of current eligibility, again, businesses located within the city are eligible.

32:31

Uh currently, service-oriented businesses are not eligible based on the guidelines and the criteria.

32:38

Eligible expenses again associated with the acquisition, construction, and expansion, or the rehabilitation of a of a retail facility, site and building demolitions related to upgrading real estate, permanent exterior improvements, building signage and exterior lighting, equipment and fix and fixtures that would essentially become a fixed to the physical property itself, upgrading property parking surfaces and associated landscape improvements.

33:02

Again, up to 30%, exclusion of service-based retail is eligible businesses.

33:08

Work can be started once the complete application is accepted and submitted, and the execution of a grant agreement.

33:14

One of the things we recognize, you know, no different than facade improvement program can be shortened to FIG.

33:21

We didn't really like RAG and so we are proposing to change the name of this program because the acronym we really don't like.

33:29

But more importantly, because we are proposing that more service-oriented businesses, barbershops, salons, personal fitness studios are eligible to participate.

33:41

We all recognize that the world of retail has changed uh since the pandemic, and we have service-oriented retail businesses that backfill and fill successfully a lot of commercial retail property in the city of Hampton.

33:55

We're proposing still the 30% that it'd be a hard set amount of up to thirty, well, 30% excuse me, of eligible expenses with a maximum award amount of $30,000.

34:05

Again, service-based retail businesses will be eligible.

34:08

Applications submitted within 12 months of the work being completed would be eligible, a grandfathering period so that we can look back to projects completed after July 1 of 2024.

34:18

Individual parcels being eligible to receive a grant award once every five years.

34:22

Again, the terms and conditions replacing individual grant agreements.

34:26

It will remain a reimbursement program and also community development being a part of our evaluation process.

34:33

The manufacturing and innovation assistance grant program is designed to help small manufacturers grow and improve production, productivity, and competitiveness in the city of Hampton.

34:43

Right now, this program provides a two-to-one match for operational improvements and employee training for up to a maximum of ten thousand dollars for eligible businesses.

34:52

What that means is for every one dollar this the company invests, the city matches that with two dollars.

35:00

We are proposing that that match requirement be reduced to one to one.

35:05

So if the business invests a dollar, we're investing a dollar while keeping the current cap of ten thousand dollars in place.

35:13

The NASA Technology Commercialization Grant.

35:16

This is one of the grants that we were we were proud to announce and share last year with Hercules Q, which is a startup business, a Hampton University graduate who commercialized technology from NASA Langley Research Center.

35:29

We awarded a $50,000 grant.

35:32

We are we are not proposing any any changes to this program other than there can be one award per applicant within a three-year time frame.

35:41

And right now, there is not a prohibition on that.

35:44

Other than that, we are still proposing that the grants range from 1,000 to $50,000 and they require a one-to-one match.

35:51

And that one to one match can be in the form of the business owner's own personal investment or other investment that the business owner is able to attract to the business.

36:01

An economic development grant, uh, again designed to stimulate economic activity through new capital investment, job growth, and or any other economic indicators.

36:10

The amount varies uh at the sole discretion of the EDA and shall be weighted based on the economic impact to the city.

36:17

The requirements, the project must stimulate economic activity and our mechanism to provide resources to businesses where the primary outcome is job growth, capital investment, tax revenues, and business sustainability.

36:28

The challenge over the years with this grant is the the wording was open-ended, and so everyone wanted to apply for an economic development grant.

36:37

And so we put the requirement in uh to speak to the level of significance in terms of the investment and projects that can truly propel us toward achieving our broader economic development goals of adding a $1 million minimum capital investment requirement, and also removing the requirement of consistency of the project with the city's master plan.

36:57

It's not that we are uh uh minimizing the importance of the master plans and the master plan areas, but there are projects that would would and should be considered for an economic development grant that may not be in one of our master plan areas.

37:12

And so, with some comprehensive program enhancements across all of the programs, uh the recommendation to give the chief officer for community and economic development authority to approve all grants up to $5,000.

37:24

That way, once we evaluate the pro the applications, we take them through our process, giving the chief officer the authority again to approve grants up to $5,000 and still being responsible and accountable to reporting uh to the EDA in terms of grants being awarded.

37:41

Instituting an annual maximum amount of grant funding to be awarded for both the facade improvement grant and retail assistance grant program.

37:48

Our primary goal and objective is to deploy the dollars as best as we can and as judiciously as we can to support the growth of businesses and our commercial corridors and the city of Hampton.

37:59

But this is also in recognition that right now we have $1.7 million uh in those combined funds.

38:06

The NASA commercialization grant is is a is an amount that continues to be newly appropriated every year.

38:12

And so we're just looking to give ourselves some flexibility in terms of establishing a maximum amount that we can award annually.

38:19

Again, replacing the grant agreements with standardized terms and conditions as we shared.

38:23

Uh, also developing and implementing an electronic grant application portal.

38:28

Right now, everything is done by paper, uh, and that is not practical nor feasible in 2026.

38:34

And so we're looking uh staff has used various plat grant platforms over the years uh in different communities and localities, and there are solutions that can assist us uh to do this and also help the applicant clearly understand where they are in our grant process in terms of applying.

38:52

Integrating grants management with the department's customer relationship management database or another grant management platform, and also as we shared, including the community development department and the grant application evaluation process.

39:04

And from an implementation standpoint, we'd love to have your support and also the EDA's approval of the recommended changes to the grant programs.

39:13

From there, we will refine the language in our grant program guidelines, update the grant application.

39:18

Yes, we we have our very wordy grant guidelines and policies document, but also having a version uh that is more customer customer friendly, uh visually friendly so that people can again again understand very clearly in writing how to navigate the process, what's eligible, what's not eligible, uh updating our digital and print marketing material, and also updating an existing vacant business development manager job description to include administering the EDA grant programs and serving as our enterprise zone administrator for the city.

39:48

Uh, Mr.

39:49

Leary has been uh wonderful performing this function for these functions for us uh over the past several months, but we need a dedicated person uh to do that.

40:00

And so we're proposing to tweak one of our existing vacancies uh to focus on this to ensure that we have ongoing accountability and the applicants uh also have a central point of contact.

40:11

We have that designated enterprise zone administrator, and the person in this role would also be responsible for our business so for supporting our business uh retention and expansion activities as well.

40:22

And so that concludes our recommendations in terms of updating the EDA's grant programs.

40:26

Thank you for your time, and we're glad to answer any questions you have.

40:32

Councilman Bowman.

40:34

Uh thank you, Mr.

40:35

Sledge, and thank you for the um preview.

40:38

Um I just want to add that um for a small business or any business, just you have just um removed uh some of the roadblocks, um, streamlined some of the processes that they have to go through.

40:50

And one of the big ones that I think is a huge um impact was the work prior to being uh able to apply for the grant.

41:00

I think removing that is a good uh good idea, and um it's gonna be very successful for a lot of businesses because I know for a fact, you know, businesses, you know, they want to get started.

41:11

If you have to wait for work to be completed, um, that it does create a hindrance.

41:17

So just thank you for the presentation.

41:19

Thank you, Councilman Bowman.

41:20

And and we are we will be clear and consistent in our communication that just because you've applied doesn't mean that you will receive uh because it is still all discretionary and we and we have to evaluate them.

41:32

But that but to your point, that will remove a lot of of roadblocks and time delays for for business owners.

41:38

Vice Mayor Brown.

41:39

Leonard, thank you.

41:41

And again, another team effort.

41:43

Appreciate it.

41:44

Uh just a question on uh grantees, those who awarded grants.

41:49

Uh, do you get a chance to see those applications and and make recommendations or speak to uh the grantees?

41:57

I mean, like with comments, uh, if you see a grant that you may think maybe some massaging, do you are we able to speak to it?

42:09

Our team does.

42:10

I mean our our our goal is to figure out a way to get to yes for projects that make sense.

42:15

Okay, okay.

42:15

And so we we don't just turn the blind eye.

42:18

Um our our team, we evaluate, we review the grant proposals and the applications, and we make sure before they go to the EDA in the current process that we go to our EDA's loan and grant committee, uh, which is which also includes the city's chief financial officer, Mr.

42:33

Carl Dartry, uh, and other members, uh, board members of the EDA.

42:38

But before they get to that point, we are making sure that we have every I dotted, every T cross.

42:43

And if there's something that that we feel needs some additional information, then we're working hand in glove with the business owner because again, our goal is to get the dollars deployed to help support the growth of the business and the improvements in these buildings.

42:56

And the other thing is um uh I I know these are primarily facade grants and things that aesthetically um make businesses look good.

43:05

The uh this is not a concern but a consideration.

43:09

Um I was out of business here some time ago, and uh the mayor and I cut the ribbon.

43:15

I won't I'm not calling business name, mayor not cut the ribbon on it.

43:18

And uh the owner says to me after ribbon cutting, hey, I may not be in business after this ribbon cutting.

43:23

And there were some operational kinds of things, the monies that they needed.

43:27

I know we don't do operational kinds of things, but is there any consideration moving forward to maybe help a business who may be struggling because of whatever, let's say major purchase of equipment, sell them back.

43:42

Uh, you know, this person was concerned because there was some construction downtown and the people were not flowing downtown until construction was done.

43:51

Yes, sir.

43:51

And so they were losing, you know, customers.

43:54

The new business just opened, still open.

43:56

Thank God they met they they survived, and I know you were able to help them in some ways too with some recommendations.

44:01

You'll know as I'll tell you later, okay.

44:04

But anyway, long story short, uh any consideration uh uh as you look at the grant program to help small businesses who are struggling financially, not not the any fault of their own, but uh is there any consideration moving forward?

44:18

Yes, sir.

44:19

Operations.

44:19

Thank you for that question, Vice Mayor.

44:21

Right now, we don't have grants that speaks that speak to business continuity.

44:26

Our grant programs, one could think of it as the with the with the investment that the city that the ED is EDA is making into those businesses by helping to offset a portion of those costs that those dollars that the business owner or the property owner gets back can be used for operating types of expenses or expenditures and things of that nature.

44:49

And so, not directly, Vice Mayor Brown, uh, but indirectly, again, just through the awarding of the grant.

44:55

But again, we do not have programs that speak to the continuity.

45:00

It's something that we can certainly explore uh if it's the will of city council to do so.

45:04

But one of the things that we are absolutely uh adamant about is ensuring that we are connecting business owners, even in the instance of of the example you were sharing, that we're connecting business owners with with our partners uh in the city and in the region, such as the small business development center, uh such as the retail alliance, uh such as our all also our our member the members of our team who support small women and minority-owned businesses uh to provide to provide them access to information and tools uh to help them weather those times.

45:36

Unfortunately, again, we we don't have anything to directly assist like that.

45:41

Uh we are we are aware that in challenging times such as the pandemic, uh again, there are there are different things that we're willing to consider.

45:50

Um city has done it previously as a as has as have other localities, but again, specific to your question, we do not have business continuity programs in place.

46:00

Um Councilwoman Muggler, you're next, but the city manager wants to add to this response.

46:07

So um what Leonard said is absolutely on target, but I want to stress that by giving businesses a bit of time after they have opened to apply for the facade improvement grant or other grants that they weren't aware of helps.

46:24

So I'm I'm I'm very familiar with the entity you're talking about, and in that case, that entity had put quite a bit of money into both exterior and interior improvements.

46:35

They were not aware of this grant program.

46:38

They could not apply for this grant program under the current guidelines because they had already done the work.

46:43

Had they had we had the new date and these new regulations, they could go back and apply, which would give them money, which could have helped with their operating cash flow.

46:54

So one of the things I was saying earlier, uh, you know, to someone who asked me why do we have the the rule in the first place?

47:01

I mean the theory behind the rule in the first place was theoretically if you can build it out, you don't need the help.

47:07

But what happens sometimes is people businesses build it out and then they have no cash left for operating cash flow and the first few months of opening, just like you were describing.

47:18

Or maybe they start and then they find that the improvements are actually more extensive than they had expected.

47:24

So my only point is while Leonard is absolutely right, we don't provide operating support by allowing them to tap into these grants for the improvements they make, it allows them to keep money in reserve for the very situation you were describing.

47:40

Um that business in particular, just because I was very familiar with that, you talked with me about that one.

47:46

Um the owner could have under these new rules applied, gotten money back, and then use that money for their ongoing operating.

47:54

I'm I'm pleased to say for the record, that business is doing very well today.

47:57

So they survived, but not all of them do to your point.

48:01

Councilwoman Modler.

48:03

Thank you, Mr.

48:03

Mayor.

48:04

Um slide number eight.

48:09

Yes, ma'am.

48:10

There uh uh this is where you're um kind of comparing the current uh FIG um requirements versus what the proposal is.

48:19

Um I'm hoping you can um enlighten me on why we would not ask for a business plan or pro forma, what is the rationale there?

48:30

I think I feel a little uncomfortable about that.

48:35

Yes, ma'am.

48:35

And and in some instances, the it it's a property that has been in existence and been around.

48:42

You have a business owner or a property owner that is simply again fresh quote of paint, new sign, new windows.

48:52

And it's a hard improvement to the piece of property that's gonna add value.

48:58

And so our recommendation was that requesting the requesting though that information, the business plan uh for a piece of property that the improvement to that piece of property, which is going to be around whether a single business that's in there is successful or not, that property has been improved.

49:15

And so we just didn't feel like it it rose to the level of of a high enough need, again, on a reimbursement basis to require a business plan and also uh pro forma or financial statements.

49:28

But if you have a business that has not been in existence for a long period of time and has no history, it it seems a little risky to me.

49:38

Yes, ma'am.

49:39

And you all are the experts on economic development and I am not.

49:43

Um but um it just seems like those are um appropriate um measures to look at when you are um you making a decision on a grant like this, which is potentially up to I think it was 15 or 30,000, you know, some of these went up above 15.

50:02

You know, some of these went up above 15.

50:04

Um so it just from my point of view seems a little bit riskier than I would want to be, but um if you all feel comfortable with that, I I I just point it out as a um, you know, something that you may want to consider potentially even looking at as you've described a business that's been in business for a longer period of time and a business that has not been in business uh at all, as I described, perhaps you might want to require those businesses provide these documents and older businesses maybe don't need to do that.

50:49

Uh I I understand the whole property improvement piece, and maybe that has more merit than these requirements, but um just just a little consideration of that, I think would be beneficial.

51:05

I I appreciate your concern and your sentiment uh council Councilwoman Muggler.

51:10

Uh again, I fall back to the statement of if that business is not successful, that property has been improved and is better positioned to attract a new tenant.

51:21

Uh and the but it is certainly something that we can take into consideration.

51:28

Councilman Brown.

51:31

I'm sorry, Councilman Bowman.

51:34

I have uh two questions and then I'm finished.

51:36

Um first for existing businesses, is there going to be a requirement that taxes uh have to be up to date before absolutely that's number one and then number two for um fix um fixed fixtures.

51:51

I've been in uh a few establishments and leases are written very tricky, whereas heating and air conditions is not going to be covered.

52:02

Would that be something that if a business owner goes into and the it fails, the unit fails, could they reach out for assistance with that?

52:10

Because I've been in, I think uh the vice mayor and I both have been in a known restaurant, and that was a tricky situation was the heating and air, and for three summers consecutively, they had to have the front doors wide open, and I think that could have been one of the reasons that the business have actually folded.

52:27

Yes, the uh it's a great point that you that you raised, Councilman Bowman.

52:31

The the requirements that some that some landlords impose on their tenants in terms of of capital equipment and and repairs and expenses uh for businesses.

52:42

The I can't speak specifically to to HVAC, uh, but again, it it if HVAC were permissible uh eligible expense, and if any other proposed guidelines being what they are, then that is something that would be eligible uh in terms of a retail assistance grant.

53:05

Councilwoman Ferrebby.

53:07

Thank you, Mr.

53:08

Mayor.

53:09

Um I just want to uh since part of your implementation is to obtain support.

53:14

You do have my full support as council member for the proposed changes as a former member of uh the economic development authority for eight years and former chair, I recall having some of these discussions about how we can make it um more palatable and easier for our businesses to be able to take advantage of uh these funds to move our city forward.

53:36

So I really appreciate uh the team that sat down and put some thought and time into coming up with these um proposals.

53:46

So I just want to thank your office and thank you for leading for your leadership.

53:50

Thank you, Councilwoman Fairview.

53:52

Councilwoman Campbell.

53:55

Well done, sir.

53:56

I just have um some questions about startup businesses.

53:59

Um things like architecture plans.

54:02

Um of the businesses have come up to me and told me that they're required to have uh architect approved plans, and that's three to five thousand dollars, and a lot of them are renting the space that they're in.

54:14

So um they don't have the drawings.

54:16

I mean they're lucky if the business owner has the plans.

54:19

So is there um any of these funds or any deferral of these costs that could be done to allay the startup costs of um you know the architecture plans or wave an official architecture approved set of plans just to bring the cost down?

54:38

So thank you for the question, Councilwoman Campbell.

54:43

I hear a CDD-related, a community development department question uh buildings and site plan approval threaded in that.

54:51

Uh so I I I'm not I'm not prepared to answer that specific question as it relates to the program itself, the grant program, it is a reimbursement program.

55:03

And so there would be no cost that we could defer again because it is a reimbursement program.

55:10

Could the could the funds be used toward paying for the architecture plans?

55:15

For I belie uh hard construction cost, hard construction costs on the retail assistance grant.

55:24

Uh I would have to go back and look at that question specifically in terms of whether the architectural plans, the the soft cost related uh would be mount.

55:33

Okay, thank you.

55:37

Um I got a couple of questions, Lena.

55:40

First of all, the sign grant that I hear about a lot.

55:43

I I thought that was a separate grant program, but is sign grant built into the facade improvement grant?

55:49

It's both, sir.

55:50

Uh both the facade improvement grant and also the retail assistance grant.

55:54

Okay.

55:54

And then I I do wonder, because you specifically mentioned how you know you could use the the uh facade improvement program to you know, for businesses to uh paint windows.

56:07

I remember I I forget the third thing you mentioned, but things that would improve the overall look of of the of the property.

56:15

And I do wonder if it's possible for us to maybe proactively look at some specific areas of the city.

56:23

Uh one is uh businesses along the Buckrow Avenue corridor leading to Buckrow that could really uh have a whole new look with just some paint.

56:35

And then also uh on the King Street Quarter, which we have, you know, that is in the master plan area as well, not a vacant space down there right now, but some of those may be you know improved just with something as minor as paint in the windows.

56:51

So I I do wonder how we might be able to improve those areas by making contact with the business owners to make sure that they are aware, you know, without offending them and saying, hey, your business looks bad, but but to make them aware that we have you know grants available that could help them improve the uh overall appearance uh of their building, which would make the corridor look better.

57:16

Mayor Gray, thank you very much for that question.

57:18

Uh we as we are out doing business visits and we have had har targeted business business visit uh engagement in the King Street corridor, uh where we're talking with property owners and business owners just to help us begin to reimagine what does King Street Corridor 2.0 look like, feel like, and sound like as a part of that recognizing that there are opportunities to improve the facades along that corridor, we do proactively share uh information on the programs, no different than in any other uh commercial area of the city, whether it be the Kikatan corridor, Phoebus, what have you.

57:55

Uh the challenge that we run into candidly is and and because it is a reimbursement program, uh the business owner or the property owner has to take the first step and make that investment themselves, and then we can come alongside them.

58:09

And also in a lot of instances, there are there are there are there are businesses that are operating uh that where that physical property is not owned by the business owner.

58:22

And so it's a situation of a landlord, and then it's a question of that the business owner is asking him or herself, do I want to make an investment in someone else's property?

58:30

And so we take the both and approach uh in terms of of doing our best to reach out and to contact the the commercial property owner, but also the business owners themselves.

58:40

We believe that through some of these changes and enhancements, uh we will make it more appealing uh to business owner or property owner.

58:48

Uh because if if a business owner desires to make an improvement or utilize one of our grants, they essentially have to get the authorization of the actual property owner.

58:57

The other thing that I think it's important to share today is that on many occasions we have shared information uh with business owners and with property owners about these grant programs for new businesses where we are out in work where we are literally out in front and talking with them before they swing the first hammer.

59:15

We share the information about the program, we talk about the benefits of the program, and the business owner or the property owner elect not to take advantage of the programs.

59:24

And so we are, you know, our our team, you know, we could we consistently do our best to to adjust and to tweak and to tweak and and to to put the information out in front of folks.

59:34

And sometimes they're receptive and take full advantage of it, and in other instances they're not.

59:38

Again, we believe that by making these changes to streamline the process to make it more accessible and to be able to get dollars deployed faster, uh, that we will begin to close that gap.

59:51

All right, thank you.

59:52

Other questions, comments.

59:54

Um I guess there was no uh concerns or reservations expressed about or the proposed changes, so I think we're we're good to go with those.

1:00:02

Thank you.

1:00:03

Yes, thank you very much, everyone.

1:00:08

Oh, wait a minute.

1:00:09

I speak uh I know I know you did.

1:00:13

No, I was listening to you.

1:00:15

All right, so uh with that, we'll move on to the uh final presentation uh on the I value outreach program from city manager.

1:00:23

Yes, uh, thank you, Mr.

1:00:24

Mayor.

1:00:25

As you all well know, but uh just to remind the public we are actively entering budget season.

1:00:30

Um and Hampton has long held um advanced events for the public to both learn about and provide input into the budget process.

1:00:41

As Ms.

1:00:42

Scott will describe momentarily, we do some things that other places don't do because we really do want to try to make sure that when the manager releases a budget uh recommendation for council to consider, it already takes into account the thoughts and hopes and dreams of not only the council and staff but also the public, so that when you're actually having budget hearings, there's not a lot of last minute need to make adjustments, and that has served us well.

1:01:08

So we call this process I value, and to see a scott, our director of marketing and communications is going to uh let you know the dates and times and opportunities for the public to weigh in this year.

1:01:21

Yes, thank you, City Manager Mayor Bunt Mary Bunting, Mayor Gray, Vice Mayor Brown, other members of council and staff.

1:01:28

All right, so yes, this year's fiscal year 27 I value budget process, and of course we are all familiar with it, but some members of the public aren't familiar with it.

1:01:37

So, why i value?

1:01:39

Well, we're rooted in Hampton's values since 2010.

1:01:42

We've been doing this for 16 years, mainly to make sure that we're aligned with the budget and to do what matters most in our community.

1:01:49

Community input comes first.

1:01:51

Residents help shape the priorities before the budget is developed, which is really unique to Hampton and Hampton alone.

1:01:57

Um we invite the public both before and after the budget is released, which is also unique.

1:02:03

Proactive budgeting focuses on planning ahead rather than reacting to external budget pressures like what may be coming from both federal and state uh legislation.

1:02:12

And then we focus and emphasize on big picture decision making, which is long-term outcomes and city priorities.

1:02:18

And so we have two um operating operating and capital expenses that we focus on.

1:02:23

The first one I'll go through are the operating expenses, which are the ongoing things and what that means for residents.

1:02:28

And so these are the expenses that support everyday services police, fire, trash, libraries, parks, programs, all the services that really residents have come to know and love and depend on the most.

1:02:39

It's also about keeping things city running, staffing, utilities, maintenance, and day-to-day operations.

1:02:45

It also helps us to maintain our service level, which is excellence, ensures continuity, reliability of core services that residents have come to expect, and it also helps us to manage annual costs that account for inflation, contracts, and operational expenses.

1:03:00

So when we talk about capital projects, these are the one-time funds, one-time funds annually and what that means for residents.

1:03:06

And so when we look at those capital projects each year, we want them all to align with our seven strategic priorities.

1:03:11

I'm gonna go through them all by highlight a few.

1:03:13

The first being economic growth, which focuses on jobs and redevelopment, education citizenry, which focuses on school improvements and learning spaces, of course, family resilience and economic empowerment, excellence and j and government, which is the the reliability on city services, living with water, which is flood protection and the resiliency against in protection against uh water, placemaking, which is by keeping our neighborhoods vibrant, and saying that Hampton is a destination place to come to, and of course, keeping our area safe and clean, which can keep our streets cleaner, safer, and and available to all residents.

1:03:48

So, what we're asking the community this year again are what are your priorities for fiscal year 2027?

1:03:54

So we're gonna go through a couple of examples of some of the projects and or services that we may ask the public to poll on.

1:04:02

So this year for operating expenses, which are our ongoing expenses, we may be polling on how the adjusted rate pay um adjusted pay rates can be competitive in the market to attract and retain true talent in our in our region.

1:04:16

We're all constantly competing with other regions, other localities, and so these kind of decisions will help us to keep keep our keep us very competitive against other localities.

1:04:26

Inflation increases the goods and services that the city uses, new programming for residents, and service and program rate changes.

1:04:34

And then for the fiscal year 2027 to fiscal year 3031, which is a five-year capital improvement plan project, which again were one-time funds, it will go towards the implementation of our strategic plan, upgrades to park streets and roads, replacement schedule for playground equipment citywide, and of course, continuing efforts towards flooding and resiliency projects.

1:05:01

And you'll see that there's six options here, some of which you're familiar with wastewater, solid solid waste and stormwater fees.

1:05:08

And this year we may be polling on permitting fees, school age program fees, and the real estate tax.

1:05:16

So our big ask here is we want to hear from you, and we want to hear from all of you.

1:05:21

And there'll be three public engagement opportunities to provide input, ask questions about the budget schools and your neighborhood and what that could mean for you.

1:05:31

So the two in-person events that we're going to have are going to be the first one's going to be on Tuesday, March 3rd at 6 30 at the Dr.

1:05:38

Mary T.

1:05:39

Christian Theater at Virginia Peninsula Community Center.

1:05:42

Community Center, Community College, and then another opportunity on Saturday, March 7th at 9 o'clock a.m.

1:05:48

at Kickatan High School.

1:05:50

We also offer a virtual opportunity where we ask people to join on our Facebook live session, and that will be held on Thursday, March 5th, starting at 7 o'clock.

1:05:59

And we typically take questions, we go through it, but we do not do polling at that session.

1:06:03

So we definitely encourage people to come out and to one of those input, those in in-person engagement opportunities to ask questions and to learn more about the process before you even start to take any sort of polling or the survey, which will also be out from March 9th until the 16th.

1:06:19

So what's the next steps?

1:06:20

Our next steps after after we've done all of our budget engagement meetings is the city manager's recommended budget will be released on April 15th.

1:06:28

Then there will be two public hearings, one on April 22nd and another one on May 6th, with the final vote from council on May 3rd.

1:06:35

Now another thing that we are doing annually is to make sure that every person in Hampton has an opportunity to learn about these dates.

1:06:43

So we're sending out postcards between this week and next week, and it should go out to all households and apartments.

1:06:48

And so the survey again will be available from March 9th to the 16th, and you can learn about all of these and more by visiting Hampton.gov slash I value, or you can go on our calendar of events and see any of the events in the community, including the meetings that you have here.

1:07:03

Do you have any questions?

1:07:07

Questions uh Councilwoman Harper.

1:07:09

Yes.

1:07:09

Thank you, Mr.

1:07:10

Mayor.

1:07:11

Thank you so much, Cecilia, for your presentation.

1:07:13

I really do appreciate that.

1:07:15

Um, I do have a question one.

1:07:19

Um, oh, and I'm glad to see that you're sending the the postcards out to every household again this year.

1:07:24

Thank you, Cinnamon Jabun.

1:07:27

Um how do y'all know what the poll?

1:07:30

Like when you besides the the uh fees that you um ask about, does it pertain to the budget specifically, or do you just um kind of get questions that you think the public will want to engage in?

1:07:46

So each year what we poll on is relevant to that budget or capital improvement cycle.

1:07:54

So, for instance, um with the actual programs and services we poll on, they would be ones like you all have been hearing or talking about or suggesting that we do.

1:08:06

Um, and we ask the public to do those that have have some level of interest.

1:08:12

In years past, we we put everything that basically comes before the council from a neighborhood, a council member, a work an organization, like for instance, if help, and they're on my mind because we did the uh presentation earlier, they want money to expand, all of those would be on there because those are active requests.

1:08:34

Um, we are starting to get more and more requests from outside of so I may not be able to in a sufficient time do every single thing.

1:08:42

So, what we will do is if there's some things that just don't comply, like we know we can't do it for a particular reason, either lack of statutory authority, or because councils already talked about it and said they don't want to do it for some reason, then we might scale that back a little bit because one of the complaints I've gotten in recent years is more and more people are asking for more and more is that the meetings take too long.

1:09:06

On the revenue side, we we poll on any of the things that may be under consideration.

1:09:12

So, for instance, last year council expressed an interest and we polled on looking at a higher real estate tax rate for blighted properties, not for all property owners to be clear, but just for blighted properties.

1:09:24

And so we polled the public would they support a higher tax rate for blighted properties?

1:09:30

Um we asked them about the stormwater fees that were projected to go up about the wastewater, but we also asked them about things that could look at controlling fee increases.

1:09:41

So, for instance, last year we explained that we didn't have the statutory authority, but if we could get authority from the state, which we're request requesting this year, to let our steam plant waste energy count towards the reduction or reuse of the waste stream, then we could look at scaling back the recycling program.

1:10:00

And we wanted to know whether the public wanted us to do that or not.

1:10:02

Because if the public wanted to keep recycling regardless, then we wouldn't waste the time asking the General Assembly for that permission.

1:10:08

So most of the time they're in the immediate, you know, these are projects being considered for the next budget or next CIP.

1:10:16

But every now and then there are questions like that.

1:10:18

Would you be interested in us pursuing the General Assembly giving us this authority so we can do things?

1:10:24

Okay.

1:10:24

Um I will say DCA and I worked on this presentation before a lot of the developments in the General Assembly.

1:10:31

And so I'm I'm currently trying to figure out how I work to incorporate information as well as questions to the extent they become optional for some things that looks like the General Assembly are going to impose or give us options on.

1:10:48

So for instance, one of the things they may give us an option on, and I don't want to prejudge how the General Assembly is going to play out, but right now it's looking like an optional one cent sales tax for school construction and renovation may be an option for localities.

1:11:02

And not that we're looking at that right now, but it might be helpful while I'm already out in the public.

1:11:07

If by March it looks like that's gonna pass or has passed, that you know, would the public be interested in us entertaining this or not?

1:11:15

And if they have no interest in it, then you at least get some early signal.

1:11:18

But we would not be looking at that, for instance, for this budget cycle.

1:11:21

Okay.

1:11:22

Similarly, there it is it's too early to tell how they're gonna end up on the marijuana legislation, whether they're going to impose retail marijuana sales as something that localities can or cannot administer or make a choice about.

1:11:37

If there were a choice, we could ask for that information so that could inform your decision making when you get that opportunity.

1:11:44

Um, if if they don't, and it's about do you tax it or not tax it?

1:11:48

Well, we might ask that.

1:11:49

So I'm not as ready today as I would be in a few weeks because we have some key state issues like the two I just described, as well as collective bargaining that are on the horizon that may impact our budget, but we don't yet know how the General Assembly is going to come down on those things.

1:12:08

But just I want to be clear with you while I'm with the public to the extent that we get better information by the time we're doing the public polling.

1:12:15

We will also look to add questions to that effect.

1:12:17

Gotcha.

1:12:18

Does that help with your your thank you so much?

1:12:21

No problem.

1:12:22

Appreciate it.

1:12:23

Good presentation.

1:12:24

Thank you, Mayor.

1:12:27

Any other questions or comments from council members?

1:12:31

All right, thank you, Dossier.

1:12:32

Looking forward to uh seeing the results.

1:12:34

Hopefully, we'll get more participation this year with the mailing and you know, additional hour reach.

1:12:43

So thank you for that.

1:12:44

Absolutely, thank you, Mayor Green.

1:12:45

Thank you, Councilwoman Hart for having a good day.

1:12:47

May I may also just say I just noticed earlier.

1:12:49

This doesn't pertain to the high-value polling, but uh Dosia and the team had a good idea for people who can't make it to the in-person meetings, but want to learn particularly but want to learn more about the budget.

1:13:02

They've suggested we do these one or two-minute video clips that tell the story.

1:13:06

So, what is the Dylan rule and how does it impact us?

1:13:09

You know, what are real reassessments?

1:13:12

How do they work?

1:13:12

You know, and what's the difference between assessments and tax rate changes and things like that?

1:13:17

So I don't know when they're gonna start rolling those out, but this week they've had me take five or six of those, and as we hear from the public about other questions they have throughout budget season, we may be taping some more so that people can learn um more about the budget even if they can't attend in person.

1:13:32

Although I really encourage people to come because they're really fun, and a lot of times people tell us they learn a lot and they have dialogue with each other and they get to see immediately how their fellow residents are polling, so they may see that people think like them or they may see people think differently than them.

1:13:48

And so I I think it's usually a pretty good time.

1:13:50

So if you can come, please come.

1:13:52

We really welcome you to come.

1:13:53

And I think you'll you'll find it very interesting.

1:13:55

If you can't, try to watch some of those videos and definitely do our online poll when it becomes available.

1:14:01

Okay.

1:14:02

All right, thank you.

1:14:04

So I think that concludes all of the presentations uh this afternoon.

1:14:08

Um regional issues.

1:14:13

See any new business.

1:14:16

All right, with that, I'm gonna ask the uh clerk to read the motion required for closed session.

1:14:21

The motion is to convene a closed session pursuant to 2.2-3711A 3, 5, and 6 for discussion of a potential mixed-use project in Coliseum Central that may involve the disposition of public land and the investment of public funds where negotiation is involved and public discussion would adversely impact the city's negotiating position and financial interest, and which also involves the location of a prospective business in Hampton, where no previous announcement has been made about the business interest in locating in Hampton.

1:15:00

Pursuant to Section 2.2-3711A8 for consultation with City Attorney's Office regarding zoning enforcement issue in downtown area and section 2.2-3711A3 and 7 for discussion of acquisition and disposition of public land in downtown Hampton, where discussion in an open meeting would adversely impact the city's negotiation position and financial interest, and which also involves consultation with legal counsel regarding same and section 2.2-37LA point 3711A point one to discuss appointments as listed on the agenda and the performance of an existing member of a public body.

1:15:34

So move.

1:15:35

Second.

1:15:37

Councilman Bowman.

1:15:39

Aye.

1:15:39

Vice Mayor Brown.

1:15:40

Aye.

1:15:41

Councilwoman Campbell.

1:15:42

Aye.

1:15:42

Councilwoman Fairby.

1:15:43

Aye.

1:15:44

Councilwoman Harper.

1:15:45

Aye.

1:15:45

Councilwoman Motler.

1:15:46

Aye.

1:15:46

And Mayor Gray.

1:15:48

Aye.

1:15:49

So we will convene and close session in the Lawson Conference Room following the closed session.

1:15:54

Council will reconvene the open meeting in the same location in order to certify the closed session and then proceed to adjourn the meeting.

1:16:02

That we are adjourned.

1:16:04

Oh 2 30.

Discussion Breakdown — Share of Meeting
Economic Development█████████████████████████████████████████████47%
Public Engagement███████████████16%
Homelessness██████████████15%
Community Engagement██████████10%
Procedural███3%
Public Safety██2%
Technology and Innovation██2%
Budget Equity Analysis██2%
Tax Policy██2%
Summary of Proceedings

Hampton City Council Work Session – February 11, 2026

The Hampton City Council held a work session on Wednesday, February 11, 2026, beginning at 1:02 p.m. and concluding with a closed session from 2:15 p.m. to 6:25 p.m., followed by certification and adjournment. The meeting focused on three major presentations: a stakeholder report on a proposed camping and storage ordinance amendment, proposed updates to Economic Development Authority (EDA) grant programs, and the I-Value citizen outreach initiative for the Fiscal Year 2027 budget. No formal votes were taken on the presentations; direction was given for further action.

Discussion Items

  • Final Report from Stakeholder Group – Proposed Ordinance Amendment: Camping and Storage on Public Property
    City Manager Mary Bunting introduced the item, noting that the original ordinance (proposing a Class 1 misdemeanor for obstructing public rights‑of‑way) was deferred last fall after being perceived as targeting individuals experiencing homelessness. A stakeholder group—including residents, business owners, service providers, individuals with lived experience, public safety officials, and city staff—met over several months and reached consensus. Assistant City Manager Jason Mitchell presented the group’s recommendations: (1) a service‑first, rather than enforcement‑first, approach; (2) prioritization of outreach and voluntary compliance before enforcement; (3) confirm whether a policy (as Newport News uses) could suffice instead of an ordinance (the City Attorney’s Office later determined an ordinance is needed); (4) if enforcement becomes necessary, the penalty for the first violation would be reduced from a Class 1 misdemeanor (with possible jail time) to a Class 4 misdemeanor (no jail), and a Class 2 misdemeanor for subsequent violations (which can provide access to public defenders and behavioral health docket); and (5) continued investment in emergency sheltering, transitional housing, and supportive housing, including hotel stays. Vice Mayor Steven Brown suggested adding “other supportive services” to the language about the behavioral health docket, which staff agreed to incorporate. Council members expressed general support. City Manager Bunting stated that, pending Council concurrence, the City Attorney’s Office would draft an ordinance consistent with the recommendations, potentially for a March agenda.

  • Proposed Updates to the Economic Development Authority Grant Programs
    Leonard Sledge, Chief Officer for Community and Economic Development, presented recommendations from a staff task force to simplify and improve the accessibility of EDA grants. Key proposals included: (1) increasing the maximum Façade Improvement Grant (FIG) from $10,000 to $15,000 (or $20,000 when adhering to Main Street design standards), (2) allowing applications submitted within 12 months of completed work, (3) removing business plan and financial statement requirements for FIG (since improvements are hard assets that retain value), (4) making service‑based businesses (e.g., barbershops, salons) eligible under the renamed Retail Assistance Grant (up to $30,000), (5) reducing the match requirement for the Manufacturing and Innovation Assistance Grant from 2:1 to 1:1, (6) granting the chief officer authority to approve grants up to $5,000, (7) instituting annual funding limits, (8) replacing individual grant agreements with standardized terms and conditions, and (9) creating an electronic application portal. Since FY2020, the EDA has awarded 29 grants totaling $509,000, with current available funding of just under $1.7 million. Councilmember Randy Bowman supported the removal of prior‑approval requirements. Vice Mayor Brown asked about assistance for businesses struggling operationally; City Manager Bunting noted that the ability to apply retrospectively would free up operating cash. Councilmember Martha Mugler expressed concern about removing financial documentation for newer businesses; Sledge agreed to consider tiered requirements. Councilmember Michelle Ferebee voiced strong support. Councilmember Carolyn Campbell asked whether architectural plan costs for startups could be covered; staff said it would review. Mayor Gray encouraged proactive outreach to businesses in targeted corridors. No formal vote was taken; the recommendations will be forwarded to the EDA for consideration.

  • I-Value Citizen Outreach
    Dacia Scott, Director of Marketing and Communications, outlined the Fiscal Year 2027 I-Value process, which has been used since 2010 to align the budget with community priorities. She explained the distinction between operating expenses (ongoing services like police, fire, libraries, parks, and salaries) and capital projects (one‑time investments tied to the city’s seven strategic priorities). Examples of potential polling topics included employee pay competitiveness, inflation, new programs, park improvements, playground replacements, flood resiliency, and revenue‑side items such as wastewater, stormwater, solid‑waste fees, permitting fees, school‑age program fees, and real estate tax. Three public engagement opportunities were announced: an in‑person meeting on March 3, 2026, at 6:30 p.m. at the Dr. Mary T. Christian Theatre at Virginia Peninsula Community College; an in‑person meeting on March 7, 2026, at 9:00 a.m. at Kecoughtan High School; and a virtual Facebook Live session on March 5, 2026, at 7:00 p.m. The public survey will be available March 9–16. The City Manager’s recommended budget will be released April 15, with public hearings on April 22 and May 6, and Council adoption scheduled for May 3. Informational postcards will be mailed to all households. Councilmember Hope Harper asked how polling topics are selected; City Manager Bunting responded that items are based on active budget and capital requests before Council, as well as community proposals, and that infeasible items are excluded. She added that potential future topics (e.g., an optional one‑cent sales tax for school construction, marijuana legislation) could be included if state action makes them relevant. City Manager Bunting also announced short educational videos will be produced to explain budget concepts like the Dillon Rule, property reassessments, and the difference between assessments and tax rates.

Key Outcomes

  • Camping and Storage Ordinance: Council directed the City Attorney’s Office to draft an ordinance incorporating the stakeholder recommendations, to be brought back for consideration, possibly in March 2026.
  • EDA Grant Programs: Council expressed general support for the proposed updates; the recommendations will be transmitted to the EDA for formal action.
  • I-Value Process: Council acknowledged the outreach schedule and encouraged public participation; no further action required.
  • Closed Session: At 2:15 p.m., Council voted 7‑0 to convene a closed session (per 2.2‑3711(A)(3)(5)(6)(8)(7) and (1)) to discuss a potential mixed‑use project in Coliseum Central, a prospective business location, a downtown zoning enforcement issue, and appointments. The closed session lasted until 6:25 p.m.
  • Certification and Appointments: At 6:25 p.m., Council voted 7‑0 to certify the closed session. The session included discussion of appointments to the Citizens Police Advisory Group, Citizens' Unity Commission, Peninsula Alcohol Safety Action Program Advisory Board, Golf Course Advisory Committee, Hampton Economic Development Authority, Hampton Clean City Commission, Grievance Board, Mayor's Committee for People with Disabilities, Peninsula Town Center CDA, and Athletic Hall of Fame. The appointments were approved as part of the certification.
  • Adjournment: The meeting adjourned at 6:25 p.m.

Meeting Transcript

Good afternoon and welcome to the uh Hampton City Council work session. Uh, Madam Clerk, will you call a roll, please? Councilman Bowman, Vice Mayor Brown, President. Councilwoman Campbell, present, Councilwoman Fairby, present. Councilwoman Harper, present, Councilwoman Muggler, present, Mayor Gray. President, and we have several presentations on the agenda for this afternoon, so I'm going to turn it over to the city manager to introduce the first. Thank you, Mr. Mayor. As you and the council members know, uh sometime, I forget exactly when, last fall, we talked about the possibility of adopting a camping and storage ordinance to deal with some of the problems that neighbors, uh neighborhood residents as well as businesses had expressed about people camping out on public right-of-ways and causing problems in front of their businesses or residences. When we looked at that ordinance, it was misperceived by the public as an attempt to penalize the homeless, which all of us very clearly did not want to do. And so the decision by council was made to postpone consideration on that ordinance, get together a stakeholder group, which would include people who spoke before council at the public hearing as well as other interested stakeholders to see if they might be able to come up with a consensus recommendation on how we dealt with the legitimate concerns of residents and businesses, but also reflected our caring, compassionate spirit as Hamptonians and you know made sure that people didn't think we were trying to penalize the homeless. So for several months, um, all right, we've had a group that has met, and I'm very pleased to say that they came to a consensus, uh, which will be presented to you today by J uh Jason Mitchell, assistant city manager. Um we have several members of the group in the attendance as well, and after he completes the report, if they have anything they'd like to say, I hope you will allow them to do so, because they did put in a lot of really hard work. And um, it's I think it's fair to say that we started off thinking we wouldn't be able to get consensus potentially, and I'm very proud that the group really worked to understand each other and to understand the very serious issues that brought us to the point, but also what we can do to help people who are unfortunately unhoused in our community. So what you're gonna see is a report that talks both about the ordinance, but also because we wanted to validate the other conversation we heard, some next steps as we address a broader issue of homelessness in our community and our region. With that, I'm pleased to introduce Assistant City Manager Jason Mitchell. So good afternoon, Mayor Gray, Vice Mayor Brown, members of council, City Manager Bunting, and City Attorney Sid Noorr. Um as the city manager indicated, I have a brief report today about our camping and storage ordinance uh related to our stakeholder group. I'll start with a little bit of background as our camping and storage ordinance was introduced last year to address problematic behaviors occurring in the city right-of-ways, specifically in front of businesses and neighborhood properties. The original ordinance proposed a misdemeanor one penalty for individuals and or groups that would not leave the right-of-way after being asked to do so. The ordinance was labeled by many outside of government, local government, as a homeless ordinance, although the ordinance did not specify or apply to homeless individuals. There was a widespread concern that the ordinance sought to criminalize homelessness, which it did not. Council and staff believe that there is potentially ways to address the legitimate concerns of businesses and homeowners while also addressing the problems which lead to the original draft ordinance. A stakeholder committee made up of residents and business owners that had both supported and objected the initial ordinance was convened. With the primary question of how might we address public concerns about safety and cleanliness while upholding the dignity and rights of people experiencing homelessness. Sir, our goal. Through this process, we aim to surface insight, build empathy, and generate viable recommendations that respect human dignity, address public concern, and align with Hampton's values as a compassionate city. To frame the problem, public discomfort and safety concerns related to behaviors associated with individuals perceived to be homeless, such as public urination, nudity, obstruction of the right-of-way, have prompted a proposed ordinance aimed at addressing these many issues. While the intent is not to criminalize homelessness, the approach must be carefully considered to avoid unintended consequences that could further marginalize vulnerable individuals. Our challenge is to develop a community-informed, compassionate and effective response that upholds public dignity, health, and safety while advancing solutions that reflect on our shared values of work of all residents. So we had several design steps. Small groups were shared, concerns and generated ideas for amending the camping and storage ordinance to develop practical, compassionate solutions grounded in real-life experiences and community input. Aligned on the term camping and storage ordinance, which helped clarify the conversation, scope, and shift of the narrative away from the broader homelessness debates toward this specific policy at hand. And then lastly, work on changing the affirmed the importance of having a camping ordinance while shifting the tone toward more balanced and compassionate approaches. So the next several slides are talking about our recommendations, and we'll start with the proper tone and framing, as any ordinance should reflect a service-first approach rather than an enforcement first approach. We aim to lead with care and compassion, not punishment for any individual. Our second recommendation is to clarify the intent as compassionate compliance, protect the community while never giving up on any of these individuals. Most people will accept housing when it's safe, dignified and appropriate. A small number of repeated customers refuse to help because they are deeply traumatized. For this group, the answer is not simply tolerance nor self-simple enforcement. It requires balanced strategies. We will pair persistent outreach with a variety of housing options and insist that public spaces remain safe and usable. When someone's behavior is dangerous or disruptive, we will address that behavior directly through outreach co-responder teams and our community court programs if that can be worked out. No one has the right to endanger others and no one should be abandoned. Our third recommendation is the review whether or not our goals can be accomplished through a city policy versus a city ordinance. Other cities, most recently, the City of Newport News has adopted policies that attempt to achieve the same goals. This is the preferred approach. However, if our city attorney's office determines such a policy would not allow us to enforce it, then additional ordinance adoption may be needed. Our fourth recommendation is to suggest changes to the ordinance. That would incorporate language that makes clear that law enforcement shall prioritize voluntary compliance and relocation to lawful areas and/or shelter.

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