Virginia Beach City Council Special Formal Session - January 14, 2026
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Virginia Beach City Council Special Formal Session - January 14, 2026
This special formal session of the Virginia Beach City Council, called by Mayor Bobby Dyer, featured briefings on regional talent attraction, cannabis legalization preparations, budget efficiency recommendations, transit service plans, and a new military appreciation weekend. Council members also discussed district naming and public safety workforce concerns. Presentations were given by representatives of the Hampton Roads Executive Roundtable, the Cannabis Advisory Task Force, the Process Improvement Steering Committee, and city planning staff. No formal votes were taken on the briefing items, but council provided direction on next steps.
Start Hampton Roads – Regional Talent Attraction
- Presenters: Nancy Gerdon (President/CEO, Hampton Roads Executive Roundtable) and Lauren Roberts (VP Marketing, Hampton Roads Chamber of Commerce).
- Background: A regional initiative to combat outmigration and attract talent, funded initially by a Virginia Economic Development Partnership (VEDP) pilot grant. A landing page (startinhamptonroads.com) ran from July to December 2025 with $30,000 in ad spend.
- Results: 1.8 million impressions, 25,000 unique visitors, 1,300+ leads (job seekers), 450,000 Google ad impressions at a cost per click of $0.52. Top performing keywords included "jobs in Virginia Beach" with over 13,000 impressions and 1,000 clicks. Leading metros engaging: Los Angeles, New York City, Washington D.C., Raleigh, Charlotte.
- Next Steps: A Go Virginia Region 5 application is pending (January 29 council meeting, full board in March) to build out the job board and asset components. The Chamber Foundation is the lead applicant. No city match is requested; the Hampton Roads Workforce Council provides matching funds. The city is asked to consider future marketing amplification funding.
- Council Support: Council members Worth, Shulman, Rouse, and others expressed strong support, calling it a critical regional marketing effort that aligns with economic development playbooks and workforce needs.
Cannabis Advisory Task Force (CATF) – Preparations for Adult-Use Program
- Presenter: Andy Locke, former chair of CATF. Task force members, including newly elected chair Latonya Warren, attended.
- Legislative Context: Adult-use bills (Rouse bills) passed the legislature in 2024 and 2025 but were vetoed by Governor Youngkin. Governor-elect Alex Spanberger has indicated support for a well-regulated marketplace. Negotiated bills are expected to pass in the 2026 session, with implementation possible as early as September or November 2026.
- Task Force Recommendations (17 total):
- Public Safety: Consider opt-out (though JLC recommended against it), establish a 30-day review/approval process for applications (expect large first wave), set operating hours and consumption ordinances, adopt local taxes (up to 2.5% under Rouse bill, JLC recommends 3.5%), and designate use of proceeds.
- Community Outreach: Implement youth prevention and health risk campaigns, provide workplace education and employer resources, and train law enforcement and first responders on impairment detection.
- Zoning: Consider overlay districts, minimum distance between retailers (state minimum 1,000 feet; JLC recommended 1 mile but negotiations suggest 1,000 feet), restrict cannabis-related uses in certain zones, require additional permits/registration, and set signage limits.
- Council Discussion: Council members Michael Rouse, Stacey, Jennifer Rouse, and others emphasized the importance of education, revenue generation, public safety (especially youth violence linked to illicit market), and careful zoning. Councilman Berlucci suggested the task force should continue refining zoning recommendations. The city manager noted the issue will be a top agenda item in upcoming weekly briefings.
Process Improvement Steering Committee (PISC) – Budget Efficiency Recommendations
- Presenter: Brad Martin, chair of PISC. Subcommittee chairs Sarah Welch and Bruce Johnson contributed.
- Goal: Identify $16 million in cuts/revenue enhancements (equivalent to ~2 cents on the real estate tax rate) from the city’s $2.8 billion budget.
- Results: The committee identified $20 million in potential savings/revenue options, including:
- 25% reduction in economic development expenses ($1.2 million) – note potential revenue loss not evaluated.
- Increase aquarium fees to break even ($2 million gap identified; councilman Rouse noted break-even might be $8 million).
- Reduce early childhood services ($1 million net cost for 121 families).
- Adjust parks maintenance cycles (e.g., mowing schedules).
- 5% reduction in human services ($1.1 million) – cautioning that local cuts could trigger loss of federal/state matching funds.
- Other items: cultural affairs grants, police mounted patrol, lifeguards, etc.
- Context: The committee emphasized that every dollar has a champion and that second- and third-order impacts must be considered. They recommended long-term deep dives into 2-4 city departments annually and soliciting public input on which programs citizens would cut.
- Council Response: Council members Rouse and Shulman thanked the committee. Concerns were raised about:
- Impact on renters (real estate tax cut primarily benefits homeowners) and youth programs.
- The city’s half of the budget only; schools were not included. Councilman Rouse urged including schools in future efficiency discussions.
- Human services cuts could lose multiple federal/state dollars. City manager confirmed possible increased local match requirements.
- Economic development and cultural affairs cuts could harm long-term economic growth. Councilman Berlucci argued arts investments yield positive returns.
- Next Steps: Recommendations will be considered during FY2027 budget deliberations.
HRT Transit Service Plan (FY27) and Related Transit Issues
- Presenters: Planning Director Kathy Warren and Comprehensive Plan Administrator Hank Morrison.
- FY27 HRT Transportation Service Plan (TSP): Proposed cost: $9.5 million (up $950,000 from FY26) due to higher service hours, increased regional route costs, and a new collective bargaining agreement.
- Staff Requests Not Approved: Circulator Route 34 in resort area (event days) and seasonal express connecting airport, town center, and resort were denied due to HRT driver shortages on the south side.
- Approved Request: New route to Amazon facilities on Damneck, operated between downtown Norfolk, Newtown Road Light Rail Station, Virginia Beach TCC, and ORF4, fully funded by Hampton Roads Regional Transit Fund (no city cost).
- Route 33 Issue: Last year, Route 33 (TCC to resort area) was shortened to end at 19th & Parks due to poor ridership. This negatively impacted workers’ ability to reach the north end. Staff met with HRT and hotel association; a quote is pending to reinstate the original terminus at 68th & Atlantic. Council must decide before the February 13 TSP deadline (after which city pays 100% of changes).
- Bayside Microtransit: The pilot ended December 2025. Staff asked council to approve a second year of state TRIP grant funding at a local cost of $700,000 (40% local match in year two). Service would restart in May 2026. Council members Rouse, Shulman, and Vice Mayor Wilson expressed concerns about sustainability and equity—this single zone costs $700k now and escalates to ~$1.7 million by year five. Councilman Shulman noted the need for a citywide microtransit plan. An RFP for citywide microtransit is being drafted.
- Council Direction: No formal vote; council will receive cost estimates for Route 33 restoration and decide. On microtransit, several council members indicated reluctance to continue the Bayside pilot at escalating costs, preferring a broader planning approach.
Stars, Stripes & Spurs – Military Appreciation Weekend
- Presenter: Deputy City Manager Amanda Jarrett.
- Event Details: April 24-26, 2026, along Atlantic Avenue and at 17th, 24th, and 31st Street parks. Partnership between USO Mid-Atlantic, Beach Events, and CVB. Kicks off Virginia Beach’s VA 250 celebration. Includes:
- Bulls & Barrels Beach Rodeo (sanctioned by Southern Extreme Bull Riding Association) with added seating and a “Running of the Bulls” on Friday evening.
- USO military displays along Atlantic Avenue (17th to 21st streets, road closed from Friday morning to Sunday evening).
- Over 10,000 attendees expected.
- Free and ticketed events (rodeo tickets on sale Feb 13).
- Additional national/regional events at Convention Center and Sports Center that weekend.
- Marketing: Paid digital ads, international media (Travel South Global Week), CVB newsletters, landing page.
- Cost: Additional programming costs absorbed within existing budgets; no new city funding required.
- Council Reaction: Unanimous praise. Council members noted alignment with regional marketing efforts and year-round tourism goals.
Council Comments
- District Naming (Vice Mayor Wilson): Proposed renaming council districts from numbers to geographic names (e.g., Lynn Hill, Kempsville) to improve public recognition. City manager indicated staff previously scoped a budget-neutral option; council will revisit at a future briefing.
- Honorary Street Naming (Councilman Rouse): Urged creation of a formal policy for honorary street namings, separate from specific requests. City manager noted this is on the agenda for the upcoming council retreat (day 2, governance session).
- Firefighter Retention (Councilman Shulman): Flagged that Norfolk is hiring 140 firefighters (fourth shift, planned July 2027), potentially attracting Virginia Beach personnel. Mayor Dyer affirmed council’s commitment to public safety compensation and noted recent pay increases and equipment investments.
- Upcoming Events: Restaurant Week begins soon; increased participation by 25%.
Closed Session
- A motion was made and seconded to recess into closed session under Virginia Code exemptions for real property discussions (Districts 2 and 6) and personnel matters (appointments to boards/commissions). The closed session was certified upon reconvening.
Meeting Transcript
Good morning, welcome all uh to our meeting. And Mr. Dehaney, we're ready to get going. Okay, uh, but first I got to uh read a letter because we're gonna have a little bit of a special session. Um honorable members of City Council, in accordance with the Virginia Beach City Code 2-2-21, and by authority vested in me as the mayor of Virginia Beach, I hereby call for a special formal session of the Virginia Beach City Council on Tuesday, uh January 13th, 2026 at 1 p.m. of City Council conference room, room 2034, uh building one second floor, 2401 courthouse drive. The purpose of the special session is to conduct public briefings on the city council comments discussions and listed in the attachment public agenda at the conclusion of the uh public briefings, the city council comments discussion council will uh convene into a closed session where the following matters will be considered. Publicly held property in District 2 and District 6 and personal matters, uh council appointments of uh boards, commissions, uh committees, authorities, agencies, task force, and appointments at the conclusion of this closed session, uh the city council will reconvene into an open session uh for the purpose of certifying the closed session. The special uh formal session will be broadcast on uh cable TV and Virginia Beach.com and uh Facebook live and signed by Bobby Dark. Okay, we're ready to roll. Mr. Mayor, members of the council the first briefing. But before we get going to the first briefing, just want to make um note of a slight change on the agenda. One of the items, agenda item D, the disparity study update for logistical reasons, gonna have to move to another date. So that will be rescheduled at another time. So that's a slight change on the agenda. But the first item will be a briefing regarding starting Hampton Roads, and this will be led by Nancy Gerdon, president of CEO of Hampton Roads Executive Roundtable. So at this time, Nancy will um come to the stage and come to the podium and kick off the presentation. And Nancy, I got several people listed here. Uh so Lauren and I are doing it. Okay. So it'll be Nancy Gerdon, President of CEO, and also Lord Roberts, who is the vice president of marketing communication for Hampton Roads Chapter of Commerce. So Nancy, the floor is yours. Thank you. Well, they're both here. Thank you, Mayor Dyer, and thank you, members of City Council. We we are truly excited uh for the invitation today. And uh Lauren and I are actually going to tag tag team this, but uh two things. We'd like to update you on a really exciting uh in-force activity starting Hampton Roads. Uh a little bit of background on how it happened, uh, what's happening with it today and where we want to go, and then obviously uh entertain any comments or questions uh that you might have. So I I just want to say a couple things. Number one, that this is truly a regional activity. Um it literally started uh well over a year ago when we uh number of us who are regional organizations, uh the Alliance, the Workforce Council, the Chambers, others, uh looked around the region. Obviously, we are seeing data that concerned us about out migration and retaining our talent. And so uh that really precipitated uh a study well over a year ago now between the Hampton Roads Workforce Council, whom I know you know, and the round table to really understand sort of what what was what was the thinking behind it? What why were people staying? Why were they going from Hampton Roads, big picture? And so we started with that, um, and we're fortunate enough to get some seat funding from VEDP, Virginia Economic Development Partnership that is now complete. So we'll give you a little background on what happened with that, some of the amazing results that happened uh way beyond anybody's expectations, and then and then we'll we'll roll forward from there. So uh again, just as just a little background, as I mentioned, uh we wanted to understand a little bit more about what was happening in Hampton Roads. Um so we we we engaged an organization called Fahrenheit, who did some work for us to really help us understand uh what was going on um in the region. Fast forward to today, when we didn't present a lot of statistics. We know that's really not the purpose of the meeting, but we can tell you a couple things. Um the good news is Hampton Roads and Virginia, broadly speaking, are doing better in terms of not losing as much uh out migration and talent, but we are not uh we are not attracting enough. And there was a recent U-Haul study, many of you may look at it. It's kind of like an early warning signal for data uh that the census does, and a number of the regions that we compete with across the country, the the Raleigh's, uh the Jacksonville's the Nashville's, and so on, we're continuing to gain population. And we are a little flat. So we don't want to be flat, we want to grow. So there's no no change in the rationale for why this is so important um for the region, broadly speaking. So a little bit of why we learned at the time why people were concerned about leaving Hampton Roads.
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