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HomeMy WebLinkAbout6/9/2025 - City Council - Agenda -Regular Agenda Monday, June 9, 2025, 6:30 PM Work Session, 6:00 PM Council Chambers Conference Room, City Hall, 114 North Broad Street, Salem, Virginia 24153 Regular Session, 6:30 PM, City Hall, 114 North Broad Street, Salem, Virginia 24153 WORK SESSION 1. Call to Order 2. New Business A. Discussion Items Discussion of 2026 Legislative Agenda Process 3. Adjournment REGULAR SESSION 1. Call to Order 2. Pledge of Allegiance 3. Bid Opening, Awards, Recognitions A. Presentation of Certificate of Achievement for Accreditation - City of Salem Sheriff's Office Program Director Todd Clingenpeel for the Virginia Law Enforcement Professional Standards Commission and Roanoke City Sheriff Antonio Hash will present Sheriff Christopher Shelor, Accreditation Manager, Captain Jonathan Branson, and the entire Salem Sheriff’s Office staff the Certificate of Accreditation. This is the sixth certificate of achievement for the Salem Sheriff’s Office, an accredited agency since 2005. 4. Consent Agenda A. Citizen Comments Comments from the public, limited to five minutes, on matters not already having a public hearing at the same meeting. Page 1 of 110 B. Minutes Consider acceptance of the May 27, 2025, Special Meeting Closed Session and the May 27, 2025, Regular Meeting minutes. 5. Old Business 6. New Business A. Amendment to the Zoning Ordinance Hold a public hearing and consider ordinance on first reading for the request of Riverland Oaks, LLC, property owner, to rezone the property located at 19 Carey Avenue (T/M# 83-1-11) from RSF Residential Single-Family District to RB Residential Business District with proffered conditions. (Advertised in the May 22 and 29, 2025, issues of Cardinal News.)(Planning Commission recommended approval by a 5-0 vote.) B. Amendment to the Zoning Ordinance Hold a public hearing and consider ordinance on first reading for the request of Danny R. and Sonja S. Kane, property owners, to rezone the property located at 151 St. John Road (Tax Map #155-2-3) from HM Heavy Manufacturing to HBD Highway Business District. (Advertised in the May 22 and 29, 2025, issues of Cardinal News.)(Planning Commission recommended approval by a 5-0 vote.) C. Public Hearing and Consider Lease for the Battery Energy Storage System (BESS) Project. Hold a public hearing and consider the lease of an approximate +/- 0.10 acre portion of Tax Map #150-2-4 owned by and located in the City of Salem, Virginia. (Advertised in the May 30, 2025, issue of Cardinal News.) D. Resolution 1503 - Revision of Maximum Pricing for Battery Energy Storage System (Bess) Project Consider revising the maximum price per kW-mo. established by Council at their November 12, 2024 Meeting. E. Resolution 1504 - Remote Participation Policy Consider adoption of Resolution 1504 to adopt a Remote Participation Policy for Council member participation in Council meetings for Fiscal Year 2025-2026. F. 630 Union Street Purchase Agreement Amendment Consider an amendment to the Purchase Agreement for 630 Union Street. G. Appropriation of Funds Request to appropriate a Marketing Program grant from Virginia Tourism Corporation. H. Appropriation of Funds Request to accept and appropriate Technical Assistance Grant funds from the Virginia Department of Housing and Community Development (VDHCD) and execute a Page 2 of 110 Memorandum of Understanding I. Appropriation of Funds Request to transfer unallocated capital reserve for Fiscal Year 2026 Capital Improvement Plan projects. Audit - Finance Committee J. Appropriation of Funds Request to appropriate and transfer funding for project contingency to the Water Capital Fund and Sewer Capital Fund and to appropriate additional 2024 General Obligation Bond proceeds. Audit - Finance Committee K. Boards and Commissions Consider appointments to various boards and commissions. 7. Adjournment Page 3 of 110 Item #: 3.A. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: June 9, 2025 AGENDA ITEM: Presentation of Certificate of Achievement for Accreditation - City of Salem Sheriff's Office Program Director Todd Clingenpeel for the Virginia Law Enforcement Professional Standards Commission and Roanoke City Sheriff Antonio Hash will present Sheriff Christopher Shelor, Accreditation Manager, Captain Jonathan Branson, and the entire Salem Sheriff’s Office staff the Certificate of Accreditation. This is the sixth certificate of achievement for the Salem Sheriff’s Office, an accredited agency since 2005. SUBMITTED BY: SUMMARY OF INFORMATION: The Salem City Sheriff's Office is among an elite group of law enforcement agencies that have earned accreditation through the Virginia Law Enforcement Professional Standards Commission (VLEPSC). Of the more than 360 law enforcement agencies in Virginia, approximately 100 of them have achieved this distinction. The Office was initially accredited in February 2005. Accreditation is considered the ultimate measure of professionalism among law enforcement agencies. The Virginia Law Enforcement Professional Standards Commission is governed by an executive board composed of six Sheriffs selected by the Virginia Sheriff's Association and six Chiefs selected by the Virginia Association of Chiefs of Police. The standards are recognized as a "best practices" protocol for any law enforcement agency. In providing the accreditation program, the Commission's goals are: • To promote public confidence in law enforcement and consistency in its application. • To promote cooperation among agencies. • To ensure proper training for law enforcement personnel. Page 4 of 110 • To increase the effectiveness and efficiency of services provided by law enforcement. Accreditation sets the standards by which an agency must continue to operate in order to retain this highly coveted status. Agencies must prove they are in compliance every 4 years with 192 standards and over 700 points professional practice. These professional standards must become a routine way of conducting Sheriff's Office business. FISCAL IMPACT: N/A STAFF RECOMMENDATION: Staff recommends Council recognize the City of Salem Sheriff's Office for this accreditation achievement. ATTACHMENTS: None Page 5 of 110 CITY COUNCIL MINUTES Tuesday, May 27, 2025 at 5:45 PM 5:45 PM, City Hall, Council Chambers Conference Room, 114 North Broad Street, Salem, Virginia 24153 1.Call to Order A special meeting of the Council of the City of Salem, Virginia, was called to order at 5:45 p.m. There being present the following members to wit: Renée Ferris Turk, Mayor; Anne Marie Green, Vice-Mayor; Council members: Byron Randolph Foley (arrived after vote to move into Closed Session), H. Hunter Holliday, and John Saunders; with Renée Ferris Turk, Mayor, presiding; together with Chris Dorsey, City Manager; Rob Light, Assistant City Manager and Clerk of Council; Rosie Jordan, Director of Finance; A. K. Briele, Director of Electric Department; Kevin Divers, Electrical Engineer; Crystal Williams, Assistant to the City Manager; and the following business was transacted: Mayor Turk reported that this date, place, and time was set as a special meeting of City Council, in accordance with Section 4.6 (b) of The Charter of the City of Salem, Virginia, in order to hold a closed session. 2.Closed Session A.Closed Session Hold a closed session in accordance with Section 2.2-3711 A(6) of the 1950 Code of Virginia, as amended, for discussion or consideration of the investment of public funds where competition and bargaining is involved, where, if made public, initially, the financial interest of the City would be adversely affected. Anne Marie Green motioned that in accordance with Section 2.2-3711 A(1) of the 1950 Code of Virginia, as amended, Council hereby convenes to closed session at 5:45 p.m. for the purpose of discussing the following specific matters: For discussion or consideration of the investment of public funds where competition and bargaining is involved, where, if made public, initially, the financial interest of the Item #4.B Date: 6/09/25 Page 6 of 110 City would be adversely affected. John Saunders seconded the motion. Ayes: John Saunders, Hunter Holliday, Anne Marie Green, Renee Turk Nays: None Abstaining: Randy Foley Anne Marie Green motioned to reconvene at 6:20 p.m. in accordance with Section 2.2- 3712 D. of the Code of Virginia, 1950 as amended to date, Council certifies that in closed session only items lawfully exempted from open meeting requirements under the Virginia Freedom of Information Act and only such items identified in the motion by which the closed session was convened were heard, discussed, or considered by the Council. Hunter Holliday seconded the motion. Ayes: John Saunders, Hunter Holliday, Randy Foley, Anne Marie Green, Renee Turk 3.Adjournment The meeting was adjourned at 6:20 p.m. Submitted by: Approved by: H. Robert Light Renée Ferris Turk Clerk of Council Mayor Page 7 of 110 CITY COUNCIL MINUTES Tuesday, May 27, 2025 at 6:30 PM Regular Session, 6:30 PM, City Hall, 114 North Broad Street, Salem, Virginia 24153 WORK SESSION WORK SESSION IS CANCELLED FOR MAY 27, 2025 REGULAR SESSION 1.Call to Order A regular meeting of the Council of the City of Salem, Virginia, was called to order at 6:30 p.m., there being present the following members to wit: Renée Ferris Turk, Mayor; Anne Marie Green, Vice-Mayor; Councilmembers: Byron Randolph Foley, H. Hunter Holliday, and John Saunders; with Renée Ferris Turk, Mayor, presiding together with Chris Dorsey, City Manager; Rob Light, Assistant City Manager and Clerk of Council; Rosemarie B. Jordan, Director of Finance; Chuck Van Allman, Director of Community Development; Mike Stevens, Director of Communications; and Chris Dadak, on behalf of City Attorney, Jim Guynn. 2.Pledge of Allegiance 3.Bid Opening, Awards, Recognitions There were none this evening. 4.Consent Agenda A.Citizen Comments Comments from the public, limited to five minutes, on matters not already having a public hearing at the same meeting. Evans Baxley, 511 Bonnie Lane, expressed gratitude for Council's service and acknowledged the challenges of their roles. He commended recent enhancements to the downtown area, including lights and sidewalks, and noted the positive impact on traffic speed. Mr. Baxley raised concerns about the condition of roads and proposed ideas for Page 8 of 110 revenue generation for street improvements. He also made recommendations related to utility services. Mr. Baxley requested the purchase of extra guardrails for low-water bridges to avoid reliance on temporary wooden barriers. John Breen, 142 Bogey Lane, criticized the continued use of two-by-two meetings by Council members and asked for a formal motion to abolish the practice. He urged for prioritization of streaming Council meetings. Mr. Breen highlighted long-standing concerns with undeveloped and unsightly properties and expressed concern about road conditions and aesthetics in areas of the City. In addition, he noted concerns with guidelines for citizen comment and follow-up to citizen concerns presented during Council meetings. Mr. Breen offered suggestions for increasing citizen engagement and urged the adoption of formal parliamentary rules for Council meetings. Stella Reinhard, 213 N. Broad Street, noted that she had prepared and submitted a PowerPoint to Council to supplement her comments this evening, and she addressed several topics related to city planning and development. Mrs. Reinhard expressed concerns about construction traffic safety with the ongoing college construction projects. She also made note of possible zoning issues related to the college that may need future Council discussion. Mrs. Reinhard encouraged proactive and detailed vision planning to guide development and shared suggestions for preserving character through village centers, connector roads, and green spaces. B.Minutes Consider acceptance of the May 12, 2025, Regular Meeting minutes. The minutes were approved as written. C.Financial Reports Consider acceptance of the Statement of Revenues and Expenses for the ten months ending April 30, 2025. The Financial Reports were received. 5.Old Business A.Amendment to the Zoning Ordinance Consider ordinance on second reading for the request of Gwynn Properties, LLC, contract purchaser, to rezone the property located at 220 Brand Avenue (T/M# 74-2- 8) from HBD Highway Business District with conditions to HBD Highway Business District. (Approved on first reading at the May 12, 2025, meeting.) Randy Foley motioned to adopt the Ordinance on second reading, rezoning the property at 220 Brand Avenue from HBD Highway Business District with conditions to HBD Highway Business District. Anne Marie Green seconded the motion. Ayes: John Saunders, Hunter Holliday, Randy Foley, Anne Marie Green, Renee Turk Page 9 of 110 Nays: None Abstaining: None B.Resolution 1501 adopting the City's Fee Schedule for Fiscal Year 2026 Consider the approval of Resolution 1501 adopting the City's Fee Schedule for Fiscal Year 2026 Hunter Holliday motioned to adopt Resolution 1501, adopting the fee schedule for Fiscal Year 2026. John Saunders seconded the motion. Ayes: John Saunders, Hunter Holliday, Randy Foley, Anne Marie Green, Renee Turk Nays: None Abstaining: None C.Resolution 1502 adopting the budget for Fiscal Year 2026 Consider approval of Resolution 1502 adopting the budget for Fiscal Year 2026. Randy Foley motioned to adopt Resolution 1502, adopting the budget for Fiscal Year 2026. Hunter Holliday seconded the motion. Ayes: John Saunders, Hunter Holliday, Randy Foley, Anne Marie Green, Renee Turk Nays: None Abstaining: None D.Budget Appropriation Ordinances Consider on second reading the ordinances appropriating funds for: (a) Fiscal year 2026 operating budget and approval of the Schematic List of Positions and Pay Scale for Fiscal Year 2026; (b) Fiscal year 2026 capital budget and; (c) Fiscal year 2026 budget for Salem City Schools Hunter Holliday motioned to adopt the ordinance on second reading, appropriating funds for the Fiscal Year 2026 Operating Budget and approval of the Schematic List of Positions and Pay Scale for Fiscal Year 2026. John Saunders seconded the motion. Ayes: John Saunders, Hunter Holliday, Randy Foley, Anne Marie Green, Renee Turk Nays: None Abstaining: None Anne Marie Green motioned to adopt the ordinance on second reading, appropriating funds for the Fiscal Year 2026 Capital Budget. Randy Foley seconded the motion. Ayes: John Saunders, Hunter Holliday, Randy Foley, Anne Marie Green, Renee Turk Nays: None Abstaining: None Page 10 of 110 Hunter Holliday motioned to adopt the ordinance on second reading, appropriating funds for the Fiscal Year 2026 budget for Salem City Schools. Randy Foley seconded the motion. Ayes: John Saunders, Hunter Holliday, Randy Foley, Anne Marie Green, Renee Turk Nays: None Abstaining: None 6.New Business A.Boards and Commissions Consider appointments to various boards and commissions. Randy Foley motioned to reappoint William R. Shepherd for a two-year term ending June 9, 2027, to the Personnel Board. Also, to appoint Denise P. King to replace Skip Lautenschlager for the remainder of a three-year term ending September 26, 2026. Mrs. King appears to have been appointed many years ago as a staff appointment by the City Manager. Per the Commission by-laws, the City Manager appoints two staff members and Council appoints three residents. It is more appropriate that she serves as one of the three governing body resident appointments. John Saunders seconded the motion. Ayes: John Saunders, Hunter Holliday, Randy Foley, Anne Marie Green, Renee Turk Nays: None Abstaining: None 7.Adjournment Mayor Turk noted that she hoped everyone had a great Memorial Day weekend and remembered the reason for that holiday. The meeting was adjourned at 6:51 p.m. Submitted by: Approved by: H. Robert Light Renée Ferris Turk Clerk of Council Mayor Page 11 of 110 Item #: 6.A. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: June 9, 2025 AGENDA ITEM: Amendment to the Zoning Ordinance Hold a public hearing and consider ordinance on first reading for the request of Riverland Oaks, LLC, property owner, to rezone the property located at 19 Carey Avenue (T/M# 83-1-11) from RSF Residential Single-Family District to RB Residential Business District with proffered conditions. (Advertised in the May 22 and 29, 2025, issues of Cardinal News.)(Planning Commission recommended approval by a 5-0 vote.) SUBMITTED BY: Maxwell Dillon, Planner SUMMARY OF INFORMATION: SITE CHARACTERISTICS: Zoning: RSF Residential Single Family Land Use Plan Designation: Residential Existing Use: Vacant Proposed Use: Townhouses The subject property (19 Carey Avenue) consists of a 0.333-acre tract of land which currently sits within the RSF Residential Single Family zoning designation. The applicant is requesting a rezoning of the property from RSF Residential Single Family to RB Residential Business District to facilitate the development of a ten-unit townhouse complex in conjunction with an adjacent property (114 Brand Avenue). The provided concept plan displays three separate structures – two with three units, and one with four units. The applicant has voluntarily proffered two separate items: 1. Townhouses shall be the only allowable use on the property 2. The property shall not have vehicular access from Carey Avenue. If approved, this townhouse development is subject to the Use and Design Standards specified in Section 106-304.17 of the City of Salem Zoning Ordinance. Page 12 of 110 The City is aware of issues related to stormwater management in this area and has proactively discussed interventions with the applicant. As is the case with any potential development on this property, stormwater management must be reviewed through the site plan process and approved by the City prior to construction. The Future Land Use Map (FLUM) identifies this area as Residentialwhich is consistent with the proposed future utilization of the property. The proposal meets the requirements of Section 106-208.3. Site development regulations for RB. FISCAL IMPACT: STAFF RECOMMENDATION: Staff recommends Council consider the ordinance on first reading for this request, subject to the applicant’s voluntary proffers which regulate the use of the property and restricts vehicular access from Carey Avenue. ATTACHMENTS: 1. 1 - Brand Avenue Rezoning Application - PS signed 2. 2 - Brand Avenue Rezoning Narrative 3. 4 - Plat 4. 5 - Brand Avenue Concept Plan 5. 6 - Brand Avenue Arch Perspective 6. 3 - Legal Description 7. Affadavit Mail Signed Notarized 19 Carey 8. Item 6A.6B 6-09-25 May 14 2025 PC Minutes 9. Item 6A 6-09-25 Council meeting owner notification letter - 19 Carey Avenue 10. Item 6A.6B 6-09-25 Legal Ad 5.22 5.29 11. Item 6A 6-09-25 Rezoning Ordinance 19CareyAvenue T.M.83-1-11 Page 13 of 110 Page 14 of 110 Page 15 of 110 Page 16 of 110 Page 17 of 110 Page 18 of 110 Page 19 of 110 Page 20 of 110 Page 21 of 110 REZONING NARRATIVE We are providing the narra ve below as supplemental informa on to support the a ached rezoning applica on. This request is to rezone Tax Parcel 83-1-11 (0.333 acres) from RSF (Residen al Single Family) to RB (Residen al Business) with proffered condi ons. Tax Parcel 83-1-11, herea-er referred to as the Subject Property, is landlocked, accessed only through the adjacent Tax Parcel 83-1-7, herea-er referred to as the Adjacent Property. Both the Subject Property and Adjacent Property are owned by Riverland Oaks, LLC. The Subject Property has a Carey Avenue address, which is likely why it’s presently zoned RSF. However, it is not accessible from Carey Avenue. The intent is to develop Tax Parcels 83-1-7 and 83-1-11 together. The Adjacent Property (0.685 acres) is currently zoned RB. The Subject Property (0.333 acres) is currently zoned RSF, and this applica on is to rezone this parcel to RB. Rezoning the Subject Property to RB will allow these proper es to be combined to create a 1.018-acre parcel suitable for a residen al townhome development, while also allevia ng the Subject Property’s current landlocked condi on. By right, the Adjacent Property can be developed with up to six townhome units, and the Subject Property can be developed with two single-family homes. However, the awkward shape of the proper es and the landlocked nature of the Subject Property would result in a less-than-desirable configura on of buildings, driveways, and parking. In contrast, rezoning the Subject Property enables the crea on of a though;ully planned, cohesive community with 10 uniform townhomes. This request is consistent with the land use designa on of Residen al on the City of Salem’s Official Future Generalized Land Use Map. The Subject Property is situated between Carey Avenue and Brand Avenue. The Subject Property and the Adjacent Property are located within a diverse mixture of residen al and commercial zoning, including RSF, RB, HBD, LM, and RSF. The Subject Property’s northern property line adjoins the Adjacent Property, a 0.685-acre vacant lot (zoned RB). Adjoining the east side of the Subject Property are residen al homes facing Carey Avenue. A landlocked alley adjoins the southern side of the property. The west side of the property is adjoined by a parking lot (zoned HBD) and a brick home currently in use as an office (zoned RB). The a ached preliminary Concept Plan (Exhibit A, prepared by Balzer and Associates, Inc., dated March 3, 2025) outlines our vision for the proposed townhome development. The proposed concept includes 10 townhome units configured in one 4-unit building and two 3-unit buildings. Each townhome is an cipated to have three bedrooms and two and a half bathrooms. Vehicular access will be from Brand Avenue. A proffered condi on is being provided that there will be no vehicular access from Carey Avenue. Parking will be provided within close proximity to each building, with two spots assigned to each townhome. The plan provides for a 25-foot buffer and plan ngs adjacent to all RSF proper es, as required by City of Salem development standards for townhomes. This buffer would not be required with single-family home construc on. The preliminary site plan also accounts for adequate emergency vehicle access. An Architectural Perspec ve (Exhibit B, dated March 3, 2025) is also provided as supplemental informa on to illustrate the developer’s vision for the exterior of the proposed townhomes. A proffered condi on is being proposed with this applica on that will limit the use of the property to townhouses only. Page 22 of 110 Due to the topography of the Combined Parcel, stormwater management will be a focal point of the final site plan development. Stormwater management will be designed as part of the site plan process and we will work closely with City of Salem engineering staff and Balzer and Associates on this design. The property will be served by public water and sewer, which are available from both Carey Avenue and Brand Avenue. Presently, the annual tax assessments of the Subject Property and Adjacent Property are $69,200, equa ng to annual real estate tax revenue of $830. Once rezoned and improved, the townhome development could generate $21,198 in real estate tax revenue per year, assuming a tax assessment of $1,766,500. In addi on to the 2,454% tax revenue increase, the development would create an a rac ve community of homes that will increase the value of the surrounding proper es while also providing City of Salem ci zens with a comfortable and affordable place to call home. With fewer and fewer vacant lots available in the City of Salem, we are always looking for unique opportuni es to expand our rental por;olio. Riverland Oaks, LLC has a proven track record of developing vacant or blighted proper es to provide quality housing, improve neighborhoods, and add real estate tax revenue to the City of Salem. The following is a list of such projects: Indiana Street: In 2020, we replaced an uninhabitable home with five single-family homes, drama cally increasing the parcel’s annual tax assessment from $100,000 in 2019 to its current assessment of $1,223,000. Previously an eyesore and a safety concern, the property generated just $1,180 in annual real estate tax revenue. Now, these five a rac ve homes enhance the neighborhood’s appeal, have inspired further improvements in the area, and contribute $14,676 in annual real estate tax revenue. S Broad/White Oak Streets: In 2020, we sought a special excep on permit to build a duplex on a vacant lot, increasing the annual tax assessment from $32,700 in 2021 to its current assessment of $353,300. Vacant, the property generated just $392 in annual real estate tax revenue. Today, that has increased 980% to $4,239. S Market Street: In 2022, we built four single-family homes on four narrow vacant lots, increasing the annual tax assessment from $47,400 in 2022 to its current assessment of $1,029,200. Vacant, the property generated just $568 in annual real estate tax revenue. Today, that has increased 2,074% to $12,350. Page 23 of 110 Page 24 of 110 Page 25 of 110 Page 26 of 110 PROPOSED 36'x88' 4-UNIT TOWNHOUSE BUILDING ±3,168 SF PROPOSED 36'x66' 3-UNIT TOWNHOUSE BUILDING ±2,376 SF PROPOSED 36'x66' 3-UNIT TOWNHOUSE BUILDING ±2,376 SF PROPERTY TO BE REZONED TO RB PROJECT NO. REVISIONS SCALE DATE CHECKED BY DESIGNED BY DRAWN BY www.balzer.cc Roanoke / Richmond New River Valley Shenandoah Valley P L A N N E R S / A R C H I T E C T S E N G I N E E R S / S U R V E Y O R S 1208 Corporate Circle Roanoke, VA 24018 540.772.9580 KPG KPG CPB 3/3/2025 1" = 20' BR A N D A V E N U E T O W N H O M E S CO N C E P T P L A N 11 4 B R A N D A V E N U E SA L E M , V I R G I N I A 2 4 1 5 3 EX-A 04240067.00 PRE L I M I N A R Y J: \ 2 4 \ 0 0 \ 0 4 \ 0 4 2 4 0 0 6 7 . 0 0 B R A N D A V E N U E T O W N H O M E S \ C I V I L \ d w g \ 0 4 2 4 0 0 6 7 . 0 0 B A S E 2 0 2 5 - 2 - 2 6 E X - B . d w g P L O T T E D : Th u F e b 2 7 1 6 : 3 3 : 2 5 2 0 2 5 Page 27 of 110 Page 28 of 110 LEGAL DESCRIPTION OF AREA TO BE REZONED CONTAINING CITY OF SALEM TAX ID 83-1-11 (“PARCEL P” AS SHOWN ON PLAT IN PLAT BOOK 10 PAGE 100) COMMENCING AT A POINT ON THE EAST LINE OF BRAND AVENUE, SAID POINT BEING THE COMMON CORNER OF TAX ID 83-1-12 AND TAX ID 83-1-13; THENCE DEPARTING THE EAST LINE OF BRAND AVENUE S80°36’36”E 156.96 FEET TO A POINT ON THE WEST LINE OF TAX ID 83-1-11, BEING A COMMON CORNER OF TAX ID 83-1-12 AND TAX ID 83-1-13; SAID POINT ALSO BEING THE POINT OF BEGINNING. THENCE WITH THE EAST LINE OF TAX ID 83-1-12 N07°40’02”E 106.42 FEET TO A POINT; THENCE WITH THE SOUTH LINE OF TAX ID 83-1-7 N89°22’13”E 100.37 FEET TO A POINT; THENCE WITH THE WEST LINES OF TAX IDs 83-1-9, 83-1-10, AND 83-1-11, S07°50’41”W 152.00 FEET TO A POINT; THENCE ALONG THE NORTH LINE OF AN EXISTING ALLEY N84°16’04”W 98.91 FEET TO A POINT; THENCE WITH THE EAST LINE OF TAX ID 83-1-13 N07°40’02”E 34.44 FEET TO A POINT, BEING A COMMON CORNER OF TAX ID 83-1-12 AND TAX ID 83-1-13; SAID POINT ALSO BEING THE POINT OF BEGINNING. HAVING A TOTAL AREA OF 14,506.5 SQUARE FEET OR 0.333 ACRE, MORE OR LESS, SITUATE IN THE CITY OF SALEM, VIRGINIA, THIS DESCRIPTION BEING COMPILED FROM RECORDS. Page 29 of 110 Page 30 of 110 PLANNING COMMISSION MINUTES Wednesday, May 14, 2025, at 7:00 PM Work Session, 6:00 PM, Council Chambers Conference Room, City Hall, 114 North Broad Street, Salem, Virginia 24153 Regular Session, 7:00 PM, City Hall, 114 North Broad Street, Salem, Virginia 24153 IT IS NOTED THAT THE MINUTES FOR THIS MEETING OF THE CITY OF SALEM PLANNING COMMISSION WERE PREPARED WITHOUT THE BENEFIT OF AN AUDIO RECORDING. WORK SESSION 1. Call to Order A work session meeting of the Planning Commission of the City of Salem, Virginia, was held in the Council Chambers Conference Room, City Hall, 114 North Broad Street, at 6:00 p.m., on Wednesday, May 14, 2025, there being present the following members of said Commission, to wit: Denise P. King, Reid Garst, Jackson Beamer, Mark Henrickson, and Nathan Routt, constituting a legal quorum, with Chair King, presiding; together with H. Robert Light, Assistant City Manager and Deputy Executive Secretary, ex officio members of said Commission; Charles E. Van Allman, Jr., Director of Community Development; Mary Ellen Wines, Planning & Zoning Administrator, Maxwell S. Dillon, Planner, and Jim H. Guynn, Jr., City Attorney; and the following business was transacted: Chair Denise King reported that this date, place, and time had been set in order for the Commission to hold a work session. The work session meeting was called to order at 6:02 p.m. 2. Unfinished Business A. Amendment to the Zoning Ordinance A discussion was held regarding the request of Riverland Oaks, LLC, property owner, to rezone the property located at 19 Carey Avenue (T/M# 83-1-11) from RSF Residential Single-Family District to RB Residential Business District with proffered conditions. Page 31 of 110 3. New Business B. Amendment to the Zoning Ordinance A discussion was held regarding the request of Danny R. and Sonja S. Kane, property owners, to rezone the property located at 151 St. John Road (Tax Map #155-2-3) from HM Heavy Manufacturing to HBD Highway Business District C. Comprehensive Plan 2045 – Back to Salem’s Future A discussion was held regarding postponing to a future meeting. The future meeting will be readvertised. 4. Adjournment Chair King adjourned at 6:42 p.m. REGULAR SESSION 1. Call to Order A regular meeting of the Planning Commission of the City of Salem, Virginia, was held in the Council Chambers Conference Room, City Hall, 114 North Broad Street, at 7:00 p.m., on Wednesday, May 14, 2025, there being present the following members of said Commission, to wit: Denise P. King, Reid Garst, Jackson Beamer, Mark Henrickson, and Nathan Routt, constituting a legal quorum, with Chair King, presiding; together with H. Robert Light, Assistant City Manager and Deputy Executive Secretary, ex officio members of said Commission; Charles E. Van Allman, Jr., Director of Community Development; Mary Ellen Wines, Planning & Zoning Administrator, Maxwell S. Dillon, Planner, and Jim H. Guynn, Jr., City Attorney; and the following business was transacted: Chair Denise King reported that this date, place, and time had been set in order for the Commission to hold a public meeting. The meeting was called to order at 7:00 p.m. A. Pledge of Allegiance 2. Consent Agenda A. Minutes Consider acceptance of the minutes from April 16, 2025, work session and regular meeting. Chair King confirmed no corrections were raised and accepted the minutes as presented. Page 32 of 110 Chair King stated, if anyone was in attendance for the Comprehensive Plan, that item had been postponed until a future meeting and it would be readvertised. 3. Unfinished Business A. Amendment to the Zoning Ordinance Hold public hearing and consider the request of Riverland Oaks, LLC, property owner, to rezone the property located at 19 Carey Avenue (T/M# 83-1-11) from RSF Residential Single-Family District to RB Residential Business District with proffered conditions. The petitioner had previously requested to continue this item to the May 14, 2025, meeting. Property legal notice has been given and all adjoining property owners have been notified of said hearing. Chair King opened the public hearing at 7:05 p.m. She invited the petitioner to address the Commission and present their request. She mentioned that they would need to state their name and address for the record. Patrick Snead of 302 Live Oak Court addressed the Commission and thanked them for the continuation of the rezoning request. Mr. Snead stated that the subject property offers unique opportunities in that it contains one lot on Brand Avenue and one lot on Carey Avenue. The Brand Avenue lot is already zoned RB and allows townhomes by right. The Carey Avenue lot is a landlocked site zoned RSF. They want to rezone the Carey Avenue site to RB and combine it with the Brand Avenue lot for development as one property. He emphasized that stormwater management remains their primary concern, and discussions were ongoing with the City of Salem to address this issue. Crystie Combs of 119 Carey Avenue addressed the Commission. She stated that she has lived at this location for 20 years. She reported that when the homes on the east side of Carey Avenue were constructed, water began to pond on her property. She fears the proposed additional development would worsen the problem. Dennis Dessurean of 108 Carey Avenue addressed the Commission and stated his concern was also the stormwater runoff. He stated that water from 220 Brand Avenue flows to 145 Carey Avenue, while 119 Carey Avenue retains water and drains toward the Snead property. Phillip Beland of 312 Carey Avenue addressed the Commission and noted a big problem was with mosquitoes. He stated that his property serves as a stormwater catch basin for Carey Avenue. The City was supposed to treat 220 Brand Avenue with tablets for mosquitoes but that has been inconsistent. He would also prefer only single-family development at this location. Page 33 of 110 Rebecca Horton of 419 Roanoke Boulevard addressed the Commission and stated that she is the owner of 112 Brand Avenue. They thought the flooding appeared to have subsided for a time but returned following the extension of Harrison Avenue. She asked whether the City would provide oversight on the proposed development and what remedies would be available if the stormwater management plan failed. Mr. Beland asked about the Harrison Avenue extension and placing a culvert. Mr. Dessureau asked who would be liable if there was flooding at this location. Charles Van Allman addressed the stormwater issue and stated that a consultant would be brought in to determine the most efficient solution for both the upper and lower ends of Carey Avenue. He stated that this would probably be developed in 2 phases. Chris Burns addressed the Commission and stated his concern was also stormwater management but noted that the proposal would provide a more holistic approach to storm water management, rather than a “piece-meal” solution with separate projects. The Commission recommended approval with two voluntary proffers: 1. Townhouses shall be the only allowable use on the property. 2. The property shall not have vehicular access from Carey Avenue. Chair King noted that she does not think it is appropriate to hold this property owner responsible for a larger-scale water problem and asked if there was anyone else to speak on the matter. Hearing none, she closed the public hearing at 7:30 pm. and asked for a roll call vote: Mr. Routt - Aye Mr. Henrickson - Aye Mr. Beamer - Aye Mr. Garst - Aye Chair King – Aye On the motion made by Mr. Garst and seconded by Mr. Beamer and duly carried, the Commission recommends to the City Council the approval of the rezoning of 19 Carey Avenue from RSF to RB with the two proffered conditions that use will be limited to townhouses only and there will be no vehicular access from Carey Avenue. Chair King explained that the Planning Commission is a research and recommending body to the City Council. This matter has been approved with a 5-0 vote and will now go to City Council. Attendees will need to appear at the City Council meeting when this is on their Agenda. They will be notified of the time and date once it has been placed on their Agenda. For those of the public, everything will appear in the Salem Times Register or the Roanoke Times, as well as the website for the City of Salem. Page 34 of 110 4. New Business A. Amendment to the Zoning Ordinance Hold a public hearing and consider the request of Danny R. and Sonja S. Kane, property owners, to rezone the property located at 151 St. John Road (Tax Map #155-2-3) from HM Heavy Manufacturing to HBD Highway Business District. Property legal notice has been given and all adjoining property owners have been notified of said hearing. Chair King opened the public hearing at 7:46 p.m. She invited the petitioner to address the Commission and present their request. She mentioned that they would need to state their name and address for the record. Chris Burns, representing Salem Sabres soccer club, addressed the Commission and stated that the application was being submitted on behalf of the property owners. He explained the site is currently developed with three soccer fields and is actively used by the Salem Sabres. The purpose of the proposed rezoning is to expand the existing facilities by adding additional parking, more playing fields and a designated training area to support the club’s ongoing operations. Reid Garst asked if the provided concept was preliminary. Mr. Burns confirmed that it was preliminary and explained that the property will continue to be used for the soccer club known as the Salem Sabres. Nathan Routt asked if the property was used for practices, games and tournaments. Mr. Burns confirmed that the property is used for all aspects of the soccer club’s activities, and they currently have 14 teams. Chair King asked about the age of the participants. Mr. Burns stated that the club includes children ranging in age from 3-4 years old to high school-aged youth. Mark Henrickson asked for confirmation that the subject property at 151 St. John Road would be used for the soccer club activities. Mr. Burns confirmed that it would be used for the soccer club. Ted Dyer of 105 St. John Road addressed the Commission and expressed support for the project. He stated he was pleased with both the property owners and Salem Sabres Soccer Club for moving forward with the proposed improvements. Page 35 of 110 Chair King asked if there was anyone else to speak on the matter. Hearing none, she closed the public hearing at 7:48 pm. and requested a roll call vote: Mr. Routt - Aye Mr. Henrickson - Aye Mr. Beamer - Aye Mr. Garst - Aye Chair King - Aye On the motion made by Mr. Routt and seconded by Mr. Henrickson and duly carried, the Commission recommends to the City Council that the rezoning request from HM Heavy Manufacturing to HBD Highway Business District for 151 St. John Road be approved. Chair King explained that the Planning Commission is a research and recommending body to the City Council. This matter has been approved with a 5-0 vote and will now go to City Council. Attendees will need to appear at the City Council meeting when this is on their Agenda. They will be notified of the time and date once it has been placed on their Agenda. For those of the public, everything will appear in the Salem Times Register or the Roanoke Times, as well as the website for the City of Salem. B. Comprehensive Plan 2045 - Back to Salem's Future Hold public hearing and consider adopting resolution of recommendation regarding "Comprehensive Plan 2045" for the City of Salem. The plan addresses housing, redevelopment, open space, city government, transportation & infrastructure, land use, and other information used to outline the City's long-term vision and goals for development and growth. (Amended) (Advertised in the April 24, and May 1, 2025, issues of the Salem Times Register.) NOTE: THIS ITEM WAS POSTPONED TO A FUTURE MEETING AND WILL BE RE- ADVERTISED. 5. Adjournment Chair King asked if there was any additional business for the Planning Commission. There being no further business, Chair King adjourned the meeting. Page 36 of 110 Page 37 of 110 Page 38 of 110 Page 39 of 110 AN ORDINANCE TO REZONE THE PROPERTY LOCATED AT 19 CAREY AVENUE (TAX MAP #83-1-11) FROM RSF RESIDENTIAL SINGLE-FAMILY DISTRICT TO RB RESIDENTIAL BUSINESS DISTRICT WITH PROFFERED CONDITIONS WHEREAS, Riverland Oaks, LLC, property owner, petitioned to rezone the property at 19 Carey Avenue (Tax Map # 83-1-11) from RSF Residential Single-Family District to RSB Residential Business District with proffered conditions; and WHEREAS, the rezoning is in accordance with good zoning practice; and WHEREAS, the City of Salem Planning Commission recommended approval of the rezoning request; NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, that the property at 19 Carey Avenue (Tax Map #83-1-11) be and hereby are rezoned from RSF Residential Single-Family District to RSB Residential Business District with the following two (2) proffers: 1. Townhouses shall be the only allowable use on the property. 2. The property shall not have vehicular access from Carey Avenue. The map shall be changed in this respect and no other, said property being described as follows: CONTAINING CITY OF SALEM TAX ID 83-1-11 (“PARCEL P” AS SHOWN ON PLAT IN PLAT BOOK 10 PAGE 100) COMMENCING AT A POINT ON THE EAST LINE OF BRAND AVENUE, SAID POINT BEING THE COMMON CORNER OF TAX ID 83-1-12 AND TAX ID 83-1-13; THENCE DEPARTING THE EAST LINE OF BRAND AVENUE S80°36’36”E 156.96 FEET TO A POINT ON THE WEST LINE OF TAX ID 83-1-11, BEING A COMMON CORNER OF TAX ID 83-1-12 AND TAX ID 83-1-13; SAID POINT ALSO BEING THE POINT OF BEGINNING. THENCE WITH THE EAST LINE OF TAX ID 83-1-12 N07°40’02”E 106.42 FEET TO A POINT; THENCE WITH THE SOUTH LINE OF TAX ID 83-1-7 N89°22’13”E 100.37 FEET TO A POINT; THENCE WITH THE WEST LINES OF TAX IDs 83-1-9, 83-1-10, AND 83-1- 11, S07°50’41”W 152.00 FEET TO A POINT; THENCE ALONG THE NORTH LINE OF AN EXISTING ALLEY N84°16’04”W 98.91 FEET TO A POINT; THENCE WITH THE EAST LINE OF TAX ID 83-1-13 N07°40’02”E 34.44 FEET TO A POINT, BEING A COMMON CORNER OF TAX ID 83-1-12 AND TAX ID 83-1-13; SAID POINT ALSO BEING THE POINT OF BEGINNING. HAVING A TOTAL AREA OF 14,506.5 SQUARE FEET OR 0.333 ACRE, MORE OR LESS, SITUATE IN THE CITY OF SALEM, VIRGINIA, THIS DESCRIPTION BEING COMPILED FROM RECORDS. All ordinances or parts of ordinances in conflict with the provisions of this ordinance be and the same are hereby repealed. Page 40 of 110 This ordinance shall be in full force and effect ten (10) days after its final passage. Upon a call for an aye and a nay vote, the same stood as follows: John Saunders - H. Hunter Holliday – Byron Randolph Foley – Anne Marie Green – Renee F. Turk – Passed: Effective: /s/____ _ Mayor ATTEST: H. Robert Light Clerk of Council City of Salem, Virginia Page 41 of 110 Item #: 6.B. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: June 9, 2025 AGENDA ITEM: Amendment to the Zoning Ordinance Hold a public hearing and consider ordinance on first reading for the request of Danny R. and Sonja S. Kane, property owners, to rezone the property located at 151 St. John Road (Tax Map #155-2-3) from HM Heavy Manufacturing to HBD Highway Business District. (Advertised in the May 22 and 29, 2025, issues of Cardinal News.)(Planning Commission recommended approval by a 5-0 vote.) SUBMITTED BY: Maxwell Dillon, Planner SUMMARY OF INFORMATION: SITE CHARACTERISTICS: Zoning: HM Heavy Manufacturing Land Use Plan Designation: Industrial Existing Use: Recreational Fields Proposed Use: Recreational Fields The subject property(151 St. John Road) consists of an approximately 20.678-acre tract of land which currently sits within the HM Heavy Manufacturing zoning designation. Adjacent to Mason Creek and primarily within the FEMA-regulated Floodway, the parcel is not suitable for substantial development of any kind, and as a result, has historically been utilized for recreational fields of various capacities. Currently, the Salem Sabres soccer organization occupies the property with three soccer fields on a regular basis for practices and tournaments. The applicant is requesting a rezoning of the property from HM Heavy Manufacturing to HBD Highway Business District in order to expand the current use, Commercial Outdoor Sports and Recreation, which is not a permitted use in the HM Heavy Manufacturing zoning district. Successfully rezoning the property will allow for the future development of the property, including a designated parking area and potentially future field/training ground expansion. Page 42 of 110 Any site work conducted in the Floodway will be required to comply with FEMA regulations. FISCAL IMPACT: The proposal meets the requirements of Section 206-214.3., site development regulations for the HBD Highway Business District. STAFF RECOMMENDATION: Staff recommends Council consider the ordinance on first reading for this request. ATTACHMENTS: 1. 151 St. John Road rezoning application 2. 151 St. John Road Affadavit 3. Item 6B 6-09-25 Council meeting owner notification letter - 151 St. John Road 4. Item 6B 6-09-25 RezoningOrdinance 151 St. John Road Tax Map 155-2-3 Page 43 of 110 Page 44 of 110 Page 45 of 110 5 PLEASE RESPOND FOR ALL REZONING APPLICATIONS: 1. What is the Future Land Use Designation for the subject property? _______________________________________ 2. Describe in detail the proposed use of the property. _________________________________________________________ ____________________________________________________________________________________________________________ ____________________________________________________________________________________________________________ 3. List any sensitive environmental or unique features on the property. Are there any high voltage transmission lines, public utility lines, or others? ________________________________________________________________________________ ____________________________________________________________________________________________________________ 4. Is the subject property located within the Floodplain District?  YES  NO If yes, describe the proposed measures for meeting the standards of the Floodplain Ordinance. ____________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ 5. Is the subject property listed as a historic structure or located within a historic district?  YES  NO If yes, describe the proposed measures for meeting the standards of the Department of Historic Resources. ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ 6. Have you provided a conceptual plan of the proposed development, including general lot configurations and road locations? Are the proposed lot sizes compatible with existing parcel sizes in the area? PLEASE RESPOND FOR COMMERCIAL REZONING APPLICATIONS 1. What provisions will be made to ensure safe and adequate access to the subject property? 2. How will the traffic impact of this development be addressed? 3. Describe why the proposed use is desirable and appropriate for the area. What measure will be taken to assure that the proposed use will not have a negative impact on the surrounding vicinity? 4. What type of signage is proposed for the site? 5. Have architectural/building elevations been submitted with this application? Page 46 of 110 LEGAL DESCRIPTION OF AREA TO BE REZONED CONTAINING CITY OF SALEM TAX ID 155-2-3 (“TRACT 4” AS SHOWN ON PLAT BOOK 11, PAGES 48-50) BEGINNING AT A POINT ON THE SOUTH LINE OF LYNCHBURG TURNPIKE, SAID POINT BEING A COMMON CORNER BETWEEN TAX ID 155-2-3 AND TAX ID 154-1-16; THENCE DEPARTING THE SOUTH LINE OF LYNCHBURG TURNPIKE, THE FOLLOWING COURSES AND DISTANCES: S08°35’03”W 131.62 FEET TO A POINT; THENCE S19°48’03”W 155.00 FEET TO A POINT; THENCE S09°23’03”W 128.00 FEET TO A POINT; THENCE S03°48’29”E 270.22 FEET TO A POINT; THENCE S03°36’03”W 341.10 FEET TO A POINT; THENCE S04°04’03”W 125.30 FEET TO A POINT; THENCE S08°27’03”W 361.07 FEET TO A POINT; THENCE S05°14’03”W 176.88 FEET TO A POINT; THENCE S17°08’41”E 462.99 FEET TO A POINT; THENCE S14°11’32”W 130.60 FEET TO A POINT; THENCE S04°42’28”E 236.50 FEET TO A POINT; THENCE S01°13’32”W 156.00 FEET TO A POINT; THENCE S45°37’40”W 132.40 FEET TO A POINT; THENCE N48°56’13”W 239.01 FEET TO A POINT; THENCE N20°40’38”W 480.17 FEET TO A POINT ON THE EAST LINE OF ST. JOHN ROAD. THENCE FOLLOWING THE EAST LINE OF ST. JOHN ROAD, THE FOLLOWING COURSES AND DISTANCES: N20°40’38”W 141.51 FEET TO A POINT; THENCE ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 775.00 FEET, A LENGTH OF 485.58 FEET, AND A CHORD BEARING AND DISTANCE OF N02°43’40”W 477.68 FEET TO A POINT; THENCE N15°13’18”E 99.34 FEET TO A POINT AT THE TERMINUS OF THE EAST LINE OF ST. JOHN ROAD. THENCE DEPARTING THE EAST LINE OF ST. JOHN ROAD THE FOLLOWING COURSES AND DISTANCES: N15°13’18”E 467.14 FEET TO A POINT; THENCE N21°11’10”E 195.63 FEET TO A POINT; THENCE N07°25’16”E 378.94 FEET TO A POINT; THENCE N08°34’16”E 403.89 FEET TO A POINT ON THE SOUTH LINE OF LYNCHBURG TURNPIKE. THENCE FOLLOWING THE SOUTH LINE OF LYNCHBURG TURNPIKE, THE FOLLOWING COURSES AND DISTANCES: S88°05’51”E 164.44 FEET TO A POINT; THENCE N01°54’09”E 12.00 FEET TO A POINT; THENCE S88°05’51”E 78.00 FEET TO A POINT, SAID POINT BEING THE POINT OF BEGINNING. HAVING A TOTAL AREA OF 900,751 SQUARE FEET OR 20.6784 ACRES, MORE OR LESS, SITUATE IN THE CITY OF SALEM, VIRGINIA, THIS DESCRIPTION BEING COMPILED FROM RECORDS. Page 47 of 110 Page 48 of 110 Page 49 of 110 Page 50 of 110 Page 51 of 110 Page 52 of 110 Page 53 of 110 AN ORDINANCE TO AMEND SECTION 106-110, ARTICLE I, CHAPTER 106, OF THE CODE OF THE CITY OF SALEM, VIRGINIA, RELATING TO ZONING AND DIVIDING THE CITY INTO BUILDING DISTRICTS AND ESTABLISHING DISTRICT BOUNDARY LINES ON THE ZONING MAP OF THE CITY OF SALEM, VIRGINIA. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, that Section 106-110, Article I, Chapter 106 of The Code of the City of Salem, Virginia, relating to building district boundary lines be amended in the following particular and no other, viz: That the following described property in the City of Salem of Danny R. and Sonja S. Kane, property owners, located at 151 St. John Road (Tax Map # 155-2-3) be and the same is hereby changed from HM Heavy Manufacturing District to HBD Highway Business District, and the map referred to shall be changed in this respect and no other, said property being described as follows: CONTAINING CITY OF SALEM TAX ID 155-2-3 (“TRACT 4” AS SHOWN ON PLAT BOOK 11, PAGES 48-50) BEGINNING AT A POINT ON THE SOUTH LINE OF LYNCHBURG TURNPIKE, SAID POINT BEING A COMMON CORNER BETWEEN TAX ID 155-2-3 AND TAX ID 154-1-16; THENCE DEPARTING THE SOUTH LINE OF LYNCHBURG TURNPIKE, THE FOLLOWING COURSES AND DISTANCES: S08°35’03”W 131.62 FEET TO A POINT; THENCE S19°48’03”W 155.00 FEET TO A POINT; THENCE S09°23’03”W 128.00 FEET TO A POINT; THENCE S03°48’29”E 270.22 FEET TO A POINT; THENCE S03°36’03”W 341.10 FEET TO A POINT; THENCE S04°04’03”W 125.30 FEET TO A POINT; THENCE S08°27’03”W 361.07 FEET TO A POINT; THENCE S05°14’03”W 176.88 FEET TO A POINT; THENCE S17°08’41”E 462.99 FEET TO A POINT; THENCE S14°11’32”W 130.60 FEET TO A POINT; THENCE S04°42’28”E 236.50 FEET TO A POINT; THENCE S01°13’32”W 156.00 FEET TO A POINT; THENCE S45°37’40”W 132.40 FEET TO A POINT; THENCE N48°56’13”W 239.01 FEET TO A POINT; THENCE N20°40’38”W 480.17 FEET TO A POINT ON THE EAST LINE OF ST. JOHN ROAD. THENCE FOLLOWING THE EAST LINE OF ST. JOHN ROAD, THE FOLLOWING COURSES AND DISTANCES: N20°40’38”W 141.51 FEET TO A POINT; THENCE ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 775.00 FEET, A LENGTH OF 485.58 FEET, AND A CHORD BEARING AND DISTANCE OF N02°43’40”W 477.68 FEET TO A POINT; THENCE N15°13’18”E 99.34 FEET TO A POINT AT THE TERMINUS OF THE EAST LINE OF ST. JOHN ROAD. THENCE DEPARTING THE EAST LINE OF ST. JOHN ROAD THE FOLLOWING COURSES AND DISTANCES: N15°13’18”E 467.14 FEET TO A POINT; THENCE N21°11’10”E 195.63 FEET TO A POINT; THENCE N07°25’16”E 378.94 FEET TO A POINT; THENCE N08°34’16”E 403.89 FEET TO A POINT ON THE SOUTH LINE OF LYNCHBURG TURNPIKE. THENCE FOLLOWING THE SOUTH LINE OF LYNCHBURG TURNPIKE, THE FOLLOWING COURSES AND DISTANCES: S88°05’51”E 164.44 FEET TO A POINT; THENCE N01°54’09”E 12.00 FEET TO A POINT; THENCE S88°05’51”E 78.00 FEET TO A POINT, SAID POINT BEING THE POINT OF BEGINNING. HAVING A TOTAL AREA OF 900,751 SQUARE FEET OR 20.6784 ACRES, MORE OR LESS, SITUATE IN THE CITY OF SALEM, VIRGINIA, THIS DESCRIPTION BEING COMPILED FROM RECORDS. All ordinances or parts of ordinances in conflict with the provisions of this ordinance be and the same are hereby repealed. This ordinance shall be in full force and effect ten (10) days after its final passage. Page 54 of 110 Upon a call for an aye and a nay vote, the same stood as follows: John Saunders - H. Hunter Holliday – Byron Randolph Foley – Anne Marie Green – Renee F. Turk – Passed: Effective: /s/____ _ Mayor ATTEST: H. Robert Light Clerk of Council City of Salem, Virginia Page 55 of 110 Item #: 6.C. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: June 9, 2025 AGENDA ITEM: Public Hearing and Consider Lease for the Battery Energy Storage System (BESS) Project. Hold a public hearing and consider the lease of an approximate +/- 0.10 acre portion of Tax Map #150-2-4 owned by and located in the City of Salem, Virginia. (Advertised in the May 30, 2025, issue of Cardinal News.) SUBMITTED BY: Rob Light, Assistant City Manager/Clerk of Council SUMMARY OF INFORMATION: As previously discussed with Council at their November 12, 2024 meeting, a lease agreement is necessary for equipment related to the Battery Energy Storage System (BESS) project. The City intends to lease a +/-.10 acre portion of tax map number 150-2-4 to Delorian Power, LLC (DBA Lightshift Energy). This is located at the City's electric substation on 415 Electric Road. The draft lease agreement is included in this agenda packet. A public hearing is required and was advertised. FISCAL IMPACT: The BESS project will enable the City to reduce power supply peak costs. STAFF RECOMMENDATION: Staff recommends Council hold a public hearing and authorize the City Manager to finalize and execute this lease agreement in a form acceptable to the City Attorney. ATTACHMENTS: 1. Item 6C 6-09-25 Legal Ad 5.30 2. Item 6C 6-09-25 Lightshift - Form of Virginia Lease_Salem_060225_D_cln_No Comments Page 56 of 110 Page 57 of 110 1 Lease Agreement This Lease Agreement (“Agreement”) effective as of _______________, 20__ (the “Effective Date”) is by and between _____________, a Virginia _______________ having a mailing address of ______________________________, Virginia _____ (“Landlord”), and Delorean Power LLC dba Lightshift Energy, a Delaware limited liability company having a mailing address of 1201 Wilson Blvd., 27th Floor, Arlington, VA 22209, its successors and assigns (“Tenant”). Landlord and Tenant are sometimes individually referred to as a “Party” and collectively as the “Parties.” WHEREAS, Landlord is the owner of certain real property located at ______________ in the City of ________, Virginia, which property consists of approximately ____ acres more or less and is described in greater detail on Exhibit A hereto (the “Landlord’s Property”); WHEREAS, Landlord desires to lease to Tenant and Tenant desires to lease from Landlord a portion of the Landlord’s Property consisting of approximately _____ acres more or less, which portion is depicted on Exhibit B hereto (the “Leased Premises”); WHEREAS, Tenant intends to use the Leased Premises for the development and operation of a battery storage project; WHEREAS, Tenant and [____] have entered into an Energy Storage Services Agreement dated as of [_______] (the “ESSA”) and NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: Section 1. Lease and Grant of Easements. Landlord hereby leases to Tenant the Leased Premises, and grants to Tenant the easements specified herein (the “Easements”), upon and subject to the terms and conditions in this Agreement. Tenant shall have the quiet use and enjoyment of the Leased Premises and the Easements in accordance with and subject to the terms of this Agreement. Landlord further leases to Tenant the “Construction Area” (as depicted on Exhibit B) during the Construction Term (as defined in Section 3) of this Agreement for use as a staging area in connection with the development, construction, and the installation of the Facility (as defined in Section 2). Section 2. Use of Leased Premises. During the Term of this Agreement, Tenant will have the exclusive right to use and occupy the Leased Premises, and to exercise the other rights and privileges granted to Tenant herein, for purposes of developing, erecting, constructing, installing, operating, maintaining, repairing, replacing, removing and decommissioning a battery storage facility. Such battery storage facility, including all of its associated components, equipment and parts, is referred to herein as the “Facility.” Section 3. Term of Agreement. 3.1 Construction Term. The “Construction Term” shall commence on the Effective Date and shall terminate upon the date that the Facility is placed in service (the “Commercial Operations Date”). During the Construction Term, the Tenant may use and enjoy the Construction Area, the Leased Premises and Easement Areas (as defined in Section 11) for purposes relating to the construction and installation of the Facility. Upon the expiration of the Construction Term, Tenant’s right to use and occupy the Construction Area shall automatically cease, and Tenant’s sole property rights hereunder during the remainder of the Term shall be the right to use and occupy the Leased Premises together with the Easements granted hereunder. As soon as practicable Page 58 of 110 2 following the expiration of the Construction Term, Tenant shall restore and landscape to the Construction Area to substantially its condition as it existed immediately prior to the Effective Date. 3.2 Operations Term. The “Operations Term” of this Agreement shall commence on the Commercial Operations Date and shall expire upon the earlier of (i) the twentieth (20th) anniversary of the Commercial Operations Date or (ii) the date the ESSA is terminated. The Construction Term and the Operations Term (including all renewals and extensions thereof) are together referred to as the “Term.” 3.3 Lease Year. The term “Lease Year,” as used herein, shall refer to the period between the Commercial Operations Date and the one-year anniversary of the Commercial Operations Date, and each subsequent one-year period thereafter during the Term. 3.4 Decommissioning Period. Tenant shall have six (6) months following the expiration of the Term or the earlier termination of this Agreement during which to decommission and remove the Facility from the Leased Premises. During this six-month period, Tenant shall have the right to use and occupy the Leased Premises and the Easement Areas (as defined in Section 11) solely for the purposes of decommissioning and removing the Facility from the Leased Premises. The Parties acknowledge and agree that the Facility, in whole or in parts, is not deemed to be a fixture and not so related to the Leased Premises that an interest in the Facility arises under real property law, and that Tenant has the right and ability to decommission and remove the Facility and all of its components from the Leased Premises in all respects. During the decommissioning term, Tenant shall restore and landscape the Leased Premises and the Easement Areas to substantially their condition as they existed immediately prior to the Effective Date. Section 4. Rent. 4.1 Annual Rent Payments. For the initial Lease Year, Tenant shall pay Landlord as annual rent $1.00 (one dollar), payable on the Commercial Operations Date. Thereafter, on or before each yearly anniversary of the Commercial Operations Date, Tenant shall pay Landlord as annual rent an amount equal to the previous year’s annual rent. 4.2 Interest on Past Due Payments. All rent not paid when due under this Agreement shall bear interest at a rate equal to the lesser of: (i) the prime rate of interest as set forth in the Wall Street Journal or its successor or (ii) the maximum rate allowed by applicable law. Section 5. Ownership of Facility. Landlord shall have no ownership, lien or other interest in the Facility or any of its components; and Tenant may remove any or all components of the Facility at any time. No part of the Facility installed by Tenant on the Leased Premises shall be considered part of the Leased Premises or an improvement to real property; the Facility shall at all times be considered tangible personal property owned exclusively by Tenant. Section 6. Taxes and Assessments. 6.1 Tenant shall pay all real and personal property taxes, assessments and charges, general and specific, that may be levied or assessed by reason of Tenant’s use of the Leased Premises, Tenant’s leasehold interest under this Agreement, or Tenant’s use or ownership of the Facility installed on the Leased Premises (collectively, “Tenant Taxes”). Landlord shall pay when due any taxes attributable to (a) improvements or facilities installed by Landlord or others (excluding Tenant) on the Leased Premises; (b) the underlying value of the Leased Premises; and Page 59 of 110 3 (c) any and all other taxes and assessments pending or levied against the Leased Premises; provided, however, that if the taxes against the underlying value of the Leased Premises are increased by reason of a change of use determination by a taxing entity or increased assessment of the Leased Premises resulting from Tenant’s Facility thereon, then Tenant shall pay the entire amount of such increase. 6.2 If any Tenant Taxes are levied or assessed in the name of Landlord as part of the real property taxes payable by Landlord, then, promptly after Landlord timely submits the real property tax bill to Tenant, Tenant shall reimburse Landlord for all Tenant Taxes in the amount due without interest or penalties; provided however if penalties and interest are incurred as a result of any failure or omission on Tenant’s part, then Tenant shall be responsible for the same. Landlord shall submit the real property tax bill (and any other communication from any government authority regarding the same) to Tenant at least forty-five (45) days before the tax bill is due. 6.3 Tenant shall have the right, in its sole discretion and at its sole expense, to contest by appropriate legal proceedings the validity or amount of any assessments or taxes for which Tenant is responsible under this Agreement. Landlord shall reasonably cooperate with Tenant in any such contest, provided that Landlord shall not be required to bear any expense in connection with any such contest. Section 7. Indemnification. 7.1 Tenant shall, from and after the Effective Date, defend, indemnify and hold harmless Landlord and Landlord’s affiliates and their respective directors, officers, managers, members, shareholders, employees, representatives and agents from and against all loss, liability, damages, claims, proceedings, costs (including costs of defense and attorneys’ and professionals’ fees incurred in defense or incurred in enforcement of this indemnity), expenses, demands, suits and causes of action (all of the foregoing collectively referred to as “Liabilities”) arising out of: (i) negligence or willful misconduct of Tenant, its agents, officers, directors, employees or contractors; or (ii) the material breach by Tenant of any of its obligations under this Agreement, except to the extent arising out of the negligence or willful misconduct of Landlord or material breach of this Agreement by Landlord. 7.2 To the extent permitted by applicable law, Landlord shall, from and after the Effective Date, defend, indemnify and hold harmless Tenant and Tenant’s affiliates and their respective directors, officers, managers, members, shareholders, employees, representatives and agents from and against all Liabilities arising out of: (i) negligence or willful misconduct of Landlord, its agents, officers, directors, employees or contractors; or (ii) the material breach by Landlord of any of its obligations under this Agreement, except to the extent arising out of the negligence or willful misconduct of Tenant or material breach of this Agreement by Tenant. 7.3 This Section 7 shall survive the expiration or termination of this Agreement. Section 8. Tenant’s Representations, Warranties and Covenants. Tenant represents, warrants and covenants to Landlord that: 8.1 Tenant’s Authority. Tenant has the unrestricted right and authority to execute and deliver this Agreement. When signed by Tenant, this Agreement constitutes a valid and binding Agreement enforceable against Tenant in accordance with its terms. Page 60 of 110 4 8.2 Insurance. Tenant shall, at its expense, obtain and maintain throughout the Term, public liability insurance insuring Tenant and Landlord against loss or liability caused by Tenant’s activities on the Landlord’s Property under this Agreement, in an amount not less than One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) in the aggregate, accident or incident, which has a commercially reasonable deductible. 8.3 Requirements of Governmental Agencies. Tenant, at its expense, shall comply in all material respects with valid laws, ordinances, statutes, orders, rules and regulations of any governmental agency applicable to the Facility. Tenant shall have the right in its sole discretion, to contest by appropriate legal proceedings, brought in the name of Tenant, the validity or applicability to the Leased Premises or Facility of any law, ordinance, statute, order, regulation, property assessment or the like now or hereafter made or issued by any federal, state, county, local or other governmental agency or entity. Landlord shall reasonably cooperate in such contest except if the contest is against Landlord, so long as it is reimbursed for its out-of-pocket expenses incurred in such contest and cooperation. Any such contest or proceeding shall be controlled and directed by Tenant, but Tenant shall protect Landlord from Tenant’s failure to observe or comply during the contest with the contested law, ordinance, statute, order, regulation or property assessment. 8.4 Liens. Tenant shall keep the Leased Premises free and clear of all liens and claims of liens for labor and services performed on, and materials, supplies or equipment furnished to the Leased Premises for Tenant’s use or benefit; provided, however, that if such a lien does arise, Tenant has a right to contest such lien and Tenant, within sixty (60) days after it receives notice of the filing of such lien, either bonds around such lien or establishes appropriate reserves therefore, or, otherwise, removes such lien from the Leased Premises pursuant to applicable law, in which case Tenant shall not be deemed to have breached this Section 8.4. Nothing in this Section 8.4 or this Agreement shall be construed to prohibit Tenant from granting one or more mortgages or liens on all or any portion of Tenant’s right, title or interest under this Agreement as security for the repayment of any indebtedness. 8.5 Hazardous Materials. Tenant shall not violate, and shall indemnify Landlord against any violation by Tenant, or persons under Tenant’s control, of any federal, state or local law, ordinance or regulation relating to the generation, manufacture, production, use, storage, release or threatened release, discharge, disposal, transportation or presence of any substance, material or waste which is now or hereafter classified as hazardous or toxic, or which is regulated under current or future federal, state or local laws or regulations (each such substance, material and waste “Hazardous Materials”) in, on, under or about the Leased Premises. In conformance with the requirements of applicable law, Tenant shall clean up, remove, remedy and repair any soil or ground water contamination and damage caused by the release or disposal of any Hazardous Materials by Tenant, or persons under Tenant’s control, in, on, under, or about the Leased Premises. Section 9. Landlord’s Representations, Warranties and Covenants. Landlord represents, warrants and covenants as follows: 9.1 Landlord’s Authority. Landlord is the sole owner in fee simple of Landlord’s Property, including without limitation the Leased Premises, the Construction Area and the Easement Areas, and has the unrestricted right and authority to execute and deliver this Agreement and to grant to Tenant the rights granted under this Agreement. When signed by Landlord, this Agreement constitutes a valid and binding Agreement enforceable against Landlord in accordance with its terms. Page 61 of 110 5 9.2 No Interference. Landlord’s activities and any grant of rights Landlord makes to any person or entity shall not interfere with the Facility or Tenant’s rights under this Agreement. Landlord shall ensure that the conditions at Landlord’s Property do not interfere with the operation of the Facility. 9.3 Liens. As of the Effective Date, there are no liens, encumbrances, leases, mortgages, deeds of trust, security interests, licenses or other exceptions (collectively, “Liens”) that would prevent, interfere with, frustrate or otherwise adversely affect the Facility or Tenant’s rights under this Agreement. 9.4 Treatment of Liens; Third Party Rights. If at any time during the Lease Term, any Lien or any third party right is found, exists or is claimed to exist against the Leased Premises or Easement Areas or any portion thereof, that creates rights superior to those of Tenant, Tenant shall be entitled to seek to obtain a Subordination and Non-Disturbance Agreement (defined below) from the holder of such Lien or such third party right, and Landlord shall use best efforts and diligence in helping Tenant obtain the same. Landlord agrees that any right, title or interest created by Landlord from and after the Effective Date in favor of or granted to any third party shall be subject to (i) this Agreement and all of Tenant’s rights, title and interests created in this Agreement, and (ii) any and all documents executed or to be executed by and between Tenant and Landlord in connection with this Agreement; provided that at Landlord’s request Tenant shall agree to execute a Subordinate and Non-Disturbance Agreement. A “Subordination and Non-Disturbance Agreement” shall mean an agreement between Tenant and the holder of a Lien or a third party right that provides that the holder of such Lien or such third party right (i) subordinates such Lien or such third party right to Tenant’s interest under this Agreement, (ii) agrees not to disturb Tenant’s possession or rights under this Agreement, (iii) agrees to provide notice of defaults under the Lien or third party right documents to Tenant and agrees to allow Tenant a reasonable period of time following such notice to cure such defaults on behalf of Landlord, and (iv) agrees to comply with such other requirements as may be reasonably required by Tenant to ensure the interests of Tenant are not interfered with. All Subordination and Non-Disturbance Agreements obtained by Landlord pursuant to this Section 9.4 shall be in a form reasonably acceptable to Tenant and shall be in a form that may be recorded following their execution. 9.5 Hazardous Materials. To the best of Landlord’s knowledge, as of the Effective Date, there are no Hazardous Materials located on Landlord’s Property and Landlord’s Property has not been used for the generation, treatment, storage or disposal of Hazardous Materials, no underground storage tanks have ever been located on Landlord’s Property nor are any underground storage tanks presently located on Landlord’s Property. So long as this Agreement is in place Landlord shall not violate, and shall, to the extent permitted by applicable law, indemnify Tenant against any violation by Landlord of, any federal, state or local law, ordinance or regulation relating to the generation, manufacture, production, use, storage, release or threatened release, discharge, disposal, transportation or presence of any Hazardous Materials, in, on, under or about Landlord’s Property, including without limitation any such violation which may have occurred by Landlord or any other person prior to the Effective Date. Landlord’s violation of the foregoing prohibition shall constitute a material breach and default under this Agreement and Landlord shall, to the extent permitted by applicable law, indemnify and hold harmless and defend Tenant from and against any claims, damages, penalties, liabilities or costs caused by or arising out of said violation. In conformance with the requirements of applicable law, Landlord shall clean up, remove, remedy and repair any soil or ground water contamination and damage caused by the release or disposal of any Hazardous Materials in, on, under, or about Landlord’s Property except to the extent such contamination or damage is caused by Tenant or persons under Tenant’s control. Page 62 of 110 6 9.6 No Litigation. Landlord is not a party to any, and to Landlord’s best knowledge, there are no pending or threatened, legal, administrative, arbitral or other proceedings, claims, actions or governmental or regulatory investigations of any kind or nature whatsoever against Landlord (i) challenging the validity or propriety of this Agreement, and/or transactions contemplated in this Agreement or (ii) which could reasonably be expected to have a material adverse effect on the ownership or operation of the Landlord’s Property or any part thereof or interest therein. 9.7 Requirements of Governmental Agencies. Landlord shall reasonably assist and cooperate with Tenant, so long as Landlord is reimbursed for its out-of-pocket expenses, in complying with or obtaining any land use permits and approvals, building permits, development permits, construction permits, subdivision approvals or any other approvals required for the financing, construction, installation, interconnection, replacement, relocation, maintenance, operation or removal of the Facility (collectively the “Permits”), including execution of applications for any such approvals that must be obtained in the name of Landlord. 9.8 Estoppel Certificates. Within fifteen (15) days of receipt from Tenant, Landlord shall execute an estoppel certificate (a) certifying that this Agreement is in full force and effect and has not been modified (or, if the same is not true, stating the current status of this Agreement), (b) certifying that to the best of Landlord’s knowledge there are no uncured events of default under this Agreement (or, if any uncured events of default exist, stating with particularity the nature thereof) and (c) containing any other certifications as may reasonably be requested. Any such statements may be conclusively relied upon by Tenant. 9.9 Cooperation in Security Rebates, Tax Credits and Other Economic Benefits. The Landlord will shall reasonably cooperate with Tenant in completing and filing such applications and other documents as are necessary to permit the Tenant to receive all mandatory or voluntary federal, state, or local renewable energy certificates or emissions or rebates, tax credits and including, without limitation, other economic benefits (the “Environmental Attributes”) that are now or may hereafter become available to the Tenant in connection with the Project, provided that Landlord shall not be required to bear any material out-of-pocket costs in doing so. Notwithstanding anything to the contrary herein contained, all Environmental Attributes in connection with the Project shall remain the property of the Tenant or its successors and assigns. Tenant shall have the exclusive right to sell, transfer, or convey the Environmental Attributes to any other person in Tenant’s sole discretion. Section 10. Assignment. 10.1 Assignment by Tenant. Tenant shall not assign this Agreement without the prior written consent of Landlord, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, Tenant shall be entitled (i) assign, mortgage, pledge or otherwise collaterally assign its interests in this Agreement to any Lender, (ii) directly or indirectly assign this Agreement to an affiliate of Tenant, (iii) assign this Agreement to any entity through which Tenant is obtaining financing or capital for the Facility, and (iv) assign this Agreement to any person succeeding to all or substantially all of the assets of Tenant . 10.2 Assignment by Landlord. Landlord shall not assign this Agreement without the prior written consent of Tenant, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, Landlord may, without the consent of the Seller, transfer, pledge, encumber or assign, as collateral security, this Agreement or the account, revenues or proceeds thereof, to Landlord’s lenders, in connection with any financing or other financial arrangements. Page 63 of 110 7 Notwithstanding any such transfer, pledge, encumbrance or assignment to Landlord’s lenders, Landlord shall not be released or discharged from and shall remain liable for any and all obligations to the Tenant arising or accruing hereunder.. Section 11. Easements. For purposes of this Agreement, the term “Easement Areas” shall refer to the location of the Easements described herein. [NOTE TO DRAFT: Remove/revise if no/not all easements needed. If no easements, other references to “easements” and “easement areas” throughout to be revised/deleted.] 11.1 Grant of Access Easements. Landlord hereby grants to Tenant during the Term a non-exclusive easement on, under, over and across the Landlord’s Property, for access to and from, and ingress and egress to and from, the Facility as described in the site plan (the “Access Easement”). The “Access Easement Area” is depicted on the site map attached as Exhibit B. The Access Easement granted herein shall include the right to construct and maintain, at Tenant’s expense, a temporary access road within the Access Easement Area. 11.2 Grant of Transmission Easement. Landlord hereby grants to Tenant an exclusive easement on, under, over and across designated portions of the Landlord’s Property as depicted on the site map attached as Exhibit B (the “Transmission Easement Area”), for the installation, operation and maintenance transmission lines to be located across the Landlord’s Property to an existing utility pole on the Landlord’s Property and to interconnect the Facility to such utility pole, all as depicted on Exhibit B. The interconnection rights granted herein shall include the right to install interconnection equipment within the Transmission Easement Area. 11.3 Provisions Applicable to all Easements. The following provisions shall apply to all Easements granted herein: 11.3.1 Each Easement shall be for a term that is coterminous with the Term, provided that in the event that this Agreement is terminated prior to the end of the Term, each Easement shall terminate upon the date that this Agreement is terminated. 11.3.2 Each Easement shall run with the Leased Premises, and shall inure to the benefit of and be binding upon Landlord and the holder of such Easement, and their respective transferees, successors and assigns, and all persons claiming under them. Section 12. Right to Terminate. Prior to the Commercial Operations Date for the Project, the Tenant may terminate this Agreement by providing thirty (30) days prior written notice to the Landlord. After the Commercial Operations Date, Tenant may terminate this Agreement, at its option, after giving not less than thirty (30) days notice to Landlord, if: a. Any governmental agency denies a request by Tenant for or revokes a permit, license, or approval that is required for Tenant to construct or operate the Project and infrastructure on the Leased Premises or otherwise orders or demands that operation of the Project cease or that the Project must be removed from the Leased Premises for reasons unrelated to any default, violation or breach by Tenant of any applicable law; b. Tenant determines that technical problems, which problems cannot reasonably be corrected, preclude Tenant from using the Leased Premises for its intended purpose; c. Tenant does not have acceptable and legally enforceable means of ingress and egress to and from the Leased Premises; Page 64 of 110 8 d. Utilities necessary for Tenant’s use of the Leased Premises are no longer available to the Leased Premises; e. The Leased Premises and/or Project are damaged or destroyed to an extent that prohibits or materially interferes with Tenant’s use of the Leased Premises. In the event of termination by Tenant pursuant to this provision, each party shall be relieved of all further liability hereunder except for Tenant’s obligation to remove the Project as provided herein, any obligations that accrued prior to the termination and each party’s indemnification obligations hereunder. Section 13. Revocation. In the event of a material default in the terms of this Agreement by either the Landlord or the Tenant, the other party may terminate this Agreement as described herein. Events that shall constitute a default under this Agreement shall include, but not be limited to, a party’s failure to perform or comply with any material provision of this Agreement; an unauthorized assignment, a party’s insolvency or inability to pay debts as they mature, or an assignment for the benefit of creditors; or if a petition under any foreign, state, or United States bankruptcy act, receivership statute, or the like, as they now exist, or as they may be amended, is filed by a party. No party shall be in default under this Agreement unless and until it has been given written notice of a breach of this Agreement by the other party and shall have failed to cure such breach within thirty (30) days after receipt of such notice. When a breach cannot reasonably be cured within such thirty (30) day period, the time for curing may be extended by mutual agreement of the parties for such time as may be reasonably necessary to complete the cure, provided that the defaulting party shall have proceeded to cure such breach with due diligence. Section 14. Lender Protection. Tenant shall have the absolute right at any time and from time to time, without Landlord’s prior written consent or approval (but with prior written notice to Landlord) to: (i) assign, encumber, hypothecate, mortgage or pledge (including by mortgage, deed of trust or personal property security instrument), or otherwise transfer all or any portion of its right, title or interest under this Agreement to a Lender designated by Tenant, as security for the repayment of any indebtedness and/or the performance of any obligation owned by Tenant to such Lender; and (ii) mortgage its leasehold interest hereunder and/or collaterally assign its interest in this Agreement and in any monies due under this Agreement in connection with obtaining financing from a Lender for the Project and all appurtenances thereto (including the interconnection facilities and the transmission facilities and improvements, or otherwise encumber and grant security interests in all or any part of its interest in this Agreement, the Leased Premises, the Project, interconnection facilities or transmission facilities (holders of these various security interests are referred to as “Leasehold Mortgagees”). Following an event of default under any financing documents relating to the Project and all appurtenances thereto (including the interconnection facilities and the transmission facilities and improvements), any Lender or Leasehold Mortgagee may (but shall not be obligated to) assume, or cause their designees to assume, all of the interests, rights and obligations of Tenant thereafter arising under this Agreement. Any Leasehold Mortgagee that has succeeded to Tenant’s interests under this Agreement in accordance with the provisions of this Section shall also have the right, without Landlord’s prior written consent or approval (but with prior written notice to Landlord) to assign or sublet the whole or any portion or portions of its interest in this Agreement, the Leased Premises, the Project and all appurtenances thereto (including the interconnection facilities and the transmission facilities and improvements) for the uses permitted under this Agreement, to one (1) or more creditworthy persons or entities with experience owning and operating a battery storage facility commensurate to that of Tenant (each, an “Assignee”). Following any such sale, conveyance, lease, assignment or sublet, the term “Tenant” shall be deemed to include each Page 65 of 110 9 “Assignee” then holding Tenant’s interest in this Agreement. However, no Leasehold Mortgagee or Assignee shall by virtue of Tenant’s conveyance to it acquire any greater interest in the Leased Premises or any easements created hereunder than Tenant then has under this Agreement. As used herein, the term “Lender” means any financial institution or other Person (including a Leasehold Mortgagee) that from time to time provides secured financing for some or all of the Project, collectively with any security or collateral agent, indenture trustee, loan trustee or participating or syndicated lender involved in whole or in part in such financing, and their respective representatives, successors and assigns. References to Tenant in this Agreement shall be deemed to include any Person that succeeds (whether by assignment or otherwise) to all of the then-Tenant’s then-existing right, title and interest under this Agreement in accordance with the provisions of this Section. If the rights and interests of Tenant in this Agreement shall be assigned in accordance with this Section and the assuming party shall agree in writing to be bound by, and to assume, the terms and conditions hereof and any and all obligations to Landlord arising or accruing hereunder from and after the date of such assumption, Tenant shall be released and discharged from the terms and conditions hereof and each such obligation hereunder from and after such date, and Landlord shall continue this Agreement with the assuming party as if such person had been named as Tenant under this Agreement, provided, however, that the assuming party is creditworthy and has the experience required by this Section. Landlord agrees to enter into a reasonable Non-disturbance, Consent and Recognition Agreement by and among the Tenant’s then chosen Lender or Leasehold Mortgagee, Landlord, and Tenant which shall include, without limitation, consent by Landlord to the Tenant’s collateral assignment of this Agreement and Tenant’s leasehold interest hereunder, cure rights and step in rights in favor of the Lender or Leasehold Mortgagee in accordance with the terms of this Agreement. The provisions of this Section are for the benefit of the Lenders, Leasehold Mortgagees and Assignees, as well as the Parties hereto, and shall be enforceable by the Lenders, Leasehold Mortgagees and Assignees as express third-party beneficiaries hereof. Landlord hereby agrees that none of the Lenders, Leasehold Mortgagees and Assignees, nor any Person for whom they may act, shall be obligated to perform any obligation or be deemed to incur any liability or obligation provided in this Agreement on the part of Tenant or shall have any obligation or liability to Landlord with respect to this Agreement except to the extent any of them becomes a party hereto pursuant to this Section or through the exercise of its rights or remedies and the written assumption of the Agreement or the easements granted hereunder. Any exercise by the Lenders, Leasehold Mortgagees and Assignees of any rights and remedies hereunder shall be subject to all rights, defenses and remedies available to Landlord, in each case subject to the terms of any non- disturbance, consent and recognition agreement entered into between or among the Lenders, Leasehold Mortgagees and Assignees and Landlord. A Lender, Leasehold Mortgagee or Assignee shall have the absolute right: (a) enforce its lien and acquire title to Tenant’s leasehold estate and easement rights by any lawful means; (b) to take possession of and operate the Leased Premises or any portion thereof, in accordance with the terms of this Agreement and to perform all obligations to be performed by Tenant under this Agreement, or to cause a receiver to be appointed to do so; and (c) to acquire such leasehold estate and easement rights by foreclosure or by an assignment in lieu of foreclosure and thereafter to assign or transfer such leasehold estate to a third party. To prevent termination of this Agreement or any partial interest in this Agreement, each Lender, Leasehold Mortgagee or Assignee shall have the right, but not the obligation, at any time prior to termination of this Agreement, to perform any act necessary to cure any default and to prevent the termination of this Agreement or any partial interest in this Agreement. As a precondition to exercising any rights or remedies as a result of any alleged default by Tenant, Landlord shall give written notice of such default to each Lender, Leasehold Mortgagee or Assignee previously disclosed by Tenant, Page 66 of 110 10 concurrently with delivery of notice to Tenant, specifying in detail the alleged event of default and the required remedy. Each such Lender, Leasehold Mortgagee or Assignee shall have the same amount of time to cure the default as to Tenant’s interest in this Agreement as is given to Tenant. The cure period for each Lender, Leasehold Mortgagee or Assignee shall begin to run at the end of the cure period given to Tenant in this Agreement. If any default by Tenant under this Agreement cannot be cured without the Lender, Leasehold Mortgagee or Assignee obtaining possession of all or part of the Leased Premises and/or all or part of the Project and/or all or part of Tenant’s interest in this Agreement, then any such default shall be deemed remedied if: (a) within ninety (90) days after receiving written notice from Landlord, either Lender, Leasehold Mortgagee or Assignee shall have acquired possession of all or part of the Leased Premises and/or all or part of the Project and/or all or part of such interest in this Agreement, or shall have commenced appropriate judicial or non-judicial proceedings to obtain the same; (b) the Lender, Leasehold Mortgagee or Assignee, as the case may be, shall be in the process of diligently prosecuting any such proceedings to completion; and (c) after gaining possession of all or part of the Leased Premises and/or all or part of the Project and/or all or part of such interest in this Agreement, the Lender, Leasehold Mortgagee or Assignee has cured or is in the process of curing all Tenant defaults and performs all other obligations as and when the same are due in accordance with the terms of this Agreement, but only for the period attributable to its possession of the Leased Premises, provided, however, that the Lender, Leasehold Mortgagee or Assignee shall pay the rent and perform all the other obligations of Tenant hereunder as of the date that Landlord could have terminated this Agreement for an event of default. If a Lender, Leasehold Mortgagee or Assignee is prohibited by any process or injunction issued by any court or by reason of any action by any court having jurisdiction over any bankruptcy or insolvency proceeding involving Tenant or any defaulting Assignee, as the case may be, from commencing or prosecuting the proceedings described above, the sixty (60) day period specified above for commencing such proceeding shall be extended for the period of such prohibition as long as the battery storage facility is operating in accordance with the terms of the ESSA and continues to do so during any such extension. During any period of possession of the Leased Premises by a Lender, Leasehold Mortgagee or Assignee and/or during the pendency of any foreclosure proceedings instituted by a Lender, Leasehold Mortgagee or Assignee, the Lender, Leasehold Mortgagee or Assignee shall pay or cause to be paid the fees, rent and all other monetary charges payable by Tenant under this Agreement which have accrued and are unpaid at the commencement of such period and those which accrue thereafter during such period. Following acquisition of Tenant’s leasehold estate by the Lender, Leasehold Mortgagee or Assignee as a result of either foreclosure or acceptance of an assignment in lieu of foreclosure, or by a purchaser at a foreclosure sale (all of which are included in the term “Assignee”), this Agreement shall continue in full force and effect and the Lender, Leasehold Mortgagee or Assignee shall, as promptly as reasonably possible, commence the cure of all defaults under this Agreement and thereafter diligently process such cure to completion, and upon such completion of the cure of all defaults under the Agreement Landlord’s right to terminate this Agreement based upon such defaults shall be deemed waived Any Lender, Leasehold Mortgagee or Assignee who acquires Tenant’s leasehold interest, pursuant to foreclosure or assignment in lieu of foreclosure shall not be liable to perform the obligations imposed on Tenant by this Agreement incurred or accruing after the Lender, Leasehold Mortgagee or Assignee no longer has Ownership of the leasehold estate or possession of the Leased Premises. Neither the bankruptcy nor the insolvency of Tenant shall be grounds for terminating this Agreement as long as all rent and all other monetary charges payable by Tenant under this Agreement are promptly paid by the Lender, Leasehold Mortgagee or Assignee in accordance with the terms of this Agreement and Tenant is otherwise in compliance with all other obligations under this Agreement. The acceptance of rent by Landlord shall not be deemed a waiver of any other rights or remedy it may have under the Agreement at law or in equity. If this Agreement terminates for any reason, including because of Tenant’s default or if the leasehold estate is foreclosed, or if this Agreement is rejected or disaffirmed pursuant to bankruptcy Page 67 of 110 11 applicable requirements or other applicable requirements affecting creditor’s rights and, within ninety (90) days after such event, Tenant or any Lender, Leasehold Mortgagee or Assignee shall have arranged to the absolute satisfaction of Landlord for the payment of rent, fees and other charges due and payable by Tenant as of the date of such event, then Landlord shall execute and deliver to such Lender, Leasehold Mortgagee or Assignee or designee, as the case may be, a new lease to the Leased Premises which (a) shall be for a term equal to the remainder of the Lease Term before giving effect to such rejection or termination; (b) shall contain the same covenants, agreements, terms, provisions and limitations as this Agreement (except for any requirements that have been fulfilled in their entirety by Tenant or any Lender, Leasehold Mortgagee or Assignee prior to rejection or termination of this Agreement); and (c) shall include that portion of the Project in which Tenant had an interest on the date of rejection or termination. The provisions of this section shall survive the termination, rejection or disaffirmation of this Agreement and shall continue in full force and effect thereafter to the same extent as if this section was a separate and independent contract made by Landlord, Tenant and each Lender, Leasehold Mortgagee or Assignee, and, from the effective date of such termination, rejection or disaffirmation of this Agreement to the date of execution and delivery of such new lease, such Lender, Leasehold Mortgagee or Assignee may use and enjoy said Leased Premises in accordance with the terms of such new lease, provided that all of the conditions for a new lease as set forth above are complied with. Section 15. Miscellaneous Provisions. 15.1 Memorandum. Landlord and Tenant shall execute in recordable form and Tenant shall then record in the land records of the locality where the Leased Premises are located a memorandum of this Agreement in the form attached to this Agreement as Exhibit C. 15.2 Notices. Any written notice, direction, instruction, request or other communication required or permitted under this Agreement shall be deemed to have been duly given on the date of receipt, and shall be delivered (i) personally to the Party to whom notice is to be given, (ii) by electronic mail to the Party to whom notice is to be given, (iii) by a recognized overnight delivery service to the Party to whom notice is to be given, or (iv) to the Party to whom notice is to be given, by first class registered or certified mail, return receipt requested, postage prepaid (with additional notice by regular mail), and addressed to the addressee at the address stated opposite its name below, or at the most recent address specified by written notice given to the other Party in the manner provided in this Section 15.2: If to Landlord:If to Tenant: [Landlord Name]  [Address 1]  [Address 2]  Attn:   Email:  Delorean Power LLC dba Lightshift Energy 1201 Wilson Blvd., 27th Floor Arlington, Virginia 22209 Attn: Michael Herbert, michaelherbert@lightshift.com Rory Jones, roryjones@lightshift.com With an electronic copy (which shall not be deemed notice absent delivery to the above) to: Tamir Ben-Yoseph, General Counsel tamir@ligthshift.com 15.3 Entire Agreement; Amendments. This Agreement constitutes the entire Agreement between Landlord and Tenant respecting its subject matter. Any other agreement, understanding or Page 68 of 110 12 representation respecting the Leased Premises or any other matter not expressly set forth in this Agreement or a subsequent writing signed by both parties is null and void. This Agreement shall not be modified or amended except in a writing signed by both parties. The Parties agree that upon completion of engineering and design work for the Facility and the completion of an ALTA survey delineating the Leased Premises and the Easement Areas, Exhibit B attached hereto may be amended, with the consent of the Landlord, such conenst not to be unreasonably withheld, for Tenant to obtain leasehold title policies and obtain investment and/or financing for the Facility.  15.4 Legal Matters. This Agreement shall be governed by and interpreted in accordance with the laws of the Commonwealth of Virginia. Venue shall be proper in the County or City where the Leased Premises is located. If the parties are unable to resolve amicably any dispute arising out of or in connection with this Agreement within sixty (60) days, they agree to submit such matter to nonbinding mediation before a mutually agreeable mediator to pursue a resolution in good faith. The Parties agree that any rule of construction to the effect that ambiguities are to be resolved in favor of either Party shall not be employed in the interpretation of this Agreement and is waived. In any lawsuit arising out of or in connection with this Agreement, a party that obtains a judgment from the court substantially the same as the judgment sought therein shall be entitled to payment of its reasonable attorneys’ fees in connection with the action. 15.5 Partial Invalidity. Should any provision of this Agreement be held, in a final and un-appealable decision by a court of competent jurisdiction, to be either invalid, void or unenforceable, the remaining provisions hereof shall remain in full force and effect, unimpaired by the holding. 15.6 Counterparts. This Agreement may be executed with counterpart signature pages and in duplicate originals, each of which shall be deemed an original, and all of which together shall constitute a single instrument. 15.7 Cooperation. Landlord shall cooperate with Tenant in the conduct of their operations consisting of the Facility, and in otherwise giving effect to the purpose and intent of this Agreement, provided that Landlord shall not be required to bear any cost in doing so. 15.8 Relationship. Neither this Agreement nor any other agreements or transactions contemplated in this Agreement shall in any respect be interpreted, deemed or construed as constituting Landlord, Tenant as partners or joint venturers, or as creating any partnership, joint venture, association or other relationship other than of landlord and tenant. 15.9 Third Party Beneficiaries. There are no third-party beneficiaries, actual or intended, under this Agreement. 15.10 Condemnation. If all or part of the Leased Premises is proposed to be taken as a result of any action or proceeding in eminent domain, or is proposed to be transferred in lieu of condemnation to any authority entitled to exercise the power of eminent domain (collectively, a “Taking”), Landlord shall provide Tenant with reasonable advance notice of any impending proceeding or meeting related to such Taking and shall not in the absence of Tenant settle with the Taking authority or agree on compensation for such Taking. Unless otherwise agreed to by the Parties, the Agreement shall terminate as to any portion of the Leased Premises so condemned or taken. Subject to any applicable law or regulation, if any, any award or other compensation (“Award”) payable as a consequence of such Taking shall be paid as follows: Page 69 of 110 13 15.10.1 Landlord shall first be entitled to receive out of the Award the value of Landlord’s fee interest in the Leased Premises, valued as if no Facility were on the Leased Premises; 15.10.2 Tenant shall next be entitled to receive out of the Award (A) the value of the Facility installed on the Leased Premises; and (B) any other compensation or benefits payable by law as a consequence of the loss or interruption of Tenant’s business and the other costs and expenses incurred by Tenant as consequence of the Taking; and 15.10.3 Landlord shall be entitled to any remainder of the Award. 15.11 Captions. The captions used in this Agreement are for convenience only and do not limit or amplify the provisions hereof. 15.12 Force Majeure. If performance of this Agreement or of any obligation under this Agreement is prevented or substantially restricted or interfered with by reason of an event of “Force Majeure” (defined below), the affected party, upon giving notice to the other party, shall be excused from such performance to the extent of and for the duration of such prevention, restriction or interference and the Lease Term shall be extended for the duration of the Force Majeure event. The affected party shall use its reasonable efforts to avoid or remove such causes of nonperformance, and shall continue performance under this Agreement whenever such causes are removed. “Force Majeure” means flood, drought, earthquake, storm, fire, tornado, lightning, windstorm, unusually inclement weather or other natural catastrophe; acts of God, casualty or accident; war, sabotage, vandalism, civil strife or other violence; strikes or labor disputes; pandemic; any law, order, proclamation, regulation, ordinance, action, demand or requirement of any government agency or utility; or any other act or condition beyond the reasonable control of a party hereto. 15.13 Brokers. Each Party represents and warrants to the other that it has not retained anyone to solicit or secure this Agreement upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee. [Remainder of Page Intentionally Left Blank; Signature Page Follows] Page 70 of 110 Signature Page to Lease Agreement IN WITNESS WHEREOF, the parties have executed this Lease Agreement effective as of the Effective Date. LANDLORD: __________________ By:____________________________________ Name: Title: COMMONWEALTH OF VIRGINIA )   ) §  COUNTY OF ___________________)     On _______________________, before me, _______________________, a Notary Public, personally appeared _______________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument, sworn to and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.         WITNESS my hand and official seal.  (Affix seal here)    ________________________________  Signature of Notary  Commission Expires: ______________  Notary ID No.: ___________________  Page 71 of 110 Signature Page to Lease Agreement TENANT: DELOREAN POWER LLC dba LIGHTSHIFT ENERGY By:____________________________________ Name: Title:   COMMONWEALTH OF VIRGINIA                 )  )§  COUNTY OF __________________)     On _______________________, before me, _______________________, a Notary Public, personally appeared ____________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument, sworn to and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.         WITNESS my hand and official seal.  (Affix seal here)    ________________________________  Signature of Notary  Commission Expires: ______________  Notary ID No.: ___________________    Page 72 of 110 A-1 Exhibit A to Lease Agreement Description of Landlord’s Property Address:     Parcel ID:     Legal Description:   Page 73 of 110 B-1 Exhibit B to Lease Agreement Depiction of Leased Premises, Construction Areas and Easement Areas Address:     Parcel ID:     Leased Premises Description:  [INSERT LEGAL PROPERTY DESCRIPTION]      Access Easement Description:  [INSERT LEGAL PROPERTY DESCRIPTION]      Utility Easement Description:  [INSERT LEGAL PROPERTY DESCRIPTION]      Site Plan:    [INSERT SITE PLAN]  Page 74 of 110 C-1 Exhibit C to Lease Agreement PREPARED BY, RECORDING REQUESTED BY AND RETURN TO:    [__________]  [__________]  [__________]  Attn: [__________]                Memorandum of Lease Agreement THIS MEMORANDUM OF LEASE AGREEMENT (this “Memorandum”), is made, dated and effective as of ________________ (the “Effective Date”), by and between ____________, a Virginia __________________ having a mailing address of ________________, Virginia ______ (“Landlord”), and Delorean Power LLC dba Lightshift Energy, a Delaware limited liability company having a mailing address of 1201 Wilson Blvd., 27th Floor, Arlington, VA 22209, its successors and assigns (“Tenant”), with regards to the following: 1. Lease Agreement. Landlord and Tenant did enter into that certain Lease Agreement (the “Agreement”), which affects certain real property located at ____________ in the County of ______________, Commonwealth of Virginia (the “Leased Premises”), which is a portion of the real property particularly described in Exhibit A attached hereto (the “Landlord’s Property”). Capitalized terms used and not defined herein have the meaning given the same in the Agreement. The date of the execution of the Agreement is the Effective Date. 2. Grant of Rights. The Agreement grants Tenant an exclusive leasehold interest in the Leased Premises, and grants to Tenant the easements in, on, under, over or about the Landlord’s Property specified therein; such easement rights include, without limitation, (a) an access easement for access and ingress and egress to and from the Leased Premises and ____________; and (b) a transmission easement to extend transmission lines across a portion of the Landlord’s Property and to interconnect with a utility pole located on or adjacent to the Landlord’s Property. 3. Term. The Term of the Agreement shall commence on the Effective Date and expire on the twentieth anniversary of the date that the battery storage project to be constructed on the Leased Premises commences commercial operations. The Term may be extended, at Tenant’s option, for up to four (4) additional terms of five (5) years each. Tenant shall have a six-month period following the expiration of the Term or the earlier termination of the Agreement to decommission the battery storage project. 4. Assignment. The Agreement and Tenant’s rights and obligations thereunder may not be assigned without Landlord’s prior written consent, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, Tenant shall be entitled (i) to collaterally assign its interests under the Agreement to secure any Tenant indebtedness relating to the battery storage facility, (ii) to assign the Agreement to an entity that is controlled by or under common control with Tenant, or (iii) to assign the Agreement in connection with a sale of the battery storage facility, in each case without Landlord consent. Page 75 of 110 C-2 The burdens of the Agreement and other rights contained in the Agreement shall run with and against the Leased Premises and easement areas and shall be a charge and burden thereon for the duration of this Agreement and shall be binding upon and against Landlord and its successors and assigns. Landlord shall notify Tenant in writing of any sale, assignment or transfer of any of Landlord’s interest in the Leased Premises, or any part thereof, and shall cause any such successor to agree to be bound by the terms of the Agreement. 5. Subordination. The Agreement provides that from and after its effective date, any right, title or interest created by Landlord in favor of or granted to any third party shall be subject to the Agreement and all of Tenant’s rights, title and interests created thereby; provided that Tenant will enter into certain commercially reasonable subordination and non-disturbance agreements. 6. Agreement Controls. This Memorandum does not supersede, modify, amend or otherwise change the terms, conditions or covenants of the Agreement, and Landlord and Tenant executed and are recording this Memorandum solely for the purpose of providing constructive notice of the Agreement and Tenant’s rights thereunder. 7. Addresses. a. The mailing address of Landlord is: [address] b. The mailing address of Tenant is: Delorean Power LLC dba Lightshift Energy 1201 Wilson Blvd., 27th Floor Arlington, Virginia 22209 8. Location of Original Agreement. A copy of the original Agreement is on file with Landlord and Tenant. 9. Counterparts. This Memorandum may be executed in counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same document. [Remainder of Page Intentionally Left Blank; Signature Page Follows] Page 76 of 110 C-3 IN WITNESS WHEREOF, the parties have executed this Memorandum to be effective as of the date first written above. LANDLORD: ________________ By:____________________________________ Name: Title: COMMONWEALTH OF VIRGINIA )   ) §  COUNTY OF ___________________)     On _______________________, before me, _______________________, a Notary Public, personally appeared _______________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument, sworn to and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.         WITNESS my hand and official seal.  (Affix seal here)    ________________________________  Signature of Notary  Commission Expires: ______________  Notary ID No.: ___________________  Page 77 of 110 C-4 TENANT: DELOREAN POWER LLC dba LIGHTSHIFT ENERGY By:____________________________________ Name: Title: COMMONWEALTH OF VIRGINIA                 )  )§  COUNTY OF __________________)     On _______________________, before me, _______________________, a Notary Public, personally appeared ____________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument, sworn to and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.         WITNESS my hand and official seal.  (Affix seal here)    ________________________________  Signature of Notary  Commission Expires: ______________  Notary ID No.: ___________________    Page 78 of 110 C-5 Exhibit A to Memorandum of Lease Agreement Description of the Landlord’s Property Address:     Parcel ID:     Leased Premises Description:  [INSERT LEGAL PROPERTY DESCRIPTION]      Access Easement Description:  [INSERT LEGAL PROPERTY DESCRIPTION]      Utility Easement Description:  [INSERT LEGAL PROPERTY DESCRIPTION]      Site Plan:    [INSERT SITE PLAN]  Page 79 of 110 Item #: 6.D. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: June 9, 2025 AGENDA ITEM: Resolution 1503 - Revision of Maximum Pricing for Battery Energy Storage System (Bess) Project Consider revising the maximum price per kW-mo. established by Council at their November 12, 2024 Meeting. SUBMITTED BY: Rosemarie Jordan, Director of Finance SUMMARY OF INFORMATION: Council approved Resolution 1487 at their November 12, 2024 meeting authorizing the City Manager to finalize and execute a Storage Agreement and other related documents for a Battery Energy Storage System (BESS) project. Included in Resolution 1487 was a maximum price of $8.92/kW-mo. for the Storage Agreement. Economic conditions related to the cost of sourcing project components have significantly changed, necessitating a revision in the maximum pricing to $9.92/kW- mo. Resolution 1503 amends the maximum pricing. Resolution 1487 is amended in this way, and no other. FISCAL IMPACT: The revised maximum pricing, while potentially increasing the price per kW-mo. will provide net savings as a result of reduced power supply peak costs for the City. STAFF RECOMMENDATION: Staff recommends Council approve Resolution 1503 revising the maximum price to $9.92/kW-mo. for which the City Manager is authorized to execute a BESS Storage Agreement in a form acceptable to the City Attorney. ATTACHMENTS: 1. Item 6D 6-09-25 Resolution 1503 Final June 9_2025 Battery Storage Price Cap Revision Resolution Page 80 of 110 IN THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, June 9, 2025: RESOLUTION 1503 RESOLUTION TO AMEND THE AUTHORIZED PRICING CAP ESTABLISHED IN RESOLUTION 1487 FOR AN ENERGY STORAGE SERVICES AGREEMENT BETWEEN DELOREAN POWER, LLC DBA LIGHTSHIFT ENERGY AND THE CITY OF SALEM, VIRGINIA WHEREAS, the City of Salem, Virginia (the “City”) desires to provide for a battery energy storage system (“BESS”) in order to reduce power supply peak costs in the City; and WHEREAS, the Council of the City of Salem, Virginia (the “City Council”) approved Resolution 1487 on November 12, 2024 authorizing the City Manager to finalize and execute a Storage Agreement and other agreements necessary for the Storage Agreement in a form acceptable to the City Attorney; and WHEREAS, Resolution 1487 set a maximum price of up to $8.92/kW-mo. for the Storage Agreement; and WHEREAS, economic conditions related to the cost of sourcing project components have significantly changed, necessitating a revised maximum price per kW-mo.; and WHEREAS, the City Council of the City of Salem, Virginia (the “City Council”) has determined it appropriate and in the best interests of the City to revise the maximum pricing authorization for the Storage Agreement established in Resolution 1487. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Salem that the City Manager is authorized to finalize and execute the Storage Agreement, in a form acceptable to the City Attorney, on behalf of the City; provided, however, that the Storage Agreement will provide for up to four (4) Megawatts of energy storage at a price of up to $9.92/kW-mo. AND, BE IT FURTHER RESOLVED, by the Council of the City of Salem that, Resolution 1487 is amended in this way, and no other. Upon a call for an aye and a nay vote, the same stood as follows: John Saunders - H. Hunter Holliday – Byron Randolph Foley – Anne Marie Green – Renee F. Turk – Date of Adoption: ________________________ Page 81 of 110 ATTEST: H. Robert Light Clerk of Council City of Salem, Virginia Page 82 of 110 Item #: 6.E. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: June 9, 2025 AGENDA ITEM: Resolution 1504 - Remote Participation Policy Consider adoption of Resolution 1504 to adopt a Remote Participation Policy for Council member participation in Council meetings for Fiscal Year 2025-2026. SUBMITTED BY: Rob Light, Assistant City Manager/Clerk of Council SUMMARY OF INFORMATION: The Code of Virginia was amended effective July 1, 2024 requiring annual adoption of a remote participation policy for public bodies. City Attorney, Jim Guynn, has provided the attached policy based on the provisions in Chapter 37 of Title 2.2 of the Code of Virginia, 1950, as amended. FISCAL IMPACT: STAFF RECOMMENDATION: Staff recommends Council approve Resolution 1504 adopting the City's remote participation policy for Fiscal Year 2025-2026. ATTACHMENTS: 1. Item 6E 6-09-25 Resolution 1504 Remote Electronic Participation Policy 2025 Page 83 of 110 Page 84 of 110 Page 85 of 110 Page 86 of 110 Item #: 6.F. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: June 9, 2025 AGENDA ITEM: 630 Union Street Purchase Agreement Amendment Consider an amendment to the Purchase Agreement for 630 Union Street. SUBMITTED BY: Chris Dorsey, City Manager SUMMARY OF INFORMATION: City Council approved the sale of Lot A, 630 Union Street, designated as Tax Map #160-11-2 to Union Street Plaza, LLC at their November 8, 2021 meeting. The purchase agreement (attached for reference) included a repurchase option by which the Seller retained the right and option to repurchase the property should the Purchaser not complete construction within three (3) years of closing (4/13/2022), with notice to be provided within sixty (60) days from the end of this period. The Purchaser has submitted site plans to the City for approval and intends to move forward with completion of the project. While the repurchase provision is optional and at the discretion of the City, formally extending this provision for an additional eighteen (18) months would maintain the City's ability to incentivize completion with the Purchaser. FISCAL IMPACT: STAFF RECOMMENDATION: Staff recommends Council consider authorizing the City Manager to amend the Purchase Agreement with Union Street Plaza, LLC to extend the time for completion by eighteen (18) months related to the repurchase provision. ATTACHMENTS: 1. Item 6F 6-09-25 630 Union Street Contract Page 87 of 110 Page 88 of 110 Page 89 of 110 Page 90 of 110 Page 91 of 110 Page 92 of 110 Page 93 of 110 Page 94 of 110 Page 95 of 110 Page 96 of 110 Item #: 6.G. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: June 9, 2025 AGENDA ITEM: Appropriation of Funds Request to appropriate a Marketing Program grant from Virginia Tourism Corporation. SUBMITTED BY: Rosemarie Jordan, Director of Finance SUMMARY OF INFORMATION: The City of Salem has been awarded $20,000 from the Virginia Tourism Corporation’s (VTC) Destination Marketing Organization Marketing Program. The grant will be used for marketing of the “Turn a Double Play” campaign which promotes the Salem Red Sox and the outdoors. A local match of $10,000 is required and is included in the Fiscal Year 2026 budget. FISCAL IMPACT: Proceeds from the grant will be used for marketing, which was not included in the budget. STAFF RECOMMENDATION: Appropriate $20,000 to the state grant revenue account, 10-053-0100-48398 and increase the state grants expenditure account, 10-053-8170-55859 by $20,000 for the purposes stated above. It is also recommended that any of this grant not spent in the current fiscal year be administratively appropriated in the subsequent fiscal year. ATTACHMENTS: None Page 97 of 110 Item #: 6.H. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: June 9, 2025 AGENDA ITEM: Appropriation of Funds Request to accept and appropriate Technical Assistance Grant funds from the Virginia Department of Housing and Community Development (VDHCD) and execute a Memorandum of Understanding SUBMITTED BY: Rosemarie Jordan, Director of Finance SUMMARY OF INFORMATION: The City of Salem has been awarded $3,425 in Technical Assistance Grant funds from the Virginia Department of Housing and Community Development. Grant funds will be used to support the establishment of a 501(c)(3) organization to implement the Main Street Approach for revitalizing the historic downtown district. A Memorandum of Understanding between the City and VDHCD also needs to be executed by the City Manager. FISCAL IMPACT: Proceeds from the grant will fund the formation of the 501(c)(3) for the Main Street Approach program. STAFF RECOMMENDATION: Authorize the City Manager to execute the Memorandum of Understanding between the City and VDHCD. Appropriate $3,425 in the Economic Development Federal Grant Revenue, 10-080- 0100-48550 and increase the Federal Grant Expenditure account, 10-080-8110-55970 by $3,425. It is also recommended that any of this grant not spent in the current fiscal year be administratively appropriated in the subsequent fiscal year. ATTACHMENTS: 1. Item 6H 6-09-25 Memorandum of Understanding - Virginia DHCD- May 2025 Page 98 of 110 Page 99 of 110 Page 100 of 110 Page 101 of 110 Page 102 of 110 Item #: 6.I. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: June 9, 2025 AGENDA ITEM: Appropriation of Funds Request to transfer unallocated capital reserve for Fiscal Year 2026 Capital Improvement Plan projects. Audit - Finance Committee SUBMITTED BY: Rosemarie Jordan, Director of Finance SUMMARY OF INFORMATION: The Fiscal Year 2026 budget was adopted on May 27, 2025. The budget included two projects to be funded by capital reserves. In accordance with the City’s Capital Planning and Reserve Policy, contributions from the General Fund were previously appropriated to the capital reserve account to be transferred to specific projects as approved by City Council. A budget transfer is requested from the Capital Reserve Fund unallocated budget to the following projects: • Spartan Field – New LED Lights $518,400 • Police Vehicle Replacement $548,100 The budget transfer will be effective on July 1, 2025 in conjunction with the adoption of the annual budget for Fiscal Year 2026. FISCAL IMPACT: Funding these projects through capital reserve funds allows the City to satisfy capital needs. STAFF RECOMMENDATION: Staff recommends transferring $1,066,500 from the Capital Reserve account, 21-012- 0205-54900, to the following expenditures accounts: 21-070-0205-54971, Spartan Field-New LED Lights $518,400 21-030-0205-54932, Police Vehicle Replacement $548,100 Page 103 of 110 ATTACHMENTS: None Page 104 of 110 Item #: 6.J. AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: June 9, 2025 AGENDA ITEM: Appropriation of Funds Request to appropriate and transfer funding for project contingency to the Water Capital Fund and Sewer Capital Fund and to appropriate additional 2024 General Obligation Bond proceeds. Audit - Finance Committee SUBMITTED BY: Rosemarie Jordan, Director of Finance SUMMARY OF INFORMATION: Funding is available in the Water Fund and Sewer Fund fiscal year 2025 operating budgets to be transferred to the Water Capital Fund and Sewer Capital Fund to create a project contingency in each capital fund. These contingency funds will be used at the discretion of the City Manager to cover project shortfalls and change orders. A contingency of $50,000 will be transferred to each capital fund. The 2024 General Obligation bonds were issued on November 26, 2024. Total proceeds of $3,552,000 were allocated to Water Capital Fund projects for Well Construction and Franklin Street Water Tank Replacement as well as to cover bond costs. Additional proceeds of $792 remained after satisfying bond costs. These additional proceeds need to be appropriated to the Well Construction project in the Water Capital Fund. FISCAL IMPACT: Creating a project contingency in the Water Capital Fund and the Sewer Capital Fund will allow for project shortfalls and change orders in projects to be covered. Appropriating additional proceeds from the 2024 General Obligation bonds will fully appropriate the proceeds from this bond issuance. STAFF RECOMMENDATION: Staff recommends the following budget appropriations and transfers: Water Fund 51-051-0021-53140, Engineering and Architectural Services ($30,000) Page 105 of 110 51-051-0021-59448, Transfer to Water Capital Fund $30,000 51-051-0022-53140, Engineering and Architectural Services ($20,000) 51-051-0022-59448, Transfer to Water Capital Fund $20,000 Water Capital Fund 50-051-0300-49940, Transfer From Water Fund $50,000 50-051-0398-59500, Contingency $50,000 50-051-0300-44597, Appropriated From Bond Proceeds $792 50-051-0302-58022, Well Construction $792 Sewer Fund 52-052-0030-53140, Engineering and Architectural Services ($25,000) 52-052-0031-53394, Maintenance Infiltration Abatement ($25,000) 52-052-0031-59449, Transfer to Sewer Capital Fund $50,000 Sewer Capital Fund 56-052-0300-49950, Transfer From Sewer Fund $50,000 56-052-0398-59500, Contingency $50,000 ATTACHMENTS: None Page 106 of 110 Item #6.K Date: 6/09/2025 June 9, 2025 Council of the City of Salem Salem, Virginia 24153 Dear Council Members: For your information, I am listing appointments and vacancies on various boards and commissions: Board or Commission Recommendation Total Action for Progress (TAP)Recommend reappointing Byron Randolph Foley for a third three-year term ending December 31, 2027. TAP’s bylaws were amended since Mr. Foley’s original appointment to this Board. This term coincides with the current three-year term provision in their bylaws. Vacancies Board of Zoning Appeals Need one regular member for the remainder of a five-year term ending March 30, 2028 and one alternate member for the remainder of five-year term ending November 13, 2028. Roanoke River Blueway Advisory Committee Need one member, two-year term Sincerely, Laura Lea Harris Laura Lea Harris Deputy Clerk of Council Page 107 of 110 CITY OF SALEM, VIRGINIA BOARDS AND COMMISSIONS June 9, 2025 MEMBER EXPIRATION OF TERM BLUE RIDGE BEHAVIORAL HEALTHCARE Term of Office: 3 years (3 terms only) Denise P. King 12-31-27 Rev. C. Todd Hester 12-31-25 Dr. Forest Jones 12-31-26 AT LARGE MEMBERS: Patrick Kenney 12-31-25 Helen Ferguson 12-31-26 Bobby Russell 12-31-27 BOARD OF APPEALS (USBC BUILDING CODE) Term of Office: 5 years Steve Poff 1-01-26 Robert S. Fry, III 1-01-28 Patrick Snead 1-01-30 Ray Varney 5-11-30 Joseph Driscoll 1-01-28 ALTERNATES: David Hodges 12-12-26 Chelsea Dyer 8-09-25 David Botts 1-01-29 BOARD OF EQUALIZATION OF REAL ESTATE ASSESSMENTS Term of Office: 3 years (appointed by Circuit Court) Wendel Ingram 11-30-27 Corey Fobare 11-30-27 David A. Prosser 11-30-25 Janie Whitlow 11-30-26 Kathy Fitzgerald 11-30-27 BOARD OF ZONING APPEALS Term of Office: 5 years (appointed by Circuit Court) F. Van Gresham 3-20-27 Jeff Zoller 3-30-28 Steve Belanger 6-05-29 Gary Lynn Eanes 3-20-30 Tom Copenhaver 3-20-27 ALTERNATES: Tony Rippee 10-12-28 Vacant 3-1-28 Vacant 11-13-28 CHIEF LOCAL ELECTED OFFICIALS (CLEO) CONSORTIUM No Term Limit H, Hunter Holliday Alternate: John Saunders MEMBER EXPIRATION OF TERM COMMUNITY POLICY AND MANAGEMENT TEAM No term limit except for Private Provider (Names) (Alternates) Rosie Jordan Tammy Todd Laura Lea Harris Crystal Williams Kevin Meeks Joshua Vaught Amy Cole Jasmin Lawson Cathy Brown Leigh Frazier Howard Shumate Heather Gunn Courtenay Alleyne Deborah Breedlove Mark Chadwick Parent Rep-Vacant Vacant Sue Goad Chrissy Brake Randy Jennings Bridget Nelson Vacant Mandy Hall Sean Slusser Seth Chamberland Health Dept. - Vacant Vacant Wendel Cook Jessica Cook Casey Mabery *Note: Rosie Jordan will serve as Fiscal Agent For the City of Salem ECONOMIC DEVELOPMENT AUTHORITY Term of Office: 4 years (Requires Oath of Office) William Q. Mongan 3-09-27 Paul C. Kuhnel 3-09-28 J. David Robbins 3-09-28 Cindy Shelor 4-10-29 Jason Fountain 3-09-29 Sean B. Kosmann 12-14-28 Joe Curran . 12-14-28 FAIR HOUSING BOARD Term of Office: 3 years Betty Waldron 7-01-25 Melton Johnson 7-01-26 Cole Keister 8-09-27 Pat Dew 3-01-27 Janie Whitlow 4-09-27 Page 108 of 110 MEMBER EXPIRATION OF TERM FINE ARTS COMMISSION (INACTIVE) Term of Office: 4 years Cameron Vest 5-01-15 Julie E. Bailey Hamilton 5-01-15 Brenda B. Bower 7-26-12 Vicki Daulton 10-26-12 Hamp Maxwell 10-26-12 Fred Campbell 5-01-13 Rosemary A. Saul 10-26-13 Rhonda M. Hale 10-12-14 Brandi B. Bailey 10-12-14 STUDENT REPRESENTATIVES LOCAL OFFICE ON AGING Term of Office: 3 years John P. Shaner 3-01-27 Partnership for a Livable Roanoke Valley (INACTIVE) Term of Office: Unlimited PERSONNEL BOARD Term of Office: 2 years William R. Shepherd 6-09-27 J. Chris Conner 8-12-25 Margaret Humphrey 8-12-25 Garry Lautenschlager 11-23-26 Teresa Sizemore 4-26-27 PLANNING COMMISSION AND NPDES CITIZENS' COMMITTEE Term of Office: 4 years Mark Henrickson 7-31-26 Denise “Dee” King 7-31-26 Nathan Routt 7-26-27 Reid Garst 7-31-26 N. Jackson Beamer 8-28-27 REAL ESTATE TAX RELIEF REVIEW BOARD Term of Office: 3 years David G. Brittain 2-14-28 Wendel Ingram 6-11-27 Daniel L. Hart 2-14-27 ROANOKE REGIONAL AIRPORT COMMISSION Term of Office: 4 years Dale T. Guidry 7-1-28 ROANOKE RIVER BLUEWAY ADVISORY COMMITTEE Term of Office: 2 years Jeff Ceasar 6-30-24 Vacant 6-30-25 MEMBER EXPIRATION OF TERM ROANOKE VALLEY-ALLEGHANY REGIONAL COMMISSION Term of Office: 3 years H. Hunter Holliday 6-30-27 Dee King 6-30-26 Anne Marie Green 6-30-27 ROANOKE VALLEY BROADBAND AUTHORITY Term of Office: 4 years H. Robert Light 12-14-27 Mike McEvoy (Citizen At-large) 12-13-25 ROANOKE VALLEY DETENTION COMMISSION No Terms Member Alternate Rosemarie Jordan Chris Dorsey ROANOKE VALLEY GREENWAY COMMISSION Term of Office: 3 years Dr. Steven L. Powers 11-08-27 Russ Craighead 7-25-25 Denise P. King 9-26-26 ROANOKE VALLEY RESOURCE AUTHORITY Term of Office: 4 years Rob Light 12-31-27 ROANOKE VALLEY TRANSPORTATION PLANNING ORGANIZATION (TPO) POLICY BOARD Term of Office: 3 years Renee F. Turk 6-30-26 H. Hunter Holliday 6-30-26 Alternate: Byron R. Foley 6-30-26 SCHOOL BOARD OF THE CITY OF SALEM Term of Office: 3 years Teresa Sizemore-Hernandez 12-31-27 Andy Raines 12-31-25 Stacey Danstrom 12-31-25 Macel Janoschka 12-31-26 Chris King 12-31-27 SOCIAL SERVICES ADVISORY BOARD Term of Office: 4 years, 2 term limit Vacant 12-01-26 TOTAL ACTION FOR PROGRESS Term of Office: 2 years Byron Randolph Foley 11-13-25 Page 109 of 110 MEMBER EXPIRATION OF TERM TRANSPORTATION TECHNICAL COMMITTEE (TTC) Term of office: 3 years Crystal Williams 6-30-26 Josh Pratt 6-30-26 Alternate: Vacant 6-30-26 Alternate: Max Dillon 6-30-26 VIRGINIA ALCOHOL SAFETY ACTION PROGRAM BOARD (VASAP) Term of office: 3 years Chris Shelor 1-27-28 VIRGINIA WESTERN COMMUNITY COLLEGE LOCAL ADVISORY Term of Office: 4 years (2 terms only) Dr. Forest I. Jones, Jr. 6-30-26 VIRGINIA’S BLUE RIDGE BOARD Term of Office: No term limit Chris Dorsey John Shaner WESTERN VIRGINIA EMERGENCY MEDICAL SERVICES COUNCIL Term of office: 3 years Deputy Chief Matt Rickman 12-31-25 WESTERN VIRGINIA REGIONAL INDUSTRIAL FACILITY AUTHORITY Term of Office: 4 years (Requires Oath of Office) Tommy Miller 2-3-26 Chris Dorsey 2-3-28 Crystal Williams (Alternate) 2-3-26 H. Robert Light (Alternate) 2-3-28 WESTERN VIRGINIA REGIONAL JAIL AUTHORITY Appointee Term of Office: 1 year – Expires 12-31-25 Alternates serve until another alternate is appointed (Requires Oath of Office) Governing Body Appointee (by Council): Byron R. Foley Governing Body Alternate (by Council): H. Hunter Holliday Local Official Appointee (by Council): Rosemarie Jordan Local Official Alternate (by Council): Chris Dorsey Sheriff (Automatic): Chris Shelor Sheriff Alternate (Appointed by Sheriff): Chief Deputy- Major Steve Garber Page 110 of 110