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1/10/2022 - City Council - Agenda -Regular
Ci ty Council Meeting AGENDA Monday, January 10, 2022, 6:30 P M Wo rk S es s io n 5:45 P.M. P arlor A, S alem C ivic C enter, 1001 R oanoke Bo ulevard, S alem, Virginia 24153 R egular S es s io n 6:30 P.M. C ommunity R oom, S alem C ivic C enter, 1001 R oanoke Boulevard, S alem, Virginia 24153 WORK SE SSI ON 1.C all to Order A.Roll Call 2.New Business A.Discussion I tems 1) Mobility Systems discussion 2) Discussion of School Board terms as a result of the mandated change requiring November C ouncil elections. 3.Adjournment RE GU L AR SE S SI ON 1.C all to Order 2.Pledge of Allegiance 3.Bid Openings, Awards, Recognitions 4.C onsent Agenda A.Citizen Comments C omments from the public, limited to five minutes, on matters not already having a public hearing component that same meeting. T he following have signed up to speak at this meeting: 1) C ynthia Munley, 425 Roanoke Boulevard -A big done deal. 2) William Stetson, 126 C arrollton Avenue - Speeding problems on residential streets 3) J ohn Breen, 142 Bogey Lane - What ever happened to 1-11-21? B.Minutes C onsider acceptance of the December 13, 2021 Work Session and Regular Meeting minutes and the December 28, 2021 Special Meeting minutes. C .F inancial Report C onsider the acceptance of the Statement of Revenues and Expenses for the five months ending November 30, 2021. 5.Old Business A.Amendment to City Code - Chapter 2 C onsider the adoption of an ordinance on second reading to amend Chapter 2- Administration, Article I-In General of the C ode of the City of Salem as a result of the approved Virginia General Assembly Senate Bill 1157 that requires municipalities pass ordinances changing elections from May to November. (Approved on first reading at December 13, 2021 meeting.) 6.New Business A.Use Not P rov ided F or P ermit Hold public hearing to consider the request of Sia Asset Management LLC, applicant, and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For Permit to allow crypto mining at 1401 Southside Drive, Tax Map # 165-4-2.1. (As advertised in the December 23 and 30, 2021 issues of the Salem Times-Register). (Planning Commission recommends approval with conditions: see pages 3-7 of Planning Commission minutes) S TA FF REPORT B.Resolution - VDO T I -81 P roject C onsider adoption of Resolution 1417 in support of design approval and limited access control changes for the Interstate 81 widening project from Exit 137 to Exit 141. C .P erformance Agreement with L ayman C onsider a request authorizing the C ity Manager to finalize and execute a Performance Agreement between Layman C andy Company, LLC and Layman Real Estate Holdings, LLC, the C ity of Salem, and the Economic Development Authority of the City of Salem. Audit - Finance C ommittee D.Simms F arm Section 2 C onsider setting bond for physical improvements and erosion and sediment control for Simms Farm Section 2. Audit - Finance Committee E.B oards and Commissions C onsider appointments to various boards and commissions. 7.Adjournment Audit-Finance Committee Meeting, J anuary 6 , 2022, 4 :00 p.m., City Manager's Conference Room, 114 N. Broad Street, Salem Item #4B Date: 1/10/2022 Schedule A Current Year Current Year % of Prior Year Budget Year to Date Budget Year to Date Variance Revenues: Beginning Balance 7-1-21 2,568,051$ -$ 0%-$ -$ General Property Taxes 40,605,600 11,725,985 29%10,014,420 1,711,565 Other Local Taxes 22,027,515 6,296,877 29%4,769,668 1,527,209 Permits and Licenses 337,800 202,019 60%129,257 72,762 Fines and Forfeitures 61,000 25,406 42%17,740 7,666 Revenue from Use of Money and Property 867,809 304,704 35%298,487 6,217 Charges for Services 3,354,271 1,227,187 37%1,029,825 197,363 Payment in Lieu of Taxes from Electric Fund 3,160,000 1,580,000 50%1,580,000 - Payment in Lieu of Taxes from Water Fund 181,000 76,934 43%75,721 1,214 Miscellaneous Revenue 266,500 114,172 43%101,084 13,088 Non-Categorical Aid 3,688,907 414,392 11%443,480 (29,087) Shared Expenses 1,558,777 476,288 31%446,125 30,162 Categorical Aid 8,176,237 1,826,641 22%4,899,248 (3,072,607) Non-Revenue Receipts 60,224 60,222 -8,578 51,644 Total Revenues 86,913,691 24,330,827 28%23,813,632 517,195 Expenditures: General Government 7,495,980 3,114,444 42%3,459,564 (345,120) Judicial Administration 2,475,695 1,026,212 41%1,005,264 20,947 Public Safety 18,788,370 7,910,951 42%7,991,080 (80,129) Public Works 12,047,634 3,996,969 33%8,268,972 (4,272,002) Health and Welfare 5,177,833 1,749,977 34%1,516,068 233,909 Education 23,971,731 11,908,062 50%11,621,035 287,027 Parks, Recreation and Cultural 6,416,813 2,277,256 35%2,285,983 (8,726) Community Development 2,803,195 1,257,812 45%1,719,373 (461,561) Non-Departmental 6,325,925 2,042,317 32%2,215,464 (173,147) Contingency 1,310,515 - 0%- - Contingency for Economic Dev. Opportunities 100,000 - 0%- - Total Expenditures 86,913,691 35,284,000 41%40,082,802 (4,798,802) Revenues Over/(Under) Expenditures -$ (10,953,173)$ (16,269,170)$ 5,315,998$ City of Salem, Virginia General Fund Statement of Revenues and Expenditures For Five Months Ending November 30, 2021 Item #4C Date: 1/10/2022 Schedule B - 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00 400,000.00 450,000.00 500,000.00 550,000.00 600,000.00 650,000.00 700,000.00 750,000.00 800,000.00 850,000.00 900,000.00 950,000.00 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June City of Salem Sales Tax Summary For Fiscal Years 2020 -2022 FY 2020 FY 2021 FY 2022 Schedule C 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00 400,000.00 450,000.00 500,000.00 550,000.00 600,000.00 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June City of Salem Meals Tax Summary For Fiscal Years 2020 -2022 FY 2020 FY 2021 FY 2022 Schedule D - 25,000.00 50,000.00 75,000.00 100,000.00 125,000.00 150,000.00 175,000.00 200,000.00 225,000.00 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June City of Salem Lodging Tax Summary For Fiscal Years 2020 -2022 FY 2020 FY 2021 FY 2022 City of Salem, Virginia Debt Outstanding For Period Ending November 30, 2021 Schedule E Balance Principal Balance 7/1/2021 Issuances Payments 11/30/2021 City Debt Outstanding 2011 Union First Market Refunding Bonds 1,170,792$ (399,960)$ 770,832$ 2013 Public Improvement Bonds 1,156,400 - (89,425) 1,066,975 2016B Public Improvement Bonds 717,601 - - 717,601 2019 Public Improvement Bonds 4,670,000 - - 4,670,000 2020 Public Improvement Bonds 2,375,000 - - 2,375,000 2020 Public Improvement Refunding Bonds 5,519,026 - - 5,519,026 2021 Public Improvement Refunding Bonds 1,555,000 - - 1,555,000 Total City Debt Outstanding 17,163,819 - (489,385) 16,674,434 School Debt Outstanding 2011 Union First Market Refunding Bonds 2,049,208 - (700,040) 1,349,168 2012A Public Improvement Bonds 5,727,000 - (477,250) 5,249,750 2013 Public Improvement Bonds 3,563,600 - (275,575) 3,288,025 2020 Public Improvement Bonds 23,835,000 - - 23,835,000 Total School Debt Outstanding 35,174,808 - (1,452,865) 33,721,943 Total Debt Outstanding 52,338,627$ -$ (1,942,250)$ 50,396,377$ City of Salem, Virginia Capital Projects Fund Statement of Revenues and Expenditures For Period Ending November 30, 2021 Schedule F Project Total Available Year To Budget To Date Encumbrances Project Balance Date Fund Balance, July 1, 2021 12,736,529 Revenues: Federal Grants 11,023,764 1,563,144 - 1,563,144 9,460,620 24,193 State Grants 8,630,523 673,146 - 673,146 7,957,377 278,501 Proceeds From Debt Issuance 31,340,422 31,340,419 - 31,340,419 3 - Interest Income 48,312 51,130 - 51,130 (2,818) 2,820 Transfer From General Fund 2,324,638 2,574,637 - 2,574,637 (249,999) 250,000 Total Revenues 53,367,659 36,202,476 - 36,202,476 17,165,183 555,514 Expenditures: Fire Truck 2020 698,200 688,955 - 688,955 9,245 678,429 Next Generation 911 378,493 160,400 - 160,400 218,093 89,057 Street Department Equipment 2016 522,032 483,000 39,014 522,014 18 - Colorado St Bridge Replacement 6,450,000 520,970 383,701 904,671 5,545,329 281,035 Apperson Drive Bridge Replacement 3,364,939 392,515 351,306 743,821 2,621,118 74,940 Street Department Equipment 2019 718,342 672,159 46,182 718,341 1 - VDOT E Main Project UPC 8753 217,955 165,885 - 165,885 52,070 - Street Department Equipment 2020 1,221,293 1,155,038 54,949 1,209,987 11,306 148,715 Hanging Rock Battlefield Phase 2 570,310 149,710 9,146 158,856 411,454 4,537 Western Roanoke River Greenway 50,000 1,500 - 1,500 48,500 - Elizabeth Campus Greenway 1,104,400 71,850 117,650 189,500 914,900 12,048 Kiwanis Field Lighting Upgrades 644,727 644,727 - 644,727 - 182 Longwood Park Restroom Replacement 150,000 9,410 107,025 116,435 33,565 4,673 Library Sidewalk Replacement 36,800 32,395 - 32,395 4,405 32,395 Kiwanis Roof/Infrastructure Renovations 399,919 15,827 3,282 19,109 380,810 7,518 Moyer Sports Complex Renovation 870,500 184,950 685,550 870,500 - 179,950 Mason Creek Greenway Phase 3 2,610,310 - - - 2,610,310 - Downtown Impr - E Main St/Broad St 974,799 844,540 65,807 910,347 64,452 - Downtown Impr - E Main St/Broad St-CDBG 250,000 250,000 - 250,000 - - Downtown Impr - CDBG Community Impr 285,000 27,533 25,615 53,148 231,852 403 Downtown Impr - E Main St/Union St 1,203,861 77,388 41,505 118,893 1,084,968 18,420 Downtown Impr - E Main St/Market St 3,629,869 76,022 96,262 172,284 3,457,585 12,052 Capital Projects Local Reserve 15,910 - - - 15,910 - Transfer to Schools-2020 Bonds 27,000,000 18,796,000 - 18,796,000 8,204,000 965,987 Total Expenditures 53,367,659 25,420,774 2,026,994 27,447,768 25,919,891 2,510,341 Fund Balance, November 30, 2021 10,781,702 Schedule G Operating Revenues Current Year Budget Current Year Year to Date % of Budget Prior Year Year to Date Variance Sale of Power 39,501,333$ 17,413,203$ 44%16,719,668$ 693,535$ Other Electric Revenue 761,000 153,972 20%181,185 (27,213) Reserve for Encumbrances 8,829,167 - 0%- - Total Operating Revenues 49,091,500 17,567,175 36%16,900,854 666,321 . Operating Expenses Other Power Generation - Operation 90,000 17,767 20%9,826 7,941 Other Power Generation - Maintenance 63,613 14,021 22%16,097 (2,076) Purchased Power 20,540,000 8,493,666 41%8,157,146 336,520 Transmission - Operation 7,510,500 3,174,487 42%2,528,304 646,183 Transmission - Maintenance 24,000 1,304 5%1,749 (445) Distribution - Operations 944,150 399,651 42%394,747 4,904 Distribution - Maintenance 1,221,665 446,213 37%440,178 6,036 Customer Service 598,409 223,818 37%251,490 (27,672) Administration & General - Operation 2,854,285 391,659 14%547,213 (155,554) Administration & General - Maintenance 189,490 61,448 32%46,204 15,243 Depreciation - 562,611 0%548,154 14,457 Capital 11,266,304 3,335,130 30%3,265,086 70,044 Contingency 629,084 - 0%- - Total Operating Expenses 45,931,500 17,121,775 37%16,206,192 915,583 Income (loss) Before Transfers 3,160,000 445,400 694,662 (249,262) Transfers (3,160,000) (1,580,000) 0%(1,580,000) - Income (loss)-$ (1,134,600)$ (885,338)$ (249,262)$ Income (loss)-$ (2,269,200)$ (1,770,677)$ (498,523)$ City of Salem, Virginia Electric Fund Statement of Operations For Five Months Ending November 30, 2021 Schedule H Operating Revenues Current Year Budget Current Year Year to Date % of Budget Prior Year Year to Date Variance Services 7,049,799$ 3,228,902$ 46%3,018,844$ 210,058$ Other Revenue 380,000 163,687 43%130,589 33,098 Reserve for Encumbrances 504,038 - 0%- - Appropriated from Net Position 1,660,000 - 0%- - Total Operating Revenues 9,593,837 3,392,589 35%3,149,433 243,156 . Operating Expenses Salaries of Personnel 810,926 356,441 44%333,788 22,653 Fringe Benefits 375,370 147,196 39%136,357 10,839 Contractual Services 766,591 194,899 25%177,990 177,990 Printing and Binding 2,500 - 0%- - Advertising 1,000 349 35%195 154 Utilities 417,200 160,624 39%160,119 505 Communications 5,800 1,786 31%1,511 274 Insurance 29,750 10,638 36%3,826 6,812 Travel and Training 9,800 2,109 22%579 1,530 Miscellaneous 58,834 38,880 66%39,269 (389) Materials and Supplies 199,100 70,536 35%26,328 44,208 Depreciation - 356,380 0%356,552 71,585 Capital 1,176,111 169,812 14%13 169,799 Contingency 311,040 - 0%- - Total Production Expenses 4,164,022 1,509,650 36%1,236,529 273,121 Salaries of Personnel 633,244 213,332 34%217,408 (4,076) Fringe Benefits 301,120 92,904 31%96,934 (4,030) Contractual Services 721,621 264,749 37%200,534 64,215 Communications 4,950 1,466 30%1,269 198 Insurance 24,000 - 0%- - Lease/Rent of Equipment 2,000 759 38%759 - Travel and Training 5,300 2,000 38%137 1,863 Miscellaneous 24,834 10,211 41%10,705 (494) Miscellaneous Credits (240,000) (102,109) 43%(88,921) (13,188) Materials and Supplies 135,800 42,335 31%48,439 (6,103) Depreciation - 43,315 0%40,089 3,225 Capital 2,154,926 90,612 4%299,854 (209,242) Interest Obligations 1,481,020 116,820 8%134,587 (17,768) Total Distribution Expenses 5,248,815 776,394 15%961,794 (185,401) Income (loss) Before Transfers 181,000 1,106,545 951,110 155,436 Transfers (181,000)(76,934) 43%(75,721) (1,214) Income (loss)-$ 1,029,611$ 875,389$ 154,222$ - Production Distribution City of Salem, Virginia Water Fund Statement of Operations For Five Months Ending November 30, 2021 Schedule I Operating Revenues Current Year Budget Current Year Year to Date % of Budget Prior Year Year to Date Variance Services 6,756,019$ 2,945,157$ 44%2,897,725$ 47,432$ Other Revenue 149,000 63,292 42%52,814 10,478 Reserve for Encumbrances 846,533 - 0%- - Appropriated from Net Position 950,000 - 0%- - Total Operating Revenues 8,701,552 3,008,448 35%2,950,539 57,910 . Operating Expenses Salaries of Personnel 717,508 274,334 38%247,258 27,076 Fringe Benefits 337,897 114,643 34%119,295 (4,651) Contractual Services 3,918,758 1,001,130 26%1,078,710 (77,579) Printing and Binding 1,500 127 8%- 127 Advertising 1,500 1,474 98%- 1,474 Utilities 4,500 1,234 27%1,925 (691) Communications 14,700 5,290 36%5,108 182 Insurance 18,000 - 0%- - Lease/Rent of Equipment 3,000 759 25%759 - Travel and Training 9,000 3,340 37%868 2,472 Miscellaneous 36,834 14,150 38%15,148 (998) Miscellaneous Credits (325,000) (63,824) 20%(55,603) (8,221) Materials and Supplies 100,800 11,237 11%15,006 (3,769) Depreciation - 570,218 0%536,037 34,181 Capital 1,631,673 148,571 9%378,287 (229,716) Interest Obligations 1,631,321 19,299 1%21,349 (2,050) Bond Costs - 2,261 0%- 2,261 Contingency 599,561 - 0%- - Total Operating Expenses 8,701,552 2,104,243 24%2,364,146 (259,903) Income (loss) before Transfers - 904,206 586,392 317,813 Income (loss)-$ 904,206$ 586,392$ 317,813$ City of Salem, Virginia Sewer Fund Statement of Operations For Five Months Ending November 30, 2021 Schedule J Operating Revenues Current Year Budget Current Year Year to Date % of Budget Prior Year Year to Date Variance Shows/rentals 302,600$ 130,477$ 43%56,683$ 73,794$ Box office shows 960,000 359,517 37%26,111 333,405 Catering and concessions 120,000 55,019 46%7,064 47,955 Merchandise and commissions 103,000 63,382 62%4,155 59,227 Static advertising 48,000 22,542 47%14,750 7,792 Miscellaneous income 16,000 5,839 36%16,085 (10,247) Salem Fair 563,000 532,019 94%(3,500) 535,519 Reserve for encumbrances 11,914 - 0%- - Shuttered Venue Operator Grant (SVOG)- 1,268,542 0%- 1,268,542 Total Operating Revenues 2,124,514 2,437,335 115%121,348 2,315,987 Operating Expenses Salaries of personnel 1,064,979 473,496 44%380,156 93,341 Fringe benefits 460,057 153,533 33%153,978 (444) Maintenance and contractual services 276,834 71,528 26%36,748 34,780 Printing and binding 500 116 23%- 116 Advertising 25,000 7,981 32%4,366 3,615 Utilities 221,600 135,748 61%80,504 55,243 Communications 13,900 5,023 36%4,994 29 Insurance 21,000 - 0%- - Leases and Rentals 1,000 - 0%- - Travel and training 4,300 199 5%199 - Miscellaneous 89,948 33,208 37%29,472 3,737 Show expense 1,040,000 333,792 32%54,726 279,066 Fair 2020 expense 443,080 514,701 116%6,370 508,331 Materials and supplies 34,980 5,452 16%3,153 2,299 Capital - 1,867 115,752 (113,885) Depreciation - 121,042 0%125,336 (4,294) Contingency 86,504 - 0%- - Total Operating Expenses 3,783,682 1,857,688 49%995,753 861,934 Income (loss) Before Transfers (1,659,168)579,648 (874,405)1,454,053 Transfers 1,659,168 691,320 42%796,730 (105,410) Income (loss)-$ 1,270,968$ (77,675)$ 1,348,643$ 0.00 City of Salem, Virginia Salem Civic Center Statement of Operations For Five Months Ending November 30, 2021 Schedule K Operating Revenues: Current Year Budget Current Year Year to Date % of Budget Prior Year Year to Date Variance Catering 378,080$ 219,631$ 58%38,923$ 180,708$ Concessions 106,756 39,961 37%3,648 36,313 Moyer Concessions 46,363 42,119 91%36,137 5,982 Salem High Concessions 7,200 879 12%- 879 Total Operating Revenues 538,399 302,590 56%78,707 223,883 . Operating Expenses: Salaries of personnel 193,823 90,191 47%56,135 34,056 Fringe benefits 81,405 26,587 33%22,060 4,526 Contractual services 6,500 2,865 44%2,870 (5) Printing and binding 300 149 50%- 149 Laundry and Cleaning 10,000 3,436 34%544 2,893 Communications 300 63 21%60 3 Insurance 1,200 - 0%- - Miscellaneous 114,661 54,616 48%12,295 42,320 Materials and supplies 127,761 70,546 55%16,755 53,791 Depreciation - 1,826 0%1,826 - Contingency 6,214 - 0%- - Total Catering Expenses 542,164 250,278 46%112,545 137,733 Salaries of Personnel 41,473 16,306 39%3,883 12,423 Fringe Benefits 11,219 3,202 29%877 2,325 Miscellaneous 33,750 13,727 41%561 13,166 Materials and Supplies 25,600 9,642 38%737 8,905 Total Concessions Expenses 112,042 42,877 38%6,058 36,819 Salaries of Personnel 18,720 15,944 85%21,797 (5,853) Fringe Benefits 4,922 3,093 63%8,997 (5,903) Contractual services 2,500 1,042 42%1,042 - Miscellaneous 4,400 6,386 145%5,452 934 Materials and Supplies 9,600 10,314 107%9,967 347 Total Moyer Expenses 40,142 36,779 92%47,255 (10,476) Salaries of Personnel 4,155 901 22%- 901 Fringe Benefits 949 108 11%- 108 Materials and Supplies 1,880 538 29%111 427 Total Salem High Expenses 6,984 1,547 22%111 1,436 Income (loss) Before Transfers (162,933)(28,892)(87,262)58,370 Transfers 162,933 - 0%- - Income (loss)-$ (28,892)$ (87,262)$ 58,370$ Moyer Concessions Salem High Concessions City of Salem, Virginia Salem Catering and Concessions Statement of Operations For Five Months Ending November 30, 2021 Catering Concessions Schedule L Budget Current Year Year to Date Percent to Date Prior Year Year to Date Variance Beginning Net Position -$ 6,222,030$ 6,331,003$ (108,973)$ Revenue Premiums Paid - City 5,400,000 1,701,269 32% 1,762,409 (61,140) Premiums Paid - School 4,410,000 1,457,080 33% 1,465,282 (8,202) Premiums Paid - Retirees 910,000 348,356 38% 371,256 (22,900) Dental Premiums Paid 604,300 197,123 33% 210,219 (13,096) Interest Earnings 22,000 5,871 27% 6,090 (219) Miscellaneous - 5,346 0% 13,891 (8,545) Total Year to Date Revenues 11,346,300 3,715,045 33% 3,829,147 (114,102) Expenses Health Claims 10,237,109 3,108,531 30% 3,804,280 (695,749) Dental Claims 604,300 167,805 28% 176,870 (9,065) Employee Health Clinic 443,691 128,481 29% 95,164 33,317 Consulting Services 52,400 31,438 60% 28,504 2,934 Miscellaneous 8,800 3,817 43% 144 3,673 Total Year to Date Expenses 11,346,300 3,440,072 30% 4,104,962 (664,890) Ending Net Position -$ 6,497,003$ 6,055,188$ 441,815$ City of Salem, Virginia Health Insurance Fund Statement of Revenues and Expenses For Four Months Ending October 31, 2021 City of Salem, Virginia Schedule of Deposits and Investments For Period Ending November 30, 2021 Schedule M FV as a Cash Value Net Change Fair Value % of 11/30/2021 in Fair Value 11/30/2021 Portfolio Demand & Time Deposits Concentration Account 128,256,299$ -$ 128,256,299$ 90.4% Payroll Account 10,098 - 10,098 0.0% Revenue Recovery Account 14,429 - 14,429 0.0% Utilitiy Billing Account 25,232 - 25,232 0.0% Box Office Account 1,112,034 - 1,112,034 0.8% Held as Fiscal Agent of: Cardinal Academy 947,492 - 947,492 0.7% Court Community Corrections 1,463,134 - 1,463,134 1.0% Held on Behalf of: Economic Development Authority 295,005 - 295,005 0.2% Total Demand & Time Deposits 132,123,723 - 132,123,723 93.1% Investments Local Government Investment Pool (LGIP) 16,883 - 16,883 0.0% Local Government Investment Pool EM (LGIP EM*) 862,709 33,265 895,974 0.6% VA State Non-Arbitrage Program (SNAP) 8,902,247 - 8,902,247 6.3% Total Investments 9,781,839 33,265 9,815,104 6.9% Total Deposits and Investments 141,905,562$ 33,265$ 141,938,827$ 100.0% * Extended Maturity {00442834.DOCX } Item # 5A Date: 01/10/2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER MEETING DATE: January 10, 2022 AGENDA ITEM: Second reading of ordinance to amend Chapter 2- Administration, Article I-In General of the Code of the City of Salem to modify the date for election of the mayor and vice-mayor as a result of the approved Virginia General Assembly Senate Bill 1157 that requires municipalities pass ordinances changing elections from May to November. (Approved on first reading at the December 13, 2021 Council meeting.) SUBMITTED BY: Jim Guynn, City Attorney SUMMARY OF INFORMATION: This amendment is necessary to make sure the election of the mayor and vice-mayor coincides with the new requirement from the General Assembly to hold council elections in November. Since council members elected in November will take their seats in January, it made sense to move the election of the mayor to the first meeting of the new council. STAFF RECOMMENDATION: Staff recommends approval of second reading of this ordinance by Council. AN ORDINANCE TO AMEND CHAPTER 2 – ADMINISTRATION, ARTICLE I – IN GENERAL OF THE CODE OF THE CITY OF SALEM TO MOVE MUNICIPAL ELECTIONS FROM MAY TO NOVEMBER WHEREAS, the Virginia General Assembly approved Senate Bill 1157 on March 12, 2021; and WHEREAS, Senate Bill 1157 requires municipalities to move their council elections from the general election in May to the general election in November; and WHEREAS, moving the council election to November necessitates moving election of the mayor from July to January. NOW, THEREORE, be it ordained by the Council of the City of Salem, Virginia, as follows: Chapter 2 – ADMINISTRATION ARTICLE I. – IN GENERAL Secs. 2-3—2-35. Reserved. Secs. 2-3—2-34. – Reserved. Sec. 2-35. - Election, term of office and duties of mayor At the first meeting of the city council in January of each odd numbered year, the city council shall elect from its members a mayor, who shall serve for a term of two years. Sec. 2-36. – remains the same Sec. 2-37. – remains the same Sec. 2-38. – Election, term and powers of vice-chairman At the first meeting of city council in January of every odd-numbered year, On the July 1 following each regular municipal election, or if such day is a Sunday, then on the day following, the council shall elect one of its members as vice -chairman, who shall be ex officio vice-mayor. He The vice-mayor shall be elected for a term o f two years and when the mayor is absent or for any reason cannot act or perform such duties as mayor, he the vice-mayor shall be invested with all the powers conferred upon the mayor. Sec. 2-39. – remains the same 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 E. Saunders - William D. Jones - Byron Randolph Foley - James W. Wallace, III – Renee F. Turk – Passed: Effective: Mayor ATTEST: H. Robert Light Clerk of Council City of Salem, Virginia Item #6A Date: 1-10-2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER AGENDA ITEM: Use Not Provided For Permit Hold public hearing to consider the request of Sia Asset Management LLC, applicant, and Helm Building Enterprises, LTD, property owner, for a Use Not Provided For Permit to allow crypto mining at 1401 Southside Drive (Tax Map # 165-4- 2.1). Advertised in the December 23 and 30, 2021 issues of the Salem Times-Register. Recommended approval with conditions, see pages 3-7 of Planning Commission minutes. SUBMITTED BY: Mary Ellen Wines, CZA CFM Zoning Administrator SUMMARY OF INFORMATION: “Cryptocurrencies are not issued or backed by the U.S. government or any other government or central bank. Cryptocurrencies are a form of digital currency used in electronic payment transactions—no coins, paper money or banks are involved; there are zero to minimal transaction fees; transactions are fast and not bound by geography; and, similar to using cash, transactions are anonymous.” “All digital currency transactions are recorded in a virtual public ledger called the “blockchain,” which is maintained by digital currency “miners.” These miners can be anyone, anywhere in the world, who is willing to invest in the specialized computer hardware needed to rapidly process complex computations. Miners are awarded digital currency for verifying each transaction and adding it to the blockchain.” There is a cap on the number of “coins” produced and the time it takes to create each coin increases over time. This process utilizes multiple computers, processors, and servers which produce a lot of heat, which require a lot of cooling, in which all use an enormous amount of electricity which can increase the carbon emissions. In researching this type of business, as there are none locally, it has become apparent that in addition to the carbon emissions concerns, the noise level of the HVAC systems required to keep these systems cool, can be detrimental to neighboring properties. The applicant has discussed the electric service with the Building Inspections Division. An 800-to-1000-amp service has been requested. C/Net reported that one bitcoin (a type of cryptocurrency) takes 1,544 kWh to complete. This is equivalent of approximately 53 days of power for the average US household. The goal for the applicant is to have 150 Asic Pro A19 computers at completion. There are few if any jobs created in association with this type of business. A business license will be required, and the city would receive tax on any equipment in addition to the sale of electricity. CRYPTOCURRENCY BITCOIN What Is Bitcoin Mining? Bitcoin mining is the process by which new bitcoins are entered into circulation; it is also the way that new transactions are confirmed by the network and a critical component of the maintenance and development of the blockchain ledger. "Mining" is performed using sophisticated hardware that solves an extremely complex computational math problem. The first computer to find the solution to the problem is awarded the next block of bitcoins and the process begins again. Cryptocurrency mining is painstaking, costly, and only sporadically rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because of the fact that miners are rewarded for their work with crypto tokens. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1849. And if you are technologically inclined, why not do it? However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin (throughout, we'll use "Bitcoin" when referring to the network or the cryptocurrency as a concept, and "bitcoin" when we're referring to a quantity of individual tokens). How Does Bitcoin Mining Work? By Updated November 30, 2021EUNY HONG Reviewed by JULIUS MANSA TABLE OF CONTENTS What Is Bitcoin Mining? A New Gold Rush Mining to Prevent Double Spend Mining and Bitcoin Circulation How Much a Miner Earns EXPAND + SUBMITTED BY APPLICANT Click Play to Learn How Bitcoin Mining Works A New Gold Rush The primary draw for many mining is the prospect of being rewarded with Bitcoin. That said, you certainly don't have to be a miner to own cryptocurrency tokens. You can also buy cryptocurrencies using fiat currency; you can trade it on an exchange like Bitstamp using another crypto (as an example, using Ethereum or NEO to buy Bitcoin); you even can earn it by shopping, publishing blog posts on platforms that pay users in cryptocurrency, or even set up i t t i t t KEY TAKEAWAYS By mining, you can earn cryptocurrency without having to put down money for it. Bitcoin miners receive Bitcoin as a reward for completing "blocks" of verified transactions, which are added to the blockchain. Mining rewards are paid to the miner who discovers a solution to a complex hashing puzzle first, and the probability that a participant will be the one to discover the solution is related to the portion of the total mining power on the network. You need either a GPU (graphics processing unit) or an application-specific integrated circuit (ASIC) in order to set up a mining rig. SUBMITTED BY APPLICANT interest-earning crypto accounts. An example of a crypto blog platform is Steemit, which is kind of like Medium except that users can reward bloggers by paying them in a proprietary cryptocurrency called STEEM. STEEM can then be traded elsewhere for Bitcoin. The Bitcoin reward that miners receive is an incentive that motivates people to assist in the primary purpose of mining: to legitimize and monitor Bitcoin transactions, ensuring their validity. Because these responsibilities are spread among many users all over the world, Bitcoin is a "decentralized" cryptocurrency, or one that does not rely on any central authority like a central bank or government to oversee its regulation. Mining to Prevent Double Spend Miners are getting paid for their work as auditors. They are doing the work of verifying the legitimacy of Bitcoin transactions. This convention is meant to keep Bitcoin users honest and was conceived by Bitcoin's founder, Satoshi Nakamoto.[1 ] By verifying transactions, miners are helping to prevent the "double-spending problem." Double spending is a scenario in which a Bitcoin owner illicitly spends the same bitcoin twice. With physical currency, this isn't an issue: once you hand someone a $20 bill to buy a bottle of vodka, you no longer have it, so there's no danger you could use that same $20 bill to buy lotto tickets next door. While there is the possibility of counterfeit cash being made, it is not exactly the same as literally spending the same dollar twice. With digital currency, however, as the Investopedia dictionary explains, "there is a risk that the holder could make a copy of the digital token and send it to a merchant or another party while retaining the original." Let's say you had one legitimate $20 bill and one counterfeit of that same $20. If you were to try to spend both the real bill and the fake one, someone that took the trouble of looking at both of the bills' serial numbers would see that they were the same number, and thus one of them had to be false. What a Bitcoin miner does is analogous to that—they check transactions to make sure that users have not illegitimately tried to spend the same bitcoin twice. This isn't a perfect analogy—we'll explain in more detail below. Important:Only 1 megabyte of transaction data can fit into a single bitcoin block. The 1 MB limit was set by Satoshi Nakamoto, and this has become a matter of controversy as some miners believe the block size should be increased toSUBMITTED BY APPLICANT accommodate more data, which would effectively mean that the bitcoin network could process and verify transactions more quickly. "So after all that work spent mining, I might still not get any bitcoin for it?" That is correct. To earn bitcoins, you need to be the first miner to arrive at the right answer, or closest answer, to a numeric problem. This process is also known as proof of work (PoW). "What do you mean, 'the right answer to a numeric problem'?" The good news: No advanced math or computation is really involved. You may have heard that miners are solving difficult mathematical problems—that's true but not because the math itself is hard. What they're actually doing is trying to be the first miner to come up with a 64- digit hexadecimal number (a "hash") that is less than or equal to the target hash. It's basically guesswork.[1 ] The bad news: It's a matter of guesswork or randomness, but with the total number of possible guesses for each of these problems being on the order of trillions, it's incredibly arduous work. And the number of possible solutions only increases the more miners that join the mining network (known as the mining difficulty). In order to solve a problem first, miners need a lot of computing power. To mine successfully, you need to have a high "hash rate," which is measured in terms gigahashes per second (GH/s) and terahashes per second (TH/s). Tip:If you want to estimate how much bitcoin you could mine with your mining rig's hash rate, the site Cryptocompare offers a helpful calculator. Other web resources offer similar tools. Mining and Bitcoin Circulation In addition to lining the pockets of miners and supporting the Bitcoin ecosystem, mining serves another vital purpose: It is the only way to release new cryptocurrency into circulation. In other words, miners are basically "minting" currency. For example, as of September 2021, there were around 18.82 million bitcoins in circulation, out of an ultimate total of 21 million. [2 ] Aside from the coins minted via the genesis block (the very first block, which was created by f d S t hi N k t ) i l f th bit i i t b i b fSUBMITTED BY APPLICANT founder Satoshi Nakamoto), every single one of those bitcoins came into being because of miners. In the absence of miners, Bitcoin as a network would still exist and be usable, but there would never be any additional bitcoin. However, because the rate of bitcoin "mined" is reduced over time, the final bitcoin won't be circulated until around the year 2140. This does not mean that transactions will cease to be verified. Miners will continue to verify transactions and will be paid in fees for doing so in order to keep the integrity of Bitcoin's network.[3 ] Aside from the short-term Bitcoin payoff, being a coin miner can give you "voting" power when changes are proposed in the Bitcoin network protocol. This is known as a BIP (Bitcoin Improvement Protocol). In other words, miners have some degree of influence on the decision-making process on such matters as forking. How Much a Miner Earns The rewards for Bitcoin mining are reduced by half roughly every four years.[1 ] When bitcoin was first mined in 2009, mining one block would earn you 50 BTC. In 2012, this was halved to 25 BTC. By 2016, this was halved again to 12.5 BTC. On May 11, 2020, the reward halved again to 6.25 BTC. In September of 2021, the price of Bitcoin was about $45,000 per bitcoin, which means you'd have earned $281,250 (6.25 x 45,000) for completing a block.[4 ] Not a bad incentive to solve that complex hash problem detailed above, it might seem. Image SUBMITTED BY APPLICANT Image by Sabrina Jiang © Investopedia 2021 If you want to keep track of precisely when these halvings will occur, you can consult the Bitcoin Clock, which updates this information in real-time. Interestingly, the market price of Bitcoin has, throughout its history, tended to correspond closely to the reduction of new coins entered into circulation. This lowering inflation rate increased scarcity and historically the price has risen with it. Tip:If you are interested in seeing how many blocks have been mined thus far, there are several sites, including Blockchain.info, that will give you that information in real-time. What You Need to Mine Bitcoins Although early on in Bitcoin's history individuals may have been able to compete for blocks with a regular at-home personal computer, this is no longer the case. The reason for this is that the difficulty of mining Bitcoin changes over time. In order to ensure the smooth functioning of the blockchain and its ability to process and verify transactions, the Bitcoin network aims to have one block produced every 10 minutes or so. However, if there are one million mining rigs competing to solve the hash problem, they'll likely reach a solution faster than a scenario in which 10 mining rigs are working on the same problem. For that reason, Bitcoin is designed to evaluate and adjust the difficulty of mining every 2,016 blocks, or roughly every two weeks.[1 ] When there is more computing power collectively working to mine for bitcoins, the difficulty level of mining increases in order to keep block production at a stable rate. Less computing power means the difficulty level decreases. At today's network size, a personal computer mining for bitcoin will almost certainly find nothing. All of this is to say that, in order to mine competitively, miners must now invest in powerful computer equipment like a GPU (graphics processing unit) or, more realistically, anSUBMITTED BY APPLICANT application-specific integrated circuit (ASIC). These can run from $500 to the tens of thousands. Some miners—particularly Ethereum miners—buy individual graphics cards (GPUs) as a low-cost way to cobble together mining operations. An Analogy Say I tell three friends that I'm thinking of a number between one and 100, and I write that number on a piece of paper and seal it in an envelope. My friends don't have to guess the exact number; they just have to be the first person to guess any number that is less than or equal to the number I am thinking of. And there is no limit to how many guesses they get. Let's say I'm thinking of the number 19. If Friend A guesses 21, they lose because 21>19. If Friend B guesses 16 and Friend C guesses 12, then they've both theoretically arrived at viable answers, because of 16 < 19 and 12 < 19. There is no "extra credit" for Friend B, even though B's answer was closer to the target answer of 19. Now imagine that I pose the "guess what number I'm thinking of" question, but I'm not asking just three friends, and I'm not thinking of a number between 1 and 100. Rather, I'm asking millions of would-be miners and I'm thinking of a 64-digit hexadecimal number. Now you see that it's going to be extremely hard to guess the right answer. If B and C both answer simultaneously, then the analogy breaks down. In Bitcoin terms, simultaneous answers occur frequently, but at the end of the day, there can only be one winning answer. When multiple simultaneous answers are presented that are equal to or less than the target number, the Bitcoin network will decide by a simple majority— 51%—which miner to honor. Typically, it is the miner who has done the most work or, in other words, the one that verifies the most transactions. The losing block then becomes an "orphan block." Orphan blocks are those that are not added to the blockchain. Miners who successfully solve the hash problem but who haven't verified the most transactions are not rewarded with bitcoin. What Is a "64-Digit Hexadecimal Number"? Here is an example of such a number: 0000000000000000057fcc708cf0130d95e27c5819203e9f967ac56e4df598eeSUBMITTED BY APPLICANT 000000000000000005 cc 08c 0 30d95e c58 9 03e9 96 ac56e d 598ee The number above has 64 digits. Easy enough to understand so far. As you probably noticed, that number consists not just of numbers, but also letters of the alphabet. Why is that? To understand what these letters are doing in the middle of numbers, let's unpack the word "hexadecimal." The decimal system uses as its base factors of 100 (e.g., 1% = 0.01). This, in turn, means that every digit of a multi-digit number has 100 possibilities, zero through ninety-nine. In computing, the decimal system is simplified to base 10, or zero through nine. "Hexadecimal," on the other hand, means base 16, as "hex" is derived from the Greek word for six and "deca" is derived from the Greek word for 10. In a hexadecimal system, each digit has 16 possibilities. But our numeric system only offers 10 ways of representing numbers (zero through nine). That's why you have to stick letters in, specifically letters a, b, c, d, e, and f. If you are mining Bitcoin, you do not need to calculate the total value of that 64-digit number (the hash). I repeat: You do not need to calculate the total value of a hash. Image SUBMITTED BY APPLICANT Image by Sabrina Jiang © Investopedia 2021 So, what do "64-digit hexadecimal numbers" have to do with Bitcoin mining? Remember that analogy, where the number 19 was written on a piece of paper and put it in a sealed envelope? In Bitcoin mining terms, that metaphorical undisclosed number in the envelope is called the target hash. What miners are doing with those huge computers and dozens of cooling fans is guessing at the target hash. Miners make these guesses by randomly generating as many "nonces" as possible, as fast as possible. A nonce is short for "number only used once," and the nonce is the key to generating these 64-bit hexadecimal numbers I keep talking about. In Bitcoin mining, a nonce is 32 bits in size—much smaller than the hash, which is 256 bits. The first miner whose nonce generates a hash that is less than or equal to the target hash is awarded credit for completing that block and is awarded the spoils of 6.25 BTC. In theory, you could achieve the same goal by rolling a 16-sided die 64 times to arrive at random numbers, but why on earth would you want to do that? The screenshot below, taken from the site Blockchain.info, might help you put all this information together at a glance. You are looking at a summary of everything that happened when block #490163 was mined. The nonce that generated the "winning" hash was 731511405. The target hash is shown on top. The term "Relayed by Antpool" refers to the fact that this particular block was completed by AntPool, one of the more successful mining pools (more about mining pools below). As you see here, their contribution to the Bitcoin community is that they confirmed 1768 transactions for this block. If you really want to see all 1768 of those transactions for this block, go to this page and scroll down to the heading "Transactions." SUBMITTED BY APPLICANT (source: Blockchain.info) How do I guess at the target hash All target hashes begin with a string of leading zeroes. There is no minimum target, but there is a maximum target set by the Bitcoin Protocol. No target can be greater than this number:SUBMITTED BY APPLICANT 00000000ffff0000000000000000000000000000000000000000000000000000 The winning hash for a bitcoin miner is one that has at least the minimum number of leading zeroes defined the mining difficulty. Here are some examples of randomized hashes and the criteria for whether they will lead to success for the miner: Note: These are made-up hashes. Image by Sabrina Jiang © Investopedia 2021 To find such a hash value, you have to get a fast mining rig, or, more realistically, join a mining pool—a group of coin miners who combine their computing power and split the mined Bitcoin. Mining pools are comparable to those Powerball clubs whose members buy lottery tickets en masse and agree to share any winnings. A disproportionately large number of blocks are mined by pools rather than by individual miners. In other words, it's literally just a numbers game. You cannot guess the pattern or make a di ti b d i t t h h At t d ' diffi lt l l th dd f fi di th Image SUBMITTED BY APPLICANT prediction based on previous target hashes. At today's difficulty levels, the odds of finding the winning value for a single hash is one in the tens of trillions.[5 ] Not great odds if you're working on your own, even with a tremendously powerful mining rig. Not only do miners have to factor in the costs associated with expensive equipment necessary to stand a chance of solving a hash problem. They must also consider the significant amount of electrical power mining rigs utilize in generating vast quantities of nonces in search of the solution. All told, Bitcoin mining is largely unprofitable for most individual miners as of this writing. The site Cryptocompare offers a helpful calculator that allows you to plug in numbers such as your hash speed and electricity costs to estimate the costs and benefits. (Source: Cryptocompare) Cryptocompare hash calculator SUBMITTED BY APPLICANT What Are Coin Mining Pools? Mining rewards are paid to the miner who discovers a solution to the puzzle first, and the probability that a participant will be the one to discover the solution is equal to the portion of the total mining power on the network. Participants with a small percentage of the mining power stand a very small chance of discovering the next block on their own. For instance, a mining card that one could purchase for a couple of thousand dollars would represent less than 0.001% of the network's mining power. With such a small chance at finding the next block, it could be a long time before that miner finds a block, and the difficulty going up makes things even worse. The miner may never recoup their investment. The answer to this problem is mining pools. Mining pools are operated by third parties and coordinate groups of miners. By working together in a pool and sharing the payouts among all participants, miners can get a steady flow of bitcoin starting the day they activate their miners. Statistics on some of the mining pools can be seen on Blockchain.info. "I've done the math. Forget mining. Is there a less onerous way to profit from cryptocurrencies?" As mentioned above, the easiest way to acquire Bitcoin is to simply buy it on one of the many exchanges. Alternately, you can always leverage the "pickaxe strategy." This is based on the old saw that during the 1849 California gold rush, the smart investment was not to pan for gold, but rather to make the pickaxes used for mining. To put it in modern terms, invest in the companies that manufacture those pickaxes. In a cryptocurrency context, the pickaxe equivalent would be a company that manufactures equipment used for Bitcoin mining. You may consider looking into companies that make ASICs equipment or GPUs instead, for example. Downsides of Mining The risks of mining are often that of financial risk and a regulatory one. As mentioned, Bitcoin mining, and mining in general, is a financial risk since one could go through all the effort of purchasing hundreds or thousands of dollars worth of mining equipment only to have no return on their investment. That said, this risk can be mitigated by joining mining pools. If you are considering mining and live in an area where it is prohibited you should reconsider. It maySUBMITTED BY APPLICANT g g p y y also be a good idea to research your country's regulation and overall sentiment towards cryptocurrency before investing in mining equipment. One additional potential risk from the growth of Bitcoin mining (and other proof-of-work systems as well) is the increasing energy usage required by the computer systems running the mining algorithms. While microchip efficiency has increased dramatically for ASIC chips, the growth of the network itself is outpacing technological progress.[6 ] As a result, there are concerns about the environmental impact and carbon footprint of Bitcoin mining.[7 ] There are, however, efforts to mitigate this negative externality by seeking cleaner and green energy sources for mining operations (such as geothermal or solar), as well as utilizing carbon offset credits. Switching to less energy-intensive consensus mechanisms like proof-of-stake (PoS), which Ethereum has transitioned to, is another strategy; however, PoS comes with its own set of drawbacks and inefficiencies such as incentivizing hoarding instead of using coins and a risk of centralization of consensus control. Why is it called bitcoin "mining"? Mining is used as a metaphor for introducing new bitcoins into the system, since it requires (computational) work just as mining for gold or silver requires (physical) effort. Of course, the tokens that miners find are virtual and exist only within the digital ledger of the Bitcoin blockchain. Why do bitcoins need to be mined? Since they are entirely digital records, there is a risk of copying, counterfeiting, or double- spending the same coin more than once. Mining solves these problems by making it extremely expensive and resource-intensive to try to do one of these things or otherwise "hack" the network. Indeed, it is far more cost-effective to join the network as a miner than to try to undermine it. What do you mean mining confirms transactions? In addition to introducing new BTC into circulation, mining serves the crucial role of confirming and validating new transactions on the Bitcoin blockchain. This is important because there is no central authority such as a bank, court, government, or anything else d t i i hi h t ti lid d hi h t I t d th i iSUBMITTED BY APPLICANT determining which transactions are valid and which are not. Instead, the mining process achieves a decentralized consensus through proof-of-work (PoW). Why does mining use so much electricity? In the early days of Bitcoin, anybody could simply run a mining program from their PC or laptop. But, as the network got larger and more people became interested in mining, the difficulty of the mining algorithm became more difficult. This is because the code for Bitcoin targets finding a new block once every ten minutes, on average.[1 ] If more miners are involved, the chances that somebody will solve the right hash quicker increases, and so the difficulty is raised to restore that 10-minute goal. Now imagine if thousands, or even millions more times of mining power joins the network. That's a lot of new machines consuming energy. Is Bitcoin Mining Legal? The legality of Bitcoin mining depends entirely on your geographic location. The concept of Bitcoin can threaten the dominance of fiat currencies and government control over the financial markets. For this reason, Bitcoin is completely illegal in certain places. Bitcoin ownership and mining are legal in more countries than not. Some examples of places where it was illegal according to a 2018 report were Algeria, Egypt, Morocco, Bolivia, Ecuador, Nepal, and Pakistan.[8 ] Overall, Bitcoin use and mining remain legal across much of the globe. ARTICLE SOURCES SUBMITTED BY APPLICANT MBLU Location Owner Name Co-Owner Name Address 1 Address 2 City, State, Zip 165-4-2.1 1401 SOUTHSIDE DR HELM BUILDING ENTERPRISES LTD 1491 SOUTHSIDE DR SALEM VA 24153 165-4-2 1491 SOUTHSIDE DR WILLIAM P THURMAN JILL ANNETTE WRIGHT HELM 1491 SOUTHSIDE DR SALEM VA 24153 165-4-1 1700 MILL LN NILAM CORPORATION 2223 WILLIAMSON RD ROANOKE VA 24012 179-2-2 1510 & 1506 SOUTHSIDE DR WM S TRIMBLE CO INC 2200 ATCHLEY ST KNOXVILLE TN 37920 179-2-3 1490 SOUTHSIDE DR CALVIN CECIL PARKS 1490 SOUTHSIDE DR SALEM VA 24153 179-2-4.1 1400 SOUTHSIDE DR STOVER W CARTER TRUSTEE REVOCABLE LIVING TRUST 5298 GLENVAR HEIGHTS BLVD SALEM VA 24153 165-4-3 1399 SOUTHSIDE DR HELM BUILDING ENTERPRISES LTD 1491 SOUTHSIDE DR SALEM VA 24153 165-4-3.1 1260 W RIVERSIDE DR HELM BUILDING ENTERPRISES LTD 1491 SOUTHSIDE DR SALEM VA 24153 165-4-4 1389 SOUTHSIDE DR J & A SPIKES LLC 2131 RIVER OAKS DR SALEM VA 24153 165-3-1 1263 W RIVERSIDE DR DAVID L PRICE ANN S PRICE 1263 W RIVERSIDE DR SALEM VA 24153 At its peak, cryptocurrency mining was an arms race that led to increased demand for graphics processing units (GPUs). In fact, Advanced Micro Devices, a GPU manufacturer, posted impressive financial results (https://www.cnbc.com/2017/07/26/wall-street- stunned-over-amds-cryptocurrency-mining-demand.html) as demand for the company’s stock skyrocketed and shares traded at their highest level in a decade. Despite the increased demand for GPUs, thecrypto mining gold rush quickly came to an end, as the difficulty of mining top cryptocurrencies like Bitcoin increased just as quickly. Mining cryptocurrencies, however, can still be profitable. So, what is crypto mining, is it legal, and how can you get started? This article takes a closer look at these questions. What Is Crypto Mining? (https://freemanlaw.com/) Most people think of crypto mining simply as a way of creating new coins. Crypto mining, however, also involves validating cryptocurrency transactions on a blockchain network and adding them to a distributed ledger. Most importantly, crypto mining prevents the double-spending of digital currency on a distributed network. Like physical currencies, when one member spends cryptocurrency, the digital ledger must be updatedby debiting one account and crediting the other. However, the challenge of a digital currency is that digital platforms are easily manipulated. Bitcoin’s distributed ledger, therefore, only allows verified miners to update transactions on the digital ledger. This gives miners the extra responsibility of securing the network from double-spending. Meanwhile, new coins are generated to reward miners for their work in securing the network. Since distributed ledgers lack a centralized authority, the mining process is crucial for validating transactions. Miners are, therefore, incentivized to secure the network by participating in the transaction validation process that increases their chances of winning newly minted coins. In order to ensure that only verified crypto miners can mine and validate transactions, a proof-of-work (PoW) consensus protocol has been put into place. PoW also secures the network from any external attacks. Proof-of-Work Crypto mining is somewhat similar to mining precious metals . While miners of precious metals will unearth gold, silver, or diamonds, crypto miners will trigger the release of new coins into circulation. For miners to be rewarded with new coins, they need to deploy machines that solve complex mathematical equations in the form of cryptographic hashes. A hash is a truncated digital signature of a chunk of data. Hashes are generated to secure data transferred on a public network. Miners compete with their peers to zero in on a hash value generated by a crypto coin transaction, and the first miner to crack the code gets to add the block to the ledger and receive the reward. Each block uses a hash function to refer to the previous block, forming an unbroken chain of blocks that leads back to the first block. For this reason, peers on the network can easily verify whether certain blocks are valid and whether the miners who validated each block properly solved the hash to receive the reward. Over time, as miners deploy more advanced machines to solve PoW, the difficulty of equations on the network increases. At the same time, competition among miners rises, increasing the scarcity of the cryptocurrency as a result. How to Start Mining Cryptocurrencies Mining cryptocurrencies requires computers with special software specifically designed to solve complicated, cryptographic mathematic equations. In the technology’s early days, cryptocurrencies like Bitcoin could be mined with a simple CPU chip on a home computer. Over the years, however, CPU chips have become impractical for mining most cryptocurrencies due to the increasing difficulty levels. Today, mining cryptocurrencies requires a specialized GPU or an application-specific integrated circuit (ASIC) miner. In addition, the GPUs in the mining rig must be connected to a reliable internet connection at all times. Each crypto miner is also required to be a member of an online crypto mining pool as well. Different Methods of Mining Cryptocurrencies Different methods of mining cryptocurrencies require different amounts of time. In the technology’s early days, for example, CPU mining was the go-to option for most miners. However, many find CPU mining to be too slow and impractical today because it takes months to accrue even a small amount of profit, given the high electrical and cooling costs and increased difficulty across the board. GPU mining is another method of mining cryptocurrencies. It maximizes computational power by bringing together a set of GPUs under one mining rig. For GPU mining, a motherboard and cooling system is required for the rig. Similarly, ASIC mining is yet another method of mining cryptocurrencies. Unlike GPU miners, ASIC miners are specifically designed to mine cryptocurrencies, so they produce more cryptocurrency units than GPUs. However, they are expensive, meaning that, as mining difficulty increases, they quickly become obsolete. Given the ever-increasing costs of GPU and ASIC mining, cloud mining is becoming increasingly popular. Cloud mining allows individual miners to leverage the power of major corporations and dedicated crypto mining facilities. Individual crypto miners can identify both free and paid cloud mining hosts online and rent a mining rig for a specific amount of time. This method is the most hands-free way to mine cryptocurrencies. Mining Pools Mining pools allow miners to combine their computational resources in order to increase their chances of finding and mining blocks on a blockchain. If a mining pool succeeds, the reward is distributed across the mining pool, in proportion to the amount of resources that each miner contributed to the pool. Most crypto mining applications come with a mining pool; however, crypto enthusiasts now also join together online to create their own mining pools. Because some pools earn more rewards than others, miners are free to change pools whenever they need to. Miners consider official crypto mining pools more reliable, since they receive frequent upgrades by their host companies, as well as regular technical support. The best place to find mining pools is CryptoCompare (https://www.cryptocompare.com/mining/#/pools), where miners can compare different mining pools based on their reliability, profitability, and the coin that they want to mine. Is Crypto Mining Worth It? Determining whether crypto mining is worthwhile depends on several factors. Whether a propsective miner chooses a CPU, GPU, ASIC miner, or cloud mining, the most important factors to consider are the mining rig’s hash rate, electric power consumption, and overall costs. Generally, crypto mining machines consume a considerable amount of electricity and emit significant heat. For instance, the average ASIC miner will use about 72 terawatts (https://www.thebalance.com/how-much-power-does-the-bitcoin-network-use- 391280#:~:text=Regardless%20of%20the%20number%20of,usage%20provided%20by%20ASIC of power to create a bitcoin in about ten minutes. These figures continue to change as technology advances and mining difficulty increases. Even though the price of the machine matters, it is just as important to consider electricity consumption, electricity costs in the area, and cooling costs, especially with GPU and ASIC mining rigs. It is also important to consider the level of difficulty for the cryptocurrency that an individual wants to mine, in order determine whether the operation would even be profitable. Is Crypto Mining Legal? Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear. Under the Financial Crimes Enforcement Network (FinCEN (https://www.fincen.gov/resources/statutes-regulations/guidance)), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States appear friendly to crypto mining. However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining. Conclusion: The Sustainability of Crypto Mining For aspiring crypto miners, curiosity and a strong desire to learn are simply a must. The crypto mining space is constantly changing as new technologies emerge. The professional miners who receive the best rewards are constantly studying the space and optimizing their mining strategies to improve their performance. On the other hand, climate change advocates have become increasingly concerned, as more and more fossil fuels are burned to fuel the mining process. Such concerns have pushed cryptocurrency communities like Ethereum to consider switching from PoW frameworks to more sustainable frameworks, such as proof-of-stake frameworks. C R Y P T O C U R R E N C Y C R Y P T O C U R R E N C Y S T R AT E G Y & E D U C AT I O N Cr yptocurrencies have come a long way from their relatively obscure origins. While the mainstream financial world once disdained digital currencies as tools for criminals and speculators, the industr y has made significant progress in establishing itself as a legitimate and (potentially) world-changing space. Bitcoin (BTC) and ether (ETH) have seen massive growth in price and users, but there are still doubts about the consequences of wide cr yptocurrency adoption. In particular, many skeptics and environmentalists have raised concerns about the energy consumption of cr yptocurrency mining, which may cause increased carbon emissions and climate change. What's the Environmental Impact of Cryptocurrency? By Updated August 26, 2021NATHAN R E I F F Reviewed by E R I K A R A S U R E K E Y TA K E AWAY S Bitcoin and other proof-of-work cr yptocurrencies require large amounts of energy, due to the computations needed for mining. By the latest estimates, the bitcoin network uses as much energ y in one year as the countr y of Argentina. 65% of bitcoin miners are located in China, a country that generates most of its energy from coal. Some proponents say that as much as 74% of bitcoin's energy needs come from renewable sources, although these figures are disputed. The bitcoin network also generates 11.5 kilotons of e-waste every year. Not all cryptocurrencies have significant environmental impacts. Many of them do not use mining at all. Bitcoin Mining Explained Why Mining Requires Energy These astronomical energy costs are due to the competitive nature of proof-of-work (PoW) blockchains. Instead of storing account balances in a central database, cr yptocurrency transactions are recorded by a distributed network of miners, incentivized by block rewards. These specialized computers are engaged in a computational race to record new blocks, which can only be created by solving cr yptographic puzzles. Cr yptocurrency advocates believe that this system has numerous advantages over centralized currencies because it does not rely on any trusted intermediar y or single point of failure. However, the puzzles for mining require many energy-intensive computations. Bitcoin, the most widely-known cr yptocurrency network, uses 121 Terawatt-hours of electricity every year, the BBC reported in 2021—more than the entire countr y of Argentina. According to Digiconomist, a cr yptocurrency analytics site, the Ethereum network uses as much power as the entire nation of Qatar.[1 ] One major concern among environmentalists is that mining tends to become less efficient as the price of cryptocurrency increases. In the case of bitcoin, the mathematical puzzles to create blocks get more difficult as the price goes up, but transaction throughput remains CLICK TO PLAYCLICK TO PLAY 1:30 constant. This means that over time, the network will consume more computing power and energy to process the same number of transactions. Fossil Fuels and Digital Currencies All of this has combined to link cryptocurrencies with fossil fuels in a way that many investors have yet to acknowledge. According to researchers at the University of Cambridge, around 65% of bitcoin mining takes place in China, a countr y that gets most of its electricity by burning coal.[2 ] Coal and other fossil fuels are currently a major source of electricity worldwide, both for cryptocurrency mining operations and other industries. However, burning coal is a significant contributor to climate change as a result of the carbon dioxide that the process produces. According to a report by CNBC, bitcoin mining accounts for about 35.95 million tons of carbon dioxide emissions each year—about the same amount as New Zealand. Cryptocurrency Advocates Defend Mining Supporters have downplayed the energy consumption of cr yptocurrencies, claiming that mining operations tend to concentrate around areas with surplus renewable energy. A 2019 report by CoinShares, a pro-cr yptocurrency research firm, estimated that 74.1% of the electricity powering the bitcoin network came from renewable sources, making bitcoin mining "more renewables-driven than almost every other large-scale industr y in the world."[3 ] These claims rest on the fact that cr yptocurrency miners are not geographically fixed, allowing them to move in search of surplus energy. According to CoinDesk, some petroleum companies are exploring ways to power mining rigs from gas flares, which would other wise be wasted energy. Some Chinese mining firms migrate from one province to another in search of the cheapest energy, thereby supporting cheap renewable providers in those locations. Calculations of bitcoin's renewable energy usage are controversial and often disputed. For example, a report by the Cambridge Center for Alternative Finance found that only 39% of bitcoin mining comes from renewable energy. Even with the most optimistic estimates of renewable energy use, the network represents a net contributor to carbon emissions.[4 ] Other Environmental Impacts of Cryptocurrency Mining In addition to energy consumption, cryptocurrency mining also generates a significant amount of electronic waste as hardware becomes obsolete. This is especially true for Application-Specific Integrated Circuits, specialized hardware for mining the most popular cryptocurrencies. Unlike other computer hardware, these circuits cannot be reused for any other purpose, and they quickly become obsolete. According to Digiconomist, the bitcoin network generates between eight and 12 thousand tons of electronic waste ever y year. Cryptocurrencies Without Mining It's also worth noting that a large number of cryptocurrencies have far lower energy demands. In particular, proof-of-stake (PoS) blockchains do not utilize mining, for instance EOS, Cardano, and more recently a switch to PoS by Ethereum. Although this model has clear energy consumption advantages over mining, other concerns arise with PoS such as concentration of staking, The Bottom Line Whether you're in favor of cr yptocurrencies or against them, there's little doubt that bitcoin and other proof-of-work blockchains use enormous amounts of energy. Much of this energy usage comes from burning coal and other fossil fuels, although cr yptocurrency advocates have argued that renewable sources are also a major component. While the exact figures are disputed, even the best case scenarios indicate that mining is a major factor in carbon dioxide emissions. A R T I C L E S O U R C E S K E Y POI N T S Ma c Ke n zie Siga l os @ K E N Z I E S I G A L O S C R Y P T O D E C O D E D Bitcoin mining isn’t nearly as bad for the environment as it used to be, new data shows P U B L I S H E D T U E , J U L 2 0 2 0 2 1 •5 :3 3 P M E D T U P D A T E D T U E , J U L 2 0 2 0 2 1 •5 :3 3 P M E D T WATC H L IV E After Beijing decided to expel its miners in May, more than 50% of the hashrate – the collective computing power of miners worldwide – dropped off the network. The United States has fast become the new hotspot for the world’s global crypto miners. In the last six months, the country has jumped from fifth to second place and now accounts for nearly 17% of all global bitcoin miners. Two technicians work at a bitcoin mining facility in Quebec. lars Hagbarg | AFP | Getty Images China’s mining exodus For years, bitcoin critics have maligned the world’s biggest cryptocurrency for polluting the planet. But new data from Cambridge University shows that the geography of mining has drastically changed over the last six months, and experts tell CNBC this will improve bitcoin’s carbon footprint. China’s big crypto crackdown this spring set off a chain reaction in the mining world. For one, it took half the world’s bitcoin miners offline practically overnight. Fewer people mining has meant less machines running and less power being consumed overall, which slashed bitcoin’s environmental impact. Beijing’s new crypto rules also permanently took a lot of older and more inefficient gear offline. And crucially, China shutting its doors to crypto mining has set off a massive migration. Miners are now heading to the cheapest sources of energy on the planet, which more often than not are renewable. “The bitcoin network is ruthless in its drive for the lowest cost,” said Mike Colyer, CEO of digital currency company Foundry. “Miners around the world are looking for stranded power that is renewable. That will always be your lowest cost. Net-net this will be a big win for bitcoin’s carbon footprint.” China has long been the mecca of the crypto mining world, accounting for nearly three- quarters of all bitcoin miners at its peak, according to the Cambridge Centre for Alternative Finance. But after Beijing decided to expel its miners in May, more than 50% of the hashrate – the collective computing power of miners worldwide – dropped off the network. Today, bitcoin draws roughly 70 terawatt hours of energy per year, or 0.33% of the world’s total electricity production. That is almost half of what it was in May and is roughly equivalent to the annual energy draw of countries like Bangladesh and Chile. The exodus from China also means that a lot of older mining equipment that was probably long-past due for retirement will never be turned back on. “It took off, likely forever, a large amount of the most energy inefficient rigs,” explained Alex Brammer of Luxor Mining, a cryptocurrency pool built for advanced miners. Colyer says the overall bitcoin network will now be mostly made up of more efficient rigs that get about double the hashpower for the same amount of electricity. “This continues to significantly improve the security-to-energy ratio of the bitcoin network,” he said. But not all of China’s miners are going dark. Many have begun to patriate elsewhere, gravitating to the world’s cheapest sources of power. “The cool thing about bitcoin that is under appreciated by a lot of the naysayers is that it’s...like a portable market; you can bring it right to the source of energy,” explained Steve Barbour, founder of Upstream Data, a company that manufactures and supplies portable mining solutions for oil and gas facilities. Because miners at scale compete in a low-margin industry, where their only variable cost is typically energy, they are incentivized to migrate to the world’s cheapest sources of power. “They need to constantly reduce their electricity costs, which is their number one expense, in order to be competitive,” said Ria Bhutoria, former director of research for Fidelity Digital Assets. Read more about cryptocurrencies from CNBC Pro Clean energy on the rise in the U.S. The data shows that a whole lot of these miners are headed for cheaper pastures in the U.S. The United States has fast become the new hotspot for the world’s global crypto miners. In the last six months, the country has jumped from fifth to second place and now accounts for nearly 17% of all global bitcoin miners. Although China was still solidly in first place as of April, with 46% share, America’s share of the market is likely a lot higher now since the Chinese government booted miners in May. U.S.-based bitcoin mining operators have seen a huge uptick in business. Whit Gibbs, CEO and founder of Compass, a bitcoin mining service provider, says that retail hardware and hosting sales have increased nearly 300% since mid-June. Stocks that are inflation plays are moving closely with cryptocurrency, Trivariate Research found As Coinbase struggles, you were better off just buying bitcoin, according to one analyst Darin Feinstein, founder of Blockcap and Core S cientific, says he’s seen a rapid rise in mining operations looking to relocate in Nor th America, mostly in the U.S., and Fred Thiel of Marathon Digital, another major player in the U.S. mining industry, tells CNBC that if the roughly 500,000 formerly Chinese miner rigs looking for homes in the U.S. are deployed, this would mean that Nor th America would account for close to 40% of the global hashrate by the end of 2022. Long-term, this is good news for bitcoin’s carbon footprint. Energy consumption is not equivalent to carbon emissions. While it is relatively easy to determine the amount of energy that is consumed by the bitcoin network, it is much harder to determine its carbon footprint. An accurate read of bitcoin’s carbon emissions would require exact knowledge of the energy mix used to generate electricity used by each bitcoin mining operation. One unit of hydropower, for example, does not have the same environmental impact as the equivalent amount of power sourced from coal. And China’s bitcoin mining operations were known for both. But on the whole, the market is pushing North American energy sources to get greener. Each year, investment bank Lazard releases a breakdown of energy costs by source. Its 2020 report shows that many of the most common renewable energy sources are either equal to or less expensive than conventional energy sources like coal and gas. And the cost of renewable power keeps going down. Thiel says that most miners new to North America will be powered by renewables, or gas offset by renewable energy credits. Gibbs estimates that bitcoin mining in the U.S. is more than 50% powered by renewables. Miners migrating to North America are also preparing for a future in which their energy usage is questioned by putative investors -- and possibly regulated. Brammer has been helping Chinese clients find new homes. He says that most are aware of the political and normative winds in Nor th America and want to hedge themselves against regulatory risks in the future by establishing new facilities in primarily renewable-powered locations. “The largest of them are also looking at the potential of going public or are looking for investors to help them grow,” Brammer told CNBC. “They realize that public markets nowadays have no appetite for proof of work mining that is powered by non-renewable [energy sources]. I have yet to even have a discussion about a deal involving coal power, which is hear tening to us.” Bitcoin mining engineer Brandon Arvanaghi tells CNBC that in the long run, the migration to the U.S., where innovation around bitcoin and renewables is already underway, will be an overwhelming positive for bitcoin’s energy mix. Then, there’s Kazakhstan “Places like Texas have cheap electricity, in large part because of subsidies toward wind power,” according to Arvanaghi. Miami Mayor Francis Suarez has also popularized the idea of mining bitcoin with nuclear power in Florida. “And all this is largely voluntary — the federal and state governments haven’t even gotten involved to require any renewable mix,” continued Arvanaghi. Not all miners, however, are headed to renewable destinations. Kazakhstan is now just behind the U.S. in terms of its share of the global bitcoin mining market, with about 8% of all crypto mining. It’s home to coal mines that provide a cheap and abundant supply of energy — but also ample carbon dioxide emissions. However, several mining exper ts tell CNBC they think that Kazakhstan, which neighbors China, is just a temporary stopover on a longer migration west. Brammer sees large miners going there in the short-term with older-generation equipment. “But as older-generation machines reach the end of their service lives, those companies will likely deploy new machines into more stable and energy efficient and renewable jurisdictions,” he said. Also likely to put a damper on Kazakhstan’s popularity is a law newly signed by the president that will introduce extra taxes for crypto miners starting in 2022. “This will significantly change the incentives for people to deploy capital in Kazakhstan,” said Brammer. Planni ng Commi ssi on Meeti ng M INUTES Wednesday, December 15, 2021, 7:00 P M Work Session 6:00P M Council Chambers Conference Room, City Hall, 114 North Broad Street: WORK SE SSI ON 1.C all to Order A work session of the Planning Commission of the City of Salem, Virginia, was held in C ouncil C hambers Conference Room, C ity Hall, 114 North Broad Street, at 6:30 p.m. on December15, 2021; there being present the members of said Commission, to wit: Vicki G. Daulton, Chair; Denise P. King, Vice C hair, Reid A. Garst II, J ackson Beamer, and Neil L. Conner; together with Charles E. Van Allman, J r., Director of C ommunity Development, Mary Ellen Wines, Zoning Administrator, and J im H. Guynn, J r., City Attorney; and the following business was transacted: C hair Daulton called the meeting to order at 6:09 p.m. and reported that this date, place, and time had been set for the Commission to hold a work session. 2.New Business A.Discussion of items on the January 12th agenda 1. C odes changes - Subdivision and site plan 2. Rezoning 630 Union Street - HM to HBD 3. Rezoning 407 East Burwell Street - RB to T BD 4. Special Exception Permit 2936 West Main Street - Massage Parlor C ode C hanges - Subdivision and Site Plan: discussed adding minor site plan and allowing subdivision site plans to be approved administratively. Rezoning 630 Union Street from HM to HBD: discussed multitenant commercial building. Rezoning 407 East Burwell Street from RB to T BD: discussed rezoning to allow for a larger sign. Special Exception Permit for 2936 West Main Street - Massage Parlor: discussed difference between massage therapists and massage parlors. B.Discussion item on the December 15th agenda 1. Use Not Provided For - 1401 Southside Drive - crypto mining Use Not Provided For Permit - request of Sia Asset Management, LLC, applicant, and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For Permit to allow crypto mining at 1401 Southside Drive, Tax Map #165-4-2.1: discussed what crypto mining was and utilities needed; sound nuisances. C .Discussion of proposed bylaws 1. C ontinue the discussion of bylaws Bylaws discussed and Member Garst suggested two changes. 3.Adjournment C hair Daulton inquired if there were any other items for discussion and hearing none, adjourned the work session at 6:57 p.m. RE GU L AR SE S SI ON 1.C all to Order A regular meeting of the Planning C ommission of the C ity of Salem, Virginia, was held after due and proper notice in the C ouncil C hambers, C ity Hall, 114 North Broad Street, Salem, Virginia, at 7:00 p.m., on December 15, 2021. Notice of such hearing was published in the December 2 and 9, 2021, issues of the "Salem Times Register," a newspaper published and having general circulation in the C ity of Salem. All adjacent property owners were notified via the U. S. Postal Service. T he Commission, constituting a legal quorum, presided together with J im H. Guynn, J r., City Attorney; J ames E. Taliaferro, II, C ity Manager and Executive Secretary, ex officio member of said C ommission, to wit; C harles E. Van Allman, J r., Director of C ommunity Development; and Mary Ellen Wines, Zoning Administrator; and the following business was transacted: C hair Daulton called the meeting to order at 7:01 p.m. 2.Pledge of Allegiance 3.C onsent Agenda A.Minutes Consider acceptance of the minutes from the November 10, 2021, work session and regular meeting. 4.New Business A.Use Not P rov ided F or P ermit Hold public hearing and consider request of Sia Asset Management LLC, applicant, and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For Permit to allow crypto mining at 1401 Southside Drive, Tax Map # 165-4-2.1. Hold public hearing and consider request of Sia Asset Management, LLC, applicant, and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For Permit to allow crypto mining at 1401 Southside Drive (Tax Map #165-4-2.1). Staff noted the following: “Cryptocurrencies are not issued or backed by the U.S. government or any other government or central bank. C ryptocurrencies are a form of digital currency used in electronic payment transactions—no coins, paper money or banks are involved; there are zero to minimal transaction fees; transactions are fast and not bound by geography; and, similar to using cash, transactions are anonymous.” “All digital currency transactions are recorded in a virtual public ledger called the “blockchain,” which is maintained by digital currency “miners.” T hese miners can be anyone, anywhere in the world, who is willing to invest in the specialized computer hardware needed to rapidly process complex computations. Miners are awarded digital currency for verifying each transaction and adding it to the blockchain.” T here is a cap on the number of “coins” produced and the time it takes to create each coin increases over time. T his process utilizes multiple computers, processors, and servers which produce a lot of heat, which require a lot of cooling, in which all use an enormous amount of electricity which can increase the carbon emissions. In researching this type of business, as there are none locally, it has become apparent that in addition to the carbon emissions concerns, the noise level of the HVA C systems required to keep these systems cool, can be detrimental to neighboring properties. T he applicant has discussed the electric service with the Building Inspections Division. An 800-to-1000-amp service has been requested. C /Net reported that one bitcoin (a type of cryptocurrency) takes 1,544 kWh to complete. T his is equivalent of approximately 53 days of power for the average US household. T he goal for the applicant is to have 150 Asic Pro A19 computers at completion. T here are few if any jobs created in association with this type of business. A business license will be required, and the city would receive tax on any equipment in addition to the sale of electricity. Edward "Teddy" Dyer, 357 Penguin Lane, property owner, appeared before the C ommission and stated that he also owns the three properties beside 1401 Southside Drive; he stated the crypto mining business would not impact anything as it would all be inside the warehouse and doesn't change anything; the tenant to be has requested that the City of Salem provide additional electrical service to the building; there is no outside impact to the structure or any changes that will need to be done to the structure; the tenant to be informed him that there will be approximately 16 server racks that will be mining; there will be one person on site to manage the facility; the tenant to be has also already spoken to the C ity about adding three-phase power to the back of the building to meet the energy needs; the tenant has committed to a three-year lease with up to a five-year extension; the tenant to be also owns other businesses in the City of Salem; he requested that the C ommission approve the request. Member Garst questioned if 3-phase, 480 is being requested and how much total power would be for the service. Mr. Dyer stated that they are requesting 3-phase, 480; and the tenant expects the electric bill to be somewhere between $16,000 and $20,000 a month. He stated that the tenant to be currently has the business set up somewhere else and that is what they are currently paying a month. T he location where the tenant is currently located does not have as much space; their process has been proven for them. He performed a credit check on the individuals and everything has been good on his part as a land owner. Member C onner questioned if the HVA C system would have to be upgraded for the business. Mr. Dyer stated that it would need to be--adding two 5-ton units has been discussed and they would be ground-mounted units so there wouldn't be any changes to the building. T he proposed units wouldn't have any more noise than a couple of big commercial units. He further stated that the tenant hasn't determined if they will use chilled water or air to cool the facility as it depends on the type of servers available. T here are exhaust fans already in the building to circulate air, which could keep the servers at the correct temperature--it's trial and error to determine what is the best way to keep the servers at the correct temperature. Member Garst noted that the Commission's biggest concern is the noise associated with cooling the facility. Based on research, that has been the biggest complaint regarding this type of business--noise from the HVA C units. Mr. Dyer stated that the building is already an conditioned space. It is 5,000 square feet--2,000 square feet is office space and will remain office space and the servers will be boxed in an approximate 12'x25' area so the entire structure will not be cooled, just that box. T he units the tenant has proposed to place are equivalent to two residential units. T he Commission questioned why no one representing the business was present as they have questions. Mr. Dyer stated that he does not know the answer to that as he was doing his part as the property owner. He further stated that noise-wise he doesn't feel there will be any more noise than anywhere else. If he were to place two A/C units on the structure himself it would be permitted. T he closest residential property is the farm which is 500 yards away. He stated that there would not be anymore noise than a typical A/C unit running in an industrial area. Member Garst noted that it's 1,000 amp, 480-volt. Mr. Dyer stated that it is correct. T he business is power related--the business can do only have so many servers based on power capacity. Southside Drive gives them the opportunity because there are only so many places in the Roanoke Valley that have that type of power that's accessible. T here is already 3-phase power to the building, but it's small 3-phase so they have been in contact with the Electric Department to make this happen. T he infrastructure is already there for the power upgrade. Member C onner questioned if the tenant intends to scale the business. Mr. Dyer stated that if they scale the business, they would have to move as he doesn't feel that anything more than what they propose will fit the building. He feels the proposed business will have the least impact on Southside Drive and if you talk to the other businesses on Southside Drive it will be better than J ES was as J ES took up the whole street and parked wherever illegally--blocked driveways, etc. Member C onner asked how Mr. Dyer's other properties were configured around the proposed business. Mr. Dyer stated that his other properties surround the proposed business--Blue Ridge C ontracting is right beside it, IC EE building is the back corner lot to the back of the lot, his office is in between that and the gas station, and then he is also two down. Deli-Matic is there as well and he has spoken with them and they are fine with the business (they are located two-doors down). Sheldon Henderson owns the building three-doors down and he is ok with the business. T hen Bill J ones' car lot and his new warehouse so there is a good buffer around the proposed business. He has also spoken with Trimble across the street and they are okay with the business as well. T here is also a machine shop across the street as well. Member Garst again noted the concern regarding noise associated with the business. Mr. Dyer stated that the business is in an industrial area and is a good two-tenths of a mile from any residential property and he could go in and install two 5-ton A/C units on the building without any special permission as it currently stands. It was noted that no comments have been received by the Zoning Division regarding the request. Vice C hair King stated that it concerns her that no one from the business is present at the meeting. A discussion was held regarding the electrical upgrade needed for the business, issues with getting supplies/equipment needed for upgrade, etc. Mr. Van Allman noted that a permit to install two 5-ton units on the property would be issued without question. Mr. Dyer further stated that they have done their due-diligence and the Electric Department has agreed that there is enough power to serve the facility and won't blackout any neighborhood or anyone beside it. T he Electric Department has been out two different times as he is going to also need three-phase for a trucking company going in down the street from the facility. Mr. Dyer stated that he is building a 255,000 square-foot server farm for Microsoft in Leesburg, Virginia, and when you talk about noise, that facility is going to generate noise because they are setting 15 pads. T he building is 750-feet long and they are placing a 40-ton unit every 20 feet down the side of the building. T here are nine going in Boykins, Virginia, and six going in Leesburg. T hose facilities cause blackouts. T he proposed facility is equivalent to using a laptop compared to the Microsoft facilities, which are placed beside a transformer. Dominion Power is putting in three different sub-stations to hit that and a server farm. T he machine shops on Southside Drive can pull just as much energy as the proposed facility. Member Garst questioned if Mr. Dyer knew where the current facility is located. Mr. Dyer stated that he does not know. Member Beamer stated that he draws comfort from Mr. Dyer's knowledge, his vested interest, and the fact that his business is located next to the proposed facility. A further discussion was held regarding noise, electrical needs, industrial areas, location, etc. No other person(s) appeared related to the request. Member C onner proposed a motion to approve the request. Member Garst proposed an amendment to the motion that the switch-gear is limited to the proposed 1,000-amp, 480-volt. Member C onner did not feel that the limit on the switch-gear is necessary. Member Beamer seconded the motion. Vice C hair seconded the amended motion. Another discussion was held regarding noise, electricity, etc. Member Garst withdrew his amended motion. Mr. Dyer further explained how the proposed business could not be expanded on the property. A discussion was held regarding placing conditions on the request. A vote was held to approve the request as presented: Member C onner - aye, Member Beamer - aye, Member Garst - nay, Vice C hair King - nay, Chair Daulton - nay. Motion denied. Vice C hair King motioned that the request be approved with the following conditions: the C ity of Salem Electric Department approve the use of electricity, and the tenant comply with the noise ordinance. Denise King motioned Consider request of Sia Asset Management, LLC, applicant, and Helm Building Enterprises, LT D, property owner, for a Use Not Provided For Permit to allow crypto mining at 1401 Southside Drive (Tax Map #165-4-2.1).. Reid Garst seconded the motion. Ayes: Beamer, Conner, Daulton, Garst, King 5.Adjournment Meeting adjourned at 7:54 p.m. Neil C onner motioned adjournment. J ackson Beamer seconded the motion. C ity C ouncil meeting, January 10, 2021, 6:30 p.m. C o mmunity R oom, S alem C ivic C enter, 1001 R oano ke Boulevard Item # 6B Date: 1/10/2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER MEETING DATE: January 10, 2022 AGENDA ITEM: Consider adoption of Resolution 1417 in support of design approval and limited access control changes for the Interstate 81 widening project from Exit 137 to Exit 141. SUBMITTED BY: Will Simpson, City Engineer SUMMARY OF INFORMATION: As part of an effort to alleviate traffic congestion through our area, VDOT is designing and constructing widening of Interstate 81 and limited access control changes. These upgrades will help traffic flow and limit the amount of vehicular crashes that occur in this area. VDOT is asking for local support from the localities that this work will affect. FISCAL IMPACT: There is no fiscal impact to the City of Salem with this resolution. STAFF RECOMMENDATION: Staff recommends that the Council approve this resolution of support. IN THE COUNCIL OF THE CITY OF SALEM, VIRGINIA, JANUARY 10, 2022: RESOLUTION # 1417 A RESOLUTION FOR THE COUNCIL OF THE CITY OF SALEM, VIRGINIA AS A RESOLUTION TO SUPPORT DESIGN APPROVAL AND LIMITED ACCESS CONTROL CHANGES FOR THE INTERSTATE 81 (I-81) WIDENING PROJECT FROM EXIT 137 TO EXIT 141 WHEREAS, I-81 Widening project, as depicted on the plans for project 0081-080-946, P101, RW201, C501 (UPC 116203) in the City of Salem and Roanoke County is classified as a “limited access highway” by the Virginia Department of Transportation; and WHEREAS, in accordance with 24 VAC 30-401-20 limited access control change procedures, it is necessary that a request by resolution or letter of support be received from the locality within which the highway is located where the change in limited access is proposed; and WHEREAS, the limited access control lines along I-81 northbound and southbound from exit 137 to exit 141 will be modified as depicted in the Limited Access Adjustment Exhibits and the Limited Access Adjustment Locations Table (Attached); and WHEREAS, the limited access control changes are necessary for the widening, safety improvements, and maintenance of the interstate, which includes breaks in limited access for entrances to stormwater management facilities (SWM); and WHEREAS, the design concept made available for the virtual Public Hearing represents the major design features along with of the limited access control changes; and WHEREAS, a virtual Design Public Hearing was held on February 9, 2021, and the comment period expired on February 19, 2021; and WHEREAS, VDOT has requested the CITY OF SALEM express its support of the major design features and the limited access control changes made available at the virtual Public Hearing and refined in the exhibits (attached). NOW, THEREFORE, BE IT RESOLVED: THE CITY OF SALEM expresses its support for the major design features and the limited access control changes. Adopted: Upon a call for an aye and a nay vote, the same stood as follows: John E. Saunders – William D. Jones – Byron Randolph Foley – James W. Wallace, III – Renée F. Turk – Passed: Effective: ____ Mayor ATTEST: ____________ H. Robert Light Clerk of Council City of Salem, Virginia Attest: Clerk Mayor In my capacity as the duly appointed Clerk of the City of Salem, I hereby certify that Resolution #1417 which is hereto attached, was adopted at a duly called and constituted meeting of the City of Salem held at Salem City Hall Council Chambers on January 10, 2022. Said meeting was called to order by at with the following members present who remained in attendance throughout and constituted a quorum: The Council of the City of Salem, voted unanimously to adopt attached Resolution # . Given under my hand this day of . Clerk 9019 9020 9021 9022 9023 9024 9025 9026 9027 9028 Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Concrete Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Ditch Conc.C o n c. Ditc h Conc. Ditch Conc. Ditch Co nc. Ditch Conc. Ditch D D Limited Access Exhbit - Sheet 1 Limited Access Exhibit - Sheet 1 UPC 116203 VDOT Project Number 0081-080-946 I-81 Widening MM 136.6 to MM 141.8 0 100'200' SCALE LEGEND: Existing Property Line Existing Right-of-Way Proposed Right-of-Way Existing Limited Access Proposed Limited Access Existing Right-of-Way & Existing Limited Access Existing Right-of-Way & Proposed Limited Access Proposed Right-of-Way & Proposed Limited Access PL Begin L/A Break for SWM Access End L/A Break for SWM Access 5 4 0 + 0 0 5 4 5 + 0 0 5 5 0 + 0 0 5 5 5 + 0 0 1 5 5 + 0 0 1 5 0 + 0 0 1 4 5 + 0 0 1 4 0 + 0 0 N o rthbound I-81 N o rth b o u n d I-8 1 S o u th b o u n d I-8 1 Sou thbound I-81 daoR w eiv ykS daoR wei vykS daoR amruB dao R aks iK tr u o C ere mdo o W Proposed Stormwater Management (SWM) Facility Northbound I-81 146+52.96 170.17 (Right)Begin Limited Access Break for Stormwater Management Facility Access Alignment Station Offset (Feet)Description Northbound I-81 146+93.02 167.09 (Right)End Limited Access Break for Stormwater Management Facility Access Proposed Limited Access Adjustment Locations 14 PT14+61.45 15 16 17 18 19 2 0 2 1 2 2 23 2 4 2 6 2 7 2 8 29 3 0 3 1 PC31+95 .47 32 3 3 PT33+88.63 137 13 8 13 9 140 142 143 144 145 146 147 PT148+59.60 149 150 151 152 153 15 4 155 156 15 7 53 6 5 37 PC537+25.08 538 53 9 540 542 5 43 PT543+83.13 5 44 5 45 546 5 47 549 5 5 0 5 5 1 5 52 553 5 5 4 555 556 557 541 541 141 14 1 25 25 148 148 5 48 5 48 9029 9030 9031 9032 9033 9034 9035 9036 Conc. 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Ditch D D Limited Access Exhbit - Sheet 2 0 100'200' SCALE LEGEND: 5 6 5 + 0 05 6 0 + 0 0 5 7 0 + 0 0 5 7 5 + 0 0 1 7 5 + 0 0 1 8 0 + 0 0 1 7 0 + 0 0 1 6 5 + 0 0 1 6 0 + 0 0 Begin Proposed L/A Adjustment End Proposed L/A Adjustment End Proposed L/A Adjustment Begin Proposed L/A Adjustment Existing Property Line Existing Right-of-Way Proposed Right-of-Way Existing Limited Access Proposed Limited Access Existing Right-of-Way & Existing Limited Access Existing Right-of-Way & Proposed Limited Access Proposed Right-of-Way & Proposed Limited Access Limited Access Exhibit - Sheet 2 UPC 116203 VDOT Project Number 0081-080-946 I-81 Widening MM 136.6 to MM 141.8 PL End L/A Break for SWM Access Begin L/A Break for SWM Access E xi sti ng R/ W & Pr opos ed L/ A R/W & L/A Proposed N o rth b o u n d I-8 1 Northbound I-81 Southbound I-81 S o u th b o u n d I-8 1 daoR weivykS daoR weivykS ev ir D we iv ra tS Proposed Stormwater Management (SWM) Facility Northbound I-81 160+11.32 92.89 (Right) Begin Limited Access Break for Stormwater Management Facility Access Alignment Station Offset (Feet)Description Northbound I-81 160+90.00 103.63 (Right) End Limited Access Break for Stormwater Management Facility AccessNorthbound I-81 161+15.00 107.07 (Right) Northbound I-81 165+10.32 92.13 (Right) Southbound I-81 575+64.17 Southbound I-81 578+50.00 Tie to Existing Limited Access / Begin Limited Access Adjustment Tie to Existing Limited Access / End Limited Access Adjustment Tie to Existing Limited Access / Begin Limited Access Adjustment Tie to Existing Limited Access / End Limited Access Adjustment 91.52 (Left) 91.73 (Left) Proposed Limited Access Adjustment Locations 159 160 161 162 163 164 165 166 167 168 169 170 171 PC171+00.62 172 173 174 175 176 177 178 179 18 0 5 5 9 560 561 562 5 63 5 64 5 65 566 567 568 5 69 PC569+82.67 570 571 572 5 73 5 74 5 75 576 5 77 5 78 5 7 9 9039 9040 9041 9042 9043BAD 9044 9046 9047 Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc . Di t c h Con c. Di t c h Conc. Ditch Conc. Ditch Conc. Ditch Limited Access Exhbit - Sheet 3 1 8 5 + 0 0 1 9 0 + 0 0 1 9 5 + 0 0 2 0 0 + 0 0 6 0 0 + 0 0 5 9 5 + 0 0 5 9 0 + 0 0 5 8 5 + 0 0 Begin Proposed L/A Adjustment Begin Proposed L/A Adjustment End Proposed L/A Adjustment End Proposed L/A Adjustment Limited Access Exhibit - Sheet 3 UPC 116203 VDOT Project Number 0081-080-946 I-81 Widening MM 136.6 to MM 141.8 0 100'200' SCALE LEGEND: Existing Property Line Existing Right-of-Way Proposed Right-of-Way Existing Limited Access Proposed Limited Access Existing Right-of-Way & Existing Limited Access Existing Right-of-Way & Proposed Limited Access Proposed Right-of-Way & Proposed Limited Access PL Proposed R/W & L/A Proposed R/W Proposed R/W Proposed R/W P ro p o sed R/W & L/A Northbound I-81 Northbound I-81 Southbound I-81 Southbound I-81 5 3 6 et u o R eunevA niwdooG Proposed Stormwater Management (SWM) Facility Proposed R/W & L/A Northbound I-81 185+12.31 94.04 (Right) Alignment Station Offset (Feet)Description Northbound I-81 189+57.02 95.43 (Right) Tie to Existing Limited Access / Begin Limited Access Adjustment Tie to Existing Limited Access / End Limited Access Adjustment Southbound I-81 588+24.56 179.69 (Left) Southbound I-81 590+11.57 144.77 (Left) Tie to Existing Limited Access / Begin Limited Access Adjustment Tie to Existing Limited Access / End Limited Access Adjustment Proposed Limited Access Adjustment Locations Prop. R/W & L/A P r o p. L/ A A/L desoporP & W/R gnitsix E Begin Proposed L/A Adjustment L/A Adjustment End Proposed Begin L/A Break for SWM Access End L/A Break for SWM Access Southbound I-81 601+99.74 104.60 (Left)Tie to Existing Limited Access / End Limited Access Adjustment Southbound I-81 598+88.35 104.88 (Left)Tie to Existing Limited Access / Begin Limited Access Adjustment Begin Limited Access Break for Stormwater Management Facility AccessSouthbound I-81 601+26.89 241.67 (Left) End Limited Access Break for Stormwater Management Facility AccessSouthbound I-81 601+44.63 243.72 (Left) 13 14 15 16 17 18 PCC18+34.88 19 20 PCC20+82.12 21 22 2 3 PT23+07.12 2 4 PC24+56.73 2 5 2 6 18 4 18 5 18 6 18 7 18 8 18 9 19 0 19 1 19 2 19 3 PT193+20.97 19 4 19 6 19 7 19 8 19 9 2 0 0 PI 200+00.06 2 0 1 2 0 2 2 0 3 2 0 4 PI 204+00.08 2 0 5 5 8 4 5 8 5 5 8 6 5 8 7 5 8 8 5 8 9 5 9 0 5 9 1 5 9 2 5 9 3 PT593+17.65 5 9 4 5 9 6 5 9 7 5 9 8 5 9 9 6 0 0 6 0 1 6 0 2 6 0 3 6 0 4 19 5 19 5 5 9 5 5 9 5 19 ?? ? 9053BAD 9055 9056 9057 9058 9059 Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Con c. Dit c h Conc. Ditch Conc. Ditch Rip Rap Buried/BrokenConc. Ditch Co n c. Dit c h Limited Access Exhbit - Sheet 4 6 2 0 + 0 0 6 2 5 + 0 0 6 3 0 + 0 0 6 3 5 + 0 0 2 3 5 + 0 0 2 3 0 + 0 0 2 2 5 + 0 0 2 2 0 + 0 02 1 6 + 0 0 6 1 6 + 0 0 Begin Proposed L/A Adjustment End Proposed L/A Adjustment Limited Access Exhibit - Sheet 4 UPC 116203 VDOT Project Number 0081-080-946 I-81 Widening MM 136.6 to MM 141.8 0 100'200' SCALE LEGEND: Existing Property Line Existing Right-of-Way Proposed Right-of-Way Existing Limited Access Proposed Limited Access Existing Right-of-Way & Existing Limited Access Existing Right-of-Way & Proposed Limited Access Proposed Right-of-Way & Proposed Limited Access PL Proposed R/W & L/A Proposed R/W & L/A Northbound I-81 Northbound I-81 Southbound I-81 Southbound I-81 Waldheim Road W ild w o o d R o a d Stonegate Drive Proposed Stormwater Management (SWM) Facility Southbound I-81 620+74.49 244.10 (Left) Alignment Station Offset (Feet)Description Southbound I-81 631+01.56 100.55 (Left) Tie to Existing Limited Access / Begin Limited Access Adjustment Tie to Existing Limited Access / End Limited Access Adjustment Proposed Limited Access Adjustment Locations PT12+47.98 13 PC13+85.45 14 15 PCC15+51.26 16 17 PCC17+77.76 18 19 PT19+93.04 20 21 POT21+79.27 2 16 2 17 2 18 2 2 0 2 2 1 2 2 2 2 2 3 2 2 4 2 2 5 2 2 6 2 2 7 2 2 8 2 2 9 2 3 0 2 3 1 2 3 3 2 3 4 2 3 5 2 3 6 PI 614+89.34 6 15 6 16 6 17 6 18 6 2 0 6 2 1 6 2 2 6 2 3 6 2 4 6 2 5 6 2 6 6 2 7 6 2 8 6 2 9 6 3 0 6 3 1 6 3 3 6 3 4 6 3 5 6 3 6 2 19 2 19 6 19 6 19 2 3 2 2 3 2 6 3 2 6 3 2 9070 9071 9072 9073 9074 9075 9076 Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch D Limited Access Exhbit - Sheet 5 6 6 5 + 0 0 6 7 0 + 0 0 6 7 5 + 0 0 6 8 0 + 0 0 2 8 0 + 0 0 2 7 5 + 0 0 2 7 0 + 0 0 2 6 5 + 0 0 Begin Proposed L/A Adjustment Begin Proposed L/A Adjustment End Proposed L/A Adjustment End Proposed L/A Adjustment Limited Access Exhibit - Sheet 5 UPC 116203 VDOT Project Number 0081-080-946 I-81 Widening MM 136.6 to MM 141.8 0 100'200' SCALE LEGEND: Existing Property Line Existing Right-of-Way Proposed Right-of-Way Existing Limited Access Proposed Limited Access Existing Right-of-Way & Existing Limited Access Existing Right-of-Way & Proposed Limited Access Proposed Right-of-Way & Proposed Limited Access PL M a t c h L in e - S e e S h e e t 6 Pr opos ed R/ W & L/ A Proposed R /W & L /A Northbound I-81 Northbound I-81 Southbound I-81Southbound I-81 Walde n Circle Edgeb rook Road Proposed Stormwater Management (SWM) Facility Southbound I-81 663+64.85 190.30 (Left) Alignment Station Offset (Feet)Description Southbound I-81 668+03.99 93.30 (Left) Tie to Existing Limited Access / Begin Limited Access Adjustment Tie to Existing Limited Access / End Limited Access Adjustment Southbound I-81 674+89.82 200.47 (Left) Southbound I-81 679+70.94 Tie to Existing Limited Access / Begin Limited Access Adjustment Tie to Existing Limited Access / End Limited Access Adjustment151.83 (Left) Proposed Limited Access Adjustment Locations PC10+00.00 10 11 12 13 PT13+96.38 14 15 16 PC16+23.30 17 18 19 PT19+40.52 PT11+87.42 12 PC12+35.25 13 14 15PT15+56.58 2 6 3 2 6 4 2 65 2 6 6 PT266+83.40 2 6 7 2 68 2 6 9 2 7 0 2 72 2 73 2 74 2 7 5 2 76 2 77 2 78 2 79 2 8 0 2 8 1 2 8 2 2 8 3 PT661+45.90 6 6 2 6 6 3 6 64 6 6 5 6 6 6 6 6 7 6 6 8 6 6 9 6 7 0 6 72 6 73 6 74 6 7 5 6 76 6 77 6 78 6 7 9 6 8 0 6 8 1 68 2 2 7 1 2 7 1 6 7 1 6 7 1 ? ? ? ? 9077 9078 9081 9082 9083 9084 9085 9086 Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch C onc. D itch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Not F ound Conc. Ditch End Of Ditch Conc. Conc. DitchConc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch D D D D D D Limited Access Exhbit - Sheet 6 7 0 0 + 0 0 3 0 5 + 0 0 3 0 0 + 0 0 Limited Access Exhibit - Sheet 5 UPC 116203 VDOT Project Number 0081-080-946 I-81 Widening MM 136.6 to MM 141.8 Limited Access Exhibit - Sheet 6 UPC 116203 VDOT Project Number 0081-080-946 I-81 Widening MM 136.6 to MM 141.8 0 100'200' SCALE LEGEND: Existing Property Line Existing Right-of-Way Proposed Right-of-Way Existing Limited Access Proposed Limited Access Existing Right-of-Way & Existing Limited Access Existing Right-of-Way & Proposed Limited Access Proposed Right-of-Way & Proposed Limited Access PL M a t c h Lin e - S e e S h e e t 5 M a t c h L in e - S e e S h e e t 7 Begin Proposed L/A Adjustment 2 8 5 + 0 0 2 9 0 + 0 0 2 9 5 + 0 0 6 9 5 + 0 0 6 9 0 + 0 0 6 8 5 + 0 0 Northbound I-81 Northbound I-81 Southbound I-81Southbound I-81 Edgebrook Road Ro ute 311 Th o m p s o n M e m o ria l D rive Penguin Lane Freedman Lane Polar Lane Proposed L/A Proposed L/A Proposed Stormwater Management (SWM) Facility Southbound I-81 687+09.74 Alignment Station Offset (Feet)Description 93.79 (Left)Tie to Existing Limited Access / Begin Limited Access Adjustment Proposed Limited Access Adjustment Locations 12 13 14 PT14+89.53 15 16 PC16+74.54 17 18 19 20 PT20+94.01 PC10+00.00 10 11 12 13 PT13+84.22 PT19+40.52 2 0 2 1 2 2 POT22+79.25 POT10+00.00 10 11 12 PC12+63.56 13 14 15 PT15+59.95 16 PC16+62.11 17 18 19 2 0 2 1 PT21+33.53 PC10+00.00 10 11 2 8 5 2 8 6 2 8 7 2 8 8 2 8 9 2 9 0 2 9 1 2 9 2 2 9 3 2 9 4 2 9 5 2 96 2 97 2 9 8 2 9 9 PC299+74.70 3 0 0 3 0 1 3 0 2 3 0 3 3 0 4 6 8 3 68 5 6 8 6 6 8 7 6 8 8 6 8 9 6 9 0 6 9 1 69 2 6 9 3 69 4 6 9 5 6 96 6 97 6 9 8 6 9 9 70 0 PC700+30.43 7 0 1 7 0 2 70 3 2 8 4 2 8 4 6 8 4 6 8 4 17 11 2 0 ? 9087 9088 9089 9090 9091 9092 Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Conc. Ditch Buried 7 0 5 + 0 0 7 1 0 + 0 0 7 1 5 + 0 0 3 1 5 + 0 0 3 1 0 + 0 0 3 0 5 + 0 0 Begin Proposed L/A Adjustment End Proposed L/A Adjustment 7 2 0 + 0 0 7 2 5 + 0 0 3 2 5 + 0 03 2 0 + 0 0 Begin Proposed L/A Adjustment Limited Access Exhbit - Sheet 7 Limited Access Exhibit - Sheet 7 UPC 116203 VDOT Project Number 0081-080-946 I-81 Widening MM 136.6 to MM 141.8 0 100'200' SCALE LEGEND: Existing Property Line Existing Right-of-Way Proposed Right-of-Way Existing Limited Access Proposed Limited Access Existing Right-of-Way & Existing Limited Access Existing Right-of-Way & Proposed Limited Access Proposed Right-of-Way & Proposed Limited Access PL M a tc h L in e - S e e S h e e t 6 M a tc h L in e - S e e S h e e t 8 Proposed R/ W & L/ A R /W & L /A Proposed Northbound I-81 N ort hbound I- 81 S o ut hb o u n d I-8 1 Southbound I-81 P o la r L an e lia rT nr ehtroN End Proposed L/A Adjustment Proposed L/A Proposed Stormwater Management (SWM) Facility Southbound I-81 703+95.31 163.74 (Left) Alignment Station Offset (Feet)Description Southbound I-81 706+98.73 119.99 (Left)Tie to Existing Limited Access / Begin Limited Access Adjustment Tie to Existing Limited Access / End Limited Access Adjustment Southbound I-81 711+23.25 112.72 (Left) Southbound I-81 722+89.82 Tie to Existing Limited Access / Begin Limited Access Adjustment Tie to Existing Limited Access / End Limited Access Adjustment 95.93 (Left) Proposed Limited Access Adjustment Locations 3 0 5 3 06 3 0 7 3 08 3 0 9 3 10 3 11 3 12 3 13 3 14 3 15 316 3 17 319 3 20 3 21 3 2 2 32 3 324 325 70 4 7 0 5 70 6 707 708 70 9 710 711 712 713 714 715 716 717 719 720 72 1 722 723 724 PT724+33.59 72 5 3 18 3 18 718 718 ? ? 9093 9094 9095BAD 9096BAD Rip Rap Rip Rap Rip RapRip Rap Rip Rap Rip Rap Protection Rip Rap S lope P r otection Rip Rap Slope P rotection R ip Rap Slope Protection Rip Rap S lope D 7 2 5 + 0 0 7 3 0 + 0 0 7 3 5 + 0 0 3 3 5 + 0 0 3 3 0 + 0 0 End Proposed L/A Adjustment Limited Access Exhbit - Sheet 8 Limited Access Exhibit - Sheet 8 UPC 116203 VDOT Project Number 0081-080-946 I-81 Widening MM 136.6 to MM 141.8 0 100'200' SCALE LEGEND: Existing Property Line Existing Right-of-Way Proposed Right-of-Way Existing Limited Access Proposed Limited Access Existing Right-of-Way & Existing Limited Access Existing Right-of-Way & Proposed Limited Access Proposed Right-of-Way & Proposed Limited Access PL M a tc h L in e - S e e S h e e t 7 P ro p o sed R /W & L /A Pr opos e d R/ W & L/ A 3 4 0 + 0 0 3 4 5 + 0 0 7 4 5 + 0 0 7 4 0 + 0 0 N o rth b o u n d I-8 1 Northbound I-81 Southbound I-81S o u th b o u n d I-8 1 d a o R lli M r el s s e K d a o R lli M r e l s s e K Proposed Stormwater Management (SWM) Facility Existing L/A Southbound I-81 729+92.63 124.73 (Left) Alignment Station Offset (Feet)Description Tie to Existing Limited Access / End Limited Access Adjustment Proposed Limited Access Adjustment Locations 3 2 6 327 PR C327+26.14 328 329 3 3 0 3 3 2 3 3 3 3 3 4 3 3 6 3 3 7 3 3 8 3 3 9 PCC339+44.02 3 4 0 3 4 1 3 4 2 3 4 3 3 4 4 3 4 5 3 4 6 3 4 7 725 726 72 7 728 PC728+43.58 729 73 0 73 2 73 3 73 4 7 3 6 7 3 7 73 8 73 9 7 4 0 7 4 1 7 4 2 PCC742+31.97 7 4 3 7 4 4 7 4 5 7 4 6 3 3 1 33 1 731 731 3 3 5 3 3 5 73 5 73 5 Alignment Station Offset (feet) Sheet Displayed Description Northbound I-81 146+52.96 170.17 (Right) 1 Begin Limited Access Break for Stormwater Management Facility Access Northbound I-81 146+93.02 167.09 (Right) 1 End Limited Access Break for Stormwater Management Facility Access Northbound I-81 160+11.32 92.89 (Right) 2 Tie to Existing Limited Access / Begin Limited Access Adjustment Northbound I-81 160+90.00 103.63 (Right) 2 Begin Limited Access Break for Stormwater Management Facility Access Northbound I-81 161+15.00 107.07 (Right) 2 End Limited Access Break for Stormwater Management Facility Access Northbound I-81 165+10.32 92.13 (Right) 2 Tie to Existing Limited Access / End Limited Access Adjustment Southbound I-81 575+64.17 91.52 (Left) 2 Tie to Existing Limited Access / Begin Limited Access Adjustment Southbound I-81 578+50.00 91.73 (Left) 2 Tie to Existing Limited Access / End Limited Access Adjustment Northbound I-81 185+12.31 94.04 (Right) 3 Tie to Existing Limited Access / Begin Limited Access Adjustment Northbound I-81 189+57.02 95.43 (Right) 3 Tie to Existing Limited Access / End Limited Access Adjustment Southbound I-81 588+24.56 179.69 (Left) 3 Tie to Existing Limited Access / Begin Limited Access Adjustment Southbound I-81 590+11.57 144.77 (Left) 3 Tie to Existing Limited Access / End Limited Access Adjustment Southbound I-81 598+88.35 104.88 (Left) 3 Tie to Existing Limited Access / Begin Limited Access Adjustment Southbound I-81 601+26.89 241.67 (Left) 3 Begin Limited Access Break for Stormwater Management Facility Access Southbound I-81 601+44.63 243.72 (Left) 3 End Limited Access Break for Stormwater Management Facility Access Southbound I-81 601+99.74 104.60 (Left) 3 Tie to Existing Limited Access / End Limited Access Adjustment Southbound I-81 620+74.49 244.10 (Left) 4 Tie to Existing Limited Access / Begin Limited Access Adjustment Southbound I-81 631+01.56 100.55 (Left) 4 Tie to Existing Limited Access / End Limited Access Adjustment Southbound I-81 663+64.85 190.30 (Left) 5 Tie to Existing Limited Access / Begin Limited Access Adjustment Southbound I-81 668+03.99 93.30 (Left) 5 Tie to Existing Limited Access / End Limited Access Adjustment Southbound I-81 674+89.82 200.47 (Left) 5 Tie to Existing Limited Access / Begin Limited Access Adjustment Southbound I-81 679+70.94 151.83 (Left) 5 Tie to Existing Limited Access / End Limited Access Adjustment Southbound I-81 687+09.74 93.79 (Left) 6 Tie to Existing Limited Access / Begin Limited Access Adjustment Southbound I-81 703+95.31 163.74 (Left) 7 Tie to Existing Limited Access / End Limited Access Adjustment Southbound I-81 706+98.73 119.99 (Left) 7 Tie to Existing Limited Access / Begin Limited Access Adjustment Southbound I-81 711+23.25 112.72 (Left) 7 Tie to Existing Limited Access / End Limited Access Adjustment Southbound I-81 722+89.82 95.93 (Left) 7 Tie to Existing Limited Access / Begin Limited Access Adjustment Southbound I-81 729+92.63 124.73 (Left) 8 Tie to Existing Limited Access / End Limited Access Adjustment Proposed Limited Access Adjustment Locations Item # 6C Date: 1/10/2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER MEETING DATE: January 10, 2022 AGENDA ITEM: Consider a request authorizing the City Manager to finalize and execute a Performance Agreement between Layman Candy Company, LLC and Layman Real Estate Holdings, LLC, the City of Salem, and the Economic Development Authority of the City of Salem. SUBMITTED BY: Jay Taliaferro, City Manager SUMMARY OF INFORMATION: Layman Candy Company, Inc. has experienced significant growth and intends to relocate its headquarters and primary distribution center to 2159 Apperson Drive in the City of Salem. This project will include a significant capital investment in this site by the company that will generate additional tax revenue for the City. Additionally, the company intends to create and maintain a significant number of new jobs. The proposed performance agreement establishes targets related to sales growth, new jobs, minimum capital investments, timing for investment, and length of occupancy. The City will provide the Economic Development Authority (EDA) of the City of Salem up to a total of $250,000 to be paid as a local grant by the EDA in five consecutive annual lump sum payments of $50,000 each to the company as an inducement to achieve and maintain the targets. The company shall forfeit the local grant for any year in which it fails to achieve and/or maintain any target under the agreement. At their regular October 11, 2021 meeting, the EDA authorized the EDA Chair to execute the agreement contingent upon approval by Council. STAFF RECOMMENDATION: Staff recommends approval. {00444486.DOCX } 1 LOCAL ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT This Performance Agreement (“Agreement”) is made and entered into as of December 22, 2021, by, between, and among the City of Salem, Virginia, a municipal corporation of the Commonwealth of Virginia (the “City”), the Economic Development Authority of the City of Salem, Virginia, a political subdivision of the Commonwealth of Virginia created under the Industrial Development and Revenue Bond Act (the “Authority”), and Layman Candy Company, Inc., and Layman Real Estate Holdings, LLC (collectively, the “Company”). Collectively, the City, Authority, and Company may be referred to herein as the “Parties.” RECITALS: WHEREAS, the Company intends to relocate its headquarters and primary distribution center to 2159 Apperson Drive, Salem, Virginia 24153 (the “Site”), and carry out certain capital improvements and add jobs at the Site (the “Project”); and WHEREAS, in performing the Project, the Company will make a significant Capital Investment, as hereinafter defined, in the Site that will generate additional tax revenue for the City; and WHEREAS, in performing the Project, the Company will create and maintain a significant number of New Jobs, as hereinafter defined, in the City; and WHEREAS, the City and the Authority recognize that the Company’s investment in improvements and jobs will promote continued production of quality products and continue to act as a catalyst for additional economic development activity within the City and provide additional tax revenue, employment opportunities, and contribute to the vitality of the area, and that this is the animating purpose for the City’s and the Authority’s entry into this Agreement; and WHEREAS, the City is willing to provide funds to the Authority for the Authority to provide annual incentive grants to the Company for the purpose of inducing the Company to perform the aforementioned Project, thereby directly and indirectly making a significant Capital Investment in the City, creating and maintaining a significant number of New Jobs in the City, and generating additional tax revenue in the City. WITNESSETH: NOW THEREFORE, in consideration of the foregoing premises, the mutual benefits, promises, and undertakings of the Parties to this Agreement as set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties covenant and agree as follows: I. Definitions. For the purposes of this Agreement, the following terms shall have the following meanings, unless the context or manifest purpose of this Agreement indicate otherwise: {00444486.DOCX } 2 Capital Investment means a new capital expenditure by the Company, directly or indirectly, in an amount not less than $2,000,000 for the Project. Capital Investment shall be conclusively presumed to be the sum of (1) all “hard costs” reported on building permits at the Site, and (2) all new taxable personal property or machinery and tools reported at the Site; provided, however, “Capital Investment” shall not include either: (i) the cost of acquiring the Site or (ii) the value of a new 10,000 square foot freezer that the Company shall install at the Site, regardless of its reporting status. Commencement Date means the date on which the Site is open for business. The date on which the Site is open for business shall be conclusively presumed to be the date reported to the City Commissioner of the Revenue as the effective date of the Site’s business license. Headquarters means the Company’s Principal Office, as reported to the Virginia State Corporation Commission in the Company’s annual report to the Commission. Local Grant means a total of $250,000 in incentive grants to be paid in five consecutive annual lump sum payments of $50,000 each to the Company by the Authority as an inducement to the Company to achieve and maintain the Targets. The Local Grant shall, at all times, be subject to the Company’s performance of its obligations under this Agreement. New Job means new permanent full-time employment of an indefinite duration at the Site for which the Company provides standard fringe benefits and for which the Company pays an average annual wage of at least $11.40 per hour for jobs created before December 31, 2021; of at least $13.20 per hour for jobs created between January 1, 2022, and December 31, 2022; of at least $14.40 per hour for jobs created between January 1, 2023, and December 31, 2023; and of at least $16.20 per hour for jobs created between January 1, 2024, and December 31, 2024. Each New Job must require a minimum of either (i) 35 hours per week of an employee’s time for the entire normal year of the Company’s operations, which “normal year” must consist of at least 48 weeks, or (ii) 1,680 hours per year. Seasonal or temporary positions with construction contractors, vendors, suppliers, and similar multiplier or spin-off jobs shall not qualify as New Jobs. Performance Date means a day five years after the Commencement Date. Sales means gross sales from a situs within the City as reported on the Company’s annual business license tax return. II. Targets. The Company must meet the following targets during each successive 12-month period following the Commencement Date until the Performance Date: A. The Company must have not less than 10% year-over-year growth in Sales. B. The Company must add 10 New Jobs each year after the Commencement Date and, thereafter, shall maintain all New Jobs that have been created. For clarity, the Company shall add 10 New Jobs by the first anniversary of the Commencement Date, an additional 10 New Jobs by the second anniversary of the Commencement Date, and so on until it has added a minimum of 50 New Jobs by the Performance Date. The Company shall maintain all the foregoing New Jobs through the Performance Date. {00444486.DOCX } 3 C. The Site must remain the Company’s Headquarters from the Commencement Date through the Performance Date. D. The Company must make the Capital Investment not later than 12 months after the Commencement Date. E. Not later than 12 months following the Commencement Date, the Company must install a 10,000 square foot freezer at the Site, which freezer shall have a value of not less than $1.3 million. III. Local Grant. The Authority and the City will verify that the Company has met the Targets annually as of the anniversary of the Commencement Date. The Authority and the City will endeavor to verify all information within 30 days following each anniversary of the Commencement Date. If the Company meets all Targets, the Authority will so notify the City. If the Company has annually achieved and maintained the Targets as required herein, the City will pay to the Authority an amount not less than $50,000 for the Local Grant. Upon receipt of such funds from the City, the Authority will pay the Local Grant to the Company. If the Company meets the annual requirements, the Company will receive the Local Grant. The Company shall forfeit the Local Grant for any year in which it fails to achieve and/or maintain any Target under this Agreement. IV. Reporting. The Company shall annually provide, at the Company’s expense, detailed verification reasonably satisfactory to the City and the Authority of the Company’s progress on the Targets. For the purposes of verifying the accuracy of reports, and for no other purpose, the Company hereby waives its protections under Section 58.1-3 of the Code of Virginia, 1950, as amended, and authorizes the Commissioner of the Revenue for the City of Salem, Virginia, to provide verification to the City and the Authority from her records; provided, however, that such disclosure shall not waive the protections of § 58.1-3 as to any other person, nor authorize the City or the Authority to disclose such information to any other person. The Company is solely responsible for obtaining and providing detailed verification reasonably satisfactory to the City and the Authority of all Capital Investments and New Jobs. V. Notices. Any notices required or permitted to be given under this Agreement shall be given in writing, and shall be deemed to be received upon receipt or refusal after mailing of same in the United States by First-Class U.S. Mail, certified, postage prepaid, or by customary commercial overnight courier (refusal shall mean return of certified mail or overnight courier package not accepted by addressee): If to Company, to: Layman Candy Co. 1630 W Main Street Salem, Virginia, 24153 With a copy to: Gentry Locke 10 Franklin Road, Suite 900 Roanoke, Virginia 24011 {00444486.DOCX } 4 Attn: President Attn: Jon Puvak, Esq. If to the Authority, to: Economic Development Authority of the City of Salem, Virginia City Hall, 114 North Broad Street Salem, Virginia 24153 Attn: Chair With a copy to: Guynn, Waddell, Carroll & Lockaby, P.C. 415 South College Avenue Salem, Virginia 24153 Attn: Authority Counsel If to the City, to: City of Salem, Virginia City Hall, 114 North Broad Street Salem, Virginia 24153 Attn: City Manager With a copy to: Guynn, Waddell, Carroll & Lockaby, P.C. 415 South College Avenue Salem, Virginia 24153 Attn: City Attorney The addresses set forth in this section only may be amended by sending written notice to all other parties of a change of address, without need of signed amendment to this Agreement. VII. Miscellaneous. Indemnity. The Company agrees to indemnify, defend, and hold the Authority, the City, and their officers, directors, and employees, free and harmless for and from any and all third party claims, causes of action, damages, or any liability of any type, including reasonable attorneys ’ fees, on account of any claims by or any injury or damage to any persons or property growing out of or directly or indirectly resulting or arising in any way out of an y negligent actions, omissions, or activities of the Company or its agents, employees or representatives arising out of or connected in any way to any of the matters involved in this Agreement or its performance. Integration. This Agreement, including the documents referenced herein, constitutes the full and complete understanding of the Parties respecting its subject matter, and any prior or contemporaneous agreements or understandings, written or oral, are hereby merged into and superseded by the provisions of this Agreement. This Agreement may only be amended or supplemented by a subsequent writing of equal dignity except where expressly set forth herein. This Agreement may not be assigned by a Party without the prior written consent of the other Parties. No covenants of officials. No covenant, agreement or obligation contained in this Agreement shall be deemed to be a covenant, agreement or obligation of any present or future director, officer, employee or agent of the Authority or the City in his or her individual capacity, and neither City officials nor the directors of the Authority nor any officer, employee or agent thereof executing this Agreement or any related instrument shall be liable personally on this Agreement or such instrument or be subject to any personal liability or accountability by reason of the execution and delivery thereof. No director, officer, employee or agent of the Authority or the City shall incur any personal liability with respect to any other action taken by him or her pursuant to this Agreement or the Industrial Development and Revenue Bond Act or any of the transactions contemplated hereby or thereby, provided he acts in good faith. {00444486.DOCX } 5 Not a pledge of full faith and credit. Any obligation of the City to pay, set aside, or otherwise appropriate funds for performance of this Agreement shall be construed to be subject to appropriation, and shall not be construed to be in derogation of Article VII § 10 of the Virginia Constitution. THE OBLIGATIONS OF THE AUTHORITY UNDER THIS AGREEMENT ARE NOT GENERAL OBLIGATIONS OF THE AUTHORITY BUT ARE LIMITED OBLIGATIONS PAYABLE SOLELY FROM THE REVENUES AND RECEIPTS DERIVED BY THE AUTHORITY FROM THE CITY PURSUANT TO THIS AGREEMENT. THE OBLIGATIONS OF THE AUTHORITY AND THE CITY HEREUNDER SHALL NOT BE DEEMED TO CONSTITUTE A DEBT OR A PLEDGE OF THE FAITH AND CREDIT OF THE COMMONWEALTH OF VIRGINIA OR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE AUTHORITY AND THE CITY. Rule of construction for dates. If any action is required to be performed, or if any notice, consent or other communication is given, on a day that is a Saturday or Sunday or a legal holiday in the Commonwealth of Virginia, such performance shall be deemed to be required, and such notice, consent or other communication shall be deemed to be given, on the first business day following such Saturday, Sunday or legal holiday. Unless otherwise specified herein, all references in this Agreement to a “day” or “days” shall refer to calendar days and not business days. Choice of Law; Forum Selection. This Agreement shall be construed according to the laws of the Commonwealth of Virginia without regard to its principles of conflicts of laws. The Parties consent to exclusive venue and jurisdiction in any state court of competent jurisdiction in the City of Salem, Virginia or the United States District Court for the Western District of Virginia, Roanoke Division. Attorneys’ fees. The Parties agree that, except as specifically provided in this Agreement, if any Party pursues legal action to enforce the terms of this Agreement, the American Rule shall apply and each Party shall bear its own attorneys’ fees and expert costs and no fee shifting shall occur. Drafter & Severability. This Agreement has been jointly drafted by the Parties, and is to be construed as jointly drafted and not be construed against any of the Parties as the drafter. This Agreement is severable, and if any provision is found to be invalid by any court of competent jurisdiction, the remainder shall survive. The section and paragraph headings in this Agreement are for convenience of reference only and do not modify or restrict any provisions hereof and shall not be used to construe any provisions of this Agreement. Covenant of Authority. All Parties warrant that the signatories below have full authority, and have undertaken such legal actions as may be necessary to ensure such authority, to bind the entities of which they are representatives to the full extent permitted by law. Company agrees that, during the term of this Agreement, it shall not allow its existence to lapse or its authorization to transact business in the Commonwealth of Virginia to be revoked or cancelled at any time. Time of the Essence. Time is of the essence of all obligations set forth herein for which a time is stated. Waiver. The failure of any Party to this Agreement to insist upon strict compliance with any term herein shall not be construed to be a waiver of that requirement. {00444486.DOCX } 6 No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies upon any person, other than the Parties hereto and, subject to the restrictions on assignment herein contained, their respective successors and assigns. Assignment of Agreement. Any obligation under this Agreement may be assigned to a third party with the prior written consent of all Parties and upon such terms as may be set forth in such consents. Any such assignment, however, shall not relieve the Company from any of its obligations under this Agreement. Counterparts. This Agreement may be executed by facsimile, electronic, or original signature of the parties and in counterparts which, assuming no modification or alteration, shall constitute an original and when taken together, shall constitute one and the same instrument. IN WITNESS WHEREOF, see the following signatures, of even date herewith: Signatures on following pages {00444486.DOCX } 7 City of Salem, Virginia: By: Name: Its: Date: Approved as to legal form: Jim H. Guynn, Jr., City Attorney Signatures continue on next page {00444486.DOCX } 8 Economic Development Authority of the City of Salem, Virginia: By: Name: Its: Date: Approved as to legal form: Jim H. Guynn, Jr., City Attorney Signatures continue on next page {00444486.DOCX } 9 Layman Candy Company, Inc. By: Name: Its: Date: Layman Real Estate Holdings, LLC By: Name: Its: Date: Item # 6D Date: 1/10/2022 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT SALEM CIVIC CENTER MEETING DATE: January 10, 2022 AGENDA ITEM: Consider setting bond for physical improvements and erosion and sediment control for Simms Farm Section 2. SUBMITTED BY: Chuck Van Allman, Director of Community Development SUMMARY OF INFORMATION: The City Engineer’s office has reviewed the estimate for physical improvements and erosion and sediment control Simms Farm Section 2. STAFF RECOMMENDATION: It is recommended that the project be bonded in the amount of $189,184.00 for a time frame for completion set at twelve (12) months. Item #6E Date: 1/10/2022