On the agenda: Danville City Council Work Session — data center (Oct 20)

CITY COUNCIL WORK SESSION AGENDA
4TH FLOOR CONFERENCE ROOM
October 20, 2026
8:00 PM
A. CALL TO ORDER
B. MEETING MINUTES
1.

Consideration of Approval of Minutes from Regular Work Session held on August 18,
2026.

C. WORK SESSION ITEMS
1.

Employee Retirement System - Impact of Adding COLAs

2.

Review changes established by the 2026 Special Session Budget Bill (HB 30) related to
cannabis and tobacco retail.

D. PROGRAM UPDATE
E. ECONOMIC DEVELOPMENT UPDATE
F. COMMUNICATIONS
A. City Manager
B. Deputy City Manager
C. Assistant City Manager Adkins
D. Assistant City Manager Evans
E. City Attorney

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F. City Clerk
G. Roll Call
G. CLOSED MEETING
As Permitted by Subsection (A)(3) of Section 2.2-3711 of the Code of Virginia, 1950, as
amended for discussion or consideration of the acquisition of real property or of the
disposition of publicly held real property; and
As Permitted by Subsection (A)(5) of Section 2.2-3711 of the Code of Virginia, 1950, as
amended for discussion concerning a prospective business or industry related to economic
development.
A. Motion to Convene in Closed Meeting
B. Motion to Reconvene in Open Meeting
C. Motion to Certify Closed Meeting
H. ADJOURN

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Council Letter
City of Danville, Virginia

CL - 3007

MEETING MINUTES

1.

City Council Work Session
Meeting Date: October 20, 2026
Subject:

Approval of Meeting Minutes.

From:

Susan DeMasi, City Clerk

COUNCIL ACTION
Consideration of Approval of Minutes from Regular Work Session held on August 18, 2026.

Attachments
1.

Meeting Minutes

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August 18, 2026
A Regular Work Session of the Danville City Council convened on August 18, 2026, at 7:41 p.m.
in the City Council Conference Room located on the Fourth Floor of the Municipal Building, 427
Patton Street, Danville, Virginia. The following Council Members were present: Vice Mayor
James B. Buckner, L.G. “Larry” Campbell Jr., Bryant Hood, Mayor Alonzo L. Jones, Daniel W.
Marshall, Barry Mayo, Dr. Gary P. Miller, and J. Lee Vogler, Jr. (8). Sherman M. Saunders was
absent (1).
Staff Members present were: City Manager Ken F. Larking, Deputy City Manager Earl B.
Reynolds Jr., Assistant City Manager/CFO Michael L. Adkins, Assistant City Manager Briana
Evans, City Attorney W. Clarke Whitfield, Jr., and City Clerk Susan M. DeMasi.
Mayor Jones presided
WORK SESSION ITEMS
Meeting Minutes
Upon Motion by Vice Mayor Buckner and second by Council Member Vogler, Minutes of the
Regular Work Session held on May 19, 2026, were approved as presented. Draft copies were
distributed to Council Members prior to the Meeting.
WORK SESSION ITEMS
Consideration of the Vacation of Unimproved Right of Way on Old Farm Road and Starling
Lane.
Council had no objection to this item, and agreed to put it on an upcoming agenda.
Consideration of the Vacation of Right of Way on Virginia Avenue.
Council had no objection to this item and agreed to put it on an upcoming agenda.
Consideration of the Vacation of Unimproved Right of Way on Cardinal Drive and Oriole
Drive, and Vacate a Drainage Easement.
Council had no objection to this item and agreed to put it on an upcoming agenda.
Major Projects and Space Needs Assessment Update
City Manager Ken Larking noted the City has some space needs; some have been addressed
and some they know need to be addressed. Staff felt it would be good to have Council understand
the context of the major capital expenditures, and they have included a number of other projects
that have been discussed and considered, and were in some stage for consideration. This was
not an all-inclusive list, there may be others, but these were the items staff felt were priorities.
Director of Public Works, Rick Drazenovich noted they were going to provide an update on capital
projects facing the city over the upcoming years; it was an update from the 2016 needs
assessment. Since the study was completed, staff has made substantial progress, but several
major needs remain unresolved. In addition, they have major infrastructure maintenance projects
that require direction regarding priorities and funding. Significant space deficiencies still exist

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August 18, 2026
across multiple departments; many facilities were outdated, inefficient or not code compliant, and
several functions were constrained by security, and had operational and public access limitations.
Mr. Drazenovich reviewed what has been accomplished from the original study including the
Police Department, IT and the Registrar’s Office. The Police Department space in the Municipal
Building had been inadequate, and it impacted operationally efficiency and service delivery. They
renovated the old Dan River offices, relocated the Police Department which freed up space in the
Municipal Building. Information Technology had issues with security risks and an inadequate data
center; they were relocated and constructed a new data center. This improved cybersecurity and
physical security, and also freed up space in the Municipal Building. The third project completed
was the Registrar’s Office; the old space did not meet the statutory requirements, security, lack
of privacy, and had insufficient parking and training spaces. They were relocated to Main Street,
and the City was now negotiating to take over lobby space in the building which will be a significant
improvement for them.
Other projects included relocating Economic Development & Tourism; they were previously in the
Municipal Building with inadequate space. They were relocated to Dan River Falls; this freed up
space in the Municipal Building. Parks and Recreation were also relocated to Dan River Falls.
They were previously located in the City Auditorium, it did not have central air, heat or hot water.
The electric services and accessibility were inadequate; the move improved their external visibility
and accessibility.
The Commonwealth’s Attorney’s office was part of the assessment, and they had an unsafe
situation. They were now located on the first floor of the Municipal Building where the Police
Department was previously located. They also created a space for storage for the Circuit Court
and Commonwealth’s Attorney, and the Commonwealth’s Attorney has an appropriate and secure
building entrance. The Human Resources Department was part of the renovation and operations
in the Municipal Building. Their offices were small, lacked privacy, and had no filing or training
area; they were moved to the former IT area. This freed space to create a budget office suite.
Mr. Drazenovich noted of the five most critical needs in the space needs study, three were
completed and the remaining two were a Social Services facility and a new motor pool. Other
space recommendations were new fire stations, city hall space reuse, courthouse upgrades and
parking structures.
The Social Services Building was the city’s most significant remaining space deficiency. The
current facility creates challenges for client privacy, accessibility and meeting space; the building
was never designed for the services that were being provided today. The projected cost estimates
were $35M to $40M; these were several years old and prices were going up the longer they wait.
The second most critical need that has not been done was the Motor Pool, it was currently a
1940’s to 1960’s building. There was no vehicle exhaust system or sprinkler/fire suppression
system, some equipment cannot fit into the garage, bays were limited and the mechanics need a
better space to work. The $10M to $15M cost for that was several years old and the last several
years have seen tremendous increases.
Mr. Drazenovich explained the Legislature passed legislation regarding the Magistrate’s office
and security which caused the Judge to look at their security, walking outside of chambers into
an elevator where the public they just held a trial on, to go down the same elevator. The
courthouse was renovated in the nineties, and it didn’t meet the current standards even then. The
judge oversaw the renovation and directed public works on what to do. The courthouse has

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August 18, 2026
some critical missing functions, they need to secure the judges exit elevator, interior corridors, a
security control center, as well as additional space. The costs to renovate that was projected at
$30M to $35M, possibly going over the top of the jail and back; the judges were pretty adamant.
The next item was Fire Station #6 on Westover; it has reached or exceeded its intended service
life and no longer meets the operational requirements of a modern, all hazards fire department.
It does not have drive through vehicle bays, the concrete pad was less than the minimum required
and pedestrians and vehicles are blocked from passing on Westover when trucks were going
back into the station. The city would need to purchase a new property; the current property cannot
be renovated, and the cost was projected at $10M-$13M for a 12,000 square foot facility. Mr.
Drazenovich reviewed additional public safety requests including a new Fire Station #2, Bay
expansion on Station #3, a logistics warehouse and New Fire Station #5.
In the Municipal Building, the third floor has not been renovated since the early nineties, the HVAC
systems, spacing and office sizes were inadequate. Renovations will give the city meeting rooms,
support spaces, building systems and preserve the character of the building. The projected cost
was a little more accurate as they have plans for the second and third floors, ready to go to bid
on, at about $3,870,000. It was the same for the second floor, to modernize and improve
administrative space, improve customer services and provide a safe, functional, modern
environment. Those were the two main floors that needed to be updated in the Municipal Building,
and the cost was approximately $4,950,000.
Staff also looked at infrastructure projects that were being assessed. There were major ones and
some the City was committed to such as the multilevel parking deck at Lynn and Shelton with a
projected cost of $22M for 575 spaces. A multilevel parking deck at Dan River Falls was projected
at $17.6M for 397 spaces; it will be necessary when the open spaces were occupied. The parking
was tight now but if a commercial enterprise moves in, they will need better parking. They will
also need a bridge over the existing canal to get to the building. The parking deck at North Union
and Spring was nearing completion, it has gone up fast with modular construction. It was financed
through the master lease borrowing program with a balloon payment of $18.5M due in FY 30.
There was also a recommendation to construct a multilevel parking deck near the courthouse and
the municipal building; there were opportunities for that, but the cost was unknown at this time.
Some of the other items that have been discussed and were in various stages of completion and
bidding included the Whitewater Channel, the projected cost was still being developed. The Dan
River Falls Pedestrian Bridge was a unique, historic preservation project with the cost to be
determined. The Adult Detention Center has electric service that was inadequate, it has no HVAC
and staff has requested a phased capital project to upgrade the electric service, install HVAC and
window replacement, dining and kitchen upgrades, among other things, with a projected cost of
$9M. The American Legion Baseball Stadium had a facilities study done in 2024 with an
estimated $26.5M in upgrades over the next twenty years. About $624,000 of projects have been
completed or budgeted in the current year; that was a long-term plan.
Mr. Drazenovich noted the summary of all the projects he discussed comes to $184M to $206M.
Not all the projects in the Capital and Special Project plan were included in tonight’s presentation,
such as a civic center or performing arts center, city auditorium rehab, pickleball arena, new
recreation centers and a first class sports facility. Another item was installing monument signs at
the city’s entrances, and was something staff was working on.
Chief Financial Officer/Assistant City Manager Michael Adkins explained some of the tools
available to cover the $184M in capital costs. The first option was debt, the city currently has

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August 18, 2026
$130.5M capacity available, the capacity was set the by the State and they have used about
$233.5M of that capacity or about 64%. For every $1M of debt issued it requires an annual debt
service payment of between $70K and $80K per year.
Another option was revenue from recent economic development announcements; initial revenue
could be up to $114M with ongoing revenue likely to be about $40M per year; this was a pay as
you go option. The Capital Reserve Fund started with $3M of budget stabilization funds, now
adding surplus casino revenues to that with a $4.2M available balance. Casino revenue, at
current operations level, gives the City about $14M per year for capital projects. That $14M can
be used for some one-time projects but often it was used for HVAC, roof repairs every year,
spending on needs, or unfunded capital projects. Finally, a tax increase, which was the most
unpopular option. Most localities will retain that as a source to service new debt. One penny of
real estate tax generates about $345,000 of revenue; that would be enough to support $4.5M of
bonds.
Mr. Vogler noted with the baseball park, and management at the park has mentioned, Burlington
has built a new, elevated ball park, with gathering space. That could be one improvement they
make out there, breaking it down into separate projects over the years. Mr. Vogler questioned
what a $1 on the hotels bring in, if they added another $1 per night; Mr. Adkins noted he would
get that information back to him.
Dr. Miller noted Danville’s stadium when it was built was one of the best but now needs updating.
It would renew interest and attract fans. Dr. Miller asked what pressure the City was under from
the state to improve the courthouse and Mr. Larking stated if the judge was determined to have
those improvements made, they can order them to be made. It would skip several priorities if that
was something they chose to do; the city was trying to work with them to see what their needs
were and see if they could be fitted into the program.
Mr. Marshall questioned what percentage of the police department was being used and Mr.
Drazenovich stated 100%, and Mr. Larking stated it was fully utilized. Mr. Marshall asked with
Social Services, did the staff look at any of the empty spaces such as the mall and Mr. Larking
stated they had explored the mall; they would only lease, it required an annual lease payment
and may not adequately meet the needs. Mr. Marshall questioned, at Berry Hill, RIFA was going
to sell Phase 1, 1,000 acres at $238,000 per acre which was about $120,000,000 that the City
would get. That does fill a lot of needs that have been looked at and Mr. Adkins noted they have
thought about it, but it was an action the RIFA board would have to take on what to do with that
money.
Mayor Jones noted Social Services has been discussed for many years, and they had discussed
at the retreat that some offices work from home. Mr. Drazenovich noted that was not part of the
study, on how many could work from home; that may be able to reduce the space a little, but not
a significant amount. They still need an office space to go to, they could share office space; they
were going to go to the Social Services office in Raleigh-Durham to get some ideas. They have
looked at eight sites which varied from the old Register and Bee building, which was too small, to
the Sears building site which was now an Economic Development site. They also looked at Taylor
Drive which has the Health Department and the SVMH facility there; that has become
conservation space at Taylor Drive Park. That would have been $42M to be built. Mr.
Drazenovich noted they were having trouble finding sites that fit the parking and needs study;
they need about 42,000 sq feet just for the offices. Mayor Jones noted this has been a priority for
years and it was hard for him to go through that list without addressing that. In response to Mayor
Jones, Mr. Drazenovich explained the old school board building was not adequate, it was only

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August 18, 2026
36,000 square feet and inadequate parking. Mr. Mayo stated they would also like to keep it on a
bus route and Mr. Drazenovich stated that was one of the criteria, they didn’t want to get too far
out. Mayor Jones stated for him, before they go any further, the Social Services building was
priority Number One for him. Mr. Drazenovich noted they have looked at some IDA properties at
the end of Monument Street where Monument goes into Industrial, but it was not in a prime area.
Rev Campbell questioned the old Galileo School, and Mr. Drazenovich noted it was set for
demolition; it was a good building site but would probably be a better economic development site.
Council Members noted it was a great presentation and asked that the study be posted on the
website.
PROGRAM UPDATES
City Manager Ken Larking noted he wanted to make Council aware that he will be attending a
meeting in Richmond tomorrow, a subcommittee on taxation that has been recently formed. One
of the topics of conversation will be data center sales and use tax.
COMMUNICATIONS
Rev Campbell questioned the animal shelter and Mr. Larking explained they were going to do an
assessment of everything that was the City’s responsibility related to animals in the city. There
were a variety of issues that the City needed to cover as a municipality all the way through the
animal shelter. It was a comprehensive analysis of how the City deals with and approaches it.
CLOSED MEETING
At 8:34 p.m., Vice Mayor Buckner moved that this meeting of the City Council of the City of
Danville, Virginia be recessed and that Council immediately reconvene in a Closed Meeting for
the following purposes: the discussion or consideration of the acquisition or disposition of real
property for a public purpose where discussion in an open meeting would adversely impact the
bargaining position of the City as permitted by Subsection (A)(3) of Section 2.2-3711 of the Code
of Virginia, 1950, as amended and more specifically to consider discussion regarding the sale
and/or potential purchase of a specific parcel of property for use by the City of Danville and/or
specific parcels of property for prospective recreational, industrial, commercial, and mixed use
projects looking to locate to the City, and parking facilities, and an Economic Development
discussion and update concerning prospective businesses or industries where no previous
announcement has been made and/or the expansion of an existing business or industry where
no previous announcement has been made as permitted by Subsection (A)(5) of Section 2.23711 of the Code of Virginia, 1950, as amended and more specifically to consider an update on
multiple prospective commercial, mixed use, hospitality, and industrial projects considering
locating within the City and/or locating within the region in cooperation with the City’s regional
partners, and discussion or consideration of the investment of public funds where bargaining is
involved, where, if made public initially, the financial interest of the governmental unit would be
adversely affected as permitted by Subsection (A) (6) of Section 2.2-3711 of the Code of Virginia,
1950 as amended.
The Motion was seconded by Council Member Mayo and carried by the following vote:
VOTE:
AYE:

8-0-1
Buckner, Campbell, Hood, Jones, Marshall
Mayo, Miller, and Vogler (8)

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August 18, 2026
NAY:
ABSENT:

None (0)
Saunders (1)

Upon unanimous vote at 8:55 p.m., Council reconvened in open session and Vice Mayor Buckner
moved for adoption of the following Resolution:
CERTIFICATE OF CLOSED MEETING
WHEREAS, the Council convened in Closed Meeting on this date pursuant to an affirmative
recorded vote and in accordance with the provisions of the Freedom of Information Act; and
WHEREAS, Section 2.1-344.1 of the Code of Virginia, 1950, as amended, requires a Certification
by the Council that such Closed Meeting was conducted in conformity with Virginia Law;
NOW, THEREFORE, BE IT RESOLVED that the Council hereby certifies that, to the best of each
Member’s knowledge, (i) only public business matters lawfully exempted from open meeting
requirements of Virginia Law under Section 2.2-3711 were heard, discussed or considered, and
(ii) only such public business matters as were identified in the Motion by which the Closed Meeting
was convened were heard, discussed or considered by the Committee.
The Motion was seconded by Council Member Mayo and carried by the following vote:
VOTE:
AYE:
NAY:
ABSENT:

8-0-1
Buckner, Campbell, Hood, Jones, Marshall
Mayo, Miller, and Vogler (8)
None (0)
Saunders (1)

MEETING ADJOURNED AT 8:55 P.M.
APPROVED:
_______________________
MAYOR
ATTEST:
__________________________
CITY CLERK

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Council Letter
City of Danville, Virginia

CL - 3036

WORK SESSION ITEMS

1.

City Council Work Session
Meeting Date: October 20, 2026
Subject:

Employee Retirement System - Impact of Adding COLAs

From:

Michael Adkins, Assistant City Manager-Chief Financial Officer

COUNCIL ACTION

SUMMARY
Greg Stump from Boomershine Consulting Group, the actuarial firm for the Employee Retirement
System, will provide a presentation on how cost of living adjustments (COLAs) for retirees would
impact the Danville Employee Retirement System with respect to annual recurring cost and plan
funded status. This information will assist City Council in making any desired changes to the City Code
that governs the Employee Retirement System, and any related directives for the FY 2028 budget
cycle.
Attachments
None

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Council Letter
City of Danville, Virginia

CL - 3055

WORK SESSION ITEMS

2.

City Council Work Session
Meeting Date: October 20, 2026
Subject:

Special Session Budget Bill (HB 30)

From:

Renee Burton, Division Director of Planning

COUNCIL ACTION

SUMMARY
Review changes established by the 2026 Special Session Budget Bill (HB 30) and how the changes
will be reflected in the City of Danville's UDC.
BACKGROUND
On June 29, 2026, House Bill 30 was approved. This Special Session Budget Bill establishes a
regulated, adult-use commercial cannabis market in Virginia and establishes additional regulations for
hemp/tobacco retail locations. The Budget Bill limits the role of localities to local taxation, zoning and
land use, hours of sale, and public consumption/buffer ordinances for cannabis. The Bill also provides
setback and buffer regulations for hemp/tobacco retail locations. It is recommended that the local
ordinance changes that effective cannabis retail be completed and effective prior to February 1, 2026.
The Bill requires that prior to July 1, 2027, localities must:
• Adopt a local cannabis tax rate that may not be less than 1% and not exceed 3.5%
• Require that the effective date of the local cannabis tax rate ordinance be effective the first day
of the second month following ordinance enactment
• Maintain the local cannabis tax rate for a minimum of 3 years
The Bill states that localities may:
• Designate zoning districts for specific cannabis-related uses
• Require specific site plan requirements for cannabis establishments
• Establish hours of operation for cannabis establishments
• Require setbacks and buffer distances for cannabis establishments equal to but no greater than
1,000 linear feet
o Between retail stores and microbusinesses
o Between retail store/microbusinesses and any hospital, public, private or parochial
school or institution of higher learning, or child day program
• Require setbacks and buffer distances for hemp/tobacco retail establishments of 1,000 linear

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feet
o From child day centers
o From public, private, or parochial schools
The Bill states that localities may not:
• Prohibit the cannabis marketplace
• Increase Virginia Cannabis Control Authority (VCCA) buffer requirements
• Impose a local cannabis tax greater than 3.5%
RECOMMENDATION
Staff recommends City Council review and discuss the items presented in preparation for UDC
amendments to be presented to the City Planning Commission.
Attachments
None

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