I use my Polar without Virus Control because it is not compatible with Digital Perfomer, which I use.
AFAIK, VC does not run in standalone mode, only within a DAW.
Also, AFAIK, using your sequencer to talk to the Virus without VC won't work, either.
Why do you want to use LOCAL ON? This isn't typically how MIDI keyboards and computer-based sequencers work together, although I've been doing this a long time and tend to be set in my ways. LOCAL needs to be OFF if you've got the computer recording and playing back MIDI data. The MIDI data goes into the computer, gets recorded, and then comes back out through the computer back to the synth. For all intents and purposes, the computer is "in between" the keys themselves and the synth that actually makes the sound. Having LOCAL ON with this kind of setup causes each piece of MIDI data to get sent to the synth twice.
LOCAL ON only works if you're NOT doing MIDI sequencing - if you just want to play the synth and record the audio into Logic.
Recording MIDI and audio simultaneously typically isn't done either, but perhaps I'm missing something here. Typically, one records parts to MIDI tracks to keep them editable (quantize, fix notes, etc.) and then records the part(s) to audio when they're ready to be finalized. If you're recording directly to audio, what's the purpose of the MIDI track?
IMHO, the best way to use the TI without VC is to simply use "old fashioned" MIDI cables. But you'll need a regular
USB/MIDI interface and perhaps an
audio interface to record the TI into Logic (unless you just want to make do with your computer's audio in jacks).
At least that's how I do it.
Others may have suggestions about how to partially use USB and VC to to do sequencing and record the TI in "hardware" mode, but I just do it the old fashioned way (as if the "TI" part didn't exist) and it works great for me.