Minutes 05/25/2011 - Laserfiche WebLink

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May 25. 2011 . A Sale and Development Agreement between the developer and the Economic Development Authority of the City of Portsmouth (EDA) has been negotiated and is attached. Discussion: . Over the past 12 months the properties have been subjected to extensive review through a transparent and public process. Environmental studies have been conducted that determine the suitability of the site for the proposed use. Community input was solicited and the public took advantage of repeated opportunities to comment and participate in the process. This has resulted in significant alterations of the original development proposal. . The Sale and Development Agreement allows for the creation of 23 lots. The developer has stated that a final subdivision proposal may include as few as 11 lots. The creation of fewer lots would result in the development of greater wetland and upland conservation area on the site. Regardless, the Agreement requires the project to proceed through the major subdivision process where a final plan will be determined. Financial impact: . There is no expectation of a financial contribution from the City for this development Project. . The appraisal conducted by the City values the property for subdivision purposes at $10,000 per newly created lot. The sales price of $237,257 is based on the development of 23 lots and includes a reimbursement of City costs associated with due diligence as contemplated in the MOL The price is contractually fixed and cannot be subsequently altered. . The Cooperation Agreement establishes a distribution of proceeds from the sale to the City and EDA in nearly equal amounts as contained therein. . A Fiscal Impact Study conducted by the developer for the construction of 23 homes shows net annual revenues to the City resulting from the development to be approximately $52,000. Over a twenty year period, discounted at 5%, the net present value of the development is $839,000. This number would be reduced in the event fewer homes are constructed. . There will be a short term economic impact from the construction activity and the proceeds from the sale detailed in the attached Fiscal Impact Analysis. . The property is currently not taxable and the City pays for its maintenance. These expenses in the City's operating budget will be eliminated. Recommended Action: . Authorize the execution of the Cooperation Agreement. Vision Principles: A Robust and Prospering Economy and Thriving Neighborhoods and a Sense of Community. Next Steps Following Council Action: . The EDA will execute a final Sale and Development Agreement with Hull's Creek Properties. 1. Margaret Windley, 443 Douglas Avenue, spoke in opposition to this item. 2. Mark Geduldig-Yatrofsky, 2713 Sterling Point Drive, spoke in opposition to this item. 3. Walter Bell, 236 Maryland Avenue, spoke in opposition to this item. Motion by Mr. Moody, and seconded by Mr. Heretick, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION APPROVING A COOPERATION AGREEMENT WITH THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF PORTSMOUTH, VIRGINIA CONCERNING THE DISPOSITION OF THE FORMER PORT NORFOLK ELEMENTARY SCHOOL SITE AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT.