Minutes 11/12/2013 - Laserfiche WebLink

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November 12, 2013 • An exhibit showing the proposed development parcels is attached. The final subdivision will take into account the property needs of Fire Station 1 and the closing of Henry Street. • The properties have a zoning designation that will need to be changed through a public process from T5 to GMU. Nothing contained in the contemplated action suggests or implies the granting of such approvals. Discussion: • The project will have a significant positive impact on the Effingham corridor. The addition of these retail uses will have a beneficial fiscal impact by converting vacant lots into income producing properties and monetizing the assets through sale to a private party. Financial impact: • There will be a positive short term economic impact from the construction activity and the proceeds from the sale. Under the proposed contracts the total sales price is $850, 000.00. • The sale and development will result in new revenue from real estate taxes, business personal property taxes, sales and use taxes, meals taxes and other taxes and fees. • 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 Cooperation Agreement between the City of Portsmouth and the Economic Development Authority (EDA). Vision Principles: A Robust Economy for Working Men and Women and Neighborhoods and a Sense of Community. Next Steps Following Council Action: • The EDA will negotiate final Sales and Purchase Contracts with the Developers. Motion by Mr. Meeks, and seconded by Ms. Psimas, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A COOPERATION AGREEMENT, DEED, AND ANY OTHER DOCUMENTS AS MAY BE NECESSARY TO CONVEY THOSE PROPERTIES BOUNDED BY PORTSMOUTH FIRE STATION NO. 1, EFFINGHAM STREET, LINCOLN STREET, AND GREEN STREET AND ANY ASSOCIATED EASEMENTS OR REMNANT PARCELS AS MAY BE DETERMINED NECESSARY TO THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF PORTSMOUTH. BE IT RESOLVED by the Council of the City of Portsmouth, Virginia: 1. The City Manager is hereby authorized and directed to execute and deliver unto the Economic Development Authority of the City of Portsmouth (the "EDA") a deed conveying to the EDA certain properties bounded by Portsmouth Fire Station No. 1, Effingham Street, Lincoln Street, and Green Street and any associated easements or remnant parcels as he may determine necessary, as authorized by Section 2.03 of the Portsmouth City Charter and Section 15.2-4917 of the Code of Virginia. 2. The purpose of the conveyance is to allow the EDA to facilitate private rehabilitation or redevelopment of the property in a way that enhances community quality and expands the City's tax base. The City Council hereby finds and determines that a conveyance for these purposes is in the public interest. 3. Prior to delivery of an executed deed or deeds to the EDA, the City Manager is directed to enter into a Cooperation Agreement between the City and EDA, in a form substantially similar to Exhibit A, attached hereto and made a part hereof, that requires that the proceeds from any sale of the property by EDA will be distributed in such manner as determined by City Council at a future date.