Minutes 07/12/2016 - Laserfiche WebLink

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July 12, 2016  In addition to the creation of the park, ERP is now constructing – entirely from its own funds – a new building on the Nature Park property (the “River Academy”) and related storage buildings to serve as an educational and office resource on site. ERP will provide space within the River Academy to house a staff member from the Department of Parks, Recreation and Leisure Services and space within the storage buildings to store city equipment. Discussion:  The Second Amended Agreement addresses the details and timing of conveyance of title to the park property from ERCA-1 to the city. Transfer of ownership to the city was contemplated by the 2011 Amended Agreement and is required by the federal grant funding for the project.  The Second Amended Agreement also addresses the operation, maintenance and use of the River Academy building. The Agreement provides that ERP will be solely responsible for the maintenance and upkeep of the building. To accomplish this, the city will take title to the property subject to a long term ground lease leasing the building to ERP. So that the city has the right to use the building, ERP will sublease office and storage space. The sublease will have an initial five year term which can be renewed at the mutual option of the city and ERP. The city will pay $13,212 per year for the five year term.  The benefits of this structure to the city are that: (1) ERP will bear all operating risk related to the building (including increased or unbudgeted costs); (2) the city financial obligation related to the building will be capped at the rental amount; (3) the city will receive the direct benefit of office and storage space in exchange for its funding; and (4) the city can review the structure and benefits provided at the end of the initial 5 year sublease term and determine whether to continue or terminate the sublease.  Finally, the Second Amended Agreement also addresses how the city and ERP will cooperate in the operation of the park to ensure maximum educational and other benefits to citizens, and confirms that the real estate tax exemption approved for Paradise Creek by Ordinance 2007-21 will continue to apply to ERP’s ground lease interest. Financial Impact:  The city will pay $13,212 per year for five years in exchange for the use of the River Academy building and storage space, which will help make possible the operation of educational programs to enhance the park. As previously agreed under the Agreement and amendment approved by Council in 2006 and 2011, respectively, the city will continue to maintain the remainder of Paradise Creek as a public park. Staff Recommends:  Adoption of the resolution.Vision Principles: Enhanced Quality of Life; Lifelong Learning Community; Leading Maritime Community; Sustainable Neighborhoods; Efficient Service Delivery. Next Steps Following Council Action:  Execution of the Second Amendment Agreement for Paradise Creek Nature Park and related documents. Motion by Ms. Psimas, and seconded by Dr. Whitaker, to adopt the following resolution, and was adopted by the following vote: “RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A SECOND AMENDED AGREEMENT WITH THE ELIZABETH RIVER PROJECT FOR PARADISE CREEK NATURE PARK. WHEREAS, by Resolution R-06-48 adopted on September 26, 2006City Council authorized an agreement with the Elizabeth River Project (ERP) and other parties (the Original Agreement) to develop Paradise Creek Nature Park, a 40-acre nature park off Victory Boulevard in the southeast portion of the City; and WHEREAS, by Resolution R-11-23 adopted on August 23, 2011 City Council authorized a First Amendment to the Agreement; and