Minutes 06/27/2017 - Laserfiche WebLink

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June 27, 2017 Background:  The property at 3215 Academy Avenue was vacated by the Churchland Branch of the Portsmouth Public Libraries in 2009, and the city has no need of the property for any city service.  At the request of the city, EDA and its listing agent (Divaris Real Estate) have been marketing the 0.53-acre site and 5,993 square foot building for sale and redevelopment. Discussion:  EDA has received an offer from an existing and expanding Portsmouth business to purchase the property for $100,000 and to complete renovations costing approximately $360,000-$400,000. The business would use the property as a central office and training facility.  To facilitate the development of the property, title must be conveyed from the city to EDA.  The city and EDA will also execute a Cooperation Agreement which states that the net proceeds from the sale of the property will go into an Economic Development Incentive Fund to provide funding to strengthen the city’s economy through job creation, wage and compensation growth, and tax base expansion. Staff is currently preparing a proposed Economic Development Incentive Policy to govern the Incentive Fund, and it is anticipated that the policy will be presented to Council for review in the near future. Financial Impact:  Conveying the property will eliminate the city’s maintenance obligation, provide approximately $100,000 in seed money for an Economic Development Incentive Fund, and place the property back on the real estate tax rolls. Recommended Action:  Adoption of the resolution. Next Steps Following Council Action:  The City Manager, City Attorney, Economic Development Department, and Economic Development Authority will take the steps necessary to convey the property to EDA for redevelopment. Motion by Ms. Psimas, and seconded by Mr. Moody, to adopt the following resolution, and was adopted by the following vote: “RESOLUTION AUTHORIZING THE CONVEYANCE OF 3215 ACADEMY AVENUE TO THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF PORTSMOUTH, VIRGINIA AND THE EXECUTION OF A DEED, COOPERATION AGREEMENT, AND OTHER DOCUMENTS IN CONNECTION THEREWITH. 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, Virginia (the “EDA”) a deed conveying to the EDA certain property generally known as the former Churchland library and having a street address of 3215 Academy Avenue (Tax Parcel 0818-0040), 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.