August 12, 1986
<br />
<br /> 86-295 Letter from the City Manager recommending adoption of a motion
<br />contract with Goodman Segar Hogan, Incorporated, for the rental of the former
<br />to be used as office space by the Department of Social Services.
<br />
<br />to enter into a
<br />Sears Building
<br />
<br /> "~he Department of Social Services for a number of years has been operating out of
<br />several locations which has made coordination of Department programs difficult for staff as
<br />well as citizens. Attached is a report which proposes the consolidation of existing programs
<br />into a larger £acility which would eliminate overc~o~vded conditions and better serve clients
<br />of the Department. At present, it is not uncommon for clients as well as some workers to
<br />f~equent four different Social Services buildings to receive and render services.
<br />
<br /> Currently, the Social Services staff of approximately 200 occupy 37,000 square feet
<br />spread among four smtes, I.E., 700 North Street, 600 Dinwiddie Street, offices in the New
<br />Kirn Building and the Hi-Landers Community Center. Current State standards, with a reasonable
<br />allowance for growth, indicate that the Department is in need of an additional 33,000 square
<br />feet. Accordingly, in June 1986, I authorized the advertisemen~ of an RFP and Goodman Segar
<br />Hogan responded proposing the lease of the former Sears Building as the site of the central
<br />facility of the Department of Social Services. The facility is offered, renovation to suit,
<br />at $7.50/sq. ft. over a twenty lease year period with two five year renewal options. Accord-
<br />ing to staff of the Department oE Economic Director, market rents ~n the City of Portsmouth
<br />for renovations and new construction range currently between $8 and $12 per square foot. The
<br />proposed $7.50 per square foot rate includes custodial services with the Department responsibl~
<br />for the cost of utilities.
<br />
<br /> Recognition should also be given ~o the ~act that the Department of Social Services would
<br />occupy approximately 70,000 of the 86,088 sq. ft. available. Other potential occupants of the
<br />expanded facility include the City Physician's Office, Home Care Servides Agency and the
<br />Department of Housing Services and Community Development. The relocation of Home Care and the
<br />City Physician's Office would make the Green Street Annex of the Health Department available
<br />for private development.
<br />
<br /> As part of this effort, comment (copy attached) was secured from the Director of
<br />Economic Development, Mr. Gerald Burgess, regarding the resale potential of the existing
<br />Social Services Buildings as well as the real and potential economic benefit of the subject
<br />relocation site. He is of the opinion that the resale potential of the existing Social Services
<br />Buildings and Health Department's Green Street Annex is e×treme~y favorable and might yield
<br />a range of $583,000 to $1,100,000 on resale and $97,000 in combined tax revenues. Additionally,
<br />Mr. Burgess advised that such a relocation is consistent with the Priority Action Plan for
<br />Central Portsmouth as this re-use, which would increase the value of the building to $1.2
<br />million, would establish a substantial economic activity [or this corridor of High Street.
<br />Additionally, I am of the firm opinion that the staff and client activity at this site will
<br />serve as a catalyst for additional commercial development on adjacent properties.
<br />
<br /> The final consideration is cost. the Depar~men~ currently maintains monthly local costs
<br />of $6,088. Cost associated with the relocation would increase monthly by $5,600. While this
<br />amount may appear substantial, I feel that the revenues realized from the resale of the
<br />Social Services buildings and the Green Street Annex make this proposal attractive, cost
<br />responsible, and will most likely offset the increased local costs. Additionally, I feel
<br />that the relocation is justified due ~o clientZstaff benefit as well as the increase in tax
<br />revenues which will be realized by the return of three public properties to the tax rolls.
<br />
<br /> I recommend that you approve the motion which will authormze me to sign the lease agree-
<br />ment with Goodman Segar Hogan."
<br />
<br /> Mo~ion of Mr. Simpson and seconded by Mr. Barnes, no authorize the City Manager to execut~
<br />a contract for the rental of the former Sears Building to be used as office space for the
<br />Department of Social Services, subject to the City Attorney's approval as to legal content,
<br />as requested, and was adopted by unanimous vote.
<br />
<br /> 86-296 Letter from the City Manager recommending adoption of a motion ~o
<br />refunds of penalty on tax payments (without interest ~o the following taxpayers
<br />affidavits attesting their tax payments were mailed before ~ax deadlines~
<br />
<br />authorize
<br />who furnished
<br />
<br />a.) R. R. Patterson, $2~.00
<br />b.) Earl L. Carter, $10.00
<br />c.) Willis J. Davis, $43.58
<br />
<br /> "The Treasurer of the City of Rortsmouth is requesting refunds to three (3 taxpayers
<br />(list attached) whose tax payments, according to affidavits filed with the City Treasurer by
<br />the taxpayers, were mailed on or before the tax deadline and should have been appropriately
<br />postmarked.
<br />
<br /> Copies of paid receipts for each payment made by the taxpayers have been forwarded by the
<br />City Treasurer ~n each case and ere available in ~he City Clerk's Office. We therefore are
<br />requesting refund in the amount indicated on the attachement provided, without interest. The
<br />total amount of the refunds is $73.58.
<br />
<br /> I recommend that Council adopt this motion to authorize the refunds to be paid by the
<br />City Treasurer and Director of Finance."
<br />
<br /> Motion of Mr. Gray and seconded by Mr. Barnes, that authorization be granted to refund
<br />R. R. Patterson, 201g North Street, Portsmouth, VA 23704, penalty for real estate taxes $20.1 0;
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