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October 25, 2022 <br /> <br />Background: <br /> <br /> The Virginia Department of Transportation acquires the property necessary for <br />certain state-funded road projects in the city. <br /> <br /> VDOT has established a policy requiring that, at the end of each project, the locality <br />must accept a Deed from VDOT conveying title to all of the remnant property that was not <br />incorporated into the right of way. <br /> <br /> Most of this remnant property is of minimal value and serves only to deplete City <br />finances because of the required regular mowing and maintenance. <br /> <br />Discussion: <br /> <br /> 2410, 2414 and 2416 Turnpike Road (collectively, the “Property”) were among the <br />parcels conveyed by VDOT to the City at the conclusion of the Turnpike Road widening <br />project. The value of the Property is currently assessed at $31,190. <br /> <br /> LBC Transportation is a minority-owned trucking company. LBC has either <br />acquired or contracted to acquire the entire remainder of the block on which the Property <br />is situated. <br /> <br /> LBC Transportation intends to establish a trucking facility on the block and has <br />submitted a negotiated offer to purchase the City-owned Property for $20,000. <br /> <br /> The Property consists of only 18 hundredths of an acre (0.18 acres) and is located <br />in an industrialized area. It is unlikely to be developed in the future other than as part of <br />the LBC facility. If the City maintains ownership of the Property, then it will remain exempt <br />from real estate taxes and the City will have to pay for its regular mowing and <br />maintenance. <br /> <br /> The Economic Development Authority has adopted a Resolution authorizing <br />conveyance of the Property to LBC Transportation, subject to City Council’s approval of <br />conveyance of the Property to EDA. The Resolution presented for City Council <br />consideration would authorize conveyance to EDA so that this transaction can move <br />forward. <br /> <br />Financial impact: <br /> <br /> The conveyance of the parcels to EDA will benefit the City and its residents <br />financially by returning property to the tax rolls and saving mowing and maintenance <br />costs. <br /> <br />Recommended Action: <br /> <br /> Adoption of the Resolution. <br /> <br />Next Steps Following Council Action: <br /> <br /> The City Manager will execute a Deed to convey the properties to EDA. <br /> <br />Motion by Ms. Lucas-Burke, and seconded by Mr. Woodard, to adopt the following <br />resolution, and was adopted by the following vote: <br /> <br />“RESOLUTION AUTHORIZING THE CONVEYANCE OF 2410, 2414 AND 2416 <br />TURNPIKE ROAD TO THE ECONOMIC DEVELOPMENT AUTHORITY. <br /> <br />WHEREAS, <br /> the Virginia Department of Transportation performed a project to <br />widen Turnpike Road in Portsmouth; and <br /> <br />WHEREAS, <br /> VDOT acquired property necessary for the road widening project and <br />upon completion of the project it conveyed all remnant parcels of the property that were <br />not necessary for the project to the City of Portsmouth; and <br /> <br />WHEREAS, <br /> the remnant parcels include 2410 Turnpike Road (Tax Parcel 0175- <br />0190), 2414 Turnpike Road (0175-0200), and 2416 Turnpike Road (0175-0210) (the <br />“Property”); and <br /> <br />WHEREAS, <br /> LBC Transportation (“LBC”) intends to operate a trucking business in <br />the City of Portsmouth and recently acquired several parcels that are adjacent to the <br />Property for development of a trucking facility; and <br /> <br /> <br /> <br /> <br /> <br />