Title
Resolution to Authorize the Acceptance of a Gift of Various Furniture, Fixtures, and Equipment, Valued at Approximately $120,500.00, from NP Hampton Commerce Center, LLC and to Amend the FY 2025 Council Approved Budget to Accept and Appropriate a $168,672.23 Gift from NP Hampton Commerce Center, LLC, Pursuant to that Certain Lease between NP Hampton Commerce Center, LLC and the City of Hampton, Virginia
Purpose
PURPOSE/BACKGROUND:
The Economic Development Authority of the City of Hampton, Virginia and NP Hampton Commerce Center, LLC ("NP Hampton") entered into that certain Development Agreement dated November 9, 2022 ("Development Agreement") for the sale and development of 750 Shell Road, in conjunction with the development of 700 Shell Road, with those parcels comprising the former site for the Virginia School for the Deaf, Blind, and Multi-Disabled in Hampton.
Pursuant to Section 1.1(g) of the Development Agreement, NP Hampton and the City of Hampton, Virginia (the “City”) entered into a Lease dated August 9, 2023 (the “Lease”) for the City’s use of the Workforce Area, as identified in the Development Agreement and further defined as the “Premises” in the Lease. Section 7 of the Lease provided that NP Hampton shall install, at its cost, certain furniture, fixtures, and equipment (“FF&E”) as described in the Lease, and shall donate such FF&E to the City and assign any and all warranties, service contracts, or similar agreement incidental to ownership of the FF&E to the City.
NP Hampton and the City are in the process of executing a First Amendment to the Lease to, among other things, recognize (1) that NP Hampton has acquired and installed, at its own cost of approximately $120,500.00, non-Information Technology FF&E including the tables and chairs for conference and training rooms; desks and chairs for offices; and appliances for the kitchen and (2) that NP Hampton and the City agree that to satisfy the requirement to acquire and install the remaining Information Technology FF&E, NP Hampton has made payment to the City in the amount of $8,672.23 for the City to have Information Technology related services installed at the Premises and shall make payment to the City in the amount of $160,000.00 for the City to acquire and install, at its cost, the Information Technology FF&E including overhead projectors; screens/monitors; projection equipment; and computers, monitors, and printers in the computer lab. Together, this monetary gift totals $168,672.23.
The purpose of this resolution is to authorize the acceptance of the non-Information Technology FF&E donation and to accept and appropriate the $168,672.23 monetary donation for the City’s use in acquiring and installing the Information Technology services and FF&E at the Premises.
Discussion:
See Purpose/Background above.
Impact:
See Purpose/Background above.
Recommendation:
Rec
Approval of the Resolution.
Body
WHEREAS, the Economic Development Authority of the City of Hampton, Virginia (the “EDA”) and NP Hampton Commerce Center, LLC ("NP Hampton") entered into a Development Agreement dated November 9, 2022 (the "Development Agreement"), to facilitate the sale of 750 Shell Road (LRSN: 13004501) and the combined development of 700 (LRSN: 1004270) and 750 Shell Road;
WHEREAS, pursuant to Section 1.1(g) of the Development Agreement, NP Hampton and the City of Hampton, Virginia (the “City”) entered into a Lease dated August 9, 2023 (the “Lease”) for the City’s use of the Workforce Area, as identified in the Development Agreement and further defined as the “Premises” in the Lease;
WHEREAS, pursuant to Section 7 of the Lease, NP Hampton shall install, at its cost, certain furniture, fixtures, and equipment (“FF&E”) as described in the Lease, and shall donate such FF&E to the City and assign any and all warranties, service contracts, or similar agreement incidental to ownership of the FF&E to the City;
WHEREAS, NP Hampton and the City are in the process of executing a First Amendment to the Lease (the “First Amendment”) to, among other things, recognize (1) that NP Hampton has acquired and installed, at its cost, non-Information Technology FF&E including the tables and chairs for conference and training rooms; desks and chairs for offices; and appliances for the kitchen and (2) that NP Hampton and the City agree that to satisfy the requirement to acquire and install the remaining Information Technology FF&E, NP Hampton has made payment to the City in the amount of $8,672.23 for the City to have Information Technology related services installed and NP Hampton shall make payment to the City in the amount of $160,000.00 for the City to acquire and install, at its cost, the Information Technology FF&E including overhead projectors; screens/monitors; projection equipment; and computers, monitors, and printers in the computer lab;
WHEREAS, pursuant to Hampton City Code § 2-134, gifts to the City of money of five thousand dollars ($5,000.00) or more, as aggregated or as a whole, shall be approved and appropriated for City use by the City Council by appropriate resolution before such gifts may be put to the use of the City and gifts to the City of tangible personal property valued at five thousand dollars ($5,000.00) or more shall be approved by the City Council by appropriate motion and duly recorded in the City Council minutes before such gifts shall be deemed to have been accepted by the City; and
WHEREAS, pursuant to the Lease, as amended, NP Hampton desires to donate the non-Information Technology FF&E, valued at approximately $120,500.00, to the City and donate $168,672.23 to the City for use in acquiring and installing the Information Technology services and FF&E.
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Hampton, Virginia accepts the donation of the non- Information Technology FF&E, valued at approximately $120,500.00, from NP Hampton Commerce Center, LLC and such acceptance shall be recorded in the City Council minutes;
BE IT FURTHER RESOLVED, that the City Council of the City of Hampton, Virginia hereby amends its Fiscal Year 2025 Council Approved Budget to accept a $168,672.23 gift from NP Hampton Commerce Center, LLC; and appropriates that $168,672.23 to the Unassigned Fund Balance for use as contemplated in this resolution;
AND, BE IT FURTHER RESOLVED, that the City Council of the City of Hampton, Virginia authorizes the City Manager, or her designee, to take any and all actions necessary to implement these gifts.