Title
Resolution Authorizing the City Manager to Enter into a Purchase & Development Agreement with Bonaventure Development, LLC for the Sale and Development of City-Owned Property in the Coliseum Central Area
Purpose
PURPOSE/BACKGROUND:
The City of Hampton (the “City”) owns two parcels of land, identified currently as LRSNs 7000147 and 7000165, together with the City’s interest in an unimproved section of public right-of-way adjacent thereto known as Barrack Street, located within the Coliseum Central area. The parcels and adjacent right-of-way collectively contain approximately 4.0+/- acres (the “Property”).
In February 2025, the City received an unsolicited proposal from Bonaventure Development, LLC, a Virginia limited liability company (the “Developer”), to acquire the Property for the purpose of constructing a multifamily residential development as an expansion of the adjacent Pinnacle Apartments (the “Project”). The proposal was determined to be consistent with and to advance the residential development objectives of the Coliseum Central Master Plan by adding additional market-rate housing within the district.
Following negotiations between the City and the Developer, the parties have reached a proposed Purchase & Development Agreement that establishes the terms and conditions for the sale and development of the Property. The proposed Purchase & Development Agreement provides for the sale of the Property to the Developer for $1,700,000 and the construction of a new multifamily residential development consisting of approximately 100 to 132 market-rate apartment units, together with associated parking, resident amenities, landscaping and related infrastructure improvements, with design components consistent with the existing Pinnacle Apartments. The Project will represent a minimum private capital investment of approximately $20,300,000. Subject to the satisfaction of the terms and conditions set forth in the Purchase & Development Agreement, including the required approvals and contingencies, the conveyance of the Property is anticipated to occur on or before March 30, 2027. The Project is expected to expand housing opportunities within the Coliseum Central area, support nearby commercial activity, and increase the City’s tax base.
The Purchase & Development Agreement also contemplates that, subject to a separate action by City Council, the City's interest in the right-of-way will be vacated and assembled with the adjacent parcels into a single development parcel prior to conveyance of the Property. Approval of the Purchase & Development Agreement does not constitute approval of that right-of-way vacation. If the vacation is approved, the vacated right-of-way will be incorporated into the overall development site to facilitate construction of the proposed Project in accordance with the Purchase & Development Agreement.
Discussion:
The proposed transaction includes the conveyance of City-owned real property, including the City’s interest in a portion of Barrack Street right-of-way that is contemplated to be vacated prior to conveyance. Because the Property to be conveyed pursuant to the Purchase & Development Agreement will include land that currently constitutes, or formerly constituted, public right-of-way, adoption of this Resolution requires an affirmative vote of at least three-fourths of the members elected to City Council. Code of Virginia Section 15.2-2100.
If this proposed disposition is approved, it is anticipated that the request to vacate the referenced right-of-way will be presented to City Council for consideration at its meeting on September 23, 2026.
Impact:
The proposed Purchase & Development Agreement will facilitate the development of approximately 4.0+/- acres of currently undeveloped City-owned property within the Coliseum Central area, which will add 100-132 market-rate apartments to the City's residential stock; and will also generate additional real estate taxes. In addition, the City will receive $1,700,000 from the sale of the Property and will not be required to provide financial assistance for the Project or its related infrastructure improvements.
Recommendation:
Rec
Conduct a public hearing and approve the Resolution.
Body
WHEREAS, the City of Hampton (the “City”) owns two parcels of land currently identified as LRSNs 7000147 and 7000165, together with the City’s interest in an unimproved section of public right-of-way known as Barrack Street, all located within the Coliseum Central area and collectively containing approximately 4.0± acres (the “Property”);
WHEREAS, in February 2025, the City received an unsolicited proposal from Bonaventure Development, LLC, a Virginia limited liability company (the “Developer”), to acquire and develop the Property as an expansion of the adjacent Pinnacle Apartments community;
WHEREAS, the proposed development consists of the construction of approximately 100 to 132 market-rate multifamily residential units, together with associated parking, resident amenities, landscaping, infrastructure improvements, and related site improvements, and represents a minimum private capital investment of approximately Twenty Million Three Hundred Thousand Dollars ($20,300,000.00);
WHEREAS, the City has determined that the proposed development is consistent with and advances the residential development objectives of the Coliseum Central Master Plan by providing additional market-rate housing within the district;
WHEREAS, the City and the Developer have negotiated a Purchase & Development Agreement establishing the terms and conditions for the sale and development of the Property for a purchase price of One Million Seven Hundred Thousand Dollars ($1,700,000.00);
WHEREAS, the Property currently consists of two parcels identified as LRSNs 7000147 and 7000165 and, subject to a separate action by City Council, the City’s interest in an unimproved section of public right-of-way, all of which are contemplated for conveyance pursuant to the Purchase & Development Agreement;
WHEREAS, the Purchase & Development Agreement further contemplates that, subject to separate City Council approval, the City’s interest in the unimproved section of Barrack Street right-of-way will be vacated and assembled with the adjacent parcels into a single development parcel prior to conveyance of the Property;
WHEREAS, approval of the Purchase & Development Agreement does not constitute approval of any proposed vacation of the City’s interest in the unimproved portion of Barrack Street right-of-way; and
WHEREAS, City Council finds that the sale and development of the Property pursuant to the Purchase & Development Agreement is in the best interests of the citizens of the City of Hampton.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Hampton, Virginia, that:
1. Pursuant to the terms and conditions of the Purchase & Development Agreement, the City-owned Property described herein, consisting of two parcels currently identified as LRSNs 7000147 and 7000165, together with the City’s interest in the unimproved portion of Barrack Street right-of-way, if such right-of-way is vacated by separate action of City Council, is hereby authorized to be sold and conveyed to Bonaventure Development, LLC, or its permitted assigns, for the consideration and subject to the terms set forth in the Purchase & Development Agreement, including any separate City Council actions or approvals that may be required prior to conveyance.
2. The City Manager, or her authorized designee, is hereby authorized to execute, on behalf of the City, the Purchase & Development Agreement with Bonaventure Development, LLC, substantially in the form presented to City Council, together with such non-substantive modifications as may be approved by the City Attorney.
3. The City Manager, or her authorized designee, is further authorized to execute such documents and take such actions as may be necessary and appropriate to carry out the intent of this Resolution and the transactions contemplated by the Purchase & Development Agreement, including actions necessary to effectuate the sale, conveyance, and development of the Property in accordance with the Purchase & Development Agreement.
4. Nothing contained herein shall be construed as approval of the vacation of any portion of Barrack Street right-of-way. Any such vacation shall require separate authorization and approval by City Council in accordance with applicable law.
5. This Resolution shall be effective immediately upon adoption.