Title
Resolution to Amend the Fiscal Year 2025 Council Approved Budget to Appropriate a Total of $500,000 from the Capital Budget (Projects) Committed Fund Balance Account to the Capital Budget (Projects) Fund to fund a Contribution to the Hampton Newport-News Community Services Board
Purpose
PURPOSE/BACKGROUND:
Through a 20-year ground lease (the “Ground Lease”) with the Hampton Redevelopment and Housing Authority (“HRHA”), the Hampton Newport-News Community Services Board (“HNNCSB”) occupied 1644 Briarfield Road (the “Property”), and financed and constructed the building that remains on that property today. HNNCSB operated and maintained the Property to provide facility to provide housing and support to individuals with intellectual and physical disabilities. The Ground Lease expired May, 2021. About that time, HNNCSB moved to a model of housing those individuals in smaller homes, and contemplated continuing to use the Property to house some of its office and administrative functions, but recently opted to discontinue all use of the Property.
Pursuant to the terms of the Ground Lease, ownership of the ground and all improvements on the Property, including those financed and constructed by the HNNCSB became the property of the HRHA upon installation. The City, in cooperation with the HRHA, desires to now re-let the Property and improvements thereon. The Property was transferred to the HRHA by the City at no cost to the HRHA to facilitate the use by HNNCSB. Acknowledging the substantial investment made by the HNNCSB in the improvement and the Property, and the benefits HNNCSB continues to provide to Hampton citizens, the City desires to pay to HNNCSB the total sum of $800,000.
Staff has identified $300,000 in other funding sources to support the project, but an additional $500,000 from the Capital Budget (Projects) Fund Balance is needed. In order to complete the transaction in a timely manner, the staff is expending Strategic Properties funds. This appropriation will ultimately reimburse that account.
Discussion:
See Purpose/Background
Impact:
The HNNCSB will have additional funds to further its mission; and the HRHA and City will be able to re-let the Property.
Recommendation:
Rec
Approve the Resolution
Body
WHEREAS, the Hampton-Newport News Community Services Board (“HNNCSB”) financed and constructed the existing building on 1644 Briarfield Road pursuant to a ground lease with the Hampton Housing and Redevelopment Authority;
WHEREAS, the HNNCSB no longer has a use for the building and has agreed to relinquish any rights they may have to the building;
WHEREAS, the City of Hampton acknowledges the HNNCSB’s substantial investment in the building and their role as a valued community partner serving special populations in Hampton and desires to compensate HNNSCB $800,000 for that investment made; and
WHEREAS, $300,000 will be funded from other previously appropriated sources; the remaining $500,000 will be funded through the Capital Budget (Projects) Fund Balance Account.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hampton, Virginia that the Fiscal Year 2025 Council Approved Budget is amended and a total of $500,000 is appropriated from the Capital Budget (Projects) Fund Balance Account to the Capital Budget (Projects) Fund to be paid to HNNCSB for the purposes stated herein.
BE IT FURTHER RESOLVED that the City Council authorizes the City Manager, or her designee, to take necessary steps to implement the prescribed action.