Title
Resolution Authorizing the City Manager to Enter into a Purchase & Development Agreement with S4K Development, LLC for the Sale and Development of City-Owned Property
Purpose
PURPOSE/BACKGROUND:
The City of Hampton (the "City") owns a parcel of land, identified currently as LRSN 1001047 located at 1680 Duke Street, formerly known as the Briar Queen Pool. The parcel contains approximately 3.7+/- acres (the "Property").
In June 2024, the City received an unsolicited proposal from S4K Development, LLC, a Virginia limited liability company (the "Developer"), to acquire the Property for the purpose of constructing a residential development on the Property and adjacent land, owned by the Developer, at 1706 Neptune Drive (the "Project"). The proposal was determined to be consistent with and to advance the residential development objectives of the City by adding additional market-rate housing.
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 $120,000.00 and the construction of a new residential development consisting of 22 single family homes of 2,800 to 3,000 square feet each, together with associated parking, resident amenities, landscaping and related infrastructure improvements, with design components consistent with the City of Hampton Design and Construction Standards. The Project will represent a minimum private capital investment of approximately $9,200,000.00. 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 November 30, 2027. The project is expected to expand housing opportunities and increase the City's tax base.
Discussion:
See Purpose/Background above.
Impact:
The proposed Purchase & Development Agreement will facilitate the development of approximately 3.7+/- acres of currently under-developed City-owned property along with 2.7+/- acres of privately owned underdeveloped land which will add 22 market-rate single family homes to the City's residential stock and will also generate additional real estate taxes. In addition, the City will receive $120,000.00 from the sale of the Property, will not have to incur pool demolition costs, 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 a parcel of land currently identified as LRSN 1001047, located at 1680 Duke Street containing approximately 3.7+/- acres (the "Property");
WHEREAS, in June 2024, the City received an unsolicited proposal from S4K Development, LLC, a Virginia limited liability company (the "Developer"), to acquire and develop the Property in conjunction with its 2.7+/- acre parcel located at 1706 Neptune Drive;
WHEREAS, the proposed development consists of the demolition of the pool, the construction of new roadway, and the construction of 22 market-rate single family residential homes, together with associated parking, resident amenities, landscaping, infrastructure improvements, and related site improvements, and represents a minimum private capital investment of approximately Nine Million Two Hundred Thousand Dollars ($9,200,000.00);
WHEREAS, the City has determined that the proposed development is consistent with and advances the residential development objectives of the City by providing additional market-rate housing;
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 Hundred Twenty Thousand Dollars ($120,000.00);
WHEREAS, in accordance with Section 15.2-1800 et seq. of the Code of Virginia, a public hearing was held concerning disposition of the Property subject to the Purchase & Development Agreement; 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 a parcel currently identified as LRSN 1001047, is hereby authorized to be sold and conveyed to S4K Development, LLC for the consideration and subject to the terms and conditions 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 S4K Development, LLC, substantially in the form presented to City Council, together with such modifications that do not adversely impact the City's interest as may be approved by the City Manager and City Attorney.
3. The City Manager, or her 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 transaction 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. This Resolution shall be effective immediately upon adoption.