Title
Resolution Authorizing the Execution of a Lease Agreement Between the City of Hampton and Newport News Shipbuilding Employees’ Credit Union, Inc., d/b/a BayPort Credit Union, for the Lease of Approximately 1,200 Square Feet of City-Owned Property Located on the Third Floor of City Hall at 22 Lincoln Street for the Operation of a Credit Union Branch
Purpose
PURPOSE/BACKGROUND:
In 2015, the Hampton City Employees’ Credit Union (HCECU) merged with Newport News Shipbuilding Employees’ Credit Union, Inc., d/b/a/ BayPort Credit Union (“BayPort”). To provide for a smooth transition and continued credit union services for City employees, the City entered into a lease agreement with BayPort for the operation of a credit union branch in the same location previously occupied by HCECU. BayPort has continuously operated a branch from that location since 2015.
The most recent lease expired on August 31, 2026. BayPort desires to continue leasing approximately 1200 square feet of space on the third (3rd) floor of the City Hall, a City-owned property, located at 22 Lincoln Street, Hampton, Virginia (the “Premises”), for the operation of a credit union branch and all related and necessary activities.
The proposed lease agreement is for a term of five years, commencing September 1, 2026, and expiring August 31, 2031. The annual rent for the first lease year shall be $2,843.00, and shall increase by three percent (3%) annually over the rent for the preceding lease year.
Discussion:
BayPort has provided on-site financial services to City employees and other members from its City Hall location for more than a decade. Approval of the proposed lease agreement will allow BayPort to continue operating its Hampton City branch from the Premises and maintain uninterrupted service at this location. The proposed lease terms are substantially consistent with prior lease arrangements while providing for an annual rent increase over the term of the lease.
Impact:
The proposed lease will generate rental revenue for the City, while allowing BayPort to continue providing convenient financial services to City employees and members of the credit union.
Recommendation:
Rec
Conduct a public hearing and approve the Resolution
Body
WHEREAS, the City of Hampton (the “City”) owns the real property located at 22 Lincoln Street, Hampton Virginia (the "Property");
WHEREAS, in 2015 and again 2021, the City and Newport News Shipbuilding Employees’ Credit Union, Inc., a Virginia non-stock corporation, doing business as BayPort Credit Union (“BayPort) entered into lease agreements for approximately 1,200 square feet of space located on the third (3rd) floor of the Property (the “Premises”);
WHEREAS, BayPort desires to continue leasing the Premises for the operation of its Hampton City branch;
WHEREAS, City staff has determined that it is in the best interest of the City and the community to permit BayPort to continue leasing the Premises for the provision of credit union services; and
WHEREAS, the City Council has determined that the terms and conditions of the proposed lease agreement are acceptable.
NOW THEREFORE, BE IT RESOLVED, by the Council of the City of Hampton, Virginia, as follows:
1. That the lease agreement between the City and Newport News Shipbuilding Employees’ Credit Union, Inc., doing business as BayPort Credit Union ("BayPort"), together with such non-material revisions as may be approved by the City Attorney, is hereby approved; and
2. That the City Manager or her Authorized Designee is authorized to execute and deliver to BayPort the lease agreement, in substantially the form attached hereto, and to execute such additional documents as may be necessary to effectuate the purposes of this Resolution.