Title
Resolution Approving the Acquisition of Elmwood Mobile Home Park Pursuant to the City's Right of First Refusal, Authorizing the City Manager to Execute an Agreement of Sale and Related Acquisition Documents, and Authorizing a Memorandum of Understanding Between the City of Hampton and the Hampton Redevelopment and Housing Authority Regarding Property Management
Purpose
Purpose/Background:
Elmwood Mobile Home Park (the "Property") is a manufactured home community located at 959 N. King Street in the City of Hampton (the "City"). The Property is owned currently by Great Bay Properties, L.C., a Virginia limited liability company (the "Owner").
Pursuant to Virginia Code Section 55.1-1308.3, the City received notice of a bona fide third-party offer to purchase the Property for $650,000, together with an earnest money deposit of $6,500. Due to the statutory time limitation for exercising the City's right of first refusal, the City exercised its right on October 1, 2026, to preserve the City's opportunity to acquire the Property pending formal consideration of the acquisition by City Council.
The Property consists of approximately 2.57 acres and contains fifteen manufactured home sites that provide an affordable source of housing within the City. The Property is currently assessed at $540,100. The Owner-provided operating information reflects an annual gross income of approximately $84,600, and an annual net operating income of approximately $52,790.
In connection with the acquisition, the City proposes to enter into a Memorandum of Understanding ("MOU") with the Hampton Redevelopment and Housing Authority ("HRHA"), pursuant to which HRHA will assist the City with the management and operation of the Property, including coordination with HRHA's property management company.
This Resolution authorizes the acquisition of the Property pursuant to the City's right of first refusal, authorizes the City Manager to execute an Agreement of Sale and related acquisition documents for the Property, and authorizes the City Manager to execute an MOU with HRHA concerning post-acquisition management of the Property.
Discussion:
The Property is an operating manufactured home community that presently provides housing opportunities for Hampton residents. Acquisition by the City will preserve an existing affordable housing resource, minimize potential resident displacement, and ensure continued operation of the Property as a mobile home park for at least 15 years. Ownership of the Property will also provide the City with an opportunity to evaluate long-term strategies for maintaining and/or improving the Property consistent with the City's housing goals.
Following the City's exercise of its right of first refusal, City staff commenced due diligence concerning the Property, including review of title and operating information. Environmental review, site assessment, and survey matters remain underway.
As stated above, following the acquisition of the Property, the City proposes to utilize HRHA to assist with the management and operation of the Property pursuant to an MOU. The day-to-day management services are anticipated to be provided through HRHA's existing contractual property management arrangements.
The acquisition of the Property would be funded through contingency funds appropriated in the FY27 Council Approved Budget. Additional available funds have been identified to cover due diligence costs. Management of the Property by HRHA will include post-acquisition management fees, costs, and expenses.
Impact:
The Property contains 15 manufactured home sites. Acquisition of the Property will preserve an existing manufactured home community, promote housing stability for its existing residents, and maintain the Property as a mobile home park for a minimum of 15 years as required by Virginia Code Section 55.1-1308.3.
Recommendation:
Rec
Conduct public discussion and take appropriate action.
Body
WHEREAS, Elmwood Mobile Home Park (the "Property") is a manufactured home community located at 959 N. King Street in the City of Hampton, Virginia (the "City"), owned by Great Bay Properties, L.C., a Virginia limited liability company (the "Owner");
WHEREAS, pursuant to Virginia Code Section 55.1-1308.3, the City received notice of a bona fide third-party offer to purchase the Property for $650,000, which included an earnest money deposit of $6,500;
WHEREAS, the City possesses a statutory right of first refusal to acquire certain manufactured home parks within its jurisdiction pursuant to Virginia Code Section 55.1-1308.3;
WHEREAS, on October 1, 2026, the City timely exercised its right of first refusal to acquire the Property upon substantially the same terms and conditions as contained in the third-party offer;
WHEREAS, due to the statutory time limitations associated with the City's right of first refusal, the City exercised such right prior to completion of its due diligence review in order to preserve its opportunity to acquire the Property, subject to subsequent approval by City Council of the necessary appropriation and acquisition documents;
WHEREAS, the Property consists of approximately 2.57 acres and contains 15 manufactured home sites that provide a source of affordable housing within the City;
WHEREAS, the Property is currently assessed at $540,100, and Owner-provided operating information reflects an annual net operating income of approximately $52,790;
WHEREAS, City Council finds that acquisition of the Property will preserve affordable housing opportunities for current residents in the City and satisfy the requirements of Virginia Code Section 55.1-1308.3, including continued operation of the Property as a manufactured home park for a minimum period of 15 years;
WHEREAS, City Council further finds that it is in the best interests of the City to authorize the Hampton Redevelopment and Housing Authority ("HRHA") to assist with management and operation of the Property pursuant to a Memorandum of Understanding ("MOU") between the City and HRHA;
WHEREAS, the acquisition of the Property will be funded with capital contingency funds appropriated as part of the City Council Approved FY 27 Budget to later be replenished with end of year savings; and
WHEREAS, the City anticipates reimbursing HRHA for expenses, costs, and fees associated with the management and operation of the Property pursuant to the terms of the MOU.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Hampton, Virginia, as follows:
1. Agreement of Sale Authorized Upon Satisfactory Due Diligence. Subject to satisfactory completion of due diligence as determined by the City Manager and City Attorney, the City Manager, or her authorized designee, is hereby authorized and directed to execute and deliver an Agreement of Sale, and any amendments thereto, substantially consistent with the terms and conditions of the third-party offer and purchase contract upon which the City's right of first refusal was exercised, together with such modifications as may be approved by the City Attorney.
2. Authority to Complete Acquisition. The City Manager, or her authorized designee, is further authorized and directed to execute and deliver all contracts, certifications, settlement documents, deeds, affidavits, closing statements, and such other agreements or instruments as may be necessary or convenient to accomplish the acquisition of the Property and completion of settlement.
3. Memorandum of Understanding with HRHA. The City Manager, or her authorized designee, is hereby authorized and directed to negotiate, execute, and deliver a Memorandum of Understanding between the City and the Hampton Redevelopment and Housing Authority ("HRHA"), subject to review and approval by HRHA, concerning the management and operation of the Property following acquisition, including reimbursement of management and operation costs, expenses, and fees reasonably related to the Property as expressly provided in the MOU, together with such modifications as may be approved by the City Attorney.
4. Further Actions Authorized. The City Manager, or her authorized designee, is authorized and directed to take such additional actions and execute such additional documents as may be necessary and appropriate to implement the intent of this Resolution, consummate the acquisition of the Property, and facilitate the ongoing management and operation thereof.