Title
Resolution of the Council of the City of Hampton, Virginia Authorizing the Appropriation of $257,000.00 from the Economic Development Fund to the Economic Development Authority of the City of Hampton, Virginia to Finance Certain Infrastructure Costs Payable in Connection with The Phenix Commerce Center Development.
Purpose
PURPOSE/BACKGROUND:
The Economic Development Authority of the City of Hampton, Virginia entered into a Development Agreement with NP Hampton Commerce Center, LLC on November 9, 2022. Pursuant to that Agreement, the City of Hampton, Virginia would be responsible for up to $1,000,000.00 for intersection infrastructure work on Aberdeen Road and $257,000.00 for Pine Avenue infrastructure improvements. In FY24 $1,000,000.00 was appropriated for the intersection work; however, the $257,000.00 was not at the same time. The City has set aside $1.5 million in land sale proceeds for additional investments as identified by the Shell Road neighborhood, and those funds will not be impacted by this appropriation and will remain completely intact to support the identified neighborhood priorities.
Discussion:
The development, The Phenix Commerce Center, transformed the former Virginia School for the Deaf, Blind and Multi-Disabled site (closed in 2008) into active industrial use, potentially mitigating blight and underutilization. Being sensitive to the surrounding neighborhood, it incorporates a 10-acre park or buffer zone between the industrial buildings and neighboring residences to reduce the noise, traffic and visual impacts. Together, the two buildings form an integrated industrial park that totals approximately 834,000 square feet.
The Center is expected to generate around 250 permanent operational jobs. The development represents a $113 million capital infusion by NorthPoint and Elegran Capital. Once the project is completed and tenants are in place, it is estimated to generate significant new annual tax revenue.
As part of the Deve...
Click here for full text