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. ...
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