Title
Resolution to Authorize the Economic Development Authority of the City of Hampton, Virginia to Retain Certain Sales Proceeds from the Sale of Real Property in the Hampton Roads Center North Campus to Hampton Land Developer GP LLC to Use Those Funds to Finance Certain Infrastructure and Other Costs Related to the Development of that Real Property
Purpose
PURPOSE/BACKGROUND:
See Discussion.
Discussion:
The Economic Development Authority of the City of Hampton, Virginia ("EDA") owned approximately 90 acres in the Hampton Roads Center North Campus ("HRCN Campus"). As a means to encourage and facilitate development in the HRCN Campus, the EDA has been primarily responsible for the construction and installation of infrastructure improvements, including public streets, street lighting, water and sanitary sewer lines, and storm water drainage.
The EDA entered into a Development Agreement with Hampton Land Developer GP LLC on May 2, 2022, as amended, and as assigned to Hampton Logistics Owner LLC on May 22,2024 (the "Agreement") for the sale and development of approximately 31.947+/- acres in the HRCN Campus (the "Property") for further development at the price of $3,035,250.00 ("Gross Purchase Price"). This transaction closed on May 22, 2024.
Under the terms of the Agreement, the EDA is obligated to pay certain broker fees ($161,762.50), and to reimburse the Developer for the costs of construction of certain access roads and a stormwater pond (maximum reimbursement obligation $1,500,000.00), and the intersection signal at the intersection of Rocket Way (one of the new access roads to be constructed) and Neil Armstrong Parkway (maximum reimbursement obligation $750,000). The EDA is in possession of $2,954,368.75 (the "Cash Proceeds"), which is the amount of the Gross Purchase Price less one half (1/2) of the broker fees paid at closing, and requests to be retain that portion of those Cash Proceeds necessary to satisfy its obligations under the...
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