Title
Resolution Approving a Cooperation Agreement Between the City of Hampton, Virginia and the Economic Development Authority of the City of Hampton, Virginia and Authorizing the Execution of That Agreement and Related Documents to Facilitate the Acquisition of Certain Parcels in the Coliseum Central Area Located at 1805 West Mercury Boulevard and 1929 Coliseum Drive (LRSNs 7001258, 13002076, and 13002078)
Purpose
PURPOSE/BACKGROUND:
Hampton’s current hotel stock is high in extended stay and limited service accommodations which do not necessarily meet the demands of event attendees, convention planners and regional tourists considering Hampton. The number of modern full service and select service hotels is insufficient to support the current and future needs and consequently constrains other tourism related activities in Coliseum Central and throughout the City of Hampton.
A study by Hunden Strategic Partners concluded that business at Hampton Roads Convention Center plateaued over the past several years due to limitations of the room block potential. Under Council policy, the Economic Development Authority of the City of Hampton, Virginia ("EDA") is tasked with identifying and managing the redevelopment of commercial properties in the City.
Discussion:
The EDA staff and City staff have negotiated an Agreement for the Sale and Purchase of Property (the "Purchase Agreement") for the EDA's acquisition of the parcels that currently comprise the Quality Inn and related business suites, located at 1805 West Mercury Boulevard and 1929 Coliseum Drive, and identified as LRSNs 7001258, 13002076, and 13002078 (the "Property") in the City's land book. The key terms of the acquisition include (1) assignment and transfer of all real and personal property owned by Mercury Hospitality, LLC (the "Seller"); (2) a purchase price of $5,635,000.00; and (3) assignment and transfer of all long-term leases, including those of the tenants located in suites at 1929 Coliseum ...
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