Loading...
HomeMy WebLinkAboutII. B. Innovation Park Update 1.14.2025Virginia Beach Innovation Park Amanda Jarratt, Deputy City Manager City Council Briefing January 14, 2024 Purpose •Provide a history of Virginia Beach’s Innovation Park •Review the current status of the Park and Industrial Land in the City 2 Location •The Innovation Park is located with Princess Anne Commons Special Economic Growth Area (SEGA) 4 of the current Comprehensive Plan. •Princess Anne Commons is designated as a SEGA in recognition of its economic development opportunities based on the existing medical, research, entertainment, recreation, and athletic facilities in the area and the suitability of such uses within the Interfacility Traffic Area (ITA). 3 Background •2014 - Mayor Sessoms established the 'Virginia Beach Biomedical and Health Sciences Task Force' to explore the creation of a biomedical and healthcare hub in Princess Anne Commons. After conducting a market study, the Task Force examined the benefits of diversifying the City's economy with biomedical and healthcare industry growth. The Task Force determined that the creation of a Biomedical Park in Princess Anne Commons would be an effective method for the promotion of those industries. •April 2016 - 150-acre conveyance to VBDA to promote the expansion of the biomedical and healthcare industry in the City •December 2016 - Conditional Rezoning from AG-1 & AG-2 to I-1 with Design Guidelines and Proffers Adopted 2014 Conceptual Park Master Plan 4 Background Cont.1 2017 ITA Plan Park Vision: •Regional trail network to be incorporated throughout park •Wooded area adjacent to Princess Anne Road to be preserved •Development to be consistent with The 2016 Princess Anne Commons Design and Development Guidelines •Park to incorporate stormwater best practices and incorporate low- impact development principles 2017 ITA Plan Vision for the VA Beach Bio Park 5 Background Cont.2 •May 2017 – VA Beach Bio Infrastructure Phase I CIP (9-030) adopted by City Council for $3,349,000 to design and construct the first phase of Infrastructure to support the Park •May 2018 - VA Beach Bio Infrastructure Phase I CIP (9-030) increase to $3,709,000 adopted by City Council •2019 to 2020 – First phase of Park Infrastructure construction completed •July 2020 – 14.4 acres sold to YCH LLC for three medical office buildings for $1.86 Mil (was never constructed and recaptured by VBDA in 2023) Biomedical Industry in Virginia Beach Economic Development pivoted in 2020 from the VB Beach Bio Park to the Innovation Park based on a number of factors: •The biomedical ecosystem (work force & higher ed) in Virginia Beach was not developed enough to attract biomedical companies •Biomedical attraction is ongoing, but has shifted to smaller domestic recruitment and retention efforts that are aligned with an office market •The pandemic caused a surge in advanced manufacturing markets, causing the expansion of the Park’s focus to keep and grow key businesses in Virginia Beach 6 Background Cont.3 •Oct. 2020 – Growth and Opportunity VA State Site Readiness Grant received from Commonwealth for $866,900 to help fund sanitary park infrastructure expansion •May 2021 – VA Beach Innovation Park Infrastructure II CIP (#100576) is adopted by City Council for $6,000,000 the second phase of infrastructure to extend Hudome Way and long-range planning for the entire park. •May 2023 - VA Beach Innovation Park Infrastructure II CIP (#100576) project cost increased is adopted by City Council for $18,659,000 •June 2023 – Innovation Park Design and Development Guidelines and Proffer Updates adopted by City Council to provide more guidance for contemporary light industrial/advanced manufacturing buildings and add additional protections for the Princess Anne corridor viewshed •Oct. 2023 – Phase II Infrastructure construction began 7 8 Innovation Park Context Map Innovation Park Current Status •Available (Signal coming spring 2025) 9 Innovation Park Businesses Acoustical Sheetmetal Company (ASC): •Manufactures sound-reducing weather-protective enclosures for power equipment •Dec. 2020 – ASC purchased 19.3 acres for $1.35 Mil (Land Incentivized as City’s Commonwealth Opportunity Fund Match) for a $16.5 Mil manufacturing facility. •March 2023 – ASC purchased 5.1 acres for $350k for parking needed to accommodate their second, $26.4 Mil manufacturing facility •Total of 380 new jobs created and $43 Mil invested to date •Generates approx. $250k/year in real estate taxes First 100,000 SF facility completed in 2021 Second 135,725 SF facility completed in 2024 10 Innovation Park Businesses2 Architectural Graphics Inc. (AGI): •Provides branding services and signage solutions to a diverse set of clients •May 2022 – 40.1 acres sold to AGI for $4.6 Mil (Incentive Contribution) for a multiphase, 410,000 SF manufacturing facility and corporate headquarters •Oct. 2023 – AGI facility and Innovation Park Infrastructure Phase II construction began •500 retained jobs anticipated •Phase one capital investment: $41 Mil •A second 200,000 SF addition is being planned, estimated at $28 Mil First 210,000 SF facility construction underway Completion anticipate Fall 2025 11 Industrial Demand •4,237 Acres of Industrial Zoned Land in Virginia Beach •115 Acres, or 2.7%, of industrially zoned land is currently undeveloped and for sale •27% of the undeveloped industrially zoned land for sale in the City is within the Innovation Park Industrial Data City of Virginia Beach Region Average Vacancy Rate 4.6%3.6% 12 Month New Absorption SF 198,200 SF 770,378 SF Average Market Asking Rent/SF $11.85 $10.42 Industrial-Zoned Land For Sale 115 Acres 2,438 Acres Average Size of Industrial- Zoned Parcel For Sale 9.6 Acres 14 Acres Largest Industrial-Zoned Parcel For Sale 38.6 Acres 708 Acres Smallest Industrial-Zoned Parcel For Sale 3.0 Acres 0.4 Acre Source: CoStar December 2024 12 Innovation Park Potential Expansion Options2 Contiguous: •Would require ITA Amendment and conditional rezoning from AG to Industrial •Rough Order of Magnitude Infrastructure Costs = $5-$7 Mil •Conflicts with ITA Sports Center Vision 29 Acres (+/- 21 developable) 13 Innovation Park Potential Expansion Options22 Non-Contiguous: •Would require ITA Amendment and conditional rezoning from AG to Industrial •Rough Order of Magnitude Infrastructure Costs = $25-$30 Mil (+/- 450 developable) 14 Questions 16