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HomeMy WebLinkAbout333 Laskin Road Proposed Sale Terms333 Laskin Road - Term Sheet for the Sale of City Property Emily Archer, Economic Development Deputy Director City Council Briefing, August 12, 2025 Purpose •Provide background of the RFP for the former Papa Johns building at 333 Laskin Road •Review the negotiated Terms for Sale for 333 Laskin Road •Seek Council direction on next steps 2 333 Laskin Road •Ownership: City of Virginia Beach •Lessee: Papa Johns (to relocate) •Property: 0.327 Acres/14,246 SF •Purchased: April 29, 2011 as part of the Laskin Road Gateway Project, Phase 1-A (CIP 2-143) road project, for $1,427,000 •January 2023 Appraised Value: $1,680,000 •Zoned: OR •City Council District: 6 3 4 333 Laskin Road – RFP Process •Council directed an RFP be issued in Spring 2024 following multiple separate requests for purchase received by Public Works Real Estate •RFP issued for 60 days: December 1, 2024 – February 3, 2025 •Publicized: •Virginian Pilot Legal Ad, Virginia eProcurement Marketplace •Economic Development Website, www.yesvirginiabeach.com/rfp •Direct Distribution via email to Economic Development/PW Real Estate List •Sign on Property •Two responses received •Review Committee convened: February 2025, one recommended for acceptance and advancement •Council Closed session briefings: March 2025 (direction to negotiate) & June 2025 (review of sale terms) VB Laskin Road LLC Disclosures •Applicant: VB Laskin Road LLC •Representatives Ashley Wiltshire, Daniel Shiff, Andrew Shiff, & Stacey Singer •SJG Properties – Ashley Wiltshire, Managing Member •EB5 Capital – Daniel Shiff, Chief Investment Officer •The Brody Family •Accounting: Toole Katz & Roemersma, LLP •Architect: Poole & Poole •Engineer: Timmons Group •Legal Services: Troutman Pepper – Rob Beaman SJG Properties 5 6 VB Laskin Road LLC Proposal Concept •215 multifamily apartment units (5-6 stories) •Approx. 20,000 SF of ground floor commercial and amenities •330-space parking deck •Estimated capital investment: $64 Mil •Anticipated timeline: 22 – 24 Months after receipt of building permits 7 VB Laskin Road LLC Proposal - Rendering 8 VB Laskin Road LLC Proposal Zoning Analysis •30th ½ St. incorporated – Alley closure will require City Council Approval and agreement from neighbors •Corner utility easements will need to be addressed •Parking structure setback on 30th St to be addressed •75’ Ht Requirement met •Parking Requirements met VB Laskin Road LLC Proposal 20-Year Fiscal Impact Analysis REVENUE Real Estate $26,849,629 Restaurant**- Utility**- BPOL 2-yr exempt**- General Sales**- Sale of 333 Laskin Road $1,500,000 Total $28,049,629 EXPENDITURES Expenditures - Nominal Difference $28,049,629 New Present Value $17,532,461 Avg. Annual Real Estate Revenue $1,278,554 •**Existing retail space on commercial property effectively offsets the anticipated retail •Project is estimated to generate an annual average of $1,278,554 in new real estate taxes per year 9 Proposed Sale Terms For Consideration •Developer to purchase 333 Laskin Road & City’s 30 ½ St Alley Easement for $1.5 Million •A 180 day due diligence period prior to closing is proposed for further site investigation •Purchase price could be reduced up to $300,000 for utility easements that would impede the construction of structures once confirmed by survey •City to retain approval rights to project scope •City to demolish the existing structure •Developer to provide evidence of satisfactory financing •Developer responsible for any necessary utility relocation •City can recapture property if construction has not commenced within three years of closing 10 11 Proposed Next Steps 1.Public Hearing and Public Comment on Proposed Sale – August 19th 2.City Council vote on the Term Sheet and to authorize the development and execution of sale documents – September 2nd Discussion