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HomeMy WebLinkAboutHampton Roads Transit Land RequestHRT Corporate Landing Development Proposal City Council – August 12, 2025 Amanda Jarratt, Deputy City Manager Purpose •Provide a background of the Hampton Roads Transit (HRT) Development Proposal for a Bus Operations Facility in Corporate Landing Business Park •Review the requested development agreement terms between HRT and The City of Virginia Beach Development Authority (VBDA) 2 Disclosures •Applicant – Hampton Roads Transit, William Harrell President, Sibyl Pappas, Chief Engineering Officer •Legal Services – Williams Mullen, Stephen Romine •Architect – Dills Architects, Clay Dills •Engineer – STV, Inc., Eric Nelson •Landscape Architect – Rhodeside & Harwell, Inc. •Broker – Colliers International, Ken Benassi 3 Proposal Background •HRT approached the City and VBDA in 2021 with interest in developing a new $64 million Southside Bus Operating Division Facility •The facility would utilize offshore wind purchased through Dominion Energy to power the facility, buses and create 120 jobs •The existing HRT Parks Avenue facility at the Resort is no longer meeting the system’s needs and would allow for regional transit system growth •The development was proposed to be completed by the end of 2024 •In June 2023 HRT received a $25 Mil grant from the FTA for the facility 4 Proposed Sale Background VBDA (Corporate Landing Business Park Owner) approved a resolution to sell 11 acres to HRT in Sept. 2021 for the facility on the following terms: •HRT was to purchase 11 acres from VBDA at $200,000/acre or appraised value •HRT had until October 2022 to complete their due diligence and close on the property •HRT was responsible for any infrastructure improvements necessary for its project other than road access and 60% impervious coverage stormwater treatment 5 Proposed Sale Background Continued •All deadlines for the VBDA 2021 resolution to sell have expired •No final agreement was reached between the parties in accordance with the sale terms •A binding purchase agreement was never executed • An option agreement was never proposed or discussed in order for HRT to control this property while different sale terms were negotiated 6 •The facility would require City Council Approval of (2) CUPs and Modification of Corporate Landing Proffers for reduced setbacks: i.The Maximum Building and Paved Area Coverage for the Property shall be 85% rather than 65% ii.The rear property line setbacks shall be 10 ft. rather than 30 ft. iii.The side yard setback on the Southern boundary of the Property shall be 5 ft. rather than 15 ft. Proposed Facility Considerations 2022 HRT Bus Facility Conceptual Site Plan 7 •Changed terms and expired deadlines rendered September 2021 VBDA Resolution inoperative. New approval required to proceed. •In early 2024 HRT requested VBDA consider permitting enhanced use of its regional stormwater management system over the 60% impervious cover treatment VBDA would typically provide •HRT offered $13,000 initially to have up to 85% of its runoff accommodated and then increased its offer to $400,000 •VBDA has never offered this to any other Corporate Landing Business Park user, and in December 2024, declined to agree to this request for a non-tax-paying entity 8 Alternative Sale Terms Proposed Declined 2024 HRT Bus Facility Conceptual Site Plan Current Situation •All deadlines for the VBDA 2021 resolution to sell have expired •No final agreement was reached between VBDA and HRT in accordance with the sale terms •A binding purchase agreement was never executed between VBDA and HRT •VBDA is actively marketing the site for development opportunities •VBDA and City staff have communicated to HRT that they are happy to assist in identifying a suitable alternative location in Virginia Beach for the bus facility 9 Questions? 10