EDA and VDOT reach deal over ownership – The Suffolk News-Herald
While the Virginia Department of Transportation has yet to find a buyer for its 87-acre property on North Main Street, it now knows where it will relocate the remaining employees and operations to that location when it is sold.
EDA will provide VDOT with 30 acres of the 37 acres it owns off Industrial Drive in Northgate Commerce Park, according to Deputy City Manager Kevin Hughes. Of this total, 30 acres will go to VDOT facilities, and the remainder of the remaining seven acres will be used by the city’s public works department to move its operating facilities from the C Zone it owns to Lone Star Lakes Park. .
In addition, the EDA will purchase an acre of the VDOT property adjacent to Obici Place at 1700 N. Main St. for $ 300,000, next to a 3.4 acre property the authority already owns and it keeps for a future cinema.
EDA signed a sales agreement with Cinema Café in March 2019 for the construction of a cinema hall, restaurant and bar. Incentives offered included $ 120,000 when Cinema Café received its certificate of occupancy and $ 30,000 for each of the following three years as part of the Economic Development Investment Program.
However, Hughes said the movie project is still on hold amid the coronavirus pandemic and its impact on this industry.
Hughes said nothing will happen until the state-owned land on North Main Street is sold. It could take several years, he said, before a movement takes place.
“This is a deal, so you still have to do your due diligence and make a deal,” Hughes said. “VDOT has a separate avenue where they try to sell their plot, so they have to finalize these deals and all the interactions for this development to happen, which has yet to take place. Before they can leave North Main (street), they have to sell that parcel and, of course, build a new operations center. Although we are taking action on a deal, we are still years away from these things that are happening. “
VDOT moved its Hampton Roads District headquarters, along with approximately 250 employees, from North Main Street to Lakeview Technology Center 2 at 7511 Burbage Drive in Harbor View in August 2018 after the General Assembly passed legislation in 2017 authorizing the agency to sell its North Main Street property and use the money for a new district office.
However, the VDOT stores were unable to relocate there due to the city’s zoning regulations. The agency said in March that the remaining operations and maintenance staff at the North Main Street site will be relocated based on the date the property is sold and the award of a construction contract for the construction. of the new neighborhood annex in Northgate.
The 87-acre property, zoned for general commerce, is valued at just over $ 16.4 million – over $ 12.6 million for land and almost $ 3.8 million for buildings – according to property records online. It has over 350 feet of frontage on North Main Street and over 4,000 feet of waterfront on the Nansemond River.
According to a real estate property listing, VDOT is looking for “offers with creative solutions including, but not limited to, sale and leaseback.” He also said that any buyer should allow VDOT to use parts of the property during the construction of their new facility.
VDOT’s Hampton Roads District includes more than 730 miles of main roads, nearly 4,000 miles of secondary roads, more than 4,700 miles of urban roads, and over 160 interstate miles across 11 cities and nine counties.