Title
To declare a public necessity for and to authorize the acquisition of the parcels of real property owned by Richmond Outreach Center, Inc., and known as 6255 Old Warwick Road, 6277 Old Warwick Road, 6295 Old Warwick Road, and 6295A Old Warwick Road for the purpose of operating a public park, recreational center, and athletic fields.
Body
O&R REQUEST
DATE: April 2, 2014 EDITION: 1
TO: The Honorable Members of City Council
THROUGH: Dwight C. Jones, Mayor
THROUGH: Byron C. Marshall, Chief Administrative Officer
THROUGH: Christopher Beschler, Interim DCAO of Human Services
THROUGH: Sharon O. Judkins, DCAO of Finance and Administration
THROUGH: Jay Brown, Interim Director of Budget and Strategic Planning
THROUGH: Peter Chapman, DCAO of Economic Development & Planning
FROM: Norman C. Merrifield, Ed.D. Director of Parks, Recreation and Community Facilities
RE: Acquisition of Property Located at the Richmond Outreach Center, Inc. known as 6255, 6295, 6295A and 6277 Old Warwick Road, Richmond, Virginia (Tax Parcels # C0070099024, #C0070099032, #C0070099018, and #C0070099033) to serve District 9 with parkland and recreational programming.
ORD. OR RES. No.
PURPOSE: To declare a public necessity for and to authorize the Chief Administrative Officer (CAO) on behalf of the City of Richmond, to acquire approximately 17.774 acres of property and improvements from the Richmond Outreach Center. This property includes (4) four parcels of real property known as 6255, 6295, 6295A, and 6277 Old Warwick Road, Richmond, Virginia (Tax Parcels # C0070099024, #C0070099032, #C0070099018, and #C0070099033) with improved buildings and recreational facilities).
REASON: To acquire land and facilities for public parkland, athletic fields, a recreation center and special facilities located in a south section of Richmond (District 9), where currently no such public park or recreation facilities exist.
RECOMMENDATION: The Administration recommends adoption of this ordinance.
BACKGROUND:
The City would like to purchase the 17.774 acres that comprises approximately 70,943 square feet of building at an agreed upon price of $1,700,000.
The property contains:
• One full sized gymnasium (similar to a standard high school facility)
• A metal building that houses a practice boxing/fitness facility and three bay door
garages.
• A small school with approximately 26 classrooms and small cafeteria.
• A social recreational teen facility (small)
• A church chapel and sanctuary
• Two (2) single-family dwellings (one with a life estate agreement)
• A regulation size soccer field
• Two (2) little league baseball fields; and
• One (1) skate park
The properties are zoned R-3. The owner’s asking price was $2,600,000. The current combined City assessment for land and improvement for the 4 parcels is $2,838,000. Our offer was less, based on the current condition of the facilities which are in need of renovations to meet building codes for Parks and Recreations use. The gymnasium replacement cost alone was informally estimated at approximately $2 million from a well-respected architect that inspected the facilities. The majority of the facilities, after capital repairs, will be available and timely in terms of allowing for parks and recreational programming. Prior to the sale of the property the current owner will relocate an existing life estate from Tax Parcel # C0070099033 to a small parcel containing the Single-Family Dwelling located in the northwest corner of Tax Parcel #C0070099024 in order to cause the least impact on future Park and Recreation uses for the site.
FISCAL IMPACT/COST:
There is no additional cost to the City except for additional future debt service associated with a bond authorization amendment for $1,584,000.
FISCAL IMPLICATIONS: Current market conditions offer opportunistic buys for existing buildings at a cost well below the cost of new construction. The purchase option represented the best economic option for the City for long term use of the site for Park and Recreation purposes.
BUDGET AMENDMENT NECESSARY: Yes, Amend ORD 2013-66-80 - FY 2014 -18 Approved Capital Improvement Budget in the ‘Culture & Recreation Category’ for ‘Southside Community Center Project
(130-NEW) Council District 9.’
REVENUE TO CITY: Estimate $100,000-$150,000 annually from rental and program fees by the end of FY2016, subject to facility upgrades.
DESIRED EFFECTIVE DATE: Upon Adoption
REQUESTED INTRODUCTION DATE: April 28, 2014
CITY COUNCIL PUBLIC HEARING DATE: May 12, 2014
REQUESTED AGENDA: Consent Agenda
RECOMMENDED COUNCIL COMMITTEE:
CONSIDERATION BY OTHER GOVERNMENTAL ENTITIES: N/A
AFFECTED AGENCIES:
Mayor, Chief Administrative Officer, Richmond Public Schools, Office of the City Attorney, Department of Finance, Department of Budget and Strategic Planning, Department of Economic and Community Development, Office of the City Assessor, Department of Parks and Recreation, and Department of Planning and Development Review
RELATIONSHIP TO EXISTING ORD. OR RES.:
2013-66-80 - FY 2014 -18 Approved CIP budget.
REQUIRED CHANGES TO WORK PROGRAM(S): None
ATTACHMENTS: None
STAFF: Jane C. Ferrara
Norman C. Merrifield, Ed.D, Director of Parks, Recreation & Community Facilities
Edward M. Mangold, Senior Budget and Management Analyst
Peter L. Downey
Paul A. McClellan
Jim Duval