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To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute a First Amendment to Lease Agreement between the City of Richmond and Challenge Discovery Projects, Inc. for the purpose of providing outpatient behavioral health clinic services at 2405 Jefferson Avenue. (7th District)
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THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That the Chief Administrative Officer, for and on behalf of the City of Richmond, be and is hereby authorized to execute a First Amendment to Lease Agreement between the City of Richmond and Challenge Discovery Projects, Inc. for the purpose of providing outpatient behavioral health clinic services at 2405 Jefferson Avenue. Such First Amendment to Lease Agreement shall be approved as to form by the City Attorney and shall be substantially in the form of the document attached to this ordinance.
§ 2. This ordinance shall be in force and effect upon adoption.
City of Richmond
Intracity Correspondence
DATE: July 11, 2025 EDITION: 1
TO: The Honorable Members of City Council
THROUGH: The Honorable Danny Avula, Mayor
THROUGH: Odie Donald II, Chief Administrative Officer
THROUGH: Amy Popovich, DCAO for Human Services
THROUGH: Sharon Ebert, DCAO for Planning & Economic Development Planning
FROM: Chris Nizamis, Real Estate Manager – Real Estate Strategies/DED
RE: To Authorize the Chief Administrative Officer to Enter Into a First Amendment to Lease Agreement with Challenge Discovery Projects, Inc. at 2405 Jefferson Avenue.
ORD. OR RES. No.
PURPOSE: To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute a First Amendment to Lease between the City of Richmond, as lessor, and Challenge Discovery Projects, Inc., as lessee, for the purpose of providing outpatient behavioral health clinic services at the City-owned property located at 2405 Jefferson Avenue.
BACKGROUND: Challenge Discovery Projects, Inc. (CDP) wishes to enter into a 1-year First Amendment to Lease at the City-owned property located at 2405 Jefferson Avenue in order to operate a community-based resource center that provides a comprehensive and completely integrated service delivery system with a focus on the family unit and related uses. Their primary services will be an outpatient behavioral health clinic that focuses on the emotional health needs of Richmond’s youth and families living in the surrounding communities.
CDP currently leases 2405 Jefferson Avenue through a lease with the City that commenced on October 1, 2020 and expires on September 30, 2025. The First Amendment to Lease will be for a new 1-year term for the entire building and parking lot. Per the terms of the existing lease, CDP will pay $10.00/year as rent and CDP will also pay for all maintenance, repairs, utilities and operating expenses. The First Amendment to Lease will commence on October 1, 2025 and expire on September 30, 2026. In addition, if Landlord and Tenant, mutually desire to further extend the Term, then Landlord and Tenant may agree to further extend the Term by up to four (4) additional (1) year periods (each, an “Extension Term”) with written confirmation on or before September 1st prior to the then current expiration of the Term. Per the terms of the lease the City may terminate the lease at any time upon 90 days written notice to CDP.
COMMUNITY ENGAGEMENT: None
STRATEGIC INITATIVES AND OTHER GOVERNMENTAL: None
FISCAL IMPACT: Rental revenue in the amount $10.00/year will be received
DESIRED EFFECTIVE DATE: Upon adoption
REQUESTED INTRODUCTION DATE: September 8, 2025
CITY COUNCIL PUBLIC HEARING DATE: September 22, 2025
REQUESTED AGENDA: Consent Agenda
RECOMMENDED COUNCIL COMMITTEE: Land Use, Housing and Transportation Sub-Committee meeting (September 16, 2025).
AFFECTED AGENCIES: Economic Development and Planning, Human Services and the City Attorney’s Office.
RELATIONSHIP TO EXISTING ORD. OR RES.: Companion Ordinances: 2020-195 adopted on September 28, 2022.
ATTACHMENTS:
- Existing lease Agreement
- Parcel ID information and supporting documentation for 2405 Jefferson Ave.
STAFF: Chris Nizamis, Real Estate Strategies/DED