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To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute a Sixth Amendment to Lease between the City of Richmond, as lessee, and Saul Subsidiary I Limited Partnership, as lessor, for the purposes of enabling the City to continue using 52,411± square feet of the property located at 4100 Hull Street Road for the Department of Neighborhood and Community Services and other City functions.
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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, is hereby authorized to execute a Sixth Amendment to Lease between the City of Richmond, as lessee, and Saul Subsidiary I Limited Partnership, as lessor, for the purposes of enabling the City to continue using approximately 52,411 square feet of the property located at 4100 Hull Street Road for the Department of Neighborhood and Community Services and other City functions. Such Sixth Amendment to Lease 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
O&R Transmittal
DATE: March 23, 2026
TO: The Honorable Members of City Council
THROUGH: The Honorable Danny Avula, Mayor
THROUGH: Odie Donald II, Chief Administrative Officer
THROUGH: Sharon L. Ebert, DCAO for Planning & Economic Development
THROUGH: Amy Popovich, DCAO for Human Services
THROUGH: Leticia Shelton, DCAO for Finance and Administration
THROUGH: Meghan Brown, Director of Budget and Strategic Planning
THROUGH: Angie Rodgers, Director of Economic Development
FROM: Christopher Nizamis, Real Estate Manager - Real Estate Strategies/DED
RE: Sixth Amendment to Lease of 4100 Hull Street Road
ORD. OR RES. No.
PURPOSE: To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute a Sixth Amendment to Lease between the City of Richmond, as lessee, and Saul Subsidiary I Limited Partnership, as lessor, for the purposes of enabling the City’s continued use of approximately 52,411± square feet of the property located at 4100 Hull Street Road for the Department of Neighborhood and Community Services and other City functions.
BACKGROUND: On January 13, 1997, the City of Richmond (on behalf of the Department of Social Services and other City functions) entered into a lease agreement for approximately 26,411 square feet at 4100 Hull Street Road. The 2nd Amendment, dated February 23, 2005, increased the lease premises by 26,000 square feet to a total of approximately 52,411 square feet. The 3rd Amendment, dated April 1, 2016, extended the lease term another three years and removed most operating expenses from the City’s responsibility. The 4th Amendment extended the term an additional three years. The 5th Amendment, dated March 28, 2022, extended the term an additional three years.
The current lease expired on March 31, 2025, and as such, the City desires to extend the lease for up to fifteen years with an option to extend for five additional years, which will enable the continued use of the space by DNCS, DSS, DJS, Finance and other City Agencies. DNCS will continue to use the space following DSS’ move to 300 E. Franklin Street in December of 2025. DSS will continue to operate out of Southside Community Services Center but in a reduced capacity.
The City has negotiated a reduced rent for the extended term of $399,075/year 1 ($15.00/sf.) to be paid in monthly installments of $33,256.25. This results in a reduction in the base rent of $164,434.24 annually (from $563,418.24 to $399,075.00) and by $13,695.27 monthly (from $46,951.52 to $33,256.25). This agreement reflects the Lessor providing the 2nd floor of the space at no additional charge.
In addition, the City will receive a Tenant Improvement allowance of $576,521.00 from the Lessor to be used for needed site improvements and the removal of the Common Area Maintenance costs. The City can sublease the 2nd floor to other supporting tenants which could help offset the monthly rent obligations. Lastly, the Lessor will replace all existing HVAC units, repair the elevator to ensure safe operation, and perform all necessary repairs to the roof and windows of the building and other building items as responsible by the Lessor.
COMMUNITY ENGAGEMENT: The City’s commitment and presence at this location has been informed by ongoing engagement with residents and members of Council to ensure Southside residents have equitable access to critical City services and resources.
STRATEGIC INITIATIVES AND OTHER GOVERNMENTAL: Mayoral Action Plan, particularly the following pillars:
1. A Thriving City Hall
2. Thriving Neighborhoods
5. Thriving and Inclusive Communities
7. A City That Tells its Stories
FISCAL IMPACT: The City will pay an estimated annual rent of $399,075/year ($33,256.25/month) for the first year with an annual escalation of three percent for subsequent years and will continue to be responsible for costs associated with utilities (except for trash removal), janitorial services, security personnel, and alarm system fees (as is the case under the lease currently).
Note: the fiscal impact realizes a reduction in the base rent of $164,434.24 annually (from $563,418.24 to $399,075.00) and by $13,695.27 monthly (from $46,951.52 to $33,256.25).
DESIRED EFFECTIVE DATE: Upon adoption
REQUESTED INTRODUCTION DATE: April 27, 2026
CITY COUNCIL PUBLIC HEARING DATE: May 26, 2026
REQUESTED AGENDA: Consent agenda
RECOMMENDED COUNCIL COMMITTEE: Education and Human Services (May 14, 2026)
AFFECTED AGENCIES: Budget and Strategic Planning, City Attorney’s Office, Neighborhood and Community Services and Real Estate Strategies/DED.
RELATIONSHIP TO EXISTING ORD. OR RES.: Ord. No. 97-223-237; Ord. No. 2004-322-298; Ord. No. 2016-108; Ord. No. 2019-077; Ord. No. 2022-089
ATTACHMENTS: Sixth Amendment to Lease
STAFF:
Dominic Barrett, Senior Policy Advisor - Neighborhood and Community Services
Christopher Nizamis, Real Estate Manager - Real Estate Strategies/DED
Stephen Harms, DCAO Office